1800 W Larchmont Ave, Chicago, IL 60613 actuaries@dwsimpson.com
Phone: (800) 837-8338 / (312) 867-2300  /  Fax: (312) 951-8386
With USA, Australia, UK, Germany, Switzerland, India, Hong Kong and Dubai offices
Catastrophe Risk Modeling Jobs

Catastrophe Risk Modeling Compensation Surveys
©2010 DW Simpson Global Actuarial Recruitment

In response to the many cat modeling compensation information requests that DW Simpson annually receives - as the leading international recruiter of catastrophe risk modelers -  we have produced this very basic outline of our observations. These observations are regarding the base salaries plus paid bonuses that catastrophe modelers annually receive in the US, Bermuda and Canada. 

Since DW Simpson places cat modelers worldwide, we welcome the opportunity to discuss other countries as well, where compensation may not be as conveniently modeled.

However, please note that, in practice, compensation decisions can be far more complex than may be summarized in one rudimentary formula.

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We have observed that when modelers are on an actuarial track and are sitting for actuarial exams or have sat for exams, our DW Simpson Actuarial Salary Surveys, the industry standard, are most appropriate for estimating these modelers' compensation.

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When modelers are NOT on an actuarial track, we have found, on average, that their annual base salary plus paid bonus in a given year is equal to the following equation:

$55,000 +   [$6,000 multiplied by years of experience] + [$7,000 multiplied by degree] = AVG

If one were to look at a range of compensation packages, we have observed that roughly 90% of the packages are within these highs and lows:

$70,000 +   [$7,000 multiplied by years of experience] + [$14,000 multiplied by degree] = HIGH

$40,000 +  [$5,000 multiplied by years of experience] + [$0 multiplied by degree] = LOW

In other words, 5% of compensation packages are greater than the "HIGH", and 5% of compensation packages are less than the "LOW" (90% + 5% + 5% = 100%).

If a modeler holds a Ph.D. (regardless of how many), degree = 3.

If a modeler holds a Master's (regardless of how many), degree= 2.

If a modeler holds a Bachelor's (regardless of how many), degree = 1.

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DW Simpson is always interested in discussing the current catastrophe risk modeling market with modelers, developers, managers and clients. Please see our contact information above.