Actuary

Actuaries use mathematical and statistical theories to measure future risks and to calculate their potential cost. They make forecasts which help financial and governmental organisations solve current problems and make long-term financial plans.

The Work

You could be:

• using your knowledge of mathematics (particularly algebra), statistics, economics, business, law and accounting in large-scale financial planning


• collecting past information, such as the factors affecting average life-spans, or accident rates for people or cars


• using gathered information to assess future risks, for example, to calculate how much money to invest in pensions cover, or the financial impact of a possible natural disaster


• designing pension and insurance policies, including premium (the money a client pays in) and dividend (the money a company pays out) rates


• working closely with accountants, company secretaries, insurance underwriters, investment managers, solicitors and government ministers


• explaining your calculations and predictions to senior managers and providing risk advice
• writing detailed reports and making presentations
• specialising in one particular area, such as pensions, life assurance or investments.

Conditions

• You work in an office at a computer.


• You work normal office hours but might sometimes have to work evenings or weekends.


• You can often work part time or from home and adapt your work pattern to suit your lifestyle.


• If you work as a consultant you might have to travel to meet clients.

Getting In

• To become a student member of the Faculty of Actuaries (FOA) you need at least 3 Highers, including Maths at Grade A and English.


• Trainee actuaries generally need a degree. Many employers ask for a 2.1 degree or higher. A degree in a numerate subject and/or postgraduate degree in a subject related to the job may gain you exemptions from the professional exams.
• In Scotland, Heriot-Watt University offers undergraduate and postgraduate programmes (BSc/MSc Actuarial Science) accredited by the FOA. Glasgow Caledonian University also offers a postgraduate course in actuarial science.


• Entry to a degree course requires at least 3 Highers, but many courses require more than this.


• The BSc in Actuarial Science at Heriot-Watt University requires 4 Highers at AABB (AAAA for second year entry) including Maths at A.
• Relevant work experience in an actuarial department or large insurance company is very useful.


• On finishing your degree you find a post as an actuarial trainee or risk analyst and become a student member of the FOA. You can study by distance learning to gain your full actuarial qualification.
• The Actuarial Profession offers the 'Certificate in Financial Mathematics', allowing those outside the profession to take their professional exams. For details see below under "More Information".

What Does It Take?

You need to have:

• excellent ability in maths and good computer skills


• an analytical and logical approach


• a strong interest in business and finance


• accuracy and attention to detail.

• handle large amounts of specialist information
• solve complex problems


• explain complex financial information, both verbally and in writing
• work under pressure
• make decisions and accept responsibility for those decisions


• work on your own as well as part of a team.

Training

• Training involves practical experience on the job, with part time or distance study for the professional exams. This leads to the Associateship, and then the Fellowship, of the FOA.


• It takes between 3 and 6 years to become fully qualified.


• Your employer will probably allow some time off for study, but you have to do a great deal of work in your own time.


• If you have a previous qualification in actuarial science, statistics or economics you may get exemptions from parts of the exams.
• You must keep up to date with new developments throughout your working life.

Getting On

• This is a small profession, but the number of actuaries has been growing in recent years and the job opportunities are good.


• The skills of a professional actuary are so highly respected that promotion to the top of the company is common.


• After experience you can gain promotion to a senior position and then into management, perhaps up to director level.


• Alternatively you can specialise in a particular area; this could be in healthcare, life assurance, climate change or energy supply.


• With experience you may become a self-employed consultant, advising financial services organisations not only on risk management but also on mergers and acquisitions.


• There are good opportunities for UK-trained actuaries to work in many overseas countries. The UK actuarial qualification is accepted around the world.

Pay

The figures below are only a guide. Actual salaries may vary, depending on:

• where you work


• the size of the company or organisation you work for


• the demand for the job.

More Information

Entrants will improve their chances if they pass one or two of the professional exams at their own expense before applying for a job. The FAO offers the Certificate in Financial Mathematics allowing those outside the profession to sit the professional examinations.

The exam is suitable for:

• university students who are interested in becoming actuaries or enhancing their career prospects in finance


• staff in financial services who are interested in becoming actuaries


• staff who work with actuaries and want to develop their numeracy skills.

Addresses

The following organisation(s) may be able to provide further information.