The job of a pricing actuary basically boils down to being very good at The Price is Right. Statisticians by trade, pricing actuaries work with finance, investment, and insurance companies to determine the pricing of their products. They do this through market data analysis and thorough risk calculation.
Because the work involves complicated computations and mathematical concepts, most employers require their pricing actuaries to have at least a bachelor's degree in statistics, mathematics, economics, or other similar fields of study. Some even are doctorates-about one in ten pricing actuaries in America are Ph.D. holders.
Because they must demonstrate such a high level of technical expertise, pricing actuaries are well-compensated for their work. On average, they earn about $78,000 a year in US companies. Fortune 500 companies like the United Services Automobile Association (USAA), The Hartford, and the Lincoln Financial Group pay their pricing actuaries a yearly salary of well over $100,000.
There is more than meets the eye when it comes to being a pricing actuary. For example, did you know that they make an average of $36.45 an hour? That's $75,821 a year!
Between 2018 and 2028, the career is expected to grow 20% and produce 5,000 job opportunities across the U.S.
There are certain skills that many pricing actuaries have in order to accomplish their responsibilities. By taking a look through resumes, we were able to narrow down the most common skills for a person in this position. We discovered that a lot of resumes listed computer skills, math skills and problem-solving skills.
When it comes to the most important skills required to be a pricing actuary, we found that a lot of resumes listed 82.7% of pricing actuaries included product development, while 7.9% of resumes included capital requirements, and 6.6% of resumes included level changes. Hard skills like these are helpful to have when it comes to performing essential job responsibilities.
When it comes to searching for a job, many search for a key term or phrase. Instead, it might be more helpful to search by industry, as you might be missing jobs that you never thought about in industries that you didn't even think offered positions related to the pricing actuary job title. But what industry to start with? Most pricing actuaries actually find jobs in the insurance and finance industries.
If you're interested in becoming a pricing actuary, one of the first things to consider is how much education you need. We've determined that 85.2% of pricing actuaries have a bachelor's degree. In terms of higher education levels, we found that 11.1% of pricing actuaries have master's degrees. Even though most pricing actuaries have a college degree, it's impossible to become one with only a high school degree or GED.
You may find that experience in other jobs will help you become a pricing actuary. In fact, many pricing actuary jobs require experience in a role such as actuarial analyst. Meanwhile, many pricing actuaries also have previous career experience in roles such as actuary or actuarial consultant.