What is Actuary?

Actuaries are experts in:

• evaluating the likelihood of future events,
• designing creative ways to reduce the likelihood of undesirable events,
• decreasing the impact of undesirable events that do occur.

Actuaries are the leading professionals in finding ways to manage risk. It takes a combination of strong analytical skills, business knowledge and understanding of human behavior to design and manage programs that control risk.

The actuarial profession has consistently been rated as one of the top five jobs in the United States according to Jobs Rated Almanac. Actuaries are the analytical backbone of our society's financial security programs.

How do actuaries manage risk?

Here are a few examples:

1. Would as many people be willing to own a home if fire insurance did not exist?
2. Would a company build a factory that could be destroyed in an earthquake if it were not protected by insurance?
3. Would people spend money today and still be confident about their future if there were no retirement programs or social security?
4. Would the cars people drive be safe if the parts were not rigorously tested to last for many years using mathematical techniques actuaries routinely use?
5. Would parents enjoy risky and adventurous recreational activities such as rock climbing or skiing if their children faced financial disaster in the event of an accident?
6. Would the banks (and the money deposited in them) be safe if their assets and liabilities were not carefully managed to control financial risk?
7. Would the returns on our investments be high if financial institutions such as mutual funds, banks, and insurance companies did not use sophisticated techniques to improve returns without increasing risk too much?

Where do actuaries manage risk?

Actuaries work in all sectors of the economy, though they are more heavily represented in the financial services sector, including insurance companies, commercial banks, investment banks and retirement funds. They are employed by corporations as well as the state and federal government. Many work for consulting firms. Some are self-employed, enjoying financially rewarding careers that also come with the great flexibility of being one's own boss.