When most people hear the word actuary, they’re probably going to picture spreadsheets, thick-rimmed glasses, and specialized calculators. The reality is far more interesting. (Though, to be fair, the spreadsheet part is pretty accurate.)
Part math, part research, and part critical thinking, actuaries work behind the scenes to help businesses, governments, and communities make data-driven plans for the future.
Joseph Brown ’20 is an actuary leading work on the landlord product at Liberty Mutual Insurance. He came to the career through a recommendation from his high school guidance counselor, and says what he’s truly enjoyed about actuarial work is the combination of business and mathematics.
“I’m a big math guy, but I don’t love pure math,” he shared. “I also love business, but not enough to work in finance or anything like that. A lot of people think actuarial work is just pure math all the time, but it’s really more about the complex theory behind it.”
Kate Scott ’22 is an Actuarial Associate, LTC Inforce Management, at John Hancock. She said she loves her work so much that she’s planning to stay in the field for her whole career.
“There is good job security, a pretty good work-life balance, and high earning potential,” she explained. “There is also so much variety in the work that an actuary does. At my company, there are opportunities to join new teams when we no longer feel like we’re learning or being challenged. Having that ability to keep learning helps keep the job interesting.”
Yes, But What Do You DO?
Actuaries spend their days using complex data to build models, analyze trends, and run scenarios to answer questions about risk and uncertainty.
But what does that actually mean for a day-to-day job?
Jessica Kaufman, Associate Dean of Science & Technology and Chair of Engineering, Computer Science & Mathematics, said that essentially, actuaries create mathematical models to replace gut-feeling decision-making.
“More people want to make data-informed decisions,” she explained. “The old idea of an actuary is making risk calculations for life insurance—now it’s things like climate change or energy use risk. Can I build a building in the Seaport, or will it be flooded? If I build a factory in Ohio, is Microsoft going to come in and build a data center and double my electricity costs? It’s a lot of solving new problems for every client you work with.”
Brown breaks it down simply: research, email communications, and a lot of work in Excel.
“I work on our landlord product, so I deal with state managers who have landlord-specific questions that I need to answer,” he said. “If I’m not doing that, I’m going to be working on our profitability level. In a sense, do we need to increase our premiums? How much loss is coming in? Where and why are those losses happening? Why weren’t those losses happening a year ago?”
According to Scott, critical thinking and problem-solving are daily requirements, as are strong communication skills.
“It’s our job to analyze data and model results,” she explained. “Then we have to be able to communicate the story of the results to various parties, tailoring the presentation for different levels of technical understanding.”
If You Give a Gull an Excel Sheet…
One of the smaller majors on campus, Endicott’s Applied Mathematics with a Concentration in Actuarial Science program is setting Gulls on a path to success through a combination of extensive test prep, student-centered attention, and the Endicott Experiential Edge.
School of Science and Technology Professor Phil Lombardo teaches the “lab” component of the program, which revolves around helping students prepare for the many professional exams required to become a full actuary.
“We talk about test-taking strategies and smart guessing,” Lombardo explained. “In the debrief after the practice lab, we discuss several different approaches to a problem while placing an emphasis on common shortcuts that can save time. I also have students take a reflective role, cataloging their common mistakes and tracking areas where they need extra practice.”
Scott said one of the most influential experiences of her time at Endicott was attending prep classes for the first two exams an actuary takes, especially because most employers require applicants to have passed at least one exam before hiring them.
“These classes set students up for success on those exams, and, in turn, for success in finding an actuarial internship or career post-grad,” she said.
And when it comes time for finding that position, Kaufman said, “we have employers outnumbering students.”
“I think that what employers see is ‘Oh, you're trained in mathematics and have excelled at complex problem solving, so we can train you to do anything else, and we need you on our team,’” she shared.
The outlook is good: according to the Bureau of Labor Statistics, actuary salaries are the highest median pay among STEM fields, with 2,400 job openings projected each year.
After you’re hired, Brown explained, it’s common for companies to pay for your study materials and exam registration, as well as give time during the workday for studying. As someone who just recently registered to take the last of the 10 required exams, he has certainly taken advantage of that support.
Setting the Record Straight
Both Brown and Scott agree that there’s one big misconception about actuaries: “I think a lot of people assume that we're math nerds who aren't social and just hang out in a dark room and type on our computer and crunch numbers. But that’s not the case,” Brown explained with a laugh. “I've really found that a lot of them are very social individuals who enjoy having fun.”
Scott posits that a strong sense of community comes from the rigorous exam process.
“People study together and celebrate or commiserate together on results day,” she shared.
With all those exams to pass, that adds up to quite a lot of connections.