One of the most common questions actuarial students have is:
“What kind of work do actuaries actually do after joining a company?”
The answer depends heavily on the role.
Three of the most common actuarial areas are Pricing, Reserving and Valuation. All three involve data, assumptions and financial judgement, but the nature of the work can be very different.
Understanding these roles can help students make better career decisions and identify which type of actuarial work matches their interests.
1. Pricing Actuary
A pricing actuary helps determine how much an insurance company should charge for its products.
The objective is to set a premium that is competitive while still covering expected claims, expenses and the required profit or risk margin.
Pricing work may involve analysing:
- Historical claims
- Customer characteristics
- Claim frequency
- Claim severity
- Expenses
- Competitor pricing
- Expected future trends
In simple terms:
Risk → Expected Claims → Expenses → Margin → Premium
What Does a Pricing Actuary Do?
Typical responsibilities may include:
- Building pricing models
- Analysing policyholder data
- Reviewing premium rates
- Monitoring profitability
- Studying claim trends
- Supporting product development
- Testing different pricing assumptions
Pricing teams often work closely with underwriting, product, sales and data analytics teams.
Who May Enjoy Pricing?
Pricing may suit students who enjoy:
- Data analysis
- Statistical modelling
- Commercial decision-making
- Understanding customer behaviour
- Working with changing market conditions
It can be a good choice for those who like combining technical analysis with business strategy.
2. Reserving Actuary
A reserving actuary estimates how much money an insurer should set aside for claims that have already occurred but may not yet be fully paid.
This is particularly important because some insurance claims may take months or even years to settle.
The key question is:
“How much will existing claims ultimately cost?”
What Does a Reserving Actuary Do?
Typical responsibilities may include:
- Analysing historical claims
- Estimating outstanding liabilities
- Reviewing claim development patterns
- Building reserving models
- Comparing actual experience with previous assumptions
- Supporting financial reporting
Reserving actuaries need to understand how claims develop over time and how uncertainty affects future payments.
Who May Enjoy Reserving?
Reserving may suit students who enjoy:
- Analysing historical trends
- Working with claim data
- Understanding uncertainty
- Reviewing assumptions
- Financial reporting
It may appeal to students who prefer structured analytical work and are comfortable working with incomplete information.
3. Valuation Actuary
Valuation work is commonly associated with determining the value of an insurer’s liabilities and assessing its overall financial position.
It is particularly important in life insurance, pensions and long-term financial products.
A valuation actuary may ask:
“What is the present value of the company’s future obligations?”
What Does a Valuation Actuary Do?
Typical responsibilities may include:
- Valuing insurance liabilities
- Reviewing mortality and other assumptions
- Analysing expenses and interest rates
- Performing financial projections
- Supporting regulatory reporting
- Assessing solvency and capital requirements
Valuation work often requires a strong understanding of long-term financial modelling.
Who May Enjoy Valuation?
Valuation may suit students who enjoy:
- Financial mathematics
- Long-term projections
- Life contingencies
- Assumption setting
- Detailed financial analysis
Students who like structured modelling and long-term financial concepts may find this area interesting.
Pricing vs Reserving vs Valuation
Although all three roles are actuarial, their focus is different.
Pricing: What should we charge for future risk?
Reserving: How much will existing claims ultimately cost?
Valuation: What are our long-term financial obligations worth today?
This difference also affects the type of data and models used in each role.
Which Role Is Best for You?
There is no single “best” actuarial role.
The right choice depends on your interests.
If you enjoy data, markets and commercial decisions, pricing may suit you.
If you enjoy claims analysis and uncertainty, reserving may be a better fit.
If you enjoy financial mathematics and long-term modelling, valuation may interest you more.
Skills That Help Across All Three Roles
Regardless of the role, actuaries benefit from strong skills in:
- Excel
- Data analysis
- Statistics
- Financial modelling
- Communication
- Problem-solving
- Actuarial judgement
Programming skills such as Python, R or SQL may also be useful depending on the organisation and role.
Can You Move Between These Roles?
Yes.
Many actuaries move between pricing, reserving, valuation and other actuarial functions during their careers.
Early-career professionals often discover their preferences only after gaining practical experience.
Internships, trainee roles and rotational programmes can therefore be useful for understanding different areas of actuarial work.
Final Thoughts
Pricing, reserving and valuation are three important actuarial career paths, but each offers a different type of work.
The best way to think about them is:
Pricing → What should we charge?
Reserving → What will existing claims cost?
Valuation → What are future obligations worth today?
For actuarial students, understanding these differences can make career planning easier and help you choose roles that match your strengths and interests.
The goal is not to find the “best” actuarial role.
It is to find the actuarial role that best fits how you like to analyse, solve problems and make decisions.
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