Actuary vs. Lawyer: What Are the Differences?

Actuaries and lawyers are both professionals who work with numbers and use their analytical skills to solve problems. If you’re interested in a career that involves critical thinking and problem-solving, then either of these may be a good fit for you. In this article, we compare and contrast the job duties of actuaries and lawyers, and we discuss the education and skills required for each profession.

What is an Actuary?

Actuaries are typically employed by insurance companies to design and decide which policies and premiums to charge for different companies. They carefully analyze each policy to ensure it’ll be profitable and beneficial for companies to utilize. Some Actuaries may work for consulting firms, government entities or pension companies handling their property, life, casualty and health insurance policies. Actuaries typically gather statistical data to analyze, then they present these findings to government officials, shareholders, executives or other clients. They often create and use charts or graphs to better explain their projections, calculations and new policy plans.

What is a Lawyer?

Lawyers represent individuals, businesses and government agencies in civil and criminal legal matters. They research the law, prepare documents and argue cases in court. Lawyers typically specialize in a particular area of law, such as family law, criminal law or corporate law. They may also specialize in a particular type of legal issue, such as personal injury or estate planning. Lawyers typically work in private law firms, but they may also work for government agencies or corporations. In some cases, they may represent clients on a pro bono basis, which means they do not charge a fee for their services.

Actuary vs. Lawyer

Here are the main differences between an actuary and a lawyer.

Job Duties

Both actuaries and lawyers perform research to help them make decisions, but the type of research they do differs. Actuaries use statistical data to determine the likelihood that an event will occur. They then use this information to advise companies on how to best manage their risks. For example, an actuary might analyze a company’s mortality rates to determine how many employees are likely to retire in the next five years.

Lawyers also conduct research, but theirs is more client-specific. When working on a case, lawyers interview clients, review evidence and investigate the circumstances surrounding an incident to determine the best course of action. Lawyers may also draw on their knowledge of legal codes and statutes when formulating a defense for their clients.

Job Requirements

To become an actuary, you need at least a bachelor’s degree in mathematics, actuarial science, statistics or another related field. You must also pass a series of exams administered by the Society of Actuaries (SOA) to earn the designation of Associate of the Society of Actuaries (ASA). To become a Fellow of the SOA (FSA), you must have at least eight years of experience and pass additional exams.

To become a lawyer, you need to complete a Juris Doctor (JD) degree from an accredited law school. Once you have your JD, you must pass the bar exam in the state where you want to practice law. Some states require lawyers to complete continuing legal education (CLE) courses to stay up-to-date on changes in the law.

Work Environment

Actuaries typically work in an office setting, but they may also travel to meet with clients or attend conferences. They may spend their days analyzing data and creating reports for management teams. Lawyers can work in a variety of environments depending on the type of law they practice. For example, criminal defense lawyers often work in courtrooms, while corporate lawyers may work in offices.

Lawyers usually work long hours during busy times, such as when preparing for trials or writing briefs. They may also have irregular schedules due to deadlines and meetings.

Skills

Both actuaries and lawyers need to have excellent analytical skills. Actuaries use their analytical skills to assess risk and predict the likelihood of future events occurring, while lawyers use their analytical skills to research cases and build arguments.

Both actuaries and lawyers also need to be able to communicate effectively. Actuaries need to be able to explain complex concepts to those without a background in mathematics or statistics, while lawyers need to be able to persuasively argue their cases in court.

While both actuaries and lawyers need to have strong problem-solving skills, actuaries typically use their problem-solving skills to identify potential risks and develop strategies to mitigate them. Lawyers, on the other hand, use their problem-solving skills to find solutions that fit within the confines of the law.

Salary

Actuaries earn an average salary of $124,755 per year, while lawyers earn an average salary of $94,905 per year. Both of these salaries can vary depending on the type of work you do, your level of experience and the location of your job.