The magazine of the actuarial profession

Careers

Women in the professionKathryn Morgan looks at the progress made by women actuaries over the past 90 years and considers whether they should be taking a more active role in the profession today. 20 February 2013
Math + business = hotJessica Elkin ponders on the chances of an actuarial amour 02 February 2013
Actuary of the future January/FebruaryPamela Neil of Aviva 01 February 2013
The gender gap: Are 'Golden Skirts' the answer?At the current rate of change, it will take over 70 years to achieve gender-balanced boardrooms in the UK. Alana Patterson looks at what is being done to address this. 23 January 2013
No limits to using Monte Carlo for modellingNew game-changing technology could become the 'new normal' for the insurance industry, according to Osmo Jauri and Timo Penttilä. 23 January 2013
Resource scarcity 'could wipe out pension assets'Actuaries should do more to take into account the potentially disastrous impact that constraints over natural resources and climate change could have on pensions, according to research commissioned by the Institute and Faculty of Actuaries. 21 January 2013
Government Actuary recognised in New Year Honours ListThe Government Actuary Trevor Llanwarne has been recognised for his services to the actuarial profession and the public finances in the Queen's New Year Honours List. 02 January 2013
Static pension contributions 'alarming', say consulting actuariesAverage pension contributions by employers and employees have flat-lined since 2010, increasing the likelihood of inadequate retirement incomes in the years ahead, the Association of Consulting Actuaries today warned. 02 January 2013
Dare to be differentSteve Mills discusses free thinking, Solvency II and bow ties with Deloitte partner Andrew Smith, who was awarded a Finlaison Medal for his actuarial research 29 November 2012

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What does an actuary do?

Actuaries apply financial and statistical theories to solve real business problems. In effect, they use their skills in maths and statistics to create theoretical models of the world around them.

A typical business problem might involve analysing future financial events, especially when the amount or timing of a payment is uncertain. But it could also involve understanding something like the weather: assessing when and where devastating storms may hit can help predict risks, and their associated costs, for investments or insurance. So a lot of the work an actuary does might be thought of as risk management.

The skills you need
Understanding how businesses operate, and how legislation may affect them, is vital. But what really sets actuaries apart is their natural mathematical, economic and statistical awareness, and their ability to apply this to real situations in the financial world. The ability to communicate these difficult topics to non-specialists is also very important.

Main industry sectors
Actuaries' skills are in great demand throughout the financial sector, particularly in investment, insurance and pensions. Actuaries are also increasingly employed in risk management for large companies. However, actuarial consultancies are probably the biggest employers of actuaries in the UK.

Consultancies - offering advice on issues such as acquisitions, mergers and financing capital projects, and also on occupational pension schemes.

Investment - involved in research and on the pricing and management of investments, particularly in mitigating risk, and often using their understanding of insurance or pension liabilities to manage the corresponding assets.

Insurance - providing a service to companies that need a huge range of numerical information investigated, analysed and explained; for example to create and price polices, or to ensure they have the money to cover claims.

Pensions - designing and advising on company pension schemes, especially placing a value on accumulated pension commitments.