Actuary

What does an actuary do?

• Build statistical models to estimate the chance and cost of events such as illness, accidents, deaths or natural disasters.
• Calculate insurance prices and the reserves companies need to pay future claims.
• Value pension schemes and advise employers on how much they need to pay in.
• Test how organisations would cope with shocks such as market crashes or pandemics.
• Check that insurers hold enough capital to meet the rules set by regulators.
• Explain complex results clearly to managers, clients and regulators.

Where do they work?

Most actuaries work for life, health and general insurers, reinsurers, and consultancies that advise pension schemes and employers. Others work for banks, investment firms, government actuarial departments, social security agencies and financial regulators. A growing number use their skills in healthcare, data science and climate risk. The work is office-based, and hybrid working is common. Trainees combine a full-time job with study, which makes exam periods demanding.

What skills do you need?

• Probability and statistics
• Financial mathematics
• Risk modelling
• Programming, for example R, Python or SQL
• Advanced spreadsheets
• Business and economic understanding
• Explaining technical results in plain language
• Professional judgement and ethics

Official skills profile (ESCO)

Essential skills listed for this occupation in ESCO, the European Commission's multilingual classification of skills and occupations.

• synthesise financial information
• apply statistical analysis techniques
• produce statistical financial records
• perform risk analysis
• advise on financial matters
• analyse market financial trends
• provide support in financial calculation
• create a financial plan
• obtain financial information

Essential knowledge: financial products · actuarial science · statistics

How do you become an actuary?

Most actuaries have a degree in mathematics, actuarial science, statistics, economics, physics or engineering with strong mathematical content. Graduates join an employer as actuarial trainees or analysts and work through the exams of a professional actuarial body. Examples include the Society of Actuaries and the Casualty Actuarial Society in North America, and the Institute and Faculty of Actuaries, which has members in many countries. Qualifying usually takes several years of study alongside full-time work, and many employers give paid study leave. Some accredited degrees give exemptions from early exams. People in other numerical jobs can also start the exams later in their career.

1. Actuarial science degree. A degree in actuarial science covers probability, statistics, financial mathematics and insurance. Accredited programmes can give exemptions from some professional exams, which shortens the time to qualify. Internships with insurers or consultancies are important, because graduate hiring is competitive and employers look for proven interest.
2. Other numerical degree. Graduates in mathematics, statistics, physics, economics or engineering are widely hired as actuarial trainees. Employers look for strong mathematical ability and, increasingly, programming skills. Some candidates pass one or two professional exams before applying, which shows commitment and makes their application stronger.
3. Apprenticeship or technician route. In some countries, including the UK, school leavers can join actuarial apprenticeships or study for an actuarial technician qualification while working. These routes can lead to full qualification over time. They are less common than graduate entry, so check what employers offer in your country.

Degrees that lead to this career

• Mathematics

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• Data science

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• Economics

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• Physics

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Do you need a licence to work as an actuary?

Actuarial work is partly regulated. The title actuary is usually linked to membership of a professional actuarial body, which sets exams, ethics codes and continuing training. In many countries, certain tasks are required by law to be done by a qualified actuary, such as signing off insurance reserves or pension scheme valuations, sometimes with an extra practising certificate. Some actuarial bodies have mutual recognition agreements. Check the rules of your national actuarial association and your insurance or pensions regulator.

How much does an actuary earn?

Pay in the United States

• $130,000Median annual wage, May 2025
• $78,570–$215,100Range from the lowest-paid 10% to the highest-paid 10%
• 26.7KPeople employed in the US

US Bureau of Labor Statistics, Occupational Employment and Wage Statistics, SOC 15-2011, May 2025. National estimates across all industries; excludes the self-employed.

Earnings of Professionals around the world

Most countries do not publish pay for single job titles. The International Labour Organization collects median monthly earnings for broad occupation groups instead. This career belongs to ISCO-08 major group 2, "Professionals". The table covers the whole group, which includes actuary and many other occupations.

Source: ILOSTAT, median monthly earnings of employees, latest year available. PPP$ adjusts for price differences between countries so figures can be compared. "vs all employees" compares the group's median with the median for all occupations in the same country.

Career progression

1. Actuarial trainee or analyst
2. Part-qualified or associate actuary
3. Qualified actuary (fellow)
4. Senior or lead actuary
5. Chief actuary or partner

Job outlook

Actuaries are needed wherever long-term financial risk has to be measured, so insurance, pensions and healthcare provide steady demand. New areas such as climate risk, cyber risk and longer life expectancy are widening the work. Data science and AI tools are changing how models are built, and data scientists now compete for some analytical tasks. However, regulated sign-off roles still require qualified actuaries. The profession is small and entry is competitive, but qualified actuaries are usually in steady demand.

Questions about becoming an actuary

How long does it take to become an actuary?

Becoming a fully qualified actuary usually takes several years after your degree, because you study for professional exams while working full time. The exact time depends on the actuarial body, your exemptions and how quickly you pass. Many people first reach an associate level and then continue towards fellowship, the full qualification, over the following years.

Are actuarial exams hard?

Yes, they are widely seen as very demanding. They cover advanced mathematics, statistics, finance and business applications, and each exam needs many weeks of study. It is common to fail some exams and retake them. Good time management, study support from your employer and steady practice make a big difference.

What degree do you need to be an actuary?

Most actuaries studied mathematics, actuarial science, statistics, economics, physics or engineering. The degree subject matters less than strong mathematical ability, because the professional exams are highly numerical. An accredited actuarial science degree can give exemptions from some exams, but graduates in other numerical subjects are also widely hired.

Can actuaries work in other countries?

Often yes, but it depends on your qualification and the local rules. Some actuarial bodies have mutual recognition agreements, so members can join another body with little or no extra study. Regulated roles, such as signing off insurance reserves, may require local membership or a practising certificate. International insurers and consultancies sometimes support moves between offices.

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Sources

1. US Bureau of Labor Statistics — Occupational Employment and Wage Statistics — SOC 15-2011, national estimates, May 2025
2. ILOSTAT — Median monthly earnings of employees by occupation — ISCO-08 major groups, latest year per country
3. European Commission — ESCO occupation profile — ESCO code 2120.1

How to cite this page: CourseToJob (2026). How to become an actuary: degrees, skills and salary. https://coursetojob.com/careers/actuary/ (accessed September 26, 2026)

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