Actuaries 201213

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In-depth career adviceGraduate & senior profilesSalaries & career pathsProfessional qualifications explainedDirectory of graduate employers

whatS InSIDe

Live jobs at www.insidecareers.co.uk/act

2012/13

the definitive guide to a career as an actuary.

Jenny elliott, Chair of the Career Committee, the actuarial Profession

ac

tua

ries

actuariesthe only graduate career guide to

2012/13

in partnership with

youractuarial career

starts here

further study

reference table

recruitment consultants

employer directory

5456

the institute & qualifications

actuarial syllabus and examsthe uK actuarial profession

pwc - Associate28aon - Trainee Pensions Actuary26hymans robertson - Actuarial Trainee24Guy carpenter - Actuarial Analyst22

Graduate profiles

hsbc - Head of Insurance Pricing38prudential - Senior Qualified Actuary36friends life - MCEV Reviewing Actuary34mercer - Senior Consultant32

senior profiles

Jobs on offer: graduate training schemes46internships: what to expect44education required42

findinG the riGht Job

fields of work12Salaries and benefits11Why become an actuary?10What is an actuary?08

the profession

contents

05 introduction

the future of the pensions sector16faqs18

Key skills required by employers50

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Acknowledgments

We are indebted to the actuarial

profession for their support, in particular

to Jenni hughes, alison Jiggins and barbara

beebee for their help throughout the

preparation of the guide and for reviewing

the text for balance and accuracy.

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05

philip scott, president of the institute and faculty of actuaries, introduces the Inside Careers Guide to Actuaries, and outlines the many benefits and career highlights that await graduates who choose to work in this industry.

introduction

on behalf of the institute and faculty of actuaries, i am pleased to introduce the latest edition of the Inside Careers Guide to Actuaries and thank you for your interest in this exciting and rewarding career.

In this guide you will find a wealth of information about the profession, our education system and the range of employment opportunities. if the work sounds appealing, please take the first step towards an actuarial career by applying to the employers listed at the back of the guide, or learning more by visiting www.actuaries.org.uk.

the actuarial profession represents the members of the institute and faculty of actuaries. While the majority of our members come from the uK, a significant number (41%) live and work overseas and, if you join us, you will be joining a truly global community.

if you are like me, deciding the direction in which to take your career is both exciting and daunting. With so many choices, it can sometimes be difficult to pin down exactly what will be the right career path for you. no doubt you will want to make sure that it all pays off.

a career as an actuary offers a wide range of opportunities and challenges to those who want to apply their skills in mathematics or statistics to problems in the real world of business and finance. these skills give actuaries an unrivalled appreciation of financial risk management, one of the most fundamental but least understood areas of business.

actuaries are able to analyse past events, assess the present risks involved and model what could happen in the future. they may then forecast the long-term financial implications of business decisions. the ability to stress test different scenarios is invaluable to business planning.

traditionally, actuaries have been heavily involved in life insurance and pension scheme work. While actuaries remain at the heart of those disciplines, the range of what actuaries do is expanding dramatically. Today, you will find actuaries in financial product design, in investment management, in financial modelling and in helping their clients harness the power of new financial instruments to manage their risks better. outside these traditional areas, actuaries are increasing their influence in general insurance, corporate finance, banking and risk management.

Risk management is a significant growth area for actuaries. the actuarial profession has its own risk management qualification, the Chartered Enterprise Risk Actuary (CERA), and for those interested in pursuing a career in risk management, an actuarys skill set provides the ideal base.

actuarial work is especially suited to those who enjoy solving problems by analysis, mathematics and logical reasoning. yet the challenge does not end there communication and management skills are vitally important if an actuary is to be effective in what he or she does.

many actuaries trained in the uK will spend some, or all, of their career working abroad and the uK qualification is highly valued all over the world. actuarial work provides a rewarding career in terms of intellectual challenge, financial rewards and status.

there is no doubt in my mind that a career as an actuary is exceptionally fulfilling and the profession continues to attract fresh new talent.

Introduction

for actuaries jobs & more info, visit www.insidecareers.co.uk/act

Philip Scott is president of the institute and faculty of actuaries.

the profession

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11

10

08

Mark Crail

12 fields of WorK

salaries and benefits

Why become an actuary?

What is an actuary?

Alex Jefferson16 the future of the pensions sector

18 faqs

08

the profession

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an actuary is more than just a number cruncher. they not only have to be good at maths but an innovative thinker and problem solver in order to help companies manage their risk.

actuaries analyse past and present data to solve real business problems. a lot of actuaries work is about risk management: assessing how likely an event may be and the costs associated with it. to make things more challenging, actuaries really need to understand how businesses operate; they need to keep up to date with legislative changes, long-term demographic trends and have general commercial and economic awareness.

Career paths an actuarys early training has a split focus on passing the professional exams and building practical experience. Once qualified many actuaries go on to be practising specialists in one of the traditional fields, with many actuaries becoming senior managers in firms of consultants or insurance companies.

there are many different career paths: some actuaries specialise in technical research, whilst others may focus more on commercial activities. the different roles require different mixes of skills, but whatever a particular actuarys strengths, there will be a niche for them.

How do you become a qualified actuary?Passing the professional exams is the first hurdle to becoming an actuary, and this must be coupled with at least three years practical experience to fully qualify. it takes a lot of hard work, so ensure you work towards your actuarial qualifications with a firm that really supports you, meets the costs associated with your exams and study, provides you with study leave and also gives you the practical experience you need to make your mark.

beyond this you will need to develop the capacity to give expert advice. often this will involve dealing with non-actuaries and the general public, so the

ability to communicate and articulate difficult topics to non-specialists is of paramount importance.

And the rewards?being an expert in such a complex area brings great rewards. actuaries pay and conditions compare well with other leading professions.

the rewards of being an actuary are far more than financial. It is a stimulating job that challenges you to think at all times and offers you the opportunity to make a positive impact on the organisations and their employees.

Expert domainsthe traditional areas in which actuaries operate are: consultancy, investment, life and general insurance and pensions. actuaries are also increasingly moving into other areas of the financial sector such as risk management, banking and capital project management, where their analytical skills can be employed.

Consultancyactuarial consultancies offer a whole range of services to their clients on issues such as

What is an actuary?

The different roles require different mixes of skills, but whatever a particular actuarys

strengths, there will be a niche for them.

09


What is an actuary

acquisitions, mergers, corporate recovery and financing capital projects. Many also offer advice to employers and trustees who run occupational pension schemes. in fact, such consultancies are probably the biggest employers of actuaries in the uK.

a successful consultant will work to develop a real partnership with their client, allowing them to gain an in-depth understanding of commercial operations and business objectives. actuarial consultants also need to be able to communicate effectively, often explaining complex technical issues and ideas to all kinds of people, whether they are finance directors, ceos, shareholders or trustees.

Investmentin the area of investment, actuaries are involved in a range of work such as: pricing financial derivatives, working in fund management, or working in quantitative investment research. Often investment actuaries work in fields where their understanding of insurance or pension liabilities helps them to manage the investment of the corresponding assets.

Insurancethe work carried out by actuaries in insurance includes designing new insurance policies,

setting premium rates, calculating a companys financial status (based on the policies already sold) and answering technical queries from policyholders. insurance actuaries also undertake detailed investigations of different experiences such as how assets and expenses have performed and the extent of different types of claims for different types of insurance policies (e.g. death claims for life insurance or car theft for motor insurance).

Pensionsthe work of actuaries is vital to the health of pension schemes. actuaries are heavily involved in designing and advising occupational pension schemes. this could be a formal valuation for one persons benefits or for a whole scheme with one million members.

as actuaries gain experience, they spend less of their time working on the strictly technical aspects, instead applying their expertise to wider business challenges. these may include advice on financial strategy advising a client on remuneration policy, consultancy around a corporate takeover and other large scale projects. this demands proactive and creative thinking, as well as technical prowess and great interpersonal skills.

What next?if you have found this overview interesting then read the rest of this guide, where you will find more information on all the areas that have been touched on here.

As actuaries gain experience, they spend

less of their time working on the strictly technical

aspects, instead applying their expertise to wider

business challenges.

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10

the profession

Intellectual challengean actuarial career is a very stable and secure one, as our society will continue to demand pensions and insurance whatever the state of the economy. the actuarial environment also offers constant intellectual challenge and variety, requiring the application of a multi-faceted skill set. to be successful you will need to demonstrate excellent analytical thinking and an ability to solve complicated financial problems. solid commercial and economic understanding alongside the skills to interpret and communicate complex information in a clear way is also essential.

A prestigious industrythe actuarial profession in the uK is relatively small compared to other professional bodies. With over 23,000 members, you will become part of a high-profile, prestigious and well respected profession. you will work towards a world-recognised qualification. The exam syllabus reflects the latest developments within finance and industry. It is not easy to qualify and you must be willing to work hard to get through the rigorous examinations alongside performing well in your day job. on average between 15-20 hours study at home in the evenings and weekends are required per week. this requires great focus, determination and an ability to cope well under pressure. the training can be undertaken at your own pace; the usual time to qualification is between three to six years, but could be longer.

Excellent study support and trainingthe help and support given by employers is generous, although this will vary from employer to employer. the training company provides a great deal of assistance. the actuarial profession can review any failed exams and give you pointers as to what went wrong. exam failure is a part of life: very few get through all papers first time. it is important to assess what training support

and help is offered by the employer: how much paid (or unpaid) study leave is given, whether they pay for all the external tuition and exam costs, what their attitude is to any hiccups with exams, how varied the training placements offered are and what the longer-term opportunities are.

A wide range of opportunities the range of opportunities within the profession continues to grow. actuarial careers used to be found mainly in the life insurance and non-life insurance industries. Over half of our qualified actuaries in the UK now work in non-traditional areas. there are some qualified actuaries in the UK and over half now work in these non-traditional areas. Qualified and trainee actuaries are now to be found in investment management, corporate finance, liquidations, mergers and acquisitions, derivatives, fund and asset management, project finance and risk assessment.

Well paidGraduate entry salaries are offered from 25,000 to 35,000, newly qualified actuaries can command in excess of 55,000, and senior positions can attract 100,000 plus. a very satisfying and clearly defined career progression is there for the taking for highly motivated and driven individuals.

if youre looking for an opportunity to apply your mathematical skills to real life problems, then an actuarial career could be for you.

Why become an actuary?

11

For actuaries jobs & more info, visit www.insidecareers.co.uk/act

SalarieS and beneFitS

What are the financial rewards for being an actuary? We ask Mark Crail from XpertHR to provide us with an overview of expected earnings for this challenging and prestigious profession.

Salaries and benefits

What can I earn?XpertHR publish salary surveys for a number of professions annually; the following results come from their findings from Salary Survey of Actuaries and Actuarial Students October 2011.

Average earnings Despite the economic gloom elsewhere, this has been a good year to be an actuary. Basic salaries increased by 5.5% in 2011, while average earnings (which includes both basic pay and earnings) went up by 10.3%.

Actuaries at all levels of the profession commonly receive an annual bonus, with 86.6% receiving a bonus in 2011, averaging 11,327. These are

obviously skewed towards more senior staff and partners, but if you push yourself and perform well you can progress quickly, getting your hands on that bonus in the longer term.

Recruitment We are pleased to reveal that of the consultancies and companies who took part in the XpertHR survey, 95% were recruiting qualified actuaries during Sept 10 Sept 11. So, get your CV up to scratch and investigate your options by looking over the Employer Directory.

Mark Crail is Head of Salary Surveys and HR Benchmarking at Xpert HR. (www.xperthr.co.uk).

ACTUARIAL SALARIES BY SENIORITY

Responsibility level Average basic salary

Student Actuary 32,842

Actuary 46,515

Senior Actuary/Junior Consultant 59,836

Section Leader/Consultant 67,298

Section Manager/Senior Consultant 81,239

Department Manager/Managing Consultant 87,557

Function Head/Practice Head 110,747

Senior Function Head/Practice Director 134,343

Chief Actuary/Senior Partner 221,250

Source: Salary Survey of Actuaries and Actuarial Students - 2011-12, published by XpertHR Salary Surveys, www.xperthr.co.uk.

BACK TO CONTENTS

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12

the profession

the business world today is becoming more complex, fraught with uncertainty and often with conflicting pressures. The need for a business both to perform competitively, and to respect the interests of its customers and the economy in which it operates, poses some particular problems. see how you can help tackle these issues in the different areas of this profession.

actuaries have the skills for tackling the risks and uncertainties that financial businesses face in the interest of both customers and owners.

as the skills of an actuary are increasingly recognised, the range of employment opportunities will increase. traditionally actuaries have worked in pensions, insurance and investment. however, actuaries, alongside the profession, have sought new opportunities to move into other areas of business whilst at the same time maintaining their presence in traditional employment areas. ageing populations, damages, finance, genetics, healthcare, personal finance planning and risk management are all new areas in which the effective contribution of actuaries has been recognised.

Where do actuaries work?Of the 10,498 Fellows of the Profession, 72% are based in the UK, 8% in the rest of Europe and 20% in the rest of the world. 35% of those Fellows work in Insurance, 37% work in consultancy, 7% work in finance and investment and 4% work in the public sector and education, as well as other newer areas such as industry.

Consultancyactuarial consultancies are the biggest employers of actuaries in the uK. many offer advice to employers and trustees who run occupational pension schemes. the 1995 pensions act made it a statutory requirement for the trustees of a pension scheme to appoint an actuary. the advice given to clients covers a wide range of topics, from setting up a new scheme, to assessing the level of contribution to be paid by the members and valuing the fund if the company is to be taken over. additionally, consultancies

will offer a range of services to their clients, such as enterprise risk management, merger and acquisition advice, corporate recovery and financing capital projects.

The Government Actuarys Department (GAD) provides advice to the Government via royal commissions, as well as giving advice to other government departments and a wide range of public sector bodies, including local authorities and the nhs. an important part of this work concerns the occupational pensions for about four million people via the operation of the national insurance fund.

Fields of work

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fields of WorK

Insurance industryLife insurancelife insurance companies provide life insurance, pensions and other financial services. Actuaries are involved at all stages in the product development and in the pricing, risk assessment and marketing of the products. in addition, actuaries fill key roles in financial management and the investment of policyholders money by developing strategies that ensure customers get a good return.

it is currently a legislative requirement that each UK life office appoints one or more actuaries to perform the actuarial function, advising the firms directors on the firms ability to pay claims and how to ensure that the life insurance and pensions benefits from the many millions of pounds invested by policyholders are secure. Firms that have with-profits business must also appoint one or more with-profits actuaries to advise the firms directors on the use of discretion in the management of with-profits funds: in particular, the addition of bonuses to policies, having regard to the fair treatment of with-profits policyholders.

With recent legislation leading to more private healthcare provision, insurance companies are extending their range of products to include medical insurance, critical illness and disability insurance.

in an increasingly global business world, mergers between life companies are becoming more frequent. When life offices are bought and sold or life funds merged, actuaries tend to be retained by both sides.

General insuranceGeneral insurance is a fast-growing area for actuaries, both within insurance companies, consultancies and at lloyds of london, where they have certain statutory duties. many are employed by consultancies which provide services to insurers and lloyds syndicates.

General insurance actuaries are also to be found in reinsurance and broking operations. General insurance includes personal insurance, such as home and motor insurance, as well as insurance for large commercial risks. as there are many different factors that can affect the size and number of claims, general insurance companies employ actuaries to assist with their financial management, in particular in connection with premium rating and reserving.

actuarial and statistical techniques are used extensively in the analysis of often substantial amounts of available data. statistical models are thus a key part of an actuarys work. this analysis is then used to rate the risks and to ensure that claims reserves are adequate to meet the eventual settlement of insurance claims. terrorist attacks, caribbean windstorms and industrial diseases like asbestosis are all examples of insurance liabilities where actuaries have been integrally involved in estimating ultimate costs into an uncertain future.

Finance and investment Investment managementActuaries have been involved in the field of investment management for decades. indeed, it is probably true to say that more people see the word actuaries through the daily stock exchange indices than through any other

Terrorist attacks, Caribbean windstorms and industrial diseases

are all examples of insurance liabilities where

actuaries have been integrally involved

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the profession

source. actuaries are involved in buying and selling assets, investment analysis and portfolio management. in addition, actuarial techniques are ideal for use in measuring investment performance. solving problems while making correct investment decisions is a constant stimulus. many employers recognise the skills that the training provides and have allowed actuaries to develop these skills as well as others, such as the skills of financial economists. actuaries are seeking to improve their tools both in the development of valuation models and in the refinement of traditional methods.

Corporate financealthough generally regarded as the province of the investment banker, actuaries can add value in this area. an actuarys basic skills in forecasting and assessing risks are ideal for estimating whether a capital project (e.g. for a new hospital or a transport infrastructure project) is financially viable. Employers might include government departments, management consultancies, or property companies specialising in this area.

Bankingactuaries are becoming increasingly involved in banking. for example, some of the leading insurance companies now have their own established banking operations, with actuaries

filling some of the senior executive positions for finance and risk. The leading retail banks are also increasingly employing actuaries, as they recognise that the longer term approaches advocated by actuaries can add value to their businesses. as insurance companies increasingly hedge their risks, we have seen a corresponding increase in the demand for actuaries from the investment banks that provide the hedge products.

as the insurance and banking markets continue to converge, we can expect to see the demand for actuaries within banking fields continue to grow.

International opportunitiesThe UK qualification is highly valued throughout the world. Of the qualified members of the UK profession, 41% are working internationally. the actuarial profession works with other international actuarial bodies to arrange reciprocal recognition of the professional qualifications between the different bodies. most overseas opportunities arise in australia, continental europe, india, new Zealand, pakistan and south africa.

hopefully this brief overview demonstrates the variety of opportunities available. an actuarial qualification is an excellent base for a business career that is recognised worldwide.

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the profession

the pensions industry is no longer the slow moving, tried and tested one of years ago. The actuaries of today (and tomorrow) will need to be sharper and more innovative than ever if they are to find the solutions to ever more challenging yet fascinating problems.

this article highlights the opportunities and challenges that exist in the pensions sector and what this could mean for the graduates and actuarial careers of the future.

Changes in the sectoractuarial techniques are continually evolving and being applied in more and more sophisticated ways. the ability to match up projects, appropriate actuarial techniques and the needs of your client requires an in-depth understanding of both your specialism and your client.

the range of work has widened and the need to communicate issues and solutions is a genuine challenge. the world is taking more and more notice of the need and difficulty of saving for retirement. a key role for the pensions actuaries of the future will lie in leading the way to identifying, communicating and presenting solutions to both clients, governments and to the wider public.

Education and learning the pensions industry is a complex area which is constantly evolving. new graduates need to gain a thorough grounding in the pensions world and why it exists as it is. the early years of your career are vital in building up this knowledge and understanding.

the exams for actuarial qualifications help to bed down the key concepts and the best graduates use the exams as a springboard to apply and extend their knowledge. some students now study part of the actuarial exams through a part-time university-based course and many find this helps to put actuarial work into a business context as well as enabling them to build up a strong network within the industry.

The current environment: challenges and opportunities the pensions sector is not without challenges (or opportunities, depending on how you view these things): the economic environment is tough, but

many of our clients see the value that pensions actuaries add particularly in helping them to manage the financial risks associated with their pension funds.

the bread and butter work of years gone by will inevitably start to reduce as many final salary schemes have closed or are closing to new members. the opportunity exists to broaden the range of work we can provide to clients and also shape the future of pension provision (and indeed benefit provision) more widely. Graduates who are flexible and embrace the changing face of the sector still have the chance to make a big impact.

The future of the pensions sector

Graduates who are flexible and embrace the changing face of

the sector still have the chance to make a big

impact.

17


The impact on the graduate job market the graduate job market is tough and as things stand, the number of graduates being recruited and trained as pensions actuaries in the uK will fall in the coming years. at first glance, this may sound a daunting prospect, as it will inevitably be a more competitive recruitment environment. however, graduates who demonstrate the aptitude, the attitude and the drive to become a pensions actuary will increasingly be expected to progress their career quickly and develop consulting skills earlier in their careers than those who have gone before.

for example, an increasingly common business model is for the employers of pensions actuaries to move the tried and tested mainly calculation-based pensions work to offshore locations. This leaves the onshore team to focus on delivering bespoke work and projects.

Career prospectsa grounding in pensions actuarial work provides a good base from which to expand your career. the people in the industry who are making the most from their careers are those who embrace change, are open to new opportunities and push themselves out of their comfort zone.

actuaries can go down a variety of career paths such as: specialising their actuarial/consulting skills

to advise either companies, trustees or public sector clients.

Joining specialist teams, for example driving thinking and techniques used in the area of consulting on the issues of increased longevity, or focusing on the lively space of corporate transactions.

developing strong careers in less technical (but key business) areas of sales, people management, project management and communication.

quite often people combine all of the above mixing a specialism with business management responsibility. there are many combinations of things in which you can get involved if you are proactive and willing to put yourself forward.

Traditional skills, new approaches some things do not change. the pensions actuaries of today need to be every bit as numerate and capable of learning the technical skills that underpin being a good actuary as has always been the case. in addition though, the pensions actuary of the future needs to be willing and able to evolve and to apply their skills in a changing market-place. its a challenge that the best graduates will relish.

the future of the pensions sector

Alex Jefferson qualified as an actuary in 2009 with aon hewitt and now works on a variety management projects in addition to his actuarial consulting work.

Get actuarial news online

www.insidecareers.co.uk

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18

the profession

in this section, some of your more common queries are answered by the Actuarial Profession, including where can I get work experience? and how many years does it take to qualify?

Where can I get work experience?Work experience can prove to be a real asset when job hunting and indeed is now often used as part of the recruitment process. However, work experience can be hard to find as places are limited and you need to apply early. companies which offer work experience placements are listed on the inside careers website: www.insidecareers.co.uk and the actuarial professions at: www.actuaries.org.uk.

Where can I get sponsorship for studying?employers will usually sponsor you through the whole of your qualification route, however, the Worshipful company of actuaries do offer funding through a charitable trust. their website details are: www.companyofactuaries.co.uk. also, the Staple Inn Actuarial Society (SIAS) offers funding at university level. find more details at www.sias.org.uk/aboutsias/universitystudents.

What recommendations do you give to mature entrants?there is no age limit for joining the profession, but securing employment and sponsorship for the professional examinations may prove difficult for mature entrants as you will be competing against recent graduates. We recommend that you study for one or two examinations

independently in order to improve your chances of employment and to show you are committed.

What is the difference between working for a consultancy and an insurance company?although there are many opportunities available for actuaries, generally actuarial trainees start working for either an insurance company office or a consultancy firm. These opportunities offer different lifestyles and challenges.

Working in an insurance company environment means that there is usually only one client; your employer. a variety of work is available, but tends to come more slowly often youll be asked to work in one area for a period of about one year before moving on to the next challenge, taking the experience you have gained with you.

The day to day work within consultancy firms tends to be more varied, as in any year you are likely to work for a number of different clients (and partners) solving different types of problems. this can become particularly challenging if you have a number of projects running in parallel and you need to ensure that you meet and manage each of your clients expectations and deadlines. some consultancy

Frequently Asked Questions

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faqs

projects can involve working at the clients premises, which may not be in the same town as your own office. This can give you an excellent opportunity to work with other people and see the running of an organisation other than your own consultancy. however, you would need to consider the impact of being away from home. You may also find yourself working on just part of a project rather than seeing it all the way through from start to finish.

How many years does it take to qualify?in order to become a fellow of the institute and faculty of actuaries, students must pass examinations, demonstrate satisfactory completion of modules and acquire a satisfactory level of work-based skills. average qualification time is currently three to six years. What exemptions from the professional examinations could I obtain? this will depend on the scope and standard of the subjects covered by the university examinations you have taken and on the performance you have achieved.

it is possible to gain exemptions from all eight of the core technical subjects on some undergraduate and postgraduate degrees. some postgraduate degrees offer the opportunity for exemptions from core applications and specialist technical subjects.

details of the universities and courses we have agreements with are available on the actuarial profession website, along with information on how to apply. if you have taken a different university course, you may still be eligible for exemption from some of our exams, but will need to apply to us for confirmation. You must be a member of the profession before you can gain any of the exemptions.

How do I obtain a work permit to work in the UK?Work permits are issued by the borders and immigration agency, which are part of the home Office. Work permit applications can only be made by employers based in the uK who wish to employ people from outside the european economic area. individuals are not allowed to make applications on their own behalf. To find out more information about the borders and immigration agency visit their website: www.bia.homeoffice.gov.uk/workingintheuk.

Do I have to work as an actuary to qualify?yes as well as passing the examinations, fellowship requires the satisfactory completion of a work-based learning log.

Will I need to continue training once I have qualified?members are required to maintain their competence once qualified through continuing professional development. this is mandatory for regulated roles.

Graduate profiles

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Associate - Advaitpwc

Actuarial Trainee - Claire Singerhymans robertson

Actuarial Analyst - Chris AppsGuy carpenter

Trainee Pensions Actuary - Emma Cruddasaon

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i graduated from oxford university with a masters degree in physics in July 2011. Guy carpenter kick-started my actuarial career with an analyst position in september. i am currently studying for the actuarial exams and sat my first modules in april.

What does Guy Carpenter do?Guy carpenter is a reinsurance and risk intermediary. reinsurance is basically insurance for insurers. our primary task is helping our clients place their reinsurance with lloyds of london or other reinsurance companies. if effectively placed, it helps clients cope with large claims they wouldnt otherwise be able to survive similarly to how primary insurance protects the public. it also spreads the risk of losses over larger populations than insurance companies can effectively manage; preventing insurers from losing out if a big loss affects an entire region, or an entire population subgroup, where they make business.

How did you get your job at Guy Carpenter?i was contacted by a recruitment consultant in the summer following graduation, who suggested the actuarial profession would suit someone of my background. i interviewed for several actuarial positions in the following month and following many challenging, and many more unsuccessful interviews received several offers. i started working at Guy carpenter in september.

What is a typical day like for you?the reinsurance workplace tends to be closer to consulting than traditional

insurance. i frequently work with many clients simultaneously, which can get very intense. The tasks I perform vary in both difficulty and length; from cleaning up spreadsheets just received from clients, so we can input data into our models; to building complex reinsurance structures, and their respective models, completely from scratch. as an intermediary, Guy carpenter is completely focused on serving its clients in the best way possible. my actuarial training has equipped me with strong technical expertise to allow me to achieve this.

What do you enjoy most about your job?there are many things to enjoy about working at Guy carpenter, as there is with many actuarial firms. The pay is good, the work is interesting, and im actively improving my skills in a way which many careers do not offer so early on. most of all, i enjoy working with a team of like-minded individuals on a common objective we all believe in.

Name chris apps

University university of oxford

Degree physics msc

Location london

Role actuarial analyst

Guy Carpenter

Graduate profiles

The reinsurance workplace is closer to

consulting than traditional insurance. I work with

many clients simultaneously, which can get very

intense.

23


What are the most stressful parts of the job?i rarely get stressed at work. better overworked than underworked! fitting in study and adequate exam preparation, however, is not easy. if an exam is a week away theres a lot less time remaining than at university as id most likely be in office for five days out of the available seven. rigorous time management is critical. fortunately ive learned to manage data well, with spreadsheets, as part of my training. a few thousand hours is nothing compared to a few million insurance claims!

What was the interview process like?the interviews were hard, but its understandable why it was necessary. thinking and communicating on the spot, in unfamiliar territory to unfamiliar audiences, is an important part of my role. my interviews at Guy carpenter were fairly standard for graduate positions questions about me and my experiences mixed in with technical critical thinking style problems. the key in both types of question is how you communicate your answers as opposed to what you say. practice was very important.

Any advice for the interview process?be prepared to do a lot of them. its not uncommon for an interview to go perfectly well and yet not be offered a position. this can happen for a variety of reasons; the competition

for the role could be very fierce, and an employer needs to be completely certain youll fit in with existing employees. In either case its never personal. if a recruitment consultant is getting you plenty of interviews, its mostly a numbers game before you get a position. Just ditch the recruiter if they arent (theres plenty out there!), and make sure you really want the jobs youre applying for. interviewers can sniff out lack of motivation instantly.

Is there a work/life balance?yes, although i dont agree with the term balance as it implies the two are separate. If my home life is good i rock up at work with a smile on my face, bursting with energy, and perform well; if not my work suffers. its also important for work to provide a continuous, but not overwhelming, challenge otherwise it affects my home life in a negative way.

What soft skills have you found useful?managing time well has been paramount. its important to manage both long-term important, but not urgent, tasks along with those that are urgent, but less important. an ability to work well in any team is important, but this is something interviewers try to assess before employing you. staying proactive and on the ball in fast-paced environments is also important not just so you can do your job well, but so you enjoy doing it!

actuarial analyst

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Graduate profiles

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Were the professionals...so youre considering a career as an actuarial consultant...

When you first came across it you may have screamed with delight simply at the fact that there exists a career that actually rewards you for your mathematic genius! but ive learned that theres so much more it can offer you.

learning to become an actuarial consultant is something that shouldnt be taken lightly. the exam process is tough; tenacity is undoubtedly the most important quality you should possess, and you have to ensure that you can balance the technicalities with common sense.

Choosing an actuarial careerpursuing an actuarial career for me was a natural step from my university degree, but so too was the choice to enter into the consulting world. although i really

enjoyed the mathematical and technical aspects of my course, i also loved working with people, especially communicating the technical aspects and breaking them down in a straightforward way.

Joining the working worldi joined hymans robertson in august 2010 as an actuarial student in the new edinburgh office. We are an employee benefits consultancy providing a wide range of services including actuarial, investment, benefit consulting, third party administration, longevity risk consulting and enterprise risk management. We are a forward looking, innovative company, and specialise in tailored solutions to meet our clients needs.

The sorts of things I do even in the short time that ive been here, the opportunities and experiences ive had really has reflected hymans robertsons wide range of services. for example, my work has varied from the more traditional work of calculating transfer values (the value in todays money of pension payments that will be made in the future), to more modern risk analysis work, using our internal models to carry out scenario testing on a pension scheme for quantifying future uncertainties.

a lot of my work also involves drafting reports and emails to clients who dont necessarily have an actuarial background, which requires a different skill set. having a more numerical mindset, I find this really pushes me to become a more well-rounded person.

Name claire singer

University heriot Watt university

Degree BSc (Hons) Actuarial Science

Location edinburgh

Role actuarial trainee

Hymans Robertson

Although I really enjoyed the mathematical and technical aspects of my

course, I also loved working with people.

25


The studying...theres no getting away from the exams! the work/life balance may sometimes tip too far in the direction of study, but most employers will give you study days to lighten the burden and the work you put in will definitely pay off in the end. Working alongside studying can be rewarding in itself, as you can see the concepts youre learning from the textbooks being applied in real life.

I love my role!What i really enjoy about working in a consultancy is seeing the process of how a real life practical problem can be solved, communicated and implemented to the benefit of everyone involved. its through this process that ive realised what being a professional really is all about and why an actuarial consultant is so well respected. to be able to balance both an understanding of complex real life problems, often involving long-term

outlooks with many uncertainties, and apply professional judgement to the situation at hand takes a certain type of individual. its for this reason that the examination process to become a qualified actuary is so demanding, but the rewards are endless.

actuarial trainee

What I enjoy about working in a

consultancy is seeing how a real life problem can be solved, communicated and implemented to the benefit

of everyone involved.

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Graduate profiles

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as a typical student, i wanted to put off having to enter the terrifying world of work for as long as possible, but inevitably, the time came to choose a career.

i completed a masters in mathematics, operational research, statistics and Economics (MORSE) at the University of Warwick. this is one of only a few courses in the country that helps prepare you for an actuarial career, offering exemptions for up to seven of the 15 exams.

actuarial work offered a good combination of being able to use my degree, a reasonable work/life balance and pretty good starting pay compared to my other graduate friends.

How did you get your job at Aon?i applied for an internship in the summer before my final year at university. this gave me great insight into what the day to day work would be like. you are treated as a normal member of the team and have the opportunity to get involved in small projects. Without any formal training i did feel slightly out of my depth at times but everyone was really approachable and helpful if i didnt understand something.

i was lucky enough to be offered a graduate position at the end of the ten weeks, which meant that i could spend my final year focused on studying and not having to worry about job applications and interviews.

What is a typical day like?I work in the Leeds office in the Pensions and actuarial services team, providing support for consultants who advise companies and trustees of pension schemes (mostly final salary). I work on around 11 client teams, with the schemes varying in size from less than ten members up to tens of thousands of members.

as a more senior member of the team, part of my job is to liaise with the consultants to find out what work our clients need doing and to distribute the work amongst the client team. trustee work mainly involves statutory work, such as a valuation of the scheme. this must be carried out every three years and is a 12-15 month long project.

Work for companies is focused towards managing their costs. over the last few years many companies have been looking to cut their costs and running a pension scheme can be a significant part of this. We recommend ways of cutting costs and help to implement these ideas.

most of the day tends to involve performing complex calculations, sometimes by hand but usually using excel models. for example, to value future pension promises in todays money you need to take individual member data, perform checks on the data, set and apply assumptions about the future (such as how long will people live for) and test the sensitivity of the result by looking at the effect of changing each assumption.

Name emma cruddas

University university of Warwick

Degree msc morse

Location leeds

Role trainee pensions actuary

Aon

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an important part of the job is being able to draw conclusions from the calculations and communicate these effectively to the client through a report, email or presentation. the calculations can be quite complex so you need to be able to avoid jargon and put things in a way that can be easily understood so that the client has enough information to make decisions. Good communication skills, both written and verbal, are therefore very important.

on average, one day a week is set aside for study, which involves reading course notes, completing assignments, revision and practicing past exam papers. you need to have good self motivation to make the most of study days (resist the temptation to have a lie in and watch daytime TV!). You also need to set aside time in the evenings and at weekends as study days alone are not enough to be thoroughly prepared.

What are the most stressful parts of your job?As a student it can be difficult to juggle the demands on your time of work, study and having a social life. client work can involve demanding deadlines and the odd late night is necessary, however normal hours are roughly 9-5.

the bi-annual exam period can be tough. although study days are weighted more towards the exam period it is not like university where you could just coast through the term and spend a week cramming, you really need to work throughout the year as you still need to be in the office most days.

the feeling of satisfaction at passing, not to mention the celebratory night out and pay rise make it worthwhile!

What would you like to achieve in the future?after three and a half years of studying i now have just one exam left to sit. once i qualify i hope to become a consultant and continue to expand my knowledge of the field of pensions. actuarial skills are quite transferrable so it is possible that I could move into another field such as risk management or insurance.

Do you have any advice for anyone wanting to get into the industry?1. Get some work experience. this is highly

valued by employers and will help you decide if this is really the right career for you.

2. practice your interview technique. your careers department should have courses you can attend and may be able to offer you a mock interview that will highlight areas you need to work on.

3. do your research. spend some time looking at the website of the company you want to work for and keep an eye out for relevant actuarial stories in the news. this will give you an opportunity to show the interviewer that you are already taking an interest.

4. Get as many exemptions as you can from your university course. this will give you a head start on other graduates and mean less time spent balancing work and study in the long run.

trainee pensions actuary

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PwC

Name advait

University imperial college london

Degree MSci (Hons) Physics

Location birmingham

Role associate

Introductioni cant honestly say that i wanted to be an actuary ever since i was a child. in fact for a long time, i didnt really know what an actuary actually did. however, studying for a degree in physics, i quickly realised that i wanted a job that would allow me to use the numerical and analytical skills i was developing and apply them to real life business situations. it was only after completing an internship in the pensions team at pwc that i realised this was a career i wanted to pursue. after graduating, i joined pwc on a full-time basis.

What do PwC do?the actuarial practice at pwc is split between two key areas human resource consulting (HRC) and Actuarial & Insurance Management Solutions (AIMS). Within HRC, the primary focus is on providing corporate advice to companies with occupational pension schemes on a range of issues, such as:

funding of schemes. strategies for managing pension scheme

liabilities in various ways, including member incentive exercises.

managing pension scheme and investment risks, including transactions which aim to reduce or transfer risks.

pensions aspects of mergers and acquisitions. accounting disclosures for pensions schemes

and stock option disclosures.

What do you enjoy most about your job?Working in a consultancy means that you get to work on a large variety of projects, making the work both interesting and challenging. no two clients are the same which requires us to come up with new and innovative solutions to the multitude of problems theyre looking to solve. its also really satisfying to work with a range of clients both big and small, including some highly prestigious companies which are household names.

the most enjoyable aspect of my work though would have to be the team i work with. not only is the atmosphere fun and supportive, i get to work with some highly talented individuals who are keen to pass on their knowledge and experience.

What challenges have you come across and how did you overcome these?by far the most challenging aspect is working full-time whilst studying for a tough qualification. it does take a lot of time management and discipline, but it doesnt get in the way of a normal work/life balance.

I wanted a job that would allow me to use the

numerical and analytical skills I was developing and

apply them to real life business situations.

29


The support, both financial and in terms of time off to study, is second to none at pwc. not only that, theres a strong focus on ensuring we develop our careers as well as passing our exams. the team take a keen interest in making sure were able to manage our workloads particularly during the busy exam seasons.

What would you like to achieve?my immediate goal is to pass my exams and become a fully qualified actuary. i would like to continue gaining a range of experiences and one day bring in new clients of my own. i also hope to be able to travel and work in different pwc locations to get a flavour of working internationally.

What soft skills have you found useful?despite actuaries having a reputation for being back-room number crunchers lacking social skills, the truth is quite the opposite. apart from being actuaries, were also consultants and as result communication and team work are at the heart of what we do. from trying to win new clients, to working with other lines of service, to presenting our results in a way thats easy to understand for clients were always required to be able to communicate effectively. in fact theres even a whole course and exam on communication. We also need to be able to manage our time, be flexible and work well under pressure.

associate

Apart from being actuaries, were also

consultants and as a result communication is at the

heart of what we do.

senior profiles

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Head of Insurance Pricing - Nick Reillyhsbc

Senior Qualified Actuary - Laura Goodwinprudential

MCEV Reviewing Actuary - Chris Darbyfriends life

Senior Consultant - Bhavna Kumarmercer32

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36

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1998

1999

2005

Completed a summer placement at Aon Hewitt (Then Aon) as a student.

Moved to Mercer as a Consultant, later being promoted to Senior Consultant.

bhavna wanted to become an actuary ever since she heard of its promise of intellectual fullfilment and rewards whilst still at school. After gaining a degree in maths, she fulfilled her early ambition and joined Aons graduate scheme in 1999. 13 years on, she tells us what its like to work as a senior consultant in pensions.

i always liked maths, but didnt want to be an accountant; i had heard rumours it was quite boring! When i learned at a school careers evening that becoming an actuary would give me the opportunity to become a technical expert in my field as well as the chance to learn how to communicate that knowledge to other people, i decided that becoming an actuary was the plan for me.

i kept my options open by studying for a maths, rather than an actuarial degree, but once i had completed a summer placement prior to my final year I decided to make the commitment to a career in actuarial work. i started my training in pensions actuarial work in 1999.

What do you enjoy most about your job?i love the fact that every day and every piece of work is different. even if the piece of work seems to be the same on the face of it, because every client, every member and every pension scheme is different, the advice required will differ for each case. This means Im learning all the time and each day flies by.

the overarching satisfaction comes from helping clients make the decisions they need to by simplifying the complexities and making the process as painless as possible.

What is a typical day like for you?My days involve working with trustees of defined benefit pension schemes and employers who sponsor those schemes. my clients need assistance and advice in relation to securing the promised benefits, operating their scheme on a day to day basis and their statutory duties. this includes:

Meeting daysafter a frenzied couple of weeks preparing agendas and papers, making sure all the items that require decisions are covered, meeting days are a satisfying culmination of all my hard work. they usually involve an early start to reach the client with time to spare and a bit of last minute panicking on the journey but once youre there, its great to be able to share your knowledge and steer your clients through the difficult arena within which they need to operate.

Mercer

BHAvNA kUMAR

Began training as an actuarial student at Aon Hewitt, going on to become a consultant.

33


Non-routine workSometimes I have to figure out a query that has been raised not always as straightforward as it seems. We need to make sure that we answer the question the client needs to know the answer to, which isnt necessarily the same as the question theyve asked. this work is delegated to a doer, followed by a checker and will come back to me for sign-off.

i will also need to arrange a peer review to ensure the advice provided is appropriate, hasnt missed any possible angles and is easy to follow. a fair proportion of my time is also spent peer reviewing.

Sign-off or peer review routine workthis usually involves using prior knowledge to review work completed by the team or colleagues.

Responding to emailsthis might involve doing some quick sums to provide costings, checking legislation for finer points of detail or clarifying the detail of a case.

What would you like to achieve in the future?i hope to continue to learn new skills and expertise on a daily basis and thereby step up to the next level in the profession to have a portfolio of clients for which i am responsible from both an actuarial and a business perspective.

Do you have any advice for anyone wanting to get into the industry?consider carefully the area of actuarial work in which you would like to work. even the traditional specialisms of pensions, investments, life insurance and general insurance are very different and it is not necessarily as easy as you might think to transfer between them once you have some experience under your belt.

also, complete some work experience to ensure it is what you think it will be!

finally, be prepared for hard work. its not easy working and doing exams (and having a life outside of work) all at the same time.

senior consultant

Its great to be able to share your knowledge and steer your clients

through the difficult arena within which they need to

operate.

senior profiles

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2011

2006

Moved to Aon Hewitt to become an actuarial consultant.

Works as an MCEV Reviewing Actuary for Friends Life.

having worked in a wide variety of actuarial roles i have obtained experience of the rich and rewarding career paths within the actuarial profession. my own career path has involved time spent in the following practice areas:

private sector pensions consulting actuarial software development public sector pensions consulting life insurance.

When i graduated from southampton university with a degree in Mathematics in 1999 I had no firm idea as to what I wanted to do next. i started to do some research into various careers and found myself drawn to the actuarial profession as it was mathematically based and offered a variety of career paths. i was fortunate enough to become an actuarial trainee shortly after.

Working history:Private sector pensions consultingi spent my early years working in a small department within a private sector pension consultancy, whilst also making progress with the actuarial exams which you are required to pass to qualify as an actuary.

in this role i developed basic technical skills and enjoyed the team atmosphere and variety of work. being a smaller actuarial department, it also enabled me to pursue my interest in software development, and i spent time developing software to perform various pension related calculations for use within the companys actuarial and administration departments. the experience i gained enabled me to move to a specialist actuarial software development company.

Actuarial software developeras an actuarial software developer i worked for a small niche employer where i specified, wrote and optimised internet based software products. this was a less traditional actuarial role, but one which i found used my technical actuarial skills, as we were developing actuarial based solutions. as the software was innovative and there was no set template to follow, it offered the opportunity for some

chris started off in a more unusual end of the profession, developing actuarial software. since, he has become an mceV reviewing actuary, reporting on the value of a companys assets and projecting future profitability for shareholders. He reflects on the wealth of different opportunities within the actuarial profession.

Friends Life

CHRIS DARBy

2004

Worked as an actuarial software developer for Pensions and Actuarial Software (PAS).

2001

Joined Heath Lambert as an actuarial trainee.

2000

Worked as a pensions review loss assessor for HSBC.

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creativity: both over how the calculation code should work, as well as the look and feel of the software.

Public sector pensions consultantmy next move was to become a consultant within the niche area of public sector pensions consulting within a large multinational consultancy firm. This involved providing advice connected to several different public sector pension schemes and various sub funds within those schemes. this included large local government pension scheme funds with pension fund assets of over one billion pounds.

public sector pensions consulting has its own unique characteristics and i found myself adapting my thought process accordingly. it was during this time that I qualified as an actuary, which was a highly rewarding experience. before long this led to me taking more control and responsibility for client work, including final scrutiny and sign off of written advice to clients and presenting the results of our analysis in client meetings. i also enjoyed training more junior members of the team, managing others and taking ownership of some key projects.

MCEv reporting actuaryIn my current role I work within the financial reporting team in a large life insurance company. there are many different areas within the company in which actuaries may choose to specialise and rotate. i currently work on market Consistent Embedded Value (MCEV) reporting. this involves placing a value on the companys current assets and future profitability from the perspective of its shareholders.

this helps shareholders to monitor the performance of the company. the primary role involves analysing how the overall embedded value changes from one reporting period to the next. this requires an understanding of what drives profitability within the business. Life insurance company products are rich and varied and different products respond differently to changes in underlying conditions. this makes the work both challenging and interesting. in addition, the role requires liaising with various other departments within the business, managing the work to tight timescales and

explaining the results to others who are not so close to the calculations.

variety one of the things i like about the profession is that there are different roles and companies to suit to different people. there is no such thing as a typical actuary, and this is encouraged by the profession whilst ensuring a high level of technical expertise and professionalism which is common to all.

Whilst there is a mathematical grounding required to complete the actuarial exams, a career within the actuarial profession can develop a wide range of skills from the more technical:

actuarial analytical skills interpreting regulations and professional

guidance software programming and development spreadsheet development project management.

to softer skills such as:

training and development of others managing people producing marketing literature presenting complex issues to a non-

actuarial audience drafting documentation for internal and

external use.

on top of this there is a wide range of specialist areas within the profession of which i have sampled only a few. this means that there is likely to be a role to suit most people interested in working in the actuarial industry.

Looking forwardthe ever changing world, including technical and regulatory development and fluctuating economic conditions, continuously impacts on actuarial work. this means the profession is always evolving and there is always something new or unexpected around the corner. however, actuaries are always ready to embrace and face new challenges. every change presents a new opportunity, and with a strong actuarial grounding challenges can be overcome. i look forward to my years ahead in my chosen profession.

mceV reVieWinG actuary

senior profiles

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Prudential

2007

2008

Why did you choose a career in the industry?from a young age i had always wanted to be a teacher, and as i really enjoyed maths at school it was my intention to become a maths teacher. i therefore chose to go to stirling university where it was possible to complete teacher training at the same time as my degree.

Whilst i enjoyed the teaching, i also felt a bit too young to go straight into a teaching career. the bulk of my fellow trainee teachers were mature students and i had joined university a year earlier than most of my peers. i therefore decided to look into other possible career opportunities.

i did a bit of research and went along to careers fairs, where i spoke to representatives from a wide variety of professions. becoming an actuary seemed to be an ideal career for me. it made use of my mathematical, analytical and communication skills, provided a challenging career and had the added bonus of paying reasonably well!

I joined Prudential (formerly Scottish Amicable) in 1999 after graduating and have been here ever since.

ive worked in a number of different areas in my time here, and since qualifying in 2007 have been in financial reporting where i am now in charge of a team responsible for reporting results for a number of financial metrics. The team is made up of a wide range of people and includes sandwich students who have taken a year out of university, staff who are not actuaries or sitting exams, trainee actuaries and other qualified actuaries.

What is a typical day like for you?no two days are the same, but a typical day would involvegetting up around 06.30 and getting both myself and my toddler son dressed, fed and watered. i drop him off at nursery for 08.00 and head into the office where my first job is checking and replying to emails (both from within the actuarial department and wider afield). Being in charge of a team of people, I need to be on top of all the deadlines for the work required that day, week or in the longer term and ensure the work is being progressed as needed to meet those deadlines. i need to make

1999

Trained as a graduate trainee actuary with Prudential after graduating.

Qualified as an actuary whilst at Prudential in the Financial Reporting team.

Promoted to senior qualified actuary at Prudential with the role of Team Leader.

balancing a family life and a demanding job with high responsiblity can be extremely difficult to achieve; Laura explains how she does it and why she loves life as an actuary.

LAURA GooDWIN

37


senior qualified actuary

sure that everyone in the team is coping with their workload and on track to achieve our targets. Generally a chunk of my day will be taken up answering queries, supporting team members and providing on-the-job training. I will also be attending meetings, which can be on anything to do with future projects, reporting metrices, reporting deadlines, people management or a number of other topics. finally i also need some time to review the numbers prepared in the team.

i try to keep work to work time, however it is not always possible, particularly around the main reporting times for year-end, mid-year and forecasting. as a result i sometimes need to work long hours. my son always comes first though, so where I can I leave work at a reasonable time to pick him up from nursery, and spend a couple of hours with him before logging back on when he goes to sleep.

outside of the main reporting periods i avoid this, as a work/life balance is very important to me, and I like to find me time as well as family time outside of work.

What do you enjoy most about your job?there is a real sense of achievement in preparing and understanding all the results we provide in such tight timescales. i enjoy being in charge of a hard working financial reporting team. I have a good set of colleagues within the office and we get on both at work and socially.

The location of the office is also great, as I live only ten minutes away. this helps me to manage my work/life balance, as i dont lose a large portion of my day to travel.

What would you like to achieve in the future?i dont have any specific goals for the future at the moment, although perhaps i should! as long as i continue to be happy and challenged within my role then i am content. With all the changes happening in the industry at the moment there is plenty of opportunity for personal development.

Do you have any advice for anyone wanting to get into the industry?be prepared for interviews. think about the skills that we might be looking for in you, which will include being a team player, motivated and professional as well as having numerical skills. be prepared to give some practical examples where you have demonstrated these skills. also do your research and be prepared to talk about the company you are applying to with some understanding of their business.

Getting a job as an actuarial trainee is only the start, you need to be prepared to work hard in the office and study hard outside of the office in order to progress in your career and pass the exams.

With all the changes happening in the industry at the moment, there is plenty of opportunity for personal development.

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2009

Moved to Swiss Re.

Qualified and was promoted to product actuary with Swiss Re.

Moved to SCOR Global Life as a pricing actuary.

Moved to HSBC, becoming Head of Insurance pricing in 2010.

my dad once said to me that i was not a typical actuary. i took this as a compliment.

Ignoring all of the (unfunny) jokes about staring at shoes and so on, in the current world, actuaries must be more than just number crunchers. We need to understand why we are doing what we are doing, challenge where needed, and, equally importantly, develop relationships and a rapport with those individuals we deal with.

i hope thats what made me different, but i hope future generations make me look like a typical new actuary.

What made you choose to become an actuary?being honest, i dont think i really planned on having a career as an actuary. it was a friend of mine who suggested i look into it, and a role was available near to where i lived after graduating, so i took it.

i had been told the exams were hard, but i had never had a problem with exams before, so my first exam results session was a real shock, as i had managed to fail all of them. instead of putting me off, it ensured that i never went into an exam under prepared, and i ensured i understood the notes, rather than just rote learning them.

after two years i took a year off to go round the world, to give me time to decide if i really wanted to qualify. as you can guess, i decided to start studying again, and within a few years had qualified.

... and would you do it again?Possibly not, after all, at the time the financial services market was buoyant, opportunities were everywhere, and the time spent studying could have been used working the crazy hours needed to earn the telephone number salaries prevalent in other areas of financial services.

However, am I now glad I did it? Definitely, as I now have one of, if not the, hardest and most respected qualifications in financial services. This means I can command a high salary, have a range of employment opportunities and can expect to take

Nick qualified as an actuary when the financial services market was booming and opportunities were everywhere. Now, he finds that his actuarial qualifications have ensured respect and stability, something thats sought after in todays economy. he gives us an insight into what he looks for when hiring new actuarial candidates.

HSBC

NICk REILLy

2007

2006

2001

Joined Winterthur Life as an actuarial student.

1997

39


on more responsibility. becoming an actuary also gives the financial stability needed with a mortgage and children.

so, overall, would i do it again? on balance yes, as the security and stability, as well as future opportunities outweigh the short term benefits if i hadnt done the exams. after all, im relatively risk averse!

What is the best part of your role?seeing others learn and develop. i was fortunate to work for a range of actuaries who gave me guidance and support, as well as teaching me the technical aspects of the job. this meant i could think for myself, self-check my work, and actively learn.

i now feel it is my responsibility to pass this on. there is nothing better than seeing individuals who work with, or for, you take on board what you have said and then use it to improve their future output.

i also feel that student mentoring is essential for the future of our profession, so that we can pass on the lessons we have learned the hard way.

What do you look for in graduates?The obvious answer of an actuarial science degree is not going to be my answer. While this can be useful, it doesnt put a candidate ahead of any other candidate. my main requirements are that a candidate is:

intelligent so possessing a good degree, although not necessarily a numerical one with maths a level.

Personable and reasonably confident. interesting, with other hobbies and skills

they have acquired. driven, with a desire to do well for

themselves (and ideally others). possessing of an understanding of

financial services.

An ideal first impression is someone who can hold a conversation on the topics of the day (PPI for example, or the continued woes of the eurozone) and who adds their views but also listens actively. they need to have belief in

themselves, and will ideally demonstrate some degree of passion over their choice of career or the company they are applying to.

In short, I look for people I think will fit into my team and add to it, as well as having the potential to become future decision makers.

i once had someone come up to me at a careers fair and ask what can you do for me?. This was more than just confidence; it was bordering on arrogance. in this current environment, there is no right to a job, so please think of your approaches, as first impressions do count.

in case you are wondering, he didnt get an interview with us in fact, i didnt even look at his cV.

Where do you see your future?in my own career, i see myself moving further into management, and so further from the traditional actuarial roles. ideally, i see myself having ownership of my own Profit & Loss account, and being able to drive and shape that business.

during my future in the industry, i hope to really make a difference. after all, we sell promises (whatever area of financial services that is), so we need to ensure that they are kept. im passionate about developing clear and simple products that fit the needs of our customers, and i see myself continuing to add my input wherever possible in this area. my own test is: is that right for my mum? If its not, dont do it, its that simple.

head of insurance pricinG

In the future, I hope to really make a difference. After all, we sell promises, so we need to ensure that

they are kept.


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Jobs on offer: Graduate traininG schemes

Rohan Jaininternships: What to eXpect

education required

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Key sKills required50Dr Geraldine Kaye

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do you have what it takes to become an actuary? are you worried you dont have the right grades? this article tells you all you need to know about what you need to join the prestigious actuarial profession, as well as what to do if you dont meet the requirements.

the actuarial profession is one that demands a high level of academic attainment. Generally, employers will demand a minimum of a 2.1 at degree level and excellent a levels from potential candidates.

alternative routes are available: some companies ask for these requirements, but also offer an alternative route for those who can demonstrate, through extracurricular activities, that they have the skills and characteristics they are seeking.

the minimum entrance requirements for admittance as a student of the actuarial profession are:

Grade b or above at maths a level (or equivalent).

an additional grade c or above at a level in any subject.

Grade c or above at english Gcse. Grade c or above in two further Gcses in

any subject.

for holders of a second class honours degree or above in any subject, the maths a level requirement is reduced to a grade c.

for holders of a third class honours or above in a mathematical science degree, the maths a level requirement is dropped.

What if I dont meet the requirements? There is the option to take the CT1, Certificate in financial mathematics. it will give you the option to see whether you have the capability to take the actuarial professions exams, if you do wish to carry on the process and will give you an idea of the exam structure. if you

do take and pass the exam, then you will be eligible to become a member of the profession. find out more at the actuarial professions website: www.actuaries.org.uk/students/pages/certificate-financial-mathematics.

it is advisable that you speak directly to employers if you do not meet their entry requirements; you could enquire as to whether you could join them any other way, whether by taking a couple of exams you would be exempt from any entry requirements, and finally what requirements are unavoidable.

What degree subject should I study?Graduates from any discipline are welcome, provided the minimum entrance requirements have been met. however, most employers recruit numerate graduates those with degrees in mathematics, statistics, actuarial science, economics, business degrees, engineering, physics and chemistry.

The pros and cons of a degree in actuarial scienceseveral universities offer undergraduate degrees in actuarial science. some of these degrees offer exemptions from all the core technical subject examinations. other actuarial degrees offer exemptions from a subset of these subjects.

The advantages of studying an actuarial degree: finding out more about actuarial work

before starting employment. exemption from some professional exams,

if a high enough standard is reached in the corresponding university course.

quicker qualification as an actuary

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in comparison to graduates from other courses. this could lead to quicker promotion.

a higher number of exam passes may mean that the actuarial graduate may receive a higher salary (probably staggered and dependent on future exam success).

an actuarial degree gives an excellent grounding in subjects like economics, finance, mathematics and statistics, as well as the more actuarial subjects (making actuarial graduates suitable for a range of careers, not just actuarial work).

The benefits to studying alternative degrees: non-actuarial degrees enable students to

experience a greater range of courses and to pursue a variety of interests outside actuarial work.

non-actuarial degrees may still lead to exemption from a few of the core technical subjects.

some employers are less enthusiastic than

others about employing actuarial science graduates, so you may wish to seek the views of your favoured employers.

Experience in the office is at least as important as exam passes. actuarial graduates should not expect that they will necessarily be paid more than other graduates.

What about postgraduate degrees?postgraduate degrees that offer exemption from core technical subjects or specialist technical subjects are available. these have similar advantages to the actuarial science degrees noted above. however, students typically have to find private funding for these postgraduate courses.

of course, your formal qualifications arent the only important requirements. take a look at our article on key skills to see what personal qualities you will need to become a successful actuary.

education required

Universities in the Uk accredited by the Actuarial Profession:

Go to: www.actuaries.org.uk/students/pages/university-courses-and-exemptions for further details.

bristol university cass business school city university london heriot-Watt university imperial college business school imperial college london lancaster university london school of economics newcastle university queens university belfast said business school swansea university

university of birmingham university of cambridge university of east anglia university of Kent university of leeds university of leicester university of manchester university of nottingham university of oxford university of southampton university of stirling university of Warwick

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Internships: what to expect

if youre still a student, but are keen to get a taste of a business sector before youve completed your studies, then an internship is for you. not only will you gain invaluable hands-on experience, you could earn yourself a place on the companys graduate scheme.

Im an actuary, not an actuarist!the actuarial profession is growing rapidly, as is the publics knowledge of what actuaries do. the actuarial profession describes actuarial work as using 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.

this article outlines what to expect from an actuarial internship.

What kind of academic background do most actuaries have?in order to enter the profession, most actuaries will have achieved an a level or a higher in maths or an equivalent qualification, and a numerical degree (normally 2.1 or higher).

What does an intern do?interns are typically involved in the same projects and roles as graduates highlighting to interns the challenges they might face as a

full-time actuary. by doing this, opportunities are provided to work on projects from the clients or firms offices a

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