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2024 Actuarial Industry Trends and Outlook for 2025

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The actuarial recruitment market experienced a noticeable slowdown in 2024, attributed to a combination of macroeconomic pressures, technological transitions, and evolving industry needs. Understanding the underlying causes of the 2024 Actuarial Industry Trends and Outlook for 2025 provides valuable insight for both employers and aspiring actuaries navigating the professional landscape.

Reasons for the Slowdown in 2024

  1. Economic Uncertainty: Global economic challenges, including inflationary pressures, rising interest rates, and geopolitical tensions, led many companies to adopt cautious hiring strategies. Organizations in traditional actuarial domains such as insurance and pensions were particularly affected, often delaying recruitment plans and focusing on cost containment.
  2. Restructuring and Automation: Advancements in artificial intelligence (AI) and predictive analytics have prompted some firms to restructure their actuarial departments. Automation of routine tasks, such as reserving and pricing, has reduced the demand for entry-level positions. This was one of the 2024 Actuarial Industry Trends and Outlook for 2025 was impacted as employers now prioritize candidates with advanced analytical skills and the ability to work alongside AI systems, further tightening the job market.
  3. Shifting Industry Needs: The actuarial profession faced a realignment of priorities as new risks, such as climate change and cyber threats, gained prominence. Companies sought actuaries with expertise in these emerging areas, creating a mismatch between traditional skill sets and market demands. This skills gap contributed to slower hiring as organizations grappled with defining and sourcing these new competencies.
  4. Credentialing Bottleneck: The rigorous actuarial credentialing process continued to impact the supply of qualified candidates. With fewer individuals reaching the fellowship or associate levels within their respective actuarial societies, the talent pool remained constrained, exacerbating the slowdown.
  5. Remote Work Saturation: While hybrid and remote work opportunities expanded in 2022 and 2023, 2024 saw a plateau in these trends. Some companies began rolling back remote positions, limiting opportunities for geographically dispersed candidates and narrowing the scope of recruitment efforts.

What to Expect in 2025

  1. Targeted Hiring Resurgence: Despite the slowdown that was a 2024 actuarial industry trend, a gradual rebound in recruitment is expected in 2025 as economic conditions stabilize. Companies are likely to adopt targeted hiring strategies, focusing on highly specialized roles in areas such as environmental risk, health tech, and advanced analytics.
  2. Upskilling as a Priority: Employers will place increased emphasis on candidates with proficiency in data science, machine learning, and programming languages like Python and R. Actuarial professionals who actively pursue continuing education and certifications in these areas will be better positioned to capitalize on emerging opportunities.
  3. Collaborative Roles: The integration of AI into actuarial workflows will drive demand for actuaries who can interpret and validate machine-generated insights. This started as one of the 2024 actuarial industry trends and outlook for 2025 was impacted by this shift underscoring the importance of soft skills, such as effective communication and cross-disciplinary collaboration.
  4. Focus on Retention: As competition for top talent intensifies, firms will prioritize retention strategies, offering competitive compensation packages, flexible work arrangements, and clear career progression paths.
  5. Global Opportunities and Mobility: Actuarial professionals with international experience and expertise in global regulatory frameworks will be in high demand. Companies expanding into emerging markets will look for talent capable of navigating cross-border risks and cultural nuances.

While the 2024 actuarial industry trends and outlook for 2025 presented challenges for the actuarial recruitment market, 2025 holds promise for a rebound driven by strategic hiring and a focus on specialized skills. Actuaries who embrace continuous learning and adapt to the evolving demands of the profession will be well-positioned to thrive in the years ahead.

Have a hiring need in 2025?  Contact Smith Hanley Associates’ Actuarial Science Executive Recruiter, Rory Hauser at rhauser@smithhanley.com.

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