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Pricing actuary vs underwriter

The differences between pricing actuaries and underwriters can be seen in a few details. Each job has different responsibilities and duties. Additionally, a pricing actuary has an average salary of $65,091, which is higher than the $61,751 average annual salary of an underwriter.

The top three skills for a pricing actuary include product development, annuities and level changes. The most important skills for an underwriter are customer service, investor guidelines, and mortgage loans.

Pricing actuary vs underwriter overview

Pricing ActuaryUnderwriter
Yearly salary$65,091$61,751
Hourly rate$31.29$29.69
Growth rate21%-4%
Number of jobs15,4448,510
Job satisfaction-3
Most common degreeBachelor's Degree, 85%Bachelor's Degree, 66%
Average age3944
Years of experience--

What does a pricing actuary do?

Pricing Actuaries are statisticians who work in either the financial or insurance industries. This position uses extensive math skills to determine the price of products by analyzing data and calculating risks. Pricing actuaries' goal is to ensure the coverage of the company's expenses includes employee retirement or claims. Their job is to estimate claim payout probabilities, handle state filing requirements, and collect statistical data. Also, they contribute to policies for new products and maximize returns. These actuaries must have a bachelor's degree in statistics, math, and actuarial science.

What does an underwriter do?

An underwriter's duties depend on the line of work or industry involved, such as mortgage companies, insurance, or lending firms. However, an Underwriter's responsibility will mainly revolve around using their extensive expertise on how a company will achieve financial gains, and assessing the possible financial risks of a client by reviewing various aspects to determine their capacity to uphold monetary obligations. Most of the time, the Underwriter's tasks will also involve evaluating a client's credit history, health, assets, overall financial history.

Pricing actuary vs underwriter salary

Pricing actuaries and underwriters have different pay scales, as shown below.

Pricing ActuaryUnderwriter
Average salary$65,091$61,751
Salary rangeBetween $31,000 And $132,000Between $39,000 And $96,000
Highest paying CityNew York, NYBoston, MA
Highest paying stateNew YorkMassachusetts
Best paying companyAIGGoogle
Best paying industry-Manufacturing

Differences between pricing actuary and underwriter education

There are a few differences between a pricing actuary and an underwriter in terms of educational background:

Pricing ActuaryUnderwriter
Most common degreeBachelor's Degree, 85%Bachelor's Degree, 66%
Most common majorMathematicsBusiness
Most common collegeUniversity of PennsylvaniaUniversity of Pennsylvania

Pricing actuary vs underwriter demographics

Here are the differences between pricing actuaries' and underwriters' demographics:

Pricing ActuaryUnderwriter
Average age3944
Gender ratioMale, 71.4% Female, 28.6%Male, 38.4% Female, 61.6%
Race ratioBlack or African American, 2.9% Unknown, 2.9% Hispanic or Latino, 3.4% Asian, 16.5% White, 74.3% American Indian and Alaska Native, 0.0%Black or African American, 9.2% Unknown, 2.5% Hispanic or Latino, 9.6% Asian, 5.6% White, 72.7% American Indian and Alaska Native, 0.4%
LGBT Percentage18%9%

Differences between pricing actuary and underwriter duties and responsibilities

Pricing actuary example responsibilities.

  • Project manage large work streams incorporating data and technology to support all business analytics used across the organization.
  • Support the sales team in conducting profitability analysis, analyzing options and developing customer ROI analyses
  • Manipulate select and ultimate mortality table to database formate by using VBA and producingexpect Motality base under best estimate assumption.
  • Administer payroll, conduct accounts reconciliations, and track all A/R and A/P.

Underwriter example responsibilities.

  • Attain Jr. underwriter status and AUS underwriting authority.
  • Manage AUS findings and analyze approvals and results accordingly.
  • Complete initial review of appraisals, borrower credit documents, and DU/LP findings according to Fannie Mae and investor guidelines.
  • Research and develop SBA program.
  • Work on project putting together HPR policy.
  • Resolve issues preventing final disposition of REO properties.
  • Show more

Pricing actuary vs underwriter skills

Common pricing actuary skills
  • Product Development, 69%
  • Annuities, 23%
  • Level Changes, 5%
  • Auto Liability, 2%
  • Loss Ratio, 1%
Common underwriter skills
  • Customer Service, 11%
  • Investor Guidelines, 6%
  • Mortgage Loans, 5%
  • Underwriting Guidelines, 5%
  • Financial Statements, 4%
  • FHA, 3%

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