By Sally Ezra
Over the past five years, the actuarial job market has undergone significant changes, driven by the pandemic, salary growth, and evolving work models. The demand for actuaries has remained strong and, in 2025, the market is poised to be active.
After the onset of the pandemic, it became clear by April 2020 that in-person interviews—the industry standard—were not going to happen anytime soon. As an actuarial recruitment firm, we and our job seekers were concerned that hiring would come to a standstill. Then, in mid-April, one of our more conservative clients requested a Zoom interview with a potential candidate, which was a rare occurrence at that time. The client made an offer, and the candidate accepted, and at that moment, we realized that remote work was becoming the new norm, at least temporarily.
Let’s examine the actuarial employment trends that have emerged since 2020.
2020-21: Hiring with Urgency
The job market in 2020 was active, but the hiring process was slow. Clients were apprehensive, and candidates were hesitant to switch jobs, too. Job offers in 2020 and 2021 showed typical salary increases, usually 5% to 13% above a candidate’s previous salary.
Hiring during this period was slower than usual. This coincided with the “Great Resignation,” where many actuaries chose to retire earlier than they had planned, leave the field to take care of their family, or follow their passions. As a result, there were plenty of jobs that needed to be filled.
The actuarial job market was like a dam ready to break. Everyone was hiring with urgency. Initially, candidates were hesitant to make a move, and then salaries increased.
2021-2023: Motivated by Salary
Suddenly, the demand for actuaries far outpaced the candidate pool. Starting in mid-2021, becoming the norm in 2022, and lasting until around mid-2023, it was common for candidates to receive multiple offers and significant pay increases. Interview processes moved quickly because companies knew if they moved slowly, they would lose top candidates. Hiring managers commented that the competition for talent was fierce—and it was.
- Many unique developments occurred during this time. In no particular order:
- Hiring managers relaxed their requirements, and candidates were able to make a shift to new types of work. For example, a pricing actuary without predictive analytics experience, but with an interest in analytics, was more likely to be considered for a pricing analytics role.
- Often, offers came in at more than 20% of a candidate’s prior compensation.
- Some candidates opted to trade higher salaries for better work-life balance and accepted either lateral offers or offers with lower compensation.
- Companies stopped requiring relocation, and few mandated an in-office presence.
Word spread about the potential for large salary increases, and more candidates became active. As candidates became more comfortable with remote work, they became less apprehensive about changing jobs, and wanted to take advantage of the salary boosts they were hearing about.
Actuaries usually change jobs for career progression or a new challenge, with salary increases following as a natural outcome. However, during this time, salary increase became their main motivation.
In addition to the increase in demand driving salaries up, there were several other factors at play as well:
- The candidate pool became national. Employers in lower cost of living areas saw a larger candidate pool, but also a more expensive candidate pool than they were accustomed to.
- Many states and municipalities do not allow employers to ask candidates for salary information. Asking for salary expectations became the norm, and lower-paid actuaries took advantage of it to “right” their salary.
- To stay competitive, insurance carriers began offering higher salaries at the near-associate to newer fellow levels, exceeding the offers from consulting firms.
There were downsides as well. With compensation becoming the main motivation for some actuaries, we saw an increase in short employment stints as people accepted jobs that weren’t good fits. Actuaries are typically discerning and make calculated (no pun intended!) decisions when considering a move. However, when financial incentives became the primary motivation, it proved problematic in some cases.
During this time, we saw employers make salary adjustments for their existing actuarial staff. Increasing payroll costs to retain their valued actuaries was a more cost-effective and attractive option than replacing them. Several employers reached out to me for guidance on compensation ranges, with a couple sending their anonymized actuarial team rosters and compensation details to discuss specifics and ensure their actuaries were paid competitively. The employers recognized the need to make adjustments to retain their valued actuaries and were proactive in doing so.
2023-2024: A Balanced Market Slows Down
During the second half of 2023, the actuarial job market became balanced. With the flurry of job changes behind us, the supply and demand became more aligned, though there was a slight advantage for job seekers. With so many actuaries changing jobs in 2022 and 2023, many were not ready for another move, leading to a more constricted candidate pool. For the most part, the days of 20%-plus increases were over, but offers remained strong. The market continued to be steady until the second quarter of 2024 when things began slowing down a bit.
Historically, actuarial recruitment increases after summer, slows down around Thanksgiving, and picks up again after the new year. However, 2024 was different. The summer slowdown did not pick up in the fall, but in mid-November, the market spiked and remained strong through the holidays.
A Twist
The large bumps in compensation we saw did not have a significant impact on our salary surveys. Overall, actuarial compensation increased at a normal, conservative rate between 2021 and 2024.
What I have outlined in the article reflects the market trends, so it’s understandable that questions may arise about why salary ranges from 2021 through 2025 did not increase significantly. Our data analysis shows that the greatest increase in compensation occurred at the more junior to mid-levels, and for candidates in the lower quartile to mid-level of their salary range.
Despite unprecedented increases in some areas, compensation stayed mostly flat in others. Senior and executive-level candidates were less likely to see significant increases, and some even took slight pay cuts for opportunities better aligned with their goals. Candidates at the top of the salary ranges did not see large increases as compared to those in the lower ranges. We saw professionals willing to prioritize quality of life over higher salaries.
Additionally, not every company adjusted compensation to
stay competitive, and cost-of-living (COL) increases were based on prior years
rather than actual inflation. And lastly, even during the most active years in
the job market, less than 10% of
actuaries change jobs.
What Will We See in 2025?
There will be a lot of movement in the actuarial job market this year. A Dec. 16, 2024, Forbes article, “2025 Exodus,” cited that according to a recent survey by ResumeTemplates.com, 56 percent of full-time employees in the U.S. want a new job in 2025, and 27 percent have already started searching.
We talk to actuaries who have been too busy to change jobs but are now eager to do so, as well as those who have people who have updated their resumes. The 2025 actuarial job market has started out strong, and employers are continuing to make competitive offers.
More companies are now requesting their employees return to the office on a hybrid basis. For new roles, fewer insurers are offering fully remote work, with hybrid models becoming the standard. However, a very low portion of insurers require employees to be in office full time.
Actuaries tell us that they once had busy seasons and downtimes. However, there has been constant heavy workload over the past couple of years. This will likely be a year where more people will seek opportunities with better work-life balance as a primary motivator.
The actuarial job market in 2025 will include technology firms that develop tools for actuaries, Insurtechs, the growing Program and MGA markets, and the reinsurance sector. And lastly, we anticipate both traditional insurers and consulting firms will have more roles to fill than expected since their actuaries will be the ones leaving to fill roles within those other sectors.
The actuarial market over the past five years has been remarkable, adapting to broader and equally unprecedented changes in the world. While work models, job requirements, and technology continues to evolve, the demand for actuaries will remain.
Sally Ezra is partner, Ezra Penland, an actuarial recruiting firm. She has spent over two decades recruiting actuaries and has developed strong professional relationships and a vast network of clientele.