What does an Actuarial Analyst do?
Published 4 min read
An Actuarial Analyst is responsible for analyzing and interpreting data to assess risk and make recommendations accordingly. This may include working with insurance companies to set premiums, or with investment firms to determine which stocks are worth investing in.
Actuarial Analyst job duties include:
- Research and analyze data to calculate probability of events such as death, sickness, accidents, or natural disasters
- Select appropriate models to price insurance policies, annuities, and other financial contracts
- Determine the financial impact of proposed changes in legislation affecting social insurance programs
- Develop risk management strategies to minimize the cost of insuring against adverse events
- Prepare reports and presentations to communicate findings to clients or senior management
- Stay up-to-date on developments in the field by reading actuarial publications and attending conferences
- Participate in professional organizations or committees to contribute to the advancement of the profession
- Mentor junior colleagues or act as a resource on actuarial topics for other departments within the company
- Manage projects from start to finish, including scope definition, workplan development, resource allocation, and quality control
Actuarial Analyst Job Requirements
In order to become an Actuarial Analyst, one must first obtain a bachelor's degree in mathematics, statistics, actuarial science, or another closely related field. Many employers also require that candidates have at least one year of experience working in the insurance industry. In addition, candidates must pass a series of exams administered by the Society of Actuaries in order to earn the designation of Associate of the Society of Actuaries.
Actuarial Analyst Skills
- Analytical skills
- Probability
- Statistics
- Mathematics
- Financial analysis
- Actuarial science
- Risk management
- Insurance
- Pension funds
- Investment
- Banking
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How to become an Actuarial Analyst
An actuarial analyst is a professional who uses mathematical and statistical methods to assess risk in the insurance and finance industries. Actuarial analysts are often employed by insurance companies, but they may also work for banks, investment firms, and government agencies.
Becoming an actuarial analyst typically requires a bachelor’s degree in mathematics, statistics, actuarial science, or a related field. Many employers also require candidates to pass one or more exams administered by the Society of Actuaries or the Casualty Actuarial Society.
Actuarial analysts use their skills to evaluate insurance policies, calculate premiums, and design benefit packages. They also develop models to predict the likelihood of future events, such as natural disasters or stock market crashes. In addition, actuarial analysts may be involved in pricing new insurance products or assessing the financial impact of proposed mergers and acquisitions.
If you are interested in becoming an actuarial analyst, you should start by taking courses in mathematics and statistics. A solid understanding of calculus and linear algebra is essential for success in this field. You should also be proficient in computer programming languages such as R or Python, as well as software packages such as Excel and SAS. In addition to your coursework, you should consider participating in internships or co-op programs at insurance companies or other organizations that utilize actuarial analysts. These experiences can give you valuable insights into the day-to-day work of an actuary and help you network with potential employers.
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