The profession of actuary in insurance and reinsurance
The actuary plays a key role in managing risks associated with insurance and reinsurance. With expertise in financial mathematics, statistics, and a solid understanding of insurance operations, they model and assess the probability of future events (accidents, natural disasters, deaths) and their financial impacts.
They use probabilistic models and mathematical or data science / artificial intelligence tools to anticipate future risks, calculate necessary reserves, and set fair premiums. Their analyses enable insurance and reinsurance companies to ensure the viability of their contracts. Actuaries work across all insurance branches for insurance companies, reinsurance firms, mutual insurance companies, provident institutions, or asset management. Actuaries must stay updated on market practices, societal changes, regulations, and cutting-edge techniques in the field.
Role and responsibilities of an actuary in insurance and reinsurance
The actuary in insurance and reinsurance is involved in all stages related to the analysis, management, monitoring, and modeling of risks for an insurance or reinsurance company. They assess the risks associated with insurance contracts, set premiums, manage reserves, and ensure the company’s solvency. Beyond their analytical role, actuaries can also contribute to the design of new insurance products, considering regulatory and market changes. They possess multidisciplinary skills that enable them to be versatile and collaborate easily with various roles within these institutions.
Daily tasks
On a daily basis, the actuary in insurance and reinsurance may be responsible for:
- Analyzing statistical data to assess insurance risks.
- Modeling risks using specialized software and probabilistic, data science, and artificial intelligence techniques.
- Setting insurance contract premiums based on estimated risks.
- Conducting profitability studies and solvency calculations.
- Participating in the management of financial reserves for insurance companies.
- Collaborating with underwriting, finance, claims management, and digital teams.
Salaries and career progression
The salary of an actuary in the insurance and reinsurance field depends on experience and company size. Early in their career, an actuary can expect an annual gross salary between €40,000 and €60,000.
With experience, this salary can reach €120,000 to €150,000, or even higher for positions of responsibility such as head of actuarial department or chief risk officer. (source: L'Actuariel magazine survey, N°52 - April 2024)
Career advancement opportunities are varied: an actuary can move into risk management, technical direction, chief financial officer roles, or specialize in highly technical expertise areas.
Required skills
- Strong skills in financial and actuarial mathematics
- Proficiency in statistical tools and probabilistic models
- Expertise in risk assessment and actuarial techniques
- Knowledge of insurance and reinsurance products, as well as regulations
- Skills in modeling and programming
- Attention to detail and ability to analyze complex data, including the use of modern data science and artificial intelligence tools
What studies are required to become an actuary in insurance and reinsurance ?
To become a consultant in actuarial science, a strong background in actuarial studies, applied mathematics, or financial engineering is necessary. A master’s degree (bac+5) is generally required, along with expertise in risk modeling, finance, and insurance product management. Professional certifications can also be an advantage for this type of position.
Training to Become an Actuary in Insurance and Reinsurance at Université Paris Dauphine – PSL
Université Paris Dauphine-PSL offers several programs suitable for becoming an actuary. The Master 2 in Actuarial Sciences is particularly recommended. This program trains students in advanced risk assessment techniques and actuarial methods, preparing them for careers in insurance, finance, reinsurance, and consulting. This program is accredited by the French Institute of Actuaries, and the curriculum aligns with its Core Syllabus.