Actuary
From the excitement of Lloyds London Market, to an advisory role with one of the world's leading consultancy firms, an actuarial career is one of the most diverse, exciting and rewarding. With a professional qualification that is recognised worldwide who knows where the future could take you. Find out more about how to become an actuary.
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 is a simple way so 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.
Actuaries apply financial and statistical theories to assess the likelihood of a particular event occurring, and the possible financial costs.
Specific task vary but work may include:
Specifically, actuaries in their day-to-day work may be responsible for the following:
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.
From the excitement of Lloyds London Market, to an advisory role with one of the world's leading consultancy firms, an actuarial career is one of the most diverse, exciting and rewarding. With a professional qualification that is recognised worldwide who knows where the future could take you. Find out more about how to become an actuary.
Salary figures are intended as a guide only.
From the excitement of Lloyds London Market, to an advisory role with one of the world's leading consultancy firms, an actuarial career is one of the most diverse, exciting and rewarding. With a professional qualification that is recognised worldwide who knows where the future could take you. Find out more about how to become an actuary.
Although this area of work is open to all graduates with strong numerical skills, the following degree subjects may increase your chances:
The majority of UK entrants to the profession are graduates with a first or second class honours degree. Some employers require specific degree subjects or an MSc in Actuarial Science. Graduates must have a minimum of grade B in A-level mathematics and a grade C in another A-level subject. Employers of actuaries typically look for a 2:1 or above, ideally in a numerate subject such as mathematics, statistics or economics. Eligibility of other qualifications, including those from outside the UK and Ireland, can be checked with the Institute and Faculty of Actuaries also known as The Actuarial Profession . Entry with an HND only is highly unlikely.
Details of postgraduate diploma and MSc courses in actuarial science accredited by The Actuarial Profession are available on their website. The Directory of Actuarial Employers in the UK and Ireland has a list of companies that may offer sponsorship for postgraduate study.
A degree, postgraduate diploma or MSc in actuarial science may give exemption from core technical subjects and allow qualification in a shorter time. It is also possible to get exemptions having studied a numerical degree such as mathematics or economics provided modules include some focus on statistics and probability. Details are available from The Actuarial Profession.
Although pre-entry experience is not a requirement, talking to people in the job and, if possible, acquiring some work experience will prove invaluable. Some companies offer work placements or internships for students interested in becoming actuaries. Internships and placements can potentially be helpful in securing a graduate job however this is dependent on the organisation. It is also useful to speak with people in the profession by approaching them at careers events or work shadowing where possible.
Candidates will need to show evidence of the following:
The Financial Mathematics Exam , offered by The Actuarial Profession to university students and people working in financial services, provides a useful starting point for those considering a career as an actuary. A Certificate in Financial Mathematics, often referred to as CT1, is awarded on successful completion. The certificate also goes towards completing the professional qualification.
For more information, see work experience and internships and search courses and research.
From the excitement of Lloyds London Market, to an advisory role with one of the world's leading consultancy firms, an actuarial career is one of the most diverse, exciting and rewarding. With a professional qualification that is recognised worldwide who knows where the future could take you. Find out more about how to become an actuary.
Most new students enter the profession by joining a company as an actuarial trainee or risk analyst at the same time as studying for professional exams. It is important to choose the area of work you are most interested in and then apply for suitable posts. A list of actuarial employers is available from The Actuarial Profession .
Student actuaries take the exams at their own pace through distance learning courses run by specialist providers and supplemented by tutorials. Many employers provide support through mentoring, coaching, study leave and meeting the costs of learning materials. Subjects studied include statistical modelling, economics and financial actuarial maths. It is crucial for students to keep up with any changes in the sector as these can often affect the content of learning materials and exams.
Qualification as an Associate member of the profession typically takes two to five years. The Associate qualification level is recognised internationally as meeting the minimum requirements to be an actuary and qualifies members to use the letters AIA or AFA. Actuaries who wish to continue their studies to an advanced level, or who wish to specialise in a particular actuarial field, may take further specialist exams to qualify as Fellows, becoming experts in areas such as investments, enterprise risk management, pensions or insurance. Qualifying for fellowship can take between three and seven years. Exemptions from some of the exams may be awarded to students who have studied to an appropriate standard in a relevant degree, or who have studied actuarial science at postgraduate level. Fellows use the letters FIA or FFA and are sought after as experts in their chosen field.
From the excitement of Lloyds London Market, to an advisory role with one of the world's leading consultancy firms, an actuarial career is one of the most diverse, exciting and rewarding. With a professional qualification that is recognised worldwide who knows where the future could take you. Find out more about how to become an actuary.
Once qualified, actuaries can progress quite quickly to managerial positions with greater levels of responsibility for project work and team management, including mentoring new trainees.
An actuarial career offers a great deal of flexibility and although an actuary may choose a particular area of specialisation such as consultancy, investments, life assurance, general insurance, pensions or reinsurance, it is still possible to change areas later in your career. For instance, some actuaries move from pensions firms to work in investment banks or asset management firms, or into large corporations. Enterprise risk management is a developing area offering opportunities for senior actuaries to progress to board level positions as chief risk officers (CRO).
Actuaries may choose to move into product development, marketing and even senior sales roles where the complexity of the product and value of sale require a consultative sales approach. It is also possible to pursue particular areas of interest such as genetics, energy supply or climate change.
Other related areas of work open to experienced actuaries include:
From the excitement of Lloyds London Market, to an advisory role with one of the world's leading consultancy firms, an actuarial career is one of the most diverse, exciting and rewarding. With a professional qualification that is recognised worldwide who knows where the future could take you. Find out more about how to become an actuary.
Most actuarial trainees begin their careers in the financial services industry, particularly in the traditional employment areas of insurance and pensions. Employers include:
Career opportunities vary depending on the type and size of employer. Visit The Actuarial Profession website for a list of employers and to research companies in order to gain a full understanding of the type of work involved in each area.
Consultancy work is an alternative option for actuaries. Just over a third of UK Fellows of the Institute and Faculty of Actuaries, work in insurance or reinsurance. This is compared with 48% working in consultancy or business advisory roles.
The Government Actuary's Department (GAD) is an independent actuarial consultancy working within government. Their work includes advising public sector organisations in the UK and internationally on insurance-related issues, principally the regulation and supervision of insurance companies.
Lloyd's of London is a specialist insurance market and runs a graduate programme. For graduate programmes or opportunities run by specific businesses in the Lloyd’s market visit Graduates at Lloyd's .
Recruitment agencies, e.g. CompliantGlobal , sometimes handle vacancies and often advertise in the financial vacancy sections of the press or in professional journals. See the Recruitment and Employment Confederation (REC) website for a list of member agencies.
Get tips on job hunting, CVs and covering letters and interviews.
From the excitement of Lloyds London Market, to an advisory role with one of the world's leading consultancy firms, an actuarial career is one of the most diverse, exciting and rewarding. With a professional qualification that is recognised worldwide who knows where the future could take you. Find out more about how to become an actuary.
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