The UK's official graduate careers website

Not signed up?

 
 

Actuary: Job description

Actuaries evaluate, manage and advise on financial risks. They apply their knowledge of business and economics, together with their understanding of probability theory, statistics and investment theory, to provide strategic, commercial and financial advice. The core of actuarial work lies within pensions and insurance, where professionals are most likely to start off. Some actuaries may move on to investment banks at a later stage.

Actuarial work can be diverse and ranges from highly technical roles developing complex financial products in investment banks or pensions and insurance companies to consultancy roles for those seeking a client-facing career.

Actuaries need to apply their mathematical, economic and statistical awareness to real situations in the financial world and be able to communicate the difficult topics to non-specialists. Strong communication skills are becoming an increasingly important part of the actuarial profession, and it is essential that actuaries are able to discuss complex topics in a simple way to assist their clients effectively.

Actuarial trainees may begin work as trainee pensions consultants or risk analysts while at the same time studying for professional exams. Senior actuaries can be found in consulting firms as partners, in large banks as chief risk officers or in board-level positions in insurance companies and other financial services organisations.

Typical work activities

Actuaries apply financial and statistical theories to assess the likelihood of a particular event occurring and the possible financial costs.

Specific tasks vary but work may include:

  • analysing statistical data in order to calculate, for example, accident rates for particular groups of people;
  • using mathematical modelling techniques and statistical concepts to determine probability and assess risks, such as analysing pension scheme liabilities, to price commercial insurance;
  • monitoring risk within trading positions in investment banking to ensure excessive risks are not taken during the fast pace of trading;
  • presenting reports, explaining their implications to managers and directors, and advising on risk limitation;
  • advising on issues such as the selection of investment managers or the administration of pensions and benefits;
  • working with IT professionals to develop systems to ensure compliance with the requirements of regulatory bodies;
  • communicating with clients and carrying out relationship management, including with investment managers, financial directors and external stakeholders;
  • supervising staff;
  • working with mergers and acquisitions on some occasions.

Specifically, actuaries in their day-to-day work may be responsible for the following:

  • developing new financial products;
  • conducting valuations of assets and liabilities;
  • advising on investment strategies and assessing the profitability of an investments portfolio;
  • calculating funding rates and considering assumptions for pension scheme liabilities;
  • analysing risks related to locations for catastrophe claims;
  • measuring, monitoring and mitigating portfolio and enterprise risks;
  • overseeing asset and liability modelling, product development and profit testing;
  • preparing presentations, reports, valuations and quarterly updates.

Actuaries may also be involved with the acceptance of proposals for new policies, with legal and taxation matters affecting life assurance, or with the investment of funds.

 
 
AGCAS
Written by Yasmin Ansari, University of Birmingham
Date: 
January 2012
 
 

Sponsored links

 
 
 

This website is best viewed in an up-to-date web browser with CSS enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets if you are able to do so.