Employment of actuaries is expected to grow rapidly through 2016. Job opportunities should remain good for those who qualify, because the stringent qualifying examination system restricts the number of candidates.
Employment change. Employment of actuaries is expected to increase by about 24 percent over the 2006-16 period, which is much faster than the average for all other occupations. Employment growth in the insurance industry—the largest employer of actuaries—is expected to continue at a stable pace, while more significant job growth is likely in other industries, such as health care and consulting firms.
Steady demand by the insurance industry should ensure that actuarial jobs in this key industry will remain stable during the projection period. Although relatively few new jobs will be created, actuaries will continue to be needed to develop, price, and evaluate a variety of insurance products and calculate the costs of new risks. The demand for actuaries in life insurance has been growing rapidly as a result of the rise in popularity of annuities, a financial product offered primarily by life insurance companies. In addition, the risk of terrorism and natural disasters has created a large demand for actuaries in property insurance.
Some new employment opportunities for actuaries should also become available in the health-care field as health-care issues and Medicare reform continue to receive attention. Increased regulation of managed health-care companies and the desire to contain health-care costs will continue to provide job opportunities for actuaries, who will also be needed to evaluate the risks associated with new medical issues, such as genetic testing and the impact of new diseases. Others in this field are involved in drafting health-care legislation.
A significant proportion of new actuaries will find employment with consulting firms. Companies that may not find it cost effective to employ their own actuaries are increasingly hiring consulting actuaries to analyze various risks. Other areas with notable growth prospects are information services and accounting services. Also, because actuarial skills are increasingly seen as useful to other industries that deal with risk, such as the airline and the banking industries, additional job openings may be created in these industries.
Despite the increase in employment overall, there has been some decline in the demand for pension actuaries. This is due in large part to the decline of defined benefit plans, which required review by an actuary, in favor of investment based retirement funds, such as 401ks.
Job prospects. Opportunities for actuaries should be good, particularly for those who have passed at least one or two of the initial exams. In addition, a small number of jobs will open up each year to replace actuaries who leave the occupation to retire or transfer new jobs. Candidates with additional knowledge or experience, such as computer programming skills, will be particularly attractive to employers. Most jobs in this occupation are located in urban areas, but opportunities vary by geographic location.
Actuaries held about 18,000 jobs in 2006. Over half of all actuaries were employed by insurance carriers. Approximately 21 percent work for professional, scientific and technical consulting services. Others worked for insurance agents and brokers and in the management of companies and enterprises industry. A relatively small number of actuaries are employed by government agencies.
Job Zone 5 - Extensive preparation
Overall Experience
Extensive skill, knowledge, and experience are needed for these occupations. Many require more than five years of experience. For example, surgeons must complete four years of medical school and up to an additional five to seven years of specialized medical training to do their job.
Education
At a minimum, a bachelor's degree is required for these occupations. However, many also require a graduate school degree such as a Master's, Ph.D., M.D., or J.D. (law degree).
Job Training
Employees may need some on-the-job training, but most of these occupations require that you already have the necessary skills, knowledge, work-related experience, and/or training.
Examples
Lawyers, instrumental musicians, physicists, counseling psychologists, and surgeons.
These occupations often involve coordinating, training, supervising or managing the activities of others. Very advanced communication and organization skills are required.
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Career information on actuaries specializing in pensions is available from:
- American Society of Pension Actuaries, 4245 N. Fairfax Dr., Suite 750, Arlington, VA 22203. Internet: http://www.aspa.org
For information about actuarial careers in life and health insurance, employee benefits and pensions, and finance and investments, contact:
- Society of Actuaries (SOA), 475 N. Martingale Rd., Suite 600, Schaumburg, IL 60173-2226. Internet: http://www.soa.org
For information about actuarial careers in property and casualty insurance, contact:
- Casualty Actuarial Society (CAS), 4350 N. Fairfaix Dr., Suite 250 Arlington, VA 22203. Internet: http://www.casact.org
- The SOA and CAS jointly sponsor a Web site for those interested in pursuing an actuarial career. Internet: http://www.BeAnActuary.org
For general information on a career as an actuary, contact:
- American Academy of Actuaries, 1100 17th St. NW., 7th Floor, Washington, DC 20036. Internet: http://www.actuary.org
Sources: O*Net data version 12.0
Occupational Outlook Handbook
Department of Labor
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