Actuary

Job description

An actuary designs solutions to problems that involve financial risk by using mathematical techniques to study past events and anticipate future events. Most actuaries work in the financial services sector – including insurance, pensions, healthcare funding, investment and banking – in technical, consulting and general management roles.

Work activities

• Working out an appropriate price for insurance contracts
• Advising on how to manage funds so as to be able to pay insurance benefits and pensions as and when they are due – which might be many years from now
• Advising on the amount of savings needed for a comfortable retirement
• Developing mathematical and financial models to help companies to understand and manage their risks in today's complex and rapidly changing financial environment.

Work conditions

Travel: occasional travel during the working day is required.
Working hours: extra hours are regular, but generally not weekends or shifts.
Location: mainly in towns and cities throughout the country.
Opportunities for self-employment: sometimes possible, particularly in pensions consultancy.

Typical employers

Life assurance companies, pension consultancies and general insurance companies.

Career development

This career offers a variety of intellectually and financially rewarding career paths, from specialising in technical research to focusing on more commercial activities.

Related occupations

• Insurance broker
• Statistician

Salaries

Salaries will vary depending on the employer, but are generally highly attractive with high earning potential from early on in the career.

Entry requirements and training

The first step to becoming an actuary is to become a student of the Institute or Faculty of Actuaries. Minimum requirements include grade A1 or A2 in honours mathematics at the leaving certificate, and a pass in at least four other subjects, including English. Alternative qualifications include a minimum of a third-class honours degree with mathematical sciences as a major subject, or a first- or second-class honours degree in any subject, together with at least a grade C at leaving certificate honours level in any mathematical subject.

Specific degree subjects required

Although a degree in actuarial science is not essential, it can lead to exemptions from some of the fellowship examinations and allow fast-tracking through qualifications. Degrees in actuarial science are offered by a number of universities.

Other relevant degree subjects

• Actuarial and financial studies
• Actuarial science
• Economics
• Finance
• Financial mathematics and actuarial science
• Mathematics
• Statistics.

Exemptions from some of the professional exams of the Institute or Faculty of Actuaries are possible depending on third-level qualification and grades achieved.

Postgraduate study

Taught postgraduate courses in actuarial science/application are available that may lead to exemptions from the professional exams.

Specific entry requirements

You must complete a series of exams. These include:

• ‘Core Technical’ (CT) subjects, covering fundamental actuarial techniques in mathematics, statistics and finance
• ‘Core Applications’ (CA) subjects, covering actuarial risk management, financial modelling and communication skills
• ‘Specialist Technical’ (ST) subjects, bringing technical skills and knowledge to a more advanced level A ‘Specialist Applications’ (SA) subject, through which you will improve your ability to apply both technical skills and professional actuarial judgement in real-world situations.

Training

You must complete at least three years’ experience of actuarial work, supervised by the holder of a recognised actuarial qualification.

Tips for applications

Secure a placement with organisations offering work experience to potential actuaries.

Skills and qualities

• Intelligence, confidence with numbers, and readiness for many years of study
• Strong analytical skills combined with a thorough knowledge of financial theory, economics and the legislation and regulation that applies to financial services
• Enjoy problem-solving and communicating your solutions to others.