What Does an Actuary Do | UK Careers Guide

Actuaries are highly skilled professionals who use mathematics, statistics and financial theory to assess risk and uncertainty. Whether you’re exploring a career in actuarial science or seeking to understand how actuaries support businesses, knowing what an actuary does is essential. This article explains the role, responsibilities and impact of actuaries in the UK.

Defining the Role of an Actuary

An actuary analyses financial risks by using data and statistical models to predict future events. They help organisations evaluate the likelihood and financial consequences of uncertain outcomes such as death, illness, accidents or economic changes.

Actuaries work mainly in insurance, pensions, investment and finance sectors, providing insights that support decision-making.

Why Actuaries Matter

Actuaries enable companies to manage risk effectively, set appropriate premiums, design pension schemes and make informed investment choices. Their expertise helps ensure financial stability and compliance with regulatory requirements.

For businesses, actuaries contribute to sound financial planning and risk mitigation. For jobseekers, actuarial careers offer strong earning potential and intellectual challenge.

Typical Responsibilities of Actuaries

Actuaries develop mathematical models to assess risk, calculate probabilities and estimate financial impacts. They prepare reports, advise on pricing and reserves, and monitor regulatory changes.

They collaborate with underwriters, finance teams and senior management to inform strategy and manage uncertainty.

Skills and Qualifications

Successful actuaries have strong analytical, problem-solving and communication skills. They typically hold degrees in mathematics, statistics, economics or actuarial science.

Professional qualifications from bodies such as the Institute and Faculty of Actuaries (IFoA) involve passing rigorous exams and completing practical work experience.

Pros and Cons of Being an Actuary

Actuarial work offers intellectual stimulation, good career progression and job security. It suits individuals who enjoy maths and financial analysis.

Challenges include a demanding qualification process, ongoing study requirements and the pressure of making accurate predictions.

Industry Variation

While insurance and pensions dominate actuarial employment, actuaries increasingly work in investment, healthcare, climate change and data analytics.

Looking Ahead: The Future of Actuarial Science

Advances in technology, big data and artificial intelligence are transforming actuarial work, enabling more sophisticated risk modelling.

Actuaries must adapt to new tools and evolving economic environments.

Conclusion

Actuaries apply mathematical expertise to analyse risk and support financial decision-making. Their role is vital in managing uncertainty across industries. Understanding what actuaries do benefits aspiring professionals and organisations alike.