What Does a Chief Actuary Do?
A strong background in mathematics is required before you can become an actuary. The job involves analyzing statistics, assessing risk, and recommending prudent measures to minimize it. This is a competitive profession which requires at least a bachelor's degree and passing a series of examinations before attaining full professional status, let alone becoming a chief actuary. About 55 percent of actuaries work in the insurance industry, according to the Bureau of Labor Statistics.
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Professional Qualifications
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You need a bachelor's degree in mathematics, statistics, actuary science, economics, finance or business to become an actuary. Essential coursework includes corporate finance, applied statistics and economics, which are required for certification. To become a chief actuary, you must pass certification examinations given by the Society of Actuaries (SOA) or the Casualty Actuarial Society (CAS). It takes four to eight years to go through the certification process before you could attain full professional status, according to the Bureau of Labor Statistics. A full professional status provides you with the platform to rise to a management position such as chief actuary.
Investing Company Resources
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A chief actuary is a financial engineer with the ability to use highly advanced model techniques to forecast business risk. It is your duty as a chief actuary to research business trends and advise your company how to invest resources to maximize return. If you are in the insurance business, for instance, your duties involve developing formulas to predict and measure gains and losses in insurance plans. Many companies that advertise the chief actuary position look for someone with 10 to 15 years experience, in addition to full certification.
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Non-Traditional Actuary Work
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As a chief actuary, you oversee all aspects of the company's actuarial functions. You must have extensive knowledge of insurance, pension, and pension investment. Many chief actuaries work in insurance companies, commercial banks and retirement funds. At a supervisory level, you can also work in non-traditional areas such as underwriting, accounting, data processing, advertising and marketing.
Median Income
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The median wage for a top actuarial executive in the United States is about $261,863 at time of publication, according to Salary Wizard. The Bureau of Labor Statistics estimates that the top 10 percent of actuaries earned more than $160,780 in May 2008. In the actuary profession as a whole, the median wages were $84,810, with the middle 50 percent actuaries earning between $62,020 and $119,110.
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