a career as an actuary
TRANSCRIPT
A career as an actuary?Henry Tapper and Nicole Dobson
23 November 2016
A bit about usNicole Dobson
Studied MORSE at WarwickJoined First Actuarial as Graduate in 2012Qualified as an Actuary in 2016
Henry TapperThen…
Read English at CambridgeWorked on a trawlerSold insuranceHead of Sales at Zurich
Now…Director of First ActuarialFounder of www.pensionplaypen.comBlogs at www.henrytapper.com@henryhtapper
Owned by9 founders
5 offices throughout the UK
Our clients:• Trustees of Pension
Schemes• UK Employers
Established in 2004
Currently recruiting for graduates and
summer internships
Pensions Consultancy
Should I think about being an Actuary?
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 might be and the costs associated with it.
Actuaries predict and measure emerging risks and then help to reduce them, putting financial safeguards in place.
What is an Actuary?
The FellowshipExamination subjects:• 9 Core Technical (CT)• 3 Core Application (CA)• 2 Specialist Technical• 1 Specialist Application
Additionally:• 3 years work-based skills• Professionalism requirement –
courses/online test• Practice modules
Includes practical subjects:• Business awareness (CT9)• Model documentation,
analysis and reporting (CA2)• Communications (CA3)
But…
new exam
structure
from 2019
What do our Actuaries do?
• Valuation of Defined Benefit (DB) Pension Schemes
Final Salary Pension Scheme:
Pension payable = Accrual rate x Final Salary x Service160 40 years= £30,000 xx
= £20,000 pa
Value = present cost of all these future payments
What do our Actuaries do?
• Pension Cost Accounting• Investment Consultancy• Defined Contribution (DC) Schemes• Financial Education• Liability Reduction Exercises
• Valuation of Defined Benefit (DB) Pension Schemes
How do we value DB Pension Schemes?
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200
100
200
300
400
500
600
700
800
900
1000
Years
£'s
…
Deficit Liabilities Assets
(1+i1)(1+i2) (1+i3)
(1+r)-12
(1+r)-11
(1+r)-10
What assumptions did we make?
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 200
100
200
300
400
500
600
700
800
900
1000
Years
£'s
…
Deficit Liabilities Assets
Future Pension Increases
SalaryIncreases
Investment Returns
Retirement Age
Mortality
Spouse’s Pension
Why become an Actuary?
Reward
VarietyInfluence
Intellectual satisfaction
NetworkSupport
International opportunities
High standards
What do employers want?• Academics
◦ Maths A Level (or equivalent) at grade B or higher◦ A good degree (2:1 or above) in a numerate subject
• Work experience/internships• Good communication skills• IT skills• An interest in business/relevant industry knowledge• Commitment to the exams and your career• Enthusiasm
Basingstoke Tonbridge
Peterborough
LeedsManchester
Choosing an employer
: Relaxed and friendly atmosphere• Location
: Offices in Basingstoke, Leeds, Manchester, Peterborough and Tonbridge.
• Size of the company
• Ethos
: Young and growing• Study support package
How can I apply to First Actuarial?For more information, and to apply, go to: http://www.firstactuarial.co.uk/Careers/GraduateVacancies
Deadline for applications:• Graduates – 30 November 2016• Summer Students – 16 December 2016
Any Questions?
Where can I find out more?• Visit: www.actuaries.org.uk/becoming-actuary• E-mail: [email protected]• Facebook: www.facebook.com/actuarial• IFoA brochures• Speak to a careers advisor
Do actuaries do any good?
What are actuaries good for?
Arguing with Data not from prejudice.
“populism” isn’t noisy – best understood using data
Engaging through new media
Educating through models
Helping Tomorrow’s Investor
Estimates vary, but it is our belief that for no additional cost, pension outcomes could be improved by 50% or more, compared to a typical DC pension which might be offered today”
“RSA- Tomorrow’s investor 2011
Pensions and healthcare – exploring the bigger picture
Healthy, 32%
Circulatory diseases, 10%
Other circulatory diseases &
diabetes, 21%
Co-morbid diseases, 6%
Neurological diseases;
MRSA; Arthritis, 15%
Cancer (incld. Benign
neoplasm), 7%
Respiratory diseases, 4% Other,
5%
For men aged 60-69, only 32% did not have one of the major conditions examined (England, 2007)*
Care funding in later life (average £750pw nursing home)***Preliminary analysis performed by Legal & General using data from the General Practice Research Database. Data includes >1.5m patients registered with a general practice surgery in England (2007). Diseases examined include stroke, IHD, lung, colo-rectal and/or prostate cancer, Alzheimer’s disease etc. **Laing & Buisson care of elderly people market survey
Educating the new employers on what makes for good
Quotes from providers• As well as viewing these quotes
online you can download them along with factsheets on each provider as a PDF.
Quiz
Any final questions?