These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘actuary.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. The Society of Actuaries promotes several different actuarial exams to demonstrate competency in the field. Actuarial science is also applied to property, casualty, liability, and general insurance–instances in which coverage is generally provided on a renewable period, (such as yearly). For example, disability rates are determined for veterans that may have been wounded in the line of duty.
AccountantAccountants are responsible for recording, organizing, and analyzing financial transactions for businesses and individuals. They prepare financial statements, such as balance sheets, income statements, and cash flow statements, to provide an overview of an organization’s financial performance. Accountants may also handle https://1investing.in/ tasks like tax preparation, bookkeeping, budgeting, and financial reporting. They ensure compliance with accounting principles and regulations, helping businesses maintain accurate financial records and make informed financial decisions. Actuaries have a deep understanding of mathematics, statistics and business management.
As the global economy demonstrates increasing complexity and regulatory demands, these professions become increasingly essential for individuals, businesses, and governments eager to adapt. The second organization, the Casualty Actuarial Society (CAS), specializes in certifying actuaries for property and casualty risk for businesses and governments. Lauren Ford is an actuarial assistant with Encompass, an Allstate Insurance subsidiary in Northbrook, Illinois, that sells several insurance products for a single premium to consumers. She holds a bachelor’s degree in actuarial science and accounting and has worked at Allstate for two years. The Society of Actuaries best prepares individuals for risk management careers in traditional and emerging industries.
- “Pricing actuaries estimate future losses and expenses so that we can charge an adequate price for insurance,” Ford said.
- Accountants may also handle tasks like tax preparation, bookkeeping, budgeting, and financial reporting.
- Such skills make them critical to the operations of insurance companies and lending institutions.
- He typically leaves the office between 6 and 7 p.m., unless a client or regulatory deadline requires him to work later.
- Most accountants and actuaries start out as entry-level employees at accounting firms or insurance companies, where they work while preparing for the litany of exams that will move their careers farther along.
Certain percentages are assigned to the extent of the disability to determine the payout from disability insurance. Many tax accountants work six or more days a week and 10-plus hours a day during tax season, which stretches from January through April. Many career accountants earn the title of certified public accountant (CPA). Few professions place as much dependence on a single title as accountants place on the CPA designation. In every case, they keep track of money spent, money taken in, and money owed in taxes.
For the next hour and a half, the consultant might discuss his company’s interpretation of an IRS pension regulation with other consultants and write a memo to document it so they are consistent whenever it applies in the future. “The ‘where’ is usually in the office, because we’re so much more productive face-to-face,” he said, but his consulting firm’s employees are not in the office on the weekends. “We take all our planned vacations, but we might keep up on email while we’re out or do some work on a plane,” he added.
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Actuary ranked second in best business jobs and third in best jobs for STEM. According to the latest BLS wage data, the median annual wage for actuaries in 2021 was $113,990. Julia Kagan is a financial/consumer journalist and former senior editor, personal finance, of Investopedia.
Lauren Ford, Actuarial Assistant, Allstate Insurance
Other meetings deal with Medicare and Medicaid issues such as rate development, financial reporting, or encounter data. He has been working with individual, group, and government health insurance programs for 20 years and is an expert in many areas, including Medicare, Medicaid, and consumer-directed health products. He is a fellow of the Society of Actuaries and a member of the American Academy of Actuaries. A mathematician who uses statistics to calculate insurance premiums. While the workplace is primarily indoors and office-based, actuaries may occasionally attend meetings with clients, regulators, or attend industry conferences and seminars to stay updated on the latest developments in their field. The work environment for actuaries tends to be intellectually stimulating, requiring a strong focus on analytical thinking, problem-solving, and attention to detail.
Universities and Professional Certifications
An actuary specializes in assessing and managing financial risks in various industries, with a primary focus on insurance and pension plans. Actuaries play an important role in designing insurance policies, setting premium rates, and determining reserves to ensure the financial stability and solvency of insurance companies. ActuaryActuaries are specialists who assess and manage financial risks, particularly in the insurance and pension industries. They use advanced statistical and mathematical techniques to analyze data and calculate the likelihood of future events, such as accidents, illnesses, or deaths, and their potential financial impact. Actuaries play a crucial role in setting insurance premiums, designing insurance policies, estimating future claims, and ensuring the financial stability of insurance companies and pension funds. They work with complex data to develop models and projections that aid in decision-making related to risk management, investment strategies, and pricing.
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Short-term and long-term bond rates greatly influence pension plans and their investment strategies. Bonds are debt instruments issued by governments and corporations that typically pay a periodic interest rate. For example, in a low-interest-rate environment, a pension plan might have difficulty earning income from the bonds that it has invested in, which increases the probability that the pension plan could run out of money. Both professions allow for a very balanced work-life schedule, especially compared to that of many of their peers in the financial industry. Most surveys and studies, such as Glassdoor, consistently rate accountants and actuaries highly in terms of work stress, hours on the job, job security, and work-life balance. Most accountants and actuaries start out as entry-level employees at accounting firms or insurance companies, where they work while preparing for the litany of exams that will move their careers farther along.
They communicate their findings and recommendations to non-technical stakeholders, providing insights and guidance for informed decision-making. Actuaries voicing their ideas and advice on opportunities for actuaries, what’s next for the actuarial profession, industry trends and actuaries as business professionals. Actuarial exams usually last between 3 and 5 hours, and each requires rigorous preparation. Candidates must often have a bachelor’s degree, and it make take up to a decade for a candidate to complete all training and exams.
In the pension industry, actuarial science compares the costs of alternative strategies with regard to the design, funding, accounting, administration, and maintenance or redesign of pension plans. A pension plan is a defined-benefit plan, which is a type of retirement plan involving contributions from the employer to be set aside and paid out to the employees upon retirement. Such skills make them critical to the operations of insurance companies and lending institutions. Both base the rates for their services on an actuary’s analysis of the risks involved in the transaction. Her work varies considerably from day to day, depending on the projects she’s tackling.
With this, they help businesses grow and provide value to their customers. Actuaries help leaders make strategic decisions and consumers prepare for their future. For most, it may take up to a decade actuary meaning or longer to become an actuary. A bachelor’s degree in actuarial science may take between 3 to 5 years, and it may take at least another several years to pass rigorous professional actuarial exams.
As a pricing actuary, Ford says she is able to maintain a work-life balance and does not have one season with intense deadlines, so she is able to schedule vacations easily. “Sometimes we work additional hours to meet a project’s deadline, but our schedules are fairly flexible,” she said. Use the word comparison feature to learn the differences between similar and commonly confused words. Take our free career test to find out if actuary is one of your top career matches.
Such an analysis is input in the decision-making process for major new initiatives. Staff at his consulting business typically begin their day at 8 a.m. Checking email newsletters for retirement-industry news and responding to short client questions. At 9 a.m., the consultant might spend an hour meeting with a staff analyst on a retiree medical valuation to clarify how the client’s benefits work and what assumptions the company should use to value the liabilities.
