What is Actuarial Work? - University of Wolverhampton

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What is Actuarial Work?

Actuarial work involves business professionals who deal with the financial impact of risk and uncertainty. They apply financial and statistical theories to solve business problems. A lot of the work an actuary does involves risk management.

If you have undertaken a finance related degree, this could be a possible career direction for you to explore.

What does an Actuary do?

Actuaries deal with all aspects of financial risk. knowledge to make long-term financial forecasts. These forecasts are then used by the organisation to solve financial problems and/or make future plans. The work of an actuarial

This includes managing, investigating and evaluating information to give clear and practical strategic and financial advice. Theories are applied to assess the likelihood of a particular event occurring and the financial costs that would be incurred.

Duties may include:

analysing statistical data;

calculating probability and assessing the risks of a number of different situations;

writing and presenting detailed reports;

explaining financial implications to managers and directors;

advising on risk limitation;

working with IT professionals to develop systems to ensure compliance with the requirements of regulatory bodies;

supervising staff;

developing new financial products;

conducting valuations of assets and liabilities;

advising on investment strategies;

measuring, monitoring and mitigating portfolio and enterprise risks;

overseeing asset and liability modelling, product development and profit testing

Actuaries may also be involved with the analysis and acceptance of proposals and policies, legal and taxation matters affecting life assurance, or with the investment of funds. Senior actuaries can be found in positions such as partners in consulting firms or in board level positions in within financial services organisations.

An actuarial consultant is a similar role to an actuary. They use statistical and mathematical consultant is mainly carried out within a consultancy firm, and may include advising on other areas such as HR management, risk management, mergers and acquisitions and corporate recovery. This focus depends on the consultancy and their portfolio. The consultancy environment tends to offer more varied work as actuarial consultants balance a wide range of responsibilities, projects and client demands.

This can be a challenging career path but also rewarding.

How to get into actuarial work

Getting into actuarial work can prove to be difficult and the entry requirements are high.

Although the profession is open to all graduates, having one of the following degrees can be beneficial:

 actuarial science;

 actuarial mathematics;

 mathematics;

 statistics;

 economics;

 engineering;

 business;

 finance;

 science e.g. physics and chemistry.

A large number of actuarial employers require a

2.1 or above with some employers also requesting an MSc in Actuarial Science.

There are other requirements to become a student of the actuarial profession and these include

an A Level in Maths (grade C or above);

©Careers and Employment Services, University of Wolverhampton 2012 ¦ www.wlv.ac.uk/careeers ¦ tel: 01902 321414 ¦ email: careers@wlv.ac.uk

another A Level in any subject (grade C or above);

a GCSE in English (grade C or above);

 two other GCSE’s (grade C or above).

Pre-entry work experience is not necessary, however it can prove be valuable. As the competition is high, you must ensure you have the following abilities:

 strong numeracy skills;

 the ability to communicate complex issues;

 IT skills;

 the ability to analyse information and problem solve;

 report writing;

 communication skills;

 the ability to work as part of a team as well as on own initiative;

 self-discipline and motivation;

 the ability and commitment to study alongside work;

 business awareness and how legislation affects a business is important

 a genuine interest in business.

The most common way to enter the profession is by finding an entry level position and progressing upwards. You will either need to find a trainee position as an actuarial trainee or a risk analyst or join an actuarial firm and develop your skills while you qualify. A list of actuarial employers can be found on The Actuarial

Profession website.

Professional body and qualifications

To become a qualified actuary you will need to register as an actuarial student and gain a professional qualification. There are two levels of membership with the Institute and Faculty of

Actuaries, Associate and Fellow. Both require students to pass examinations or gain exemptions, as well as attain a good level of work-based skills. This usually takes between three and six years and it covers a number of subject areas. The qualifications can be done by distance learning with the aim to equip individuals with the knowledge and skills employers will expect.

The levels of memberships are:

Student membership – become a member and study for the professional qualification, Diploma in Actuarial

Techniques and Certificate in Finance and Investment.

Associate membership – members have the right to call themselves an actuary and can use the letters AIA or AFA.

Fellow membership – membership for those who continue their studies to an advanced level or specialise in a particular actuarial field. Fellows can use the letters FIA or FFA.

The Actuarial Profession also offers the

Financial Mathematics Exam to university students and people already working in financial services as it is a useful starting point for those considering a career as an actuary. A Certificate in Financial Mathematics is awarded on successful completion.

Other possible jobs

Actuarial work is linked to many the specialist areas including insurance, pensions, benefits, healthcare, investments and banking. Actuaries can work for any organisation where risk management plays a role, or for a consultancy firm advising on a range of projects. However, the two main industry sectors that actuarial work links in with are pensions and insurance. For both of these industry sectors numerical information is handled with in order to provide financial services.

In the pensions sector actuarial work includes designing and advising on company pension schemes. Possible jobs include pension scheme manager and pensions adviser

Within insurance, actuaries create and price polices and ensures organisations have the money to cover claims. Possible jobs include insurance broker, insurance underwriter, insurance risk surveyor and chartered loss adjuster

Useful websites and resources

http://www.prospects.ac.uk/

Graduate guide website. For further information on the profession there is an actuary job profile. http://www.beanactuary.com

This site provides an overview of the actuarial profession and is used to promote the actuarial science career. http://www.actuaries.org.uk/

The website is governed jointly by the Faculty of

Actuaries in Edinburgh and the Institute of

Actuaries in London and includes a careers section on graduate recruitment information and

©Careers and Employment Services, University of Wolverhampton 2012 ¦ www.wlv.ac.uk/careeers ¦ tel: 01902 321414 ¦ email: careers@wlv.ac.uk

opportunities. It is The Actuarial Profession that provides information on the professional qualifications and memberships http://www.the-actuary.org.uk/

The website includes job vacancies for those at all levels within the profession as well as includes careers information and latest news http://www.gad.gov.uk/

Independent actuarial consultancy working within the government and the website includes a graduate careers/vacancy section http://www.aca.org.uk/

The Association is the representative body for

UK consulting actuaries http://www.companyofactuaries.co.uk/

The business professional website providing advice & analysis in financial risk management http://www.acted.co.uk/

The Actuarial Education Company - provides actuarial tuition on behalf of the Faculty of

Actuaries and the Institute of Actuaries (which operate under the joint name of The Actuarial

Profession ) http://www.cii.co.uk/cii.aspx

Chartered Insurance Institute (CII) http://www.lloyds.com/

Lloyds of London

University of Wolverhampton

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©Careers and Employment Services, University of Wolverhampton 2012 ¦ www.wlv.ac.uk/careeers ¦ tel: 01902 321414 ¦ email: careers@wlv.ac.uk

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