In a world filled with uncertainty, actuaries help businesses and governments make sense of risk. They blend mathematics, statistics, and financial insight to predict future outcomes and guide crucial decisions in industries like insurance, finance, and pensions.
But despite their vital role, the profession remains unfamiliar to many students and aspiring professionals.
Whether you’re exploring areas of economics, considering a career change, or just want to understand what an actuary really does, this guide will give you a clear, practical overview. We’ll walk through the day-to-day responsibilities, required skills, education pathways, earning potential, and more – so you can decide if actuarial science is your perfect fit.
What is an Actuary
An actuary is a business professional who uses statistical models and financial theory to evaluate and manage risk. Their work helps organisations make informed decisions, particularly in industries that deal with future uncertainty such as insurance, pensions, and investments.
Actuaries must be highly analytical and detail-oriented, as their predictions impact pricing strategies, financial planning, and long-term risk management. The role blends technical mathematical ability with real-world application – making it both intellectually challenging and impactful.
What does an actuary do
Actuaries assess the probability and financial impact of uncertain events. This might include estimating the cost of insurance claims, predicting retirement fund growth, or analysing the financial risks of a new business venture.
At its core, the actuary profession manages risk. Actuaries are problem solvers at heart, using judgement and strong mathematical skills to challenge the validity of data and predict the future.
Daily tasks often involve data analysis, creating statistical models, forecasting future trends, and presenting insights to stakeholders. Actuarial analysts apply statistical methods to evaluate risk, using tools like spreadsheets and industry-specific software to translate complex data into clear, accessible reports. Most analysts focus on key areas such as insurance, retirement and employee benefits, or savings and investment planning. They frequently work with software tools such as Excel, R, Python, or actuarial-specific platforms to carry out complex calculations and scenario planning.
What is actuarial science
Actuarial science is the field of study that underpins the actuary profession. It combines mathematics, statistics, economics, and finance to model and manage risk.
Students pursuing actuarial science typically study topics such as probability theory, financial mathematics, and life contingencies. It is a rigorous discipline, and many actuaries follow a professional qualification pathway alongside or after their degree to become fully certified.
Triple your chances of getting into Oxbridge with expert support from UniAdmissions
When you enrol on the UniAdmissions Economics Oxbridge Programme, you will have access to everything you need to effectively prepare for each stage of the admissions process. This includes one-to-one tuition, hundreds of preparation materials, live courses, Personal Statement/essay marking and much more.
Discover our Economics Oxbridge Programme by clicking the button below to learn how you can enrol and boost your chances of success.
Actuary Skills
To succeed as an actuary, you’ll need a mix of technical, analytical, and communication skills. Here are some of the most important:
Advanced Mathematics & Statistics
- Essential for modelling risk and analysing data.
Problem-solving
- Ability to develop innovative solutions to complex financial scenarios.
Attention to detail
- Small errors can have large consequences in actuarial work.
Computer Proficiency
- Particularly in Excel, databases, and statistical software.
Communication skills
- Ability to explain complex issues using simple language.
Data Analysis
- Ability to spot trends in large sets of data.
Worried About the LNAT? Let The Big Book of Oxbridge Applications Be Your Guide
- A clear breakdown of what the LNAT involves
- Up-to-date information on test dates and format
- Targeted preparation strategies to help you study efficiently
- Practice questions that reflect the real test
Why become an Actuary
For those who are passionate about mathematics, actuarial roles can be extremely rewarding as they offer the opportunity to apply advanced mathematical skills in real-life scenarios to make a positive impact. Actuaries often play a behind-the-scenes role in shaping critical decisions across politics, technology, and healthcare.
In addition to a reportedly better work-life balance than other economics professions, actuarial roles are among the most well-paid economics-related careers, especially in the insurance and pensions sectors.
How to Become an Actuary
To keep your options open, A-Level Mathematics is essential. Further Mathematics is highly recommended, especially if you’re aiming for top universities. Subjects like Economics and Physics can also be useful for developing analytical thinking.
In the UK, aspiring actuaries often pursue degrees in Mathematics, Statistics, Economics, Finance, or Actuarial Science itself. While Oxford and Cambridge do not offer dedicated actuarial science degrees, they provide highly respected courses such as Mathematics, Mathematics and Statistics, or Economics, which are strong foundations for an actuarial career.
Among the G5 universities, LSE offers BSc programmes in Actuarial Science and Financial Mathematics and Statistics, while UCL and Imperial College London offer degrees in Mathematics and Statistics or Mathematics with Finance (the latter one is a masters degree though), all of which are well-regarded by actuarial employers and may even provide exemptions from professional exams through the IFoA (Institute and Faculty of Actuaries). These degrees are academically rigorous and open doors to graduate actuarial roles across the UK and globally.
To qualify as an actuary in the UK, you must pass the IFoA exams and complete a Personal and Professional Development (PPD) programme while gaining relevant work experience.
The exams are generally grouped into different stages:
- Core Principles (CB, CM, CS) – covering statistics, financial maths, business and economics
- Core Practices (CP) – applied skills like modelling, communications, and risk management
- Specialist Principles & Advanced Modules (SP, SA) – focused on chosen areas like pensions, life insurance, or investment
Most students begin the exams while working in an actuarial trainee or analyst role.
Most aspiring actuaries start with graduate roles or internships at insurance companies, consultancies, banks, or pension firms. These employers often support exam costs and give study leave. You’ll apply your learning on the job and complete your PPD log as part of the qualification.
Once you’ve completed all required exams, gained sufficient work experience, and fulfilled the professional development requirements, you can achieve Fellowship status with the IFoA – earning the designation FIA (Fellow of the Institute of Actuaries) or FFA (Fellow of the Faculty of Actuaries). At this stage, you may also be recognised as a Chartered Actuary, reflecting a high level of expertise, professionalism, and commitment to the field.
Fellowship allows you to specialise further within the profession and offers opportunities to contribute to the future of actuarial work through voting rights, research initiatives, and professional forums. Even after qualification, actuaries are expected to continue with ongoing professional development (CPD) to remain current with evolving practices, tools, and regulations.
Where do actuaries work
Actuaries are employed across a wide range of sectors where risk and long-term forecasting are critical. Some of the most traditional and established employers include:
- Insurance companies – assessing and pricing risk for life, health, and general insurance policies.
- Pension funds – forecasting future liabilities and helping design sustainable pension schemes.
However, the actuarial skillset is becoming increasingly valuable in emerging and interdisciplinary fields. Actuaries are now finding opportunities in sectors such as:
- Finance and investment – helping banks, hedge funds, and asset managers analyse market risk, model investment strategies, and ensure regulatory compliance.
- Consulting firms – providing strategic advice on risk, financial planning, employee benefits, and regulatory matters for both public and private sector clients.
- Government and regulatory bodies – supporting evidence-based policymaking, developing financial risk frameworks, and ensuring regulatory oversight in sectors like insurance, pensions, and banking.
- Health – using statistical models to forecast healthcare costs, analyse population health trends, optimise resource allocation in public health systems, and assess the long-term sustainability of health insurance schemes.
- Climate change and environmental risk – modelling the financial impact of extreme weather events, sea-level rise, and carbon transition risks on businesses and governments. Actuaries in this field help organisations adapt their strategies to long-term environmental challenges.
- Data science and tech – applying actuarial logic to big data, predictive analytics, AI, and machine learning projects. These roles often involve risk scoring, product pricing, fraud detection, and algorithmic decision-making.
The wide scope of industries provides opportunities for actuaries to align their careers with their personal interests – whether that’s finance, healthcare, sustainability, or technology – while still leveraging their core analytical strengths.
Actuary Salary
Actuaries are among the highest earners in the financial and analytical professions, often outpacing other economics-related careers in terms of long-term earning potential. Salaries can vary based on location, sector, and level of experience, but the profession generally offers strong financial rewards.
Here’s a typical UK-based salary progression:
- Graduate Actuary: £30,000 – £35,000
- Part-Qualified Actuary (2–4 years experience): £40,000 – £60,000
- Fully Qualified Actuary (with 5+ years’ experience): £60,000 – £100,000+
- Senior and Partner-Level Roles: £150,000+ (often including bonuses and profit-sharing)
In high-demand areas such as investment banking, reinsurance, or tech/data science, salaries may rise even higher. Additionally, many actuarial employers offer structured pay increases linked to exam progression, making the career path both financially and professionally rewarding.
Conclusion
So, what is an actuary? In essence, it’s a professional who quantifies uncertainty and helps organisations make smarter, safer decisions. If you enjoy mathematics, logic, and problem-solving, and you’re looking for a career with both financial rewards and meaningful impact, becoming an actuary could be your ideal path.
Whether you’re still in school or exploring career options at university, understanding what actuaries do is the first step towards a future in one of the most respected and secure analytical professions out there.
If you’re aiming for top UK universities like Oxford and Cambridge, our expert-led Economics and Maths Full-Blue Programmes are designed to give you a competitive edge in your application. From personal statement support to interview and admissions test prep, we provide tailored support to triple your chances of success in the most demanding courses.
FAQs
1. Do you need a specific degree to become an actuary in the UK?
Not necessarily. While a degree in Actuarial Science, Mathematics, Statistics, or Economics is common, it’s not mandatory. What matters most is strong quantitative ability and completing the professional exams set by the Institute and Faculty of Actuaries (IFoA). Some degrees offer exemptions from these exams.
2. Can you become an actuary if you study at Oxford or Cambridge?
Yes! Although Oxbridge doesn’t offer dedicated actuarial science degrees, their Mathematics, Mathematics & Statistics, and Economics courses are excellent preparation for an actuarial career. Many graduates go on to become actuaries, particularly with additional professional qualification.
3. How long does it take to become a fully qualified actuary?
It typically takes between 3 to 7 years post-graduation, depending on your pace and the number of exemptions you receive from university. The qualification process involves a series of rigorous exams, practical work experience, and continuous professional development.
4. Is being an actuary a stressful job?
Actuarial work can be demanding, especially during exam periods or in high-responsibility roles. However, many actuaries report a better work-life balance compared to other finance-related professions, and the job is generally considered secure and well-compensated.
5. Do actuaries only work in insurance?
No. While insurance is a major employer, actuaries also work in pensions, finance, consulting, government, health, climate risk, and data science. The profession is expanding into new sectors where risk modelling and data analysis are essential.
Every step of the Oxbridge application process counts, so get it right with UniAdmissions
At UniAdmissions, we are specialists in getting applicants into Oxbridge Economics, Maths, and more. With our expertly crafted curriculum, extensive preparation materials and innovative Portal, we have developed programmes that cater to applicants of over 30 subjects across Oxford, Cambridge and more.
Discover our Full-Blue Programmes by clicking the button below to learn how you can enrol and triple your chances of success.
