How to Hire an Actuary: The Complete Guide for Organizations

Every insurance company filing an annual statement needs one. Every employer sponsoring a defined benefit pension plan is legally required to engage one. And every startup trying to file its first insurance rates with state regulators will quickly discover it can’t get to market without one.

Actuaries are the professionals who put numbers behind risk. They price insurance products, certify that companies hold enough reserves to pay future claims, value pension liabilities running into the billions, and serve as expert witnesses when disputes end up in court. From tracking actuarial hiring patterns across the insurance industry over the past several years, we’ve observed that the demand for qualified actuarial talent consistently outpaces supply, particularly for specialized consulting engagements.

If your organization needs actuarial expertise and you’re not sure where to begin, start with the form below to tell us what you need, or read on for our complete guide covering credentials, costs, and how to find the right fit.

Not ready to submit? Read our complete guide below, then come back to the form when you’re ready.

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Why Getting This Decision Right Matters

Hiring the wrong actuary, or failing to hire one when required, carries real consequences. Insurance companies that file inadequate Statements of Actuarial Opinion risk regulatory action from state departments of insurance. Employers that don’t obtain required Enrolled Actuary certifications for their pension plans face IRS and Department of Labor enforcement. And organizations that underestimate their insurance or pension liabilities can find themselves with reserve shortfalls that threaten solvency.

The Bureau of Labor Statistics reports that the median annual wage for actuaries was $125,770 as of May 2024, and projects 22% employment growth from 2024 to 2034, far exceeding the average for all occupations (BLS, Occupational Outlook Handbook). That growth reflects surging demand for actuarial expertise in emerging areas like cyber risk, climate modeling, and healthcare cost management. It also means that qualified actuaries are in high demand, and finding the right fit for your specific needs requires understanding what differentiates one actuarial professional from another.

When Do You Need an Actuary?

Not every financial analysis requires an actuary. But many situations specifically require one, either by law or because the complexity of the work demands actuarial expertise. Here are the most common scenarios.

Regulatory Requirements (Insurance)

If your organization is an insurance company or any entity filing insurance annual statements, you almost certainly need an Appointed Actuary. The NAIC Annual Statement Instructions require every insurer to file a Statement of Actuarial Opinion (SAO) covering loss reserves, premium reserves, and other actuarial items. This opinion must be issued by a Qualified Actuary who has been formally appointed by the company’s Board of Directors (NAIC Annual Statement Instructions, Actuarial Opinion Section).

The Appointed Actuary must meet specific qualification standards, must present qualification documentation to the Board, and must attest annually to meeting continuing education requirements. Each company filing an annual statement needs its own separate SAO, even within affiliated company groups. The opinion must comply with Actuarial Standards of Practice (ASOPs) promulgated by the Actuarial Standards Board, including ASOP No. 23, No. 36, No. 41, and No. 43.

Beyond annual statements, you’ll need actuarial involvement for insurance rate filings with state departments of insurance, risk-based capital (RBC) calculations, reserve certifications, and reinsurance analysis.

Pension and Employee Benefits

Federal law is explicit here. The Employee Retirement Income Security Act of 1974 (ERISA) established the Joint Board for the Enrollment of Actuaries, specifically to credential actuaries authorized to perform pension work. Only an Enrolled Actuary (EA) can sign the actuarial certifications required for ERISA-covered pension plans (IRS, Enrolled Actuary Information).

Common pension engagements requiring an EA include annual funding valuations required under the Internal Revenue Code, Schedule SB filings for Form 5500, PBGC premium calculations, funding notices to plan participants, nondiscrimination testing, and actuarial certifications for plan amendments or terminations.

Employers also frequently engage actuaries for retiree health (OPEB) valuations under ASC 715, pension risk transfer and settlement analysis, and union negotiations involving benefit plan changes.

Insurance Operations

Insurance carriers, managing general agents (MGAs), and insurtech startups rely on actuarial work throughout the product lifecycle. This includes product pricing and ratemaking across all lines of business, loss reserving and reserve adequacy analysis, predictive modeling for underwriting and claims, experience studies that inform assumption-setting, and catastrophe risk modeling. From patterns we’ve observed in the insurtech space, startups building new insurance products are particularly reliant on consulting actuaries during their first several years of operation, before they build an internal actuarial team.

Corporate Transactions

Mergers, acquisitions, and other corporate transactions involving insurance or pension liabilities almost always require independent actuarial analysis. Common engagement types include due diligence on insurance reserve adequacy, embedded value analysis for life insurance blocks, purchase price allocation for insurance intangibles, pension and OPEB liability assessment in M&A, and fair value measurements under ASC 805.

Litigation and Dispute Resolution

Actuaries serve as expert witnesses in a wide range of disputes, including insurance coverage litigation, class action damages quantification, bad faith claims involving reserve adequacy, personal injury and wrongful death economic loss calculations, and reinsurance arbitrations. Courts regularly rely on actuarial expert testimony to assess the reasonableness of insurance reserves, the adequacy of rates, and the financial impact of disputed claims.

Startups and New Ventures

Organizations launching new insurance products, entering new jurisdictions, or building risk-bearing entities from scratch face a particularly steep learning curve. From tracking regulatory filing requirements across states, we’ve seen that most state departments of insurance require actuarial sign-off on initial rate filings, and some require a Qualified Actuary to be identified before a license application is approved.

Actuarial Credentials: What They Mean and When They Matter

The actuarial profession has multiple credential pathways, and the alphabet soup of designations can confuse anyone outside the industry. Here’s what each credential means in practical terms for someone hiring actuarial services.

FSA: Fellow of the Society of Actuaries

The FSA is the highest credential issued by the Society of Actuaries and represents mastery of a specific practice area. FSA candidates choose a fellowship track in one of several specializations: corporate finance and enterprise risk management, quantitative finance and investment, individual life and annuities, retirement benefits, group and health benefits, or general insurance. The FSA pathway typically takes 7 to 10 years to complete.

When you need an FSA: For complex life insurance pricing, health plan actuarial analysis, retirement plan design, or any engagement requiring deep subject-matter expertise in SOA practice areas.

FCAS: Fellow of the Casualty Actuarial Society

The FCAS is the highest credential from the Casualty Actuarial Society, focused exclusively on property and casualty insurance. The CAS credential pathway covers ratemaking, reserving, reinsurance, catastrophe modeling, and enterprise risk management for P&C lines.

When you need an FCAS: For P&C rate filings, loss reserve opinions, catastrophe modeling, reinsurance placement analysis, or any property and casualty actuarial work.

MAAA: Member of the American Academy of Actuaries

The MAAA is arguably the most important credential for anyone hiring an actuary for regulatory work in the United States. The Academy sets qualification standards for actuaries issuing Statements of Actuarial Opinion, and Academy membership signals that the actuary adheres to the Code of Professional Conduct and is subject to the profession’s self-regulatory framework (American Academy of Actuaries, Membership). In 1966, the NAIC adopted a resolution supporting the Academy’s standards, and since then, the MAAA designation has been the recognized marker of actuarial professionalism for regulatory purposes.

As of January 1, 2026, the Academy’s Board adopted updated membership requirements that include compliance with a Competency Framework covering baseline actuarial knowledge, U.S. laws and practices, and U.S. actuarial professionalism (Wikipedia, American Academy of Actuaries).

When you need an MAAA: For any Statement of Actuarial Opinion filed with regulators. This is non-negotiable. An actuary signing a regulatory opinion must meet the U.S. Qualification Standards and hold MAAA membership (or equivalent).

EA: Enrolled Actuary

The Enrolled Actuary credential is unique in that it is administered by a government entity: the Joint Board for the Enrollment of Actuaries, a body composed of appointees from the Secretary of the Treasury and the Secretary of Labor. EAs must pass two Joint Board examinations (EA-1 covering actuarial mathematics, and EA-2 covering pension law and funding methods) and must demonstrate at least 36 months of responsible pension actuarial experience (IRS, 1.25.8 Enrollment of Actuaries). EAs are authorized to practice before the IRS on pension matters under Circular 230.

When you need an EA: For any ERISA pension actuarial certification. If your organization sponsors a defined benefit plan, the annual funding valuation and Schedule SB must be signed by an Enrolled Actuary. There is no substitute.

ASA and ACAS: Associate-Level Credentials

Associates of the Society of Actuaries (ASA) and Associates of the Casualty Actuarial Society (ACAS) have completed a substantial portion of the exam pathway but have not yet achieved fellowship. Associates are qualified to perform many types of actuarial work, particularly under the supervision of a Fellow.

Practical note: For engagements requiring a signed actuarial opinion, an Associate typically will not meet the qualification standards. However, Associates can and do perform the underlying analytical work, and many consulting teams are structured so that Associates handle day-to-day analysis while a credentialed Fellow or MAAA reviews and signs the final deliverables.

CERA: Chartered Enterprise Risk Analyst

The CERA is a specialized credential in enterprise risk management, offered through the SOA. It signals expertise in identifying, measuring, and managing risk at the organizational level.

When you need a CERA: For enterprise risk management assessments, own risk and solvency assessments (ORSA), or strategic risk advisory work.

Quick Reference: Matching Credentials to Your Needs

Your Need	Required/Recommended Credential	Why
Insurance annual statement opinion	MAAA (required) + FSA or FCAS	NAIC requires Qualified Actuary meeting U.S. Qualification Standards
P&C rate filing or reserve analysis	FCAS, MAAA	CAS expertise in ratemaking and reserving
Life/health product pricing	FSA, MAAA	SOA expertise in life and health practice areas
Pension plan valuation (ERISA)	EA (required)	Federal law requires Enrolled Actuary for pension certifications
Retiree health (OPEB) valuation	FSA with health or pension track, EA helpful	Cross-disciplinary knowledge of benefits and accounting
M&A due diligence on insurance liabilities	FCAS or FSA depending on lines, MAAA	Independent reserve assessment requires qualified opinion
Expert witness testimony	FSA or FCAS + MAAA	Credentialing strengthens expert credibility in court
Enterprise risk management	CERA, FSA	ERM-specific credential and practice experience
Startup rate filing	FCAS (P&C) or FSA (life/health), MAAA	State DOI requires credentialed actuary on initial filings

How to Find the Right Actuary

Once you understand which credentials your engagement requires, the next step is sourcing candidates. There are three primary models: consulting firms, independent practitioners, and full-time hires.

Consulting Firms

The largest actuarial consulting firms (including practices within Milliman, Willis Towers Watson, Mercer, Deloitte, PwC, KPMG, and EY) offer deep bench strength across practice areas. They can staff complex, multi-disciplinary engagements and typically have established processes for peer review and quality control. Smaller and mid-size consulting firms (like Pinnacle Actuarial Resources, Huggins Actuarial Services, Lewis & Ellis, and many others) often provide more specialized expertise and personalized service at a more competitive rate.

Best for: Organizations needing recurring actuarial services, complex multi-line engagements, or those wanting the institutional backing and peer review infrastructure of an established firm.

Independent Practitioners

Solo practitioners and small actuarial practices can offer significant cost advantages and highly personalized attention. Many independent actuaries are senior professionals with decades of experience at major firms who have transitioned to independent practice.

Best for: Smaller insurers, single-line engagements, pension plan sponsors with straightforward plan designs, or organizations with well-defined project scope that doesn’t require a large team.

Full-Time Hire

For organizations with ongoing, substantial actuarial needs, particularly insurance carriers and large plan sponsors, hiring a full-time actuary may be the most cost-effective approach long-term. Based on patterns we’ve observed in actuarial career postings, the median salary for actuaries is approximately $125,770, with experienced Fellows earning $150,000 to $250,000 or more depending on seniority and specialization (BLS, Occupational Outlook Handbook).

Best for: Insurance carriers needing day-to-day actuarial oversight, large employers with multiple pension plans, or organizations where actuarial work is central to ongoing operations.

Where to Search

Several professional directories can help you identify qualified actuaries:

• The Actuarial Directory (actuarialdirectory.org): A joint directory maintained by the SOA, CAS, and other actuarial organizations, searchable by name, credential, and location.
• SOA Explorer (soa.org/resources/soa-explorer): The SOA’s interactive tool for finding SOA members, searchable by geographic region, employer, and designation.
• CAS Member Directory (casact.org): The CAS offers its own member directory for verifying ACAS and FCAS credentials and CE compliance.
• American Academy of Actuaries Member Directory (actuary.org/membership/member-directory): Useful for confirming MAAA status and finding actuaries across all practice areas.
• Conference of Consulting Actuaries (ccactuaries.org): A professional organization specifically for consulting actuaries, with member directories.
• IRS Enrolled Actuary Roster: The Joint Board maintains a public roster of all enrolled actuaries in active status (available via IRS.gov).

What to Look for Beyond Credentials

Credentials confirm baseline qualification, but they don’t tell you everything. From reviewing actuarial consulting engagements across the industry, we’ve found that these factors often differentiate a good engagement from a great one:

Industry-specific experience. An actuary who has spent 15 years in workers’ compensation reserving will deliver very different value on a workers’ comp engagement than one whose background is primarily in medical malpractice, even if both hold the same FCAS/MAAA designations.

State regulatory familiarity. Insurance regulation varies meaningfully by state. An actuary experienced with New York DFS filing requirements will navigate that process more efficiently than one who has primarily worked in less prescriptive regulatory environments.

Modeling and technology capabilities. Modern actuarial work increasingly involves sophisticated modeling platforms (GGY AXIS, MoSes, ResQ, Emblem, and others), programming languages (R, Python, SQL), and cloud-based analytics. Organizations with advanced technical needs should evaluate the tools and methodologies a candidate brings.

Communication skills. Actuarial deliverables often need to be understood by non-technical stakeholders: boards of directors, regulators, opposing counsel, plan participants. The ability to translate complex quantitative findings into clear, accessible communication is a differentiating skill.

Understanding Engagement Structures and Costs

Actuarial consulting fees vary widely based on the complexity of the engagement, the seniority of the professionals involved, geographic market, and timeline. Here is a practical overview of how actuarial engagements are typically structured and what you can expect to pay.

Billing Models

Hourly (Time-and-Expense). The most common model for non-routine or complex projects. Each team member has an individual billing rate, and the client is charged for hours worked. Actuarial consulting firms typically bill between $200 and $600 per hour, with rates varying by the seniority of the person performing the work. A senior consultant or principal might bill at $400 to $600 per hour, while an analyst supporting the engagement bills at $150 to $250 per hour (Actuarial Ninja, Actuarial Consulting Firms).

Fixed Fee (Project-Based). Increasingly popular for routine, well-defined engagements. The client pays a set amount regardless of hours worked. For example, an annual pension valuation for a small to mid-size plan might be quoted at $15,000 to $40,000, while a routine P&C reserve opinion for a smaller insurer might range from $20,000 to $50,000. Fixed-fee engagements can be advantageous for budgeting and may reflect a discount from the equivalent hourly cost (PLANSPONSOR, “How to Tell If You’re Paying Reasonable Fees”).

Retainer. Some organizations retain actuarial consultants on an ongoing basis, paying a monthly or quarterly fee for a defined scope of services and availability. This model works well for organizations that need periodic actuarial input throughout the year without the overhead of a full-time hire.

Typical Cost Ranges by Engagement Type

These ranges are approximate and will vary based on organization size, complexity, jurisdiction, and firm.

Engagement Type	Typical Range	Key Cost Drivers
Annual pension valuation (ERISA)	$10,000 – $50,000+	Plan size, number of participants, complexity of benefit formula
P&C Statement of Actuarial Opinion	$20,000 – $75,000+	Number of lines, reserve complexity, state requirements
Life/health reserve opinion	$25,000 – $100,000+	Product mix, modeling complexity, number of entities
Insurance rate filing	$15,000 – $60,000+	Line of business, state, data availability
M&A actuarial due diligence	$50,000 – $200,000+	Transaction size, number of entities, time pressure
Expert witness engagement	$25,000 – $150,000+	Case complexity, deposition/trial time, opposing expert rebuttal
Startup actuarial build-out	$30,000 – $100,000+	Product type, number of states, regulatory complexity
OPEB / retiree health valuation	$10,000 – $40,000+	Number of plans, benefit complexity, accounting standard

What Drives Cost Variation

Several factors can meaningfully impact the total cost of an actuarial engagement:

Complexity and data quality. Clean, well-organized data significantly reduces the hours needed. Organizations that invest in data preparation before the engagement begins often see lower fees.

Timeline and urgency. Rush engagements command premium rates. Regulatory deadlines are firm, and waiting until the last minute to engage an actuary will cost more.

Seniority of actuaries involved. Routine work staffed primarily with analysts and associates will cost less per hour than engagements requiring extensive principal or partner involvement.

Geographic market. Firms in major insurance hubs (New York, Hartford, Chicago) may have higher standard rates, though remote work has reduced geographic price variation in recent years.

Firm size and brand. Larger consulting firms typically charge higher hourly rates than smaller firms or independents. The premium reflects deeper bench strength, peer review infrastructure, and brand recognition, but it isn’t always necessary for every engagement.

Red Flags in Actuarial Proposals

Be cautious of proposals that seem significantly below market rates (this may indicate corners will be cut on peer review or the engagement will be staffed with junior resources beyond what’s appropriate), do not clearly identify the credentialed actuary who will sign the final deliverable, lack specificity about scope and assumptions, or do not address how they handle scope changes and overruns. A good actuarial proposal should clearly identify the engagement team, their credentials, their relevant experience, the deliverables, the timeline, and the fee structure.

Questions to Ask Before You Hire

Before engaging an actuary or actuarial firm, use this checklist to evaluate candidates thoroughly.

Credentials and Qualifications

1. Does the signing actuary hold the specific credentials required for this engagement (MAAA for regulatory opinions, EA for ERISA work, FCAS for P&C, FSA for life/health)?
2. Does the actuary meet the current U.S. Qualification Standards for issuing Statements of Actuarial Opinion?
3. Is the Enrolled Actuary’s enrollment in active status? (The Joint Board maintains a publicly searchable roster.)
4. Has the actuary completed all required continuing education for the current cycle?

Experience and Fit

5. How many similar engagements has the actuary completed in the past three years?
6. Does the actuary have experience with your specific state’s regulatory requirements and filing processes?
7. For insurance engagements: Is the actuary familiar with the applicable ASOPs (particularly ASOP No. 23, 36, 41, and 43 for P&C reserve work)?
8. Can the actuary provide references from organizations of similar size and type?

Risk Management

9. Does the actuary or firm carry professional liability (errors and omissions) insurance? What are the coverage limits?
10. What is the firm’s peer review process for final deliverables and signed opinions?
11. How does the firm handle conflicts of interest, particularly if they serve multiple clients in the same market?

Practical Matters

12. Who specifically will be doing the day-to-day work, and what are their qualifications?
13. What is the expected timeline, and what milestones will you use to track progress?
14. What data and documentation will the actuary need from your organization?
15. How does the firm handle scope changes? Is there a process for pre-approval of additional work?
16. What format will deliverables take (written report, presentation to the board, regulatory filing-ready opinion)?

Working With Your Actuary Effectively

A productive actuarial engagement depends on good communication and preparation from both sides.

Before the Engagement Begins

Prepare your data. This is consistently the most impactful thing a client can do. Clean, well-organized claims data, exposure data, plan documents, and financial records reduce the time (and cost) the actuary spends on data cleanup and reconciliation. Ask your actuary for a data request template before the engagement starts.

Identify your internal point of contact. Designate someone in your organization, whether in finance, legal, underwriting, or HR, who will be the primary liaison. This person should understand the engagement scope and have authority to provide data and make decisions on timing.

Clarify the audience for deliverables. An actuarial report written for regulators will differ significantly from one prepared for a board of directors or for use in litigation. Make sure the actuary understands who will read the final work product and in what context.

During the Engagement

Respond to data requests promptly. Delays in providing data are the most common cause of engagement timeline slippage. If you can’t meet a data request deadline, communicate that early so the actuary can adjust the project plan.

Ask questions about assumptions. Actuarial work involves professional judgment, and assumptions can materially affect results. Good actuaries will explain their assumptions and the sensitivity of results to different choices. Don’t hesitate to ask why a particular assumption was selected and how the conclusion would change under alternatives.

Request progress updates. For complex or lengthy engagements, ask for interim check-ins. This is especially important for M&A work or litigation support, where findings may influence broader strategic decisions.

Understanding Actuarial Deliverables

Actuarial reports and opinions follow specific conventions and terminology that can be unfamiliar to non-actuaries. A few key concepts:

The Actuarial Opinion is a formal, structured document with prescribed language. The classification of the opinion (reasonable, qualified, adverse, or no opinion) carries significant regulatory weight. If your Appointed Actuary issues anything other than a “reasonable” opinion, that signals a potential concern that regulators and your board need to understand.

The Actuarial Report (or memorandum) is the supporting document that contains the detailed analysis, methods, data, and assumptions underlying the opinion. This is where you’ll find the substance of the actuary’s work. It is typically confidential and may be protected from public disclosure depending on your jurisdiction.

Ranges and point estimates. Actuarial analysis typically produces a range of reasonable estimates rather than a single number. Understanding the selected point within that range, and why the actuary chose it, is important for financial reporting and strategic decisions.

Ongoing vs. One-Time Engagements

Many actuarial relationships evolve into long-term partnerships. Annual regulatory filings, pension valuations, and reserve opinions are recurring needs. There are advantages to continuity: the actuary develops institutional knowledge of your organization, data flows become routine, and quality often improves over time. However, it’s also healthy to periodically benchmark your actuarial fees and consider competitive proposals, particularly at contract renewal points.

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