Is an actuary’s salary high? What kind of work do you do?

The actuary is a relatively new profession in the domestic industry. Due to the scarcity of talents, the number of applicants has continued to grow in recent years. So what is the salary of an actuary after taking the exam? What is the job content?

What is the salary of an actuary?

The average annual salary at entry level in mainland China is about 110,000; it will reach about 400,000 after 5 years; with more than 10 years of industry-related experience, the annual salary can reach one million. In May 2019, a recruitment information on a job search website required more than 10 years of actuarial or product development experience + more than 3 years of actuarial department management experience, and the salary range given was 2.4-3 million. The salary of the top chief actuaries in the country can range from 800,000 to 4.5 million.

The entry-level annual salary of an actuary in the United States is about 50,000 to 60,000 US dollars, but it also varies from region to region and from person to person. If you pass two exams when you graduate, you can get a liberal mutual offer from Boston with a starting salary of US$70,000. Of course, your own conditions must be very good.

What does an actuary do?

1. Product pricing

It means that the actuary uses the company’s actuarial assumptions (including mortality rates) based on the established product form. , disease incidence and other insurance accident probability, investment return rate, operating expenses, etc.), calculate the premium through general actuarial principles, and combine it with relevant actuarial regulations to calculate the cash value of the policy (that is, the benefits that customers can obtain when they surrender the policy) ), policy dividend demonstration (if it is participating insurance) and other policy benefits stipulated by the China Insurance Regulatory Commission.

2. Liability assessment

Generally speaking, the liabilities calculated by actuaries account for about 80% of the total liabilities in the entire balance sheet of an insurance company. It is obvious whether this work is important or not. The China Insurance Regulatory Commission requires that this work be audited by a third-party independent auditor every year and issue an audit opinion.

The expansion of liability assessment functions includes actuaries’ participation in the formulation of the company’s future business plans, company value management, company financial analysis, investment management, etc.