Actuary

Hours

30-40 per week

Starting salary

£31,000 + per year

If you are interested in economics and business, and you are highly skilled in maths and statistics, this job could be ideal for you.

Actuaries use mathematics, statistics and economics to judge probability and risk, in order to solve business problems and help companies and governments to forecast long-term financial costs.

In this job you will be working with a lot of data - researching, analysing and interpreting it. You will need good business sense and an understanding of financial markets. You will also need a logical approach and sound judgement.

To work as an actuary, you must qualify as an Associate or Fellow of the Institute and Faculty of Actuaries. This involves studying for professional exams whilst working as a trainee actuary. Minimum entry requirements are two A levels, with at least a B in maths and a C in the other subject, although many entrants have a degree in a relevant subject area such as maths or business.

The work

As an actuary, you could work in any of the following settings:

life assurance, insurance or pensions (designing policies and calculating premium rates so that companies can cover pay-outs and still make a profit)

consultancy (advising clients on major financial risks such as investment funds or company takeovers)

the Government Actuary's Department (advising government departments on the costs of social security benefits, state pensions and healthcare).

Your typical tasks would include:

analysing past events, for example accident rates or medical data

assessing the risks involved

forecasting the future financial outcomes of various situations

using computers to build mathematical and statistical models

explaining the findings to managers, ministers or business clients

keeping up to date with the financial and business worlds.

You would work closely with other professionals such as insurance underwriters, investment managers and accountants.

Hours

You would typically work normal office hours, Monday to Friday, although you may need to be flexible. Part-time work and job sharing, once qualified, may also be available.

During your training, it's common to spend around 15 hours a week studying for professional exams as well as working full time.

The work is mainly office-based, but you may travel to visit clients. This may be overseas. Dress code is usually formal.

Income

Student actuaries typically earn around £31,000 a year

Newly-qualified actuaries earn around £44,000

Senior actuaries and consultants can earn between £53,000 and £65,000

Senior management and partner salaries can be between £75,000 and £184,000.

Salaries may be increased by bonuses. Earnings can be higher in consultancy firms than in financial services companies.

Figures are intended as a guideline only.

Entry requirements

Your main route into actuarial work will usually be via a graduate training programme. These are offered by major employers.

To work as an actuary, you must qualify as an Associate or Fellow of the Institute and Faculty of Actuaries (which operates under the name of The Actuarial Profession). Your first stage is to join the Institute as a student member, and then study for professional exams whilst working as a trainee actuary.

To become a student member, you will need one of the following:

a third class degree or higher, including a pass in mathematical sciences as a major subject

a first or second class honours degree in any subject, together with at least grade C at A Level in any mathematical subject or equivalent, for instance the Business, Administration and Finance (BAF) Diploma.

two A Levels including maths at grade B or above and any other subject at grade C or above.

To get onto a maths-based degree course you will usually need at least five GCSEs (A-C) plus two A levels or equivalent qualifications, including a good grade in maths. Please check with colleges or universities for exact entry requirements.

Although the minimum entry requirement is A Levels, most employers seek candidates that have obtained degrees in subjects like mathematics, statistics or actuarial science and risk management. Other useful degree subjects include economics, physics, finance, statistics, chemistry, engineering and accounting.

It is increasingly common for trainee actuaries to already have a postgraduate qualification in a numeracy subject.

If you have a relevant degree (for example, actuarial science) or postgraduate qualification, you may be exempt from some of the professional exams.

You may improve your chances of finding a trainee position if you have some work experience in an actuarial department. You can find details of employers offering internships from the annual Directory of Actuarial Employers in the UK and Ireland , published on The Actuarial Profession website. Inside Careers Actuaries also publishes information about internships and advice on applying for training positions.

You may also switch into actuarial work from a related profession, like risk management or business analysis and follow the same training route as other actuaries.

Many employers prefer you to begin actuarial training within four years of graduating, but this is not always essential if you have previous relevant work experience.

Training and development

To qualify as an Associate member of the profession (AIA), which can take between three and six years, you must pass the following stages of training by examination or exemption:

Core Technical Stage (nine exams including statistical modelling, economics and financial and actuarial mathematics)

Core Applications Stage (three exams, including actuarial risk management, model documentation, analysis and reporting and communication to test that you can apply technical knowledge to practical situations)

attend a one-day professionalism course for Associates.

The exams can also be tailored to the area of finance you are working in, covering life and healthcare insurance, pensions, general insurance, finance and investment or risk management. Study is mainly by distance learning and tutorials, or by attending university courses.

If you want to study to an advanced level or specialise in a particular actuarial field, you can qualify as a Fellow by passing two further exams in Specialist Technical subjects, and one Specialist Applications paper.

If you have a degree or postgraduate qualification in actuarial science, statistics or economics, you may be exempt from some or all of the exams at the Core Technical Stage and some at the next stage. Contact The Actuarial Profession for more information.

As a qualified Associate or Fellow actuary, you are required to keep your skills up to date by continuing professional development (CPD), which The Actuarial Profession supports. This can include activities such as attending professional meetings and course, research, private study and reading.

Skills, interests and qualities

To be an actuary you will need to have:

advanced skills in maths and statistics

the ability to research, analyse and interpret data

excellent spoken, written and presentation communication skills

the ability to explain complex information

good business sense and sound judgement

a logical approach to problem-solving

excellent computer skills

the ability to pay attention to detail but also see the bigger picture

the ability to work well as part of a team and also independently

confident making decisions

high level of understanding about financial markets and business

good teamwork ethic.