Actuarial Science
Candlefocus EditorActuarial science is a field of study that combines mathematics, statistics, and finance to assess and manage risk in the insurance and financial sectors. It can also be applied to other areas where risk-based decision-making is necessary. By applying probability analysis and statistical methods, actuarial science enables actuaries, or risk experts, to define, analyze, and solve financial problems to determine the cost of providing for an uncertain future event.
Actuaries use a variety of tools and techniques to assess risk. These include probability calculations, models, and the use of computer systems to develop predictive solutions. Actuaries also use predictive models and simulations to provide policy makers with sound, evidenced-based advice and guidance.
In addition to a bachelor’s degree, actuaries have the opportunity to pursue various levels of professional certification through academic institutions as well as organizations such as the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA). As of May 2021, actuaries had an average salary of nearly $106,000, according to data provided by the United States Bureau of Labor Statistics.
As the field of actuarial science continues to evolve, the opportunities for those who wish to work in the field are growing. In addition to involvement in insurance and pension industries, actuaries are now engaged in the medical, banking, investments, and real estate sectors. Actuaries have become invaluable resources for managing risk and furthering the success of financial programs and products.