With the scope of actuarial science gaining popularity, the average salary of an actuary has also shot up in recent years. In this article, we have provided the salary ranges that one can expect in this domain.
Anybody having the slightest idea of the theory of probability will understand the beauty behind this most researched and extensive branch of mathematics. Ever wondered if we could predict the occurrence of an earthquake or any natural disaster before it actually occurs? And then based on our calculations, we would be able to avert the immense loss to man and property that these disasters can cause. And the same body of knowledge can be applied to determine the frequency of occurrence of an event, and therefore, the risk involved in statistical terms. Yes, actuarial science applies mathematical and statistical methods to assess risk in insurance, finance, and other professions, and its financial consequences. A professional who specializes in this domain is known as an ‘actuary.’
Average Pay Range
The starting salary for those who have worked for a year is USD 51,000 per annum. For those with work experience of more than one year and less than four years, it is USD 60,000 per year. And those having work experience of five to nine years, the average pay is USD 90,000 per year. Senior professionals with 10 – 15 years experience can earn between USD 112,000 – USD 130,000 annually.
There are various factors that affect their salaries. The starting pay depends on the educational qualification, internship experience, and the type of industry. In the initial years, the compensation is between USD 50,000 to USD 55,000 per year. Basically, an actuary’s earning potential is similar to that of an MBA graduate, and even better than them in some cases.
Job Description
Actuaries are the professionals specializing in actuarial science whose sole objective is to predict the occurrence of an event that carries risk, and its financial implications. This is usually a part of the risk management strategy of a company. Most of these professionals work for insurance firms; however, they may also be employed with the government, banks, and corporate firms. Through probability charts and statistical data, they come to a conclusion about how much an insurance firm should charge the policyholder for a certain type of coverage.
Accordingly, insurance firms charge appropriate premium so that they can remain profitable. They also contribute to developing new financial or insurance plans, and conducting risk assessment of assets and liabilities. They are also required to regularly prepare presentations and reports to be shared with the management. Some of them may also work in a consulting role, advising firms on risk management.
Since actuaries became chief designers of the financial security programs in the US, career opportunities in this field have increased tremendously, and this has regularly been voted as one of the hottest professions by many top job search sites. The U.S. Bureau of Labor Statistics predicts that these jobs will grow by 26% annually till 2022, much faster than the other occupations. So, if you have strong mathematical, analytical, and problem solving skills, with a degree in statistics or economics, this can be a promising career to earn some good money.