Actuary

Actuaries are experts in risk management. They use their mathematical skills to help measure the probability and risk of future events. This information is useful to many industries, including healthcare, pensions, insurance, banking and investments, where a single decision can have a major financial impact.

Also known as:

• Insurance actuary

The Institute and Faculty of Actuaries is the body that supports professional actuaries and is interested in ensuring more actuaries enter the workforce. Visit IFoA's website.

Work activities

Actuaries apply mathematical techniques, such as theories of probability, compound interest and statistics, to the solution of long-term financial problems and the management of financial risks. These could be connected with issues such as:

• Government policy.
• Health.
• Insurance.
• Investment.
• Pensions.

Every area of business is subject to risks. A typical business problem might involve analysing future financial events, especially when the amount or timing of a payment is uncertain. But it could also involve understanding something like the weather: assessing when and where devastating storms might hit can help to predict risks, and their associated costs, for investments or insurance. Actuaries working for the Government Actuary’s Department are involved in work such as predicting how the amount of National Insurance contributions collected can be balanced against the projected cost of paying for pensions, health care and allowances. They also answer questions raised in parliament. Some actuaries are employed in the marketing and development of financial products.

Personal qualities and skills

As an actuary, you’ll need to be able to:

• Analyse large amounts of information.
• Solve complicated financial problems involving large sums of money and many variable factors.
• Pay close attention to detail.
• Express and communicate your ideas and facts clearly, both verbally and in writing.
• Manage your time well.

You should have:

• A flair for mathematics.
• An interest in the practical analysis of business problems.
• Sound and reasoned judgement.
• A logical mind.
• Strong IT skills.
• Confidence and interpersonal skills.

Pay and opportunities

Trained actuaries start on around £32,000 per year, rising to as much as £70,000 with experience. Other benefits could include profit-related bonuses, low-rate mortgages, medical insurance, and life and pension cover.

Actuaries usually work 37-42 hours Monday to Friday, but their working week will reflect their responsibilities. Employers can also offer one day a week study leave while they are completing the qualification.

Employers include firms in general insurance, life assurance and investment banking, health care providers, finance and investment firms, actuarial consultancies and government departments. Opportunities for actuaries occur in some towns and cities throughout the UK. Most vacancies are in London and the South East.

Some actuaries work independently as self-employed consultants.

Where are vacancies advertised?

Graduate vacancies are advertised through the Institute and Faculty of Actuaries website and on the Directory of Actuarial Employers, Inside Careers and The Actuary websites. Vacancies are also advertised on job boards, such as InsuranceJobs.

Entry routes and training

Most entrants to training posts are graduates, usually with a degree in a numerate subject such as actuarial science, maths, statistics, economics, engineering or physics. Some entrants may also have a postgraduate qualification. Most employers look for graduates with a 2:1 degree or higher along with an A*, A or B in A-level maths.

As an alternative, those who do not meet the entry requirements can take the Institute and Faculty of Actuaries Certificate in financial mathematics. They would then need to find an employer willing to offer a training position.

Another option is to take an apprenticeship, with options including:

• Actuarial technician (level 4 / higher) – you will then need to train further to become an actuary.
• Actuary (level 7 / higher)

To become an actuary, you must register with the Institute and Faculty of Actuaries. You’ll need to register as a student member to take your exams.

Actuaries can progress to senior, manager, head of department and director posts. Some experienced actuaries might start their own consultancy business.

Rehabilitation of Offenders Act: Working as an actuary is an exception to the Rehabilitation of Offenders Act 1974. This means that you must supply information to an employer about any spent or unspent convictions, cautions, reprimands or warnings, if they ask you to. This is different from other careers, where you only have to reveal information on unspent convictions if you are asked to.

Qualifications

For entry to a degree course in actuarial science or maths, the usual minimum requirement is:

• Three A-levels including maths (many universities ask for an A* or A in maths).
• GCSEs at grades 9-4 in two other subjects.
• GCSE English at grades 9-4 is also needed to register as a student with the Institute and Faculty of Actuaries.

Alternatives to A levels include:

• Edexcel (BTEC) level 3 National qualifications.
• International Baccalaureate (IB) diploma.

Adult opportunities

Age limits: It is illegal for any organisation to set age limits for entry to employment, education or training, unless they can show there is a real need to have these limits.

If you don’t have the qualifications needed to enter your chosen degree course, a college or university Access course could be the way in. These courses are designed for people who have not followed the usual routes into higher education (HE). No formal qualifications are usually needed, but you should check this with individual colleges. This could lead on to a relevant degree in, for example, actuarial science, mathematics or statistics. If you have a numerate or science-based degree, it is possible to take a postgraduate course in actuarial science. Other graduates might be considered for a trainee position by some employers, depending on other qualifications, for example, if they have A-level maths.

A range of colleges and universities offer degrees in actuarial science, including at Master’s level. Study can be full or part time/flexible. Courses have been developed in partnership with the profession.

Bursaries for relevant higher education study are available, via university departments, from the Worshipful Company of Actuaries.

Related careers

• Accountant
• Auditor
• Economist
• Insurance underwriter
• Operational researcher
• Statistician