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Imagine if businesses could see into the future: they would be invincible. Growth would be unprecedented and risk would disappear. However, fortune tellers (probably) aren’t real, so companies hire the next best thing—Actuaries. For the analytically-minded Vanderbilt student who may be considering finance or tech, actuarial work stands out as a different way to apply technical prowess and make real, high-impact decisions.
What is an Actuary?
The US Bureau of Labor Statistics defines an actuary as someone who “use[s] mathematics, statistics, and financial theory to analyze the economic costs of risk and uncertainty.” As the Social Security Administration puts it, actuaries quantify risk. In practice, this means two things:
- They predict the timing of random events in the future using past data to find trends.
- They then calculate the amount of money that should be invested now so there is enough money in the future to cover any losses that occur as a result of these events.
Actuaries primarily work in insurance, an industry built on uncertainty and risk. Whether it’s a sudden accident or an unexpected illness, insurance claims vary widely, so companies need actuaries to ensure they stay profitable and can always pay future claims. They are often compared to underwriters, but share different responsibilities. Actuaries analyze risk on a statistical level, providing models and rates to assess individual applicants (whether to approve coverage, adjust premiums, add exclusions, etc.). Beyond insurance, actuaries also find roles in consulting, finance, and healthcare. Growing recognition of the value of actuaries has put many of them into the federal government, working for the IRS, Social Security Administration, Medicare & Medicaid Services, Department of Housing and Urban Development, Department of Defense, and more.
According to Indeed.com, while they will vary by industry, an actuary’s specific responsibilities may include:
- Designing new insurance policies, including the monthly premium and coverage
- Estimating the chances and costs of accidents, injuries, or illnesses.
- Presenting findings to managers, clients, shareholders, or government officials.
- Working with analysts to determine where new insurance products are needed.
To accomplish these tasks, actuaries use statistical software, programming languages, and industry-specific platforms. The most common include R, Python, Microsoft Excel, and SQL.
Day in the Life
While an actuary’s day-to-day is unpredictable, here is a closer look at the typical schedules of two mock professionals, courtesy of the Society of Actuaries. For one senior consulting actuary at a consulting firm in Chicago, the day starts bright and early:
6:30 AM – Treadmill for 45 minutes, shower, dress, eat breakfast, and head out.
8:00 AM – Scan and respond to emails while commuting on the train.
8:45 AM – Settle into desk and review materials for tomorrow’s prospective client meeting, where the firm is bidding for a $1.2 million assignment
9:15 AM – Return a client’s call about an alternate funding option for their new retirement plan and schedule a meeting.
9:30 AM – Meet with the internal project team to review costing models.
11:30 AM – Lunch with a former coworker.
12:45 PM – Help a colleague troubleshoot a calculation error.
1:00 PM – Finish responding to emails.
1:30 PM – Continue work on a profit-sharing plan design for a consumer products company.
2:45 PM – Give feedback on candidate resumes to HR.
3:00 PM – Practice tomorrow’s presentation.
6:45 PM – Meet fiancé and have dinner with friends.
9:30 PM – Arrive home, pack for tomorrow’s business presentation, and relax
Over in Jacksonville, Florida, an insurance company’s mock actuarial analyst’s day looks like this (again, courtesy of the Society of Actuaries):
6:00 AM – Wake up, start coffee, get ready, and prepare the kids for the day.
7:20 AM – Run back inside for travel mugs—more coffee.
7:30 AM – Drop the kids at daycare and drive to the office.
8:30 AM – Attend the weekly team meeting to review priority project updates and learn about the upcoming system upgrade.
10:00 AM – Review quarterly claims data and prepare notes for management.
12:00 PM – Quick lunch with coworkers and check emails.
1:15 PM – Begin building a new claims analysis model using actuarial software.
2:30 PM – Meet with manager to discuss adjusting the annual forecast and get invited to present new changes to executives.
3:15 PM – Meet with coworkers to brainstorm ideas for employee learning programs.
4:30 PM – Commute home (eg on bus) while reading about industry regulations.
6:05 PM – Pick up children, make dinner, and spend time with family.
8:00 PM – Prepare for the next day and relax with family.
Wage & Stability
As of May 2024, actuaries earned a median wage of $125,770. As companies’ financial risks become more complex and they increasingly rely on data-driven analysis, demand for actuaries is rising. Actuary employment is projected to grow 22 percent in the next decade, placing it in 8th position on the Bureau of Labor and Statistics’ fastest-growing jobs. The U.S. News & World Report ranks actuary as 5th in technology jobs, 7th in STEM jobs, and 11th overall in its 2026 “Best Jobs” rankings, and 13th in “20 Best Jobs for Work-Life Balance in 2025.” In-house actuaries typically work standard 40-45 hour weeks, which is much more manageable than many high-profile finance and tech jobs. Consulting actuaries usually have higher and more unpredictable hours, and require frequent travel to meet with clients.
How to Become an Actuary
Career Tracks
Actuaries choose between two professional tracks based on industry focus, represented by the organizations Society of Actuaries (SOA) and Casualty Actuary Society (CAS). SOA works with life, health, retirement insurance, and investments (long-term risks), while CAS specializes in property & casualty (P&C) insurance such as auto, home, and commercial liability (short-term, event-driven risks).
General Path
To become an actuary, one must pass a series of exams to become certified. The foundational exams can be taken prior to college graduation. For students who may be strong test takers, this makes the career path especially appealing. These exams test the ability to apply quantitative tools to analyze financial risk, each focusing on a specific skillset.
Both SOA and CAS recommend completing an internship during college to gain experience and begin developing a network. Many actuarial internships are directed towards rising college seniors and are structured to give full-time return offers.
Exam Detail
Actuarial exams are administered by SOA and CAS.While later exams are organization-specific, the first two—Exam P (Probability) and Exam FM (Financial Mathematics)—are jointly recognized by the SOA and CAS. Because of this flexibility, P and FM can be taken before a candidate commits to either track and are therefore considered the preliminary exams or entry-level gatekeepers. These exams require no actuarial-specific background. Later exams continuously change to reflect the evolving industry and assume that candidates are already in the actuarial pipeline.
Studying for Exams
P and FM are administered by the SOA continuously throughout the year during alternating months, a frequency that makes it relatively easy to fit an exam into academic and career plans. These exams are computer-based and taken at Prometric testing centers, one of which is about ten miles from Vanderbilt’s campus.
Passing an actuarial exam requires many hours of study, often started months in advance, even for the strongest students. Exam P and FM have historical pass rates of 42.8% and 47.8% respectively. While studying for an exam may seem daunting at first, many excellent comprehensive resources can be found online. Paid materials such as Coaching Actuaries and ACTEX Learning include large banks of regularly updated and high-quality practice problems, detailed performance tracking analytics, and personalized and customizable quizzes. For the more budget-conscious candidate, resources like The Infinite Actuary provide free Exam P and FM courses.
Exams & Jobs
An actuary’s expertise and therefore value increase with each exam passed, so some companies incentivize employee exam progress by offering cash bonuses or salary raises for each successful exam, along with paid study time and coverage of exam fees and study materials. Because balancing work with exam preparation can be challenging, a company’s exam policy is an important factor in the job search.
What Makes a Good Actuary
Being an actuary requires strong analytical and quantitative skills, both for passing exams and performing the actual work. However, as this SOA article points out, technical ability alone is no longer enough. Success in today’s fast-paced, interconnected business world demands financial acuity, communication skills, and business insight. On a resume, demonstrated leadership and collaboration are just as, if not more, important than exams and coursework. Opportunities for actuaries now extend beyond traditional insurance roles into even senior leadership, rewarding those who continuously develop both their technical and interpersonal capabilities.
Vanderbilt Actuarial Resources
At Vanderbilt, aspiring actuaries have access to a wealth of resources. For example, Vanderbilt Actuarial is a must-join club for interested students. As club president Emma Huo explains, “Vandy Actuarial supports students by educating members on the exam process, helping members find internship and job opportunities, and hosting resume and interview workshops.” During fall recruitment, the club focuses on “bringing actuaries from a variety of insurance and consulting firms to campus,” providing networking opportunities and internship application information. This past fall, visiting companies included KPMG, EY, and Cigna. The club also provides members exclusive discount codes for online exam study resources such Coaching Actuaries and ACTEX learning.
While Vanderbilt doesn’t offer a dedicated “actuarial science” major, the Department of Mathematics does have an active actuarial program. Based on the experience of Vanderbilt Actuarial members, programs like applied mathematics and economics provide the core quantitative skills necessary for the profession, with the data science minor as a valuable addition. Courses like MATH 2820: Introduction to Probability and Mathematical Statistics, and MATH 3650: Introduction to Financial Mathematics closely align with the content tested by Exam P and FM, enabling students to earn academic credit while simultaneously preparing for these exams.
Future of Actuaries
Like almost every other technical profession, the actuarial field is facing important questions about the impact of artificial intelligence on its future. The current adoption of artificial intelligence and machine learning tools will only increase as the technology develops. According to a recent SOA article, AI significantly accelerates repetitive and time-consuming actuarial tasks such as data cleansing, report generation, regulatory filings, and model testing. This frees actuaries to focus on higher-level, judgement-driven work and take on more business-sided advisory roles. However, AI presents problems such as unclear model reasoning (the black box problem), bias in historical data, strict regulation, and lack of in-house expertise with it. Ultimately, AI promises to enhance actuarial practice rather than replace it, but only if these issues are carefully addressed. For candidates entering the profession today, the importance of AI literacy will only increase and may be the competitive edge they need to stand out.
A Word From a Professional
I recently had the opportunity to speak with Charles Zhu, Vice President of Actuarial Services at Olympus Insurance, a Florida homeowners company. I asked Mr. Zhu why he chose to become an actuary, and he explained, “I chose to become an actuary because it enabled me to use my quantitative skills to solve real business problems. Furthermore, back when I was a student, I enjoyed interacting with professionals in the field, many of whom are genuine, kind, and always looking for ways to give back. At a broader level, insurance plays a stabilizing role in society. When things go wrong, we are the ones making sure families and businesses can get back on their feet. The combination of analytical rigor, good people, and real-world impact is what pulled me in and kept me here.” Mr. Zhu focuses on the moral side of actuarial work, showing how it combines intellectual rigor with purpose. Hopefully, his perspective inspires some of you to explore the career.
