Reasons to Become an Actuary

Good Wages
Ability to Solve Problems
Popular Career
Job Security
Rewarding Job

There are several reasons why an individual might choose to become an actuary. Actuaries are an important commodity in the financial world and are especially valuable to insurance companies. Actuaries use their skills and knowledge of data and algorithms to help insurance companies save money. They collect and analyze data, estimate the probability of loss, and offer advice to insurance companies on what they should charge customers for premiums. Actuary is a career that offers good job growth, excellent salaries and an exciting and challenging workday. Here are 5 reasons why one might want to be an actuary.

1. Good Wages

One motivating factor in becoming an actuary, other than a love of math and crunching numbers, is the excellent wage potential. The U.S. Bureau of Labor Statistics states that actuary wages nationwide ranged from $61,140 to $186,110 as of May 2018. The average yearly wage for actuaries across the nation was $116,250. Factors such as work experience, employer, degree level, and location can all affect wages. The states where actuaries earned the highest wages are New York, Connecticut, Washington, District of Columbia, and New Hampshire.

2. Ability to Solve Problems

Working as an actuary puts the candidate in a position where he or she can be a real problem solver. Although actuaries may work for various types of financial institutions, most of them work for insurance companies. Insurance companies pay out millions of dollars in claims each year and often don’t get a return on their money even with the premiums they get from customers. Actuaries compile and analyze data on drivers to determine their risk factors, which provide them with information on what types of premiums the customer should pay based on the data. Their ability to solve problems by saving the company money is a huge factor in choosing this career.

3. Popular Career

Actuary is a very popular career choice and one that’s chosen by many individuals for many different reasons. It has good job security, offers good wages, and provides the individual with challenging work that is also very rewarding. U.S. News & World Report ranks actuary No. 11 among Best Business Jobs; No. 23 among Best STEM Jobs; No. 24 among Best Paying Jobs; and No. 54 among 100 Best Jobs. All of these factors make it a popular job for the right individual.

4. Job Security

With the economy fluctuating as it has in recent years, the financial industry has been up and down, yet actuaries continue to be very much in demand because of their ability to help businesses save money and cut down on risks and losses. The BLS claims that they should continue to be in demand for some time to come. They’re expected to see job growth of 20 percent between 2018 and 2028. With so much uncertainty in the job market, many candidates choose actuary as a job choice because of the job security it provides.

5. Rewarding Job

Few things can make a job more fulfilling and rewarding than being able to solve problems and help others save money. Working as an actuary is extremely rewarding for several reasons. Very seldom do you see actuaries unemployed or laid off from a job. Actuaries are almost thought of as heroes with companies like insurance companies because it’s the actuaries who help them save money and reduce loss. Actuaries are paid very well for their services. Because actuaries are generally people who enjoy working with numbers, it makes sense that actuaries have the advantage of being paid good money for doing something they love doing.

Reasons to Become an Actuary

Although actuary may be an unfamiliar term to many, the career is an exciting one to almost everyone lucky enough to become actuaries. Very seldom will you find a job that is not only as exciting but also as one that offers such good pay yet only requires a bachelor’s degree. These are just a few of the many reasons why people choose to become an actuary.