The Future of Actuarial Jobs in a Data-Driven World

4 min readMay 8, 2023

In a rapidly digitizing world, it’s no surprise that the role of actuaries is changing, too. Long-known as number crunchers and statistical analysts, actuaries are now tasked with utilizing their skills not only to predict potential risks in a company or market but also to apply data-driven strategies in order to improve organizational efficiency and productivity.

With advancements in predictive analytics and artificial intelligence, actuaries are now positioned at the intersection of tech and risk management, leveraging new technology to identify complex patterns and transforming traditional investments into novel digital investment opportunities.

As technology continues to revolutionize this profession, let’s take a look at what the future holds for actuaries in a data-driven world.

Who Is an Actuary?

Financial risk forecasting is the specialty of actuaries, often known as actuarial scientists. Data is gathered, and algorithms are used to determine the potential for profit or loss.

Actuary jobs are becoming increasingly important in this age of technology, data, and increasing levels of financial and risk management.

By leveraging complex actuarial models and analytical processes, actuaries can use their skills to identify and reduce financial risks, quantify exposures, and design plans for optimal risk mitigation.

Actuaries use predictive models to analyze the probability of certain events occurring and the potential financial effects so that businesses can better manage risk and optimize profits.

With their increasingly important role in the financial world, it’s easy to see why actuary jobs are some of the most coveted in the market today.

By 2020, 76% of actuaries worked in finance and insurance, according to the BLS. Actuarial data science, a new topic of actuarial science, applies machine learning to known domains.

Also Read: IMF Updates Its 2023 Global Growth Projections, Among Other Important Economic News This Week

Possible Careers for an Actuary

Common career paths for actuaries include working in insurance or finance, providing pension plans, pricing products sold by banks or other lenders, or as a financial analyst. Actuaries also often work in fields such as healthcare, manufacturing, or information technology.

In any industry where long-term decisions must be made based on uncertain risks, actuarial science has an important role to play.

Actuary jobs are expected to expand by 24% between 2020 and 2030, according to the BLS. It is substantially faster than the average for all professions. The median actuary jobs income in 2020 was $111,030.

A bachelor’s degree is often required for entry-level work in the trade. Some actuaries major in mathematics or statistics, but most study actuarial science.

Experienced actuaries may qualify for managerial jobs and higher remuneration. As of March 2021, the average yearly compensation for an actuarial manager was $123,560, according to salary data compiled by PayScale.

What Precisely Does an Actuary Do?

Actuaries are highly trained professionals who analyze financial and statistical data to evaluate risks in business, industry, and government.

They use sophisticated mathematical and analytical tools to determine the best ways to manage the risks associated with economic losses, such as insurance claims or pension payments.

Actuaries also use their knowledge of probability and statistics to identify trends and patterns in the data, understand how future events might impact the results of their work, and advise their employers on the best strategies for weathering any financial risk.

The role of actuary jobs often entails the following tasks:

Estimating when something could happen in the future based on patterns in the past.
Figuring out how much money a customer will make on their investments
Estimating the potential monetary losses of the future
The Validity of Data Interpretation
Calculations made using actuarial modeling software
Setting up policies for the business
Price comparisons of insurance policies
Factors in natural catastrophes, joblessness, and accidents are calculated.

Also Read: 10 Steps To Use Color Psychology To Give Your Business An Edge

What Is the Process of Becoming an Actuary?

Actuaries traditionally need a bachelor’s degree in actuarial science. You might also have a bachelor’s degree in mathematics, finance, statistics, economics, and two actuarial tests.

1. Exam P

Exam P is all about taking a chance. To take the exam, you must first sign up with the Society of Actuaries before the deadline and then book a testing session with Prometric. The three-hour, multiple-choice exam you’ll be taking will be administered by computer.

2. Exam FM

FM stands for “Financial Mathematics” on the exam. It’s a three-hour, multiple-choice exam administered on a computer. Exam FM registration is handled by the Society of Actuaries and Prometric in the same way Exam P registration is dealt with.

Apply for associateship after completing your actuarial exams and earning your first job. You will need to take further tests and choose a specialty: health, life, or property insurance.

You should know that becoming an actuarial scientist requires extensive study and examination.

Nevertheless, it is a good and evolving area for people who like mathematics and problem-solving.

In a Data-Driven Society, What Is the Future of Actuarial Jobs?

With advances in data analysis tools, actuaries will increasingly be called upon to provide insight on how to interpret and use data for better risk management and more accurate product pricing.

As such, actuaries must be well-versed in the latest technologies such as predictive analytics and machine learning, in order to stay competitive. The future of actuarial jobs looks bright, as they will continue to play a crucial role in a data-driven world..more