actuary 07l08

Inside Careers Guide to Actuaries

Inside Careerswww.insidecareers.co.uk

Published in partnership with:

Career advice1 Foreword• An Introduction from the Presidentsof the Institute of Actuaries and theFaculty of Actuaries

2 The profession•What is an Actuary? A Brief Overview• Why Become an Actuary?• Fields of Work• The UK Actuarial Profession• The Future for Actuaries• Frequently Asked Questions

3 Recent graduates• Total Reward & Benefits• Consultancy• Government Actuary’s Department• Life Company• General Insurance – Consultancy• General Insurance – InsuranceCompany

• Pensions• Actuary in Europe

4 Career paths• Director of Actuarial Services• Healthcare Actuary• Investment Consultant• Actuary in Business• Pensions Consultant

5 Finding the right job• Salaries and Rewards•Key Skills andMinimumRequirements• CV and Interview Techniques• Finding and Benefiting from Work

Experience• Meet the Placement Student• Graduate Training Schemes• Information and Statistics

6 Education, training &development

• Actuarial Syllabus and Examinations• University Actuarial Departments• Professional Qualifications• Continuing ProfessionalDevelopment

7 Company profiles,course providers& recruitment consultants

For the latest up todate information onthe web click on thelinks below:Graduate vacanciesWork experienceCompany profilesCourse providers

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4| ACTUARIES 2007/8 www.insidecareers.co.uk

FOREWORD

On behalf of the Faculty and Instituteof Actuaries we are delighted tointroduce the new edition of the Inside

Careers Guide to Actuaries and invite you to takea look at the exciting possibilities that awaityou as an actuary.

2005 saw the publication of Sir DerekMorris’s review of the Actuarial Professionon behalf of the Government. He describedactuaries as ‘dedicated, skilled professionalsproviding important and useful advice, withcommitment, integrity and a strong sense ofduty’.

However, he also suggested a number ofchanges. The most significant was in terms ofregulation, where he recommendedindependent oversight of the Profession’sexisting self-regulatory function and thecreation of an independent Board forActuarial Standards under the aegis of theFinancial Reporting Council (FRC). Theserecommendations have now beenimplemented and the strategy of the Facultyand Institute has been redefined to focus onsupporting members throughout theircareers, particularly in the UK financialsector. Detailed proposals are now beingdeveloped for changes to the organisation

Foreword

STUART RITCHIEPresident of theFaculty of Actuaries

NICK DUMBRECKPresident of theInstitute of Actuaries

and activities of the Profession to supportthis new strategy.

The Actuarial Profession in this countryoffers a wider range of opportunities andchallenges than ever before to those whowant to apply their skills in mathematics orstatistics to problems in the real world ofbusiness and finance. These skills giveactuaries an unrivalled appreciation offinancial risk management, one of the mostfundamental but worst-understood areas ofbusiness.

Actuaries are able to analyse past events,assess the present risks involved and modelwhat could happen in the future. They maythen forecast the long-term financialimplications of business decisions, both interms of likely outcomes and in the variabilityof those outcomes.

Traditionally, actuaries have been heavilyinvolved in life assurance and pension schemework. Today, actuaries are increasing theirinfluence in general insurance, includingLloyd’s syndicates, and investment work(which involves managing investmentportfolios, monitoring investmentperformance and advising on strategic assetallocation in the light of liability profiles). In

ACTUARIES 2007/8 | 5www.insidecareers.co.uk

FOREWORD

addition, actuarial skills are being applied toother, wider areas of business, such ascorporate finance, enterprise riskmanagement and major capital projects.

Actuarial work is especially suited to thosewho enjoy solving problems by analysis,mathematics and logical reasoning. Yet thechallenge does not end there –communication and management skills arevitally important if an actuary is to beeffective in what he or she does.

Many actuaries trained in the UK will spendsome, or all, of their career working abroad.

The UK qualification is highly valued all overthe world. It means that actuarial work providesa rewarding career in terms of intellectualchallenge, financial rewards and status.

In this guide you will find a wealth ofinformation about the Profession, oureducation system and the range ofemployment opportunities. If the worksounds appealing, do take the first steptowards joining the Profession by applying tothe employers listed at the back of this guide,or contact the Faculty in Edinburgh or theInstitute in London.

PUBLISHERCambridge Market Intelligence LtdThe Quadrangle49 Atalanta StreetLondon SW6 6TUTel: 020 7565 7900Fax: 020 7565 7938Email: [email protected]: www.insidecareers.co.uk

ASSOCIATE PUBLISHERFaculty of ActuariesMaclaurin House, 18 Dublin StreetEdinburgh EH1 3PPTel: 0131 240 1300Fax: 0131 240 1313

Institute of ActuariesStaple Inn Hall, High HolbornLondon WC1V 7QJTel: 020 7632 2100Fax: 020 7632 2111

ACKNOWLEDGEMENTSWe are indebted to the Faculty of Actuaries and theInstitute of Actuaries for their support, in particular toBarbara Beebee, Joanna Farrell and CarolineHenderson-Brown for their help throughout thepreparation of the guide and for reviewing the text forbalance and accuracy.

ISBN 978-1-86213-117-0

Printed and bound in the UK byCambrian Printers, Aberystwyth.

EDITORIALPublishing Manager: Genevieve DuttonProduction Editors: Emma Braithwaite

James BryceEditorial Assistant: Craig WilliamsCover design: Tim Read

Copyright in individual articles © 2007 the authors, whohave asserted their right to be identified as the authorunder s.78 of the Copyright, Designs and Patents Act1988. This compilation © 2007 Cambridge MarketIntelligence Ltd.

All rights reserved. No part of this publication may bereproduced, stored in a retrieval system or transmitted, inany form or by any means, electronic, mechanical,photocopying, recording, or otherwise without the priorpermission of the copyright owner.

While every effort has been made to ensure its accuracy,no responsibility for loss occasioned to any person actingor refraining from action as a result of any material in thispublication can be accepted by the publisher or authors.

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The profession

What is an Actuary?A Brief Overview

Why Become an Actuary?

Fields of Work

The UK Actuarial Profession

The Future for Actuaries

Frequently Asked Questions


THE PROFESSION

However, most people are familiarwith the areas in which actuarieswork and are impressed by their

contribution to business; being an actuarycarries quite a reputation. Actuaries areexperts in the field of financial andstatistical analysis, most publicly associatedwith pension schemes and insurance, andrenowned for their mathematical prowess.With experience, an actuary’s role broadensand business consulting will increasinglyreplace work on the purely technical aspectsof forecasting.

STATISTICAL HEARTActuaries apply financial and statisticaltheories to solve real business problems.These business problems typically involveanalysing future financial events, especiallywhen the amount of a future payment, orthe timing of when it is paid, is uncertain. Alot of actuaries’ work might be thought ofas ‘risk management’, assessing how likely anevent may be and the costs associated withit.

Understanding how businesses operate,how legislation may impact and how financialeconomics can affect values are all vital skillsfor an actuary. However, what reallydifferentiates actuaries is their coremathematical, economic and statisticalunderstanding applied to real financialproblems.

EXPERT DOMAINSThe traditional areas in which actuariesoperate are: consultancy, investment, life andgeneral insurance and pensions. Actuariesare also increasingly moving into other areasof the financial sector such as riskmanagement, banking, and capital projectmanagement, where their analytical skills canbe employed.

ConsultancyActuarial consultancies offer a whole rangeof services to their clients on issues suchas acquisitions, mergers, corporaterecovery and financing capital projects.Many also offer advice to employers andtrustees who run occupational pensionschemes. In fact, such consultancies areprobably the biggest employers ofactuaries in the UK.

InvestmentIn the area of investment, actuaries areinvolved in a range of work such as:pricing financial derivatives, working infund management, or working inquantitative investment research. Ofteninvestment actuaries work in fields wheretheir understanding of insurance orpension liabilities helps them to managethe investment of the correspondingassets.

What is an Actuary?A Brief OverviewFirstly, being an actuary is definitely on the par with professions likeaccountants, doctors and lawyers. But tell someone you’re an actuary andmore than likely they will look at you blankly.

research, whilst others may focus more oncommercial activities. The different rolesrequire different mixes of skills, but whatevera particular actuary’s strengths, there will be aniche for them somewhere.

CHALLENGES AND REWARDSPassing the exams is the first hurdle tobecoming an actuary, but beyond this you willneed to develop the capacity to give expertadvice. Often this will involve dealing withnon-actuaries and the general public, so theability to communicate clearly difficult topicsto non-specialists is of paramount importance.

Being an expert carries responsibilities andrewards in equal measure. Actuaries’ pay andconditions compare well with otherprofessions. But for most actuaries, the realreward is doing a stimulating job that requiresthem to think and make a positive impact onlegislation, businesses and individuals.

STILL INTERESTED?If you have found this overview interestingthen I strongly recommend that you read therest of this guide where you will find moreinformation on all the areas that I have merelybeen able to touch on here.

CHARLES YOUNG is Pensions Actuaryand Partner in HYMANS ROBERTSON,an independent firm of consultants andactuaries. Charles graduated fromCambridge University with a Master’s inMathematics and Engineering and is aqualified Fellow of the Institute ofActuaries. Charles is Chairman of theAssociation of Consulting Actuaries’pensions committee and has representedHymans Robertson within the NationalAssociation of Pension Funds. He is anacknowledged industry figure in thefields of pensions accounting andpensions risk management.


THE PROFESSION

InsuranceThe work carried out by actuaries in insuranceincludes designing new insurance policies,setting premium rates, calculating a company’sfinancial status (based on the policies alreadysold), and answering technical queries frompolicyholders. Insurance actuaries alsoundertake detailed investigations of differentexperiences; such as how assets and expenseshave performed and the extent of differenttypes of claims for different types ofinsurance policies (eg, death claims for lifeinsurance or car theft for motor insurance).

PensionsIn the pensions field, actuaries are usuallyinvolved in designing and advising companypension schemes, especially where a valueneeds to be placed on a scheme’s accumulatedpension promises. This could be for a formalvaluation of a whole scheme, which is legallyrequired every three years or for an individual’sbenefits (perhaps if they want to transfer theirentitlements from one scheme to another).

With experience, actuaries tend to spendless of their time working on the strictlytechnical aspects, instead applying theirexpertise to more general areas; whether it’smanaging a business, advising a client onremuneration policy, advising on a corporatetakeover, or undertaking one of many otherdifferent types of projects.

CAREER PATHS An actuary’s early training has a split focuson passing the professional exams andbuilding practical experience. Once qualifiedmany actuaries go on to be practisingspecialists in one of the traditional fields,with many actuaries becoming seniormanagers in insurance companies or firms ofconsultants.

Yet there are many different career paths:some actuaries specialise in technical


THE PROFESSION

An actuarial career is a very stable andsecure one. It is relatively recessionproof: our society will continue to

demand pensions and insurance whatever thestate of the economy. This may not concernyou now during the good times but what willour economy be doing in five or ten yearstime? Actuaries suffer less in the recessions.A number of actuaries have also branchedout into non-traditional careers, able to carryover their skills.

The training can be undertaken at yourown pace; the usual time to qualification isfive years, but could be longer. Although noteasy, it is possible to take a career break andre-enter the profession later.

Unlike some of the other professions, thetraining is portable: you can start with onecompany and move as a trainee actuary toanother employer. You need not be tieddown for several years during yourprofessional training; you can move withinthe UK if you have to. You shouldn’t admitto this being your key benefit at interviewthough! Look at all the vacancy adverts onthe Profession’s website(www.actuaries.org.uk), on the Inside Careerswebsite (www.insidecareers.co.uk) and in theActuary Magazine, (available at www.the-actuary.org.uk) to give you an idea of theopportunities currently on offer for part-qualified actuaries. You won’t find similaradverts for other professions. Beyond the

UK, the consultancy and accountancy firmsallow some opportunity for overseas workand travel. Actuaries have an agreed andaccepted international exam syllabus andthere are some 4,035 actuarial studentsstudying outside the UK and Ireland.

The UK’s actuarial Profession isrelatively small compared to otherprofessional groups with only 17,800members. It is therefore quicker on its feet,able to undergo rapid changes to keep aheadwith developments in the financial markets:demutualisation, deregulation, privatisationand the rapid growth in personal financialservices and health sector. The examsyllabus reflects the latest developmentswithin finance and industry. You are unlikelyto be forced to study outdated or irrelevantmaterial.

The range of opportunities within theProfession continues to grow. Actuarialcareers used to be found mainly in the lifeassurance and non-life (insurance)industries. In recent years though, there hasbeen an insatiable demand for traineeactuaries from actuarial consultants, lifeoffices and the professional financialservices firms. It is likely that theinvestment banks too will be offeringtraining opportunities in the next year ortwo. There are some 6,219 qualifiedactuaries in the UK and over half now workin these non-traditional areas. Qualified and

Why Become anActuary?What makes a career as an actuary a good choice compared to some of thealternatives? Other careers may offer you some, but not all, of the followingfeatures.

GORDON CHESTERMAN is Director ofCAMBRIDGE UNIVERSITY CAREERSSERVICE. His career with graduaterecruitment started as a graduate traineefor a multinational company working inpersonnel, training and recruitment. In1983 he joined a major firm of charteredaccountants as Graduate RecruitmentManager, filling over 450 graduatevacancies a year. After a period with asmall publishing company in Cambridgeand running his own training business hejoined the Careers Service in 1995,specialising in providing information andadvice to Cambridge students on careersin actuarial work and most otherfinancial areas.


THE PROFESSION

“THERE ARE SOME 6,219 QUALIFIED

ACTUARIES IN THE UK AND OVER

HALF NOW WORK IN THESE

NON-TRADITIONAL AREAS”trainee actuaries are now to be found ininvestment management, corporate finance,liquidations, mergers and acquisitions,derivatives, fund and asset management,project finance and risk assessment.

Finally, it is a very well paid career.Graduate entry salaries are offered between£20,000 to £28,000, newly qualifiedactuaries can command in excess of£53,000 and chief actuaries can earn£100,000 plus.

TOO GOOD TO BE TRUE?The challenge is that the training andexams are not easy. Exam pass rates in theearlier papers are usually between 50% and70%, but in later papers can be as low as30%. On average between 15 and 20 hours’study at home in the evenings andweekends are required per week, inaddition to your full-time work. The helpand support given by employers isgenerous, although this will vary fromemployer to employer. In addition, thetraining company provides a great deal ofassistance. The Profession can even review

any failed exams and give you pointers asto what went wrong. Exam failure is a wayof life: very few get through all papers firsttime.

Look at what training support and helpis offered by the employer; how much paid(or unpaid) study leave is given; whetherthey pay for all the external tuition andexam costs; what their attitude is to anyhiccups with exams; how varied thetraining placements offered are; what thelonger-term opportunities are. Althoughthe starting salary is a factor (and tends tobe higher with the consultants) this can beoutweighed by other benefits and thelifestyle. The hourly rate on an annualsalary is comparable between the two.


THE PROFESSION

The need for a business both to performcompetitively, and to respect theinterests of its customers and the

economy in which it operates, poses somespecial problems. Actuaries have the skills fortackling the issues that financial businessesface (particularly where there are significantfinancial risks and uncertainties in runningthe business), in the interest of bothcustomers and owners.

As the skills of an actuary are increasinglyrecognised, the range of employmentopportunities will enlarge. The Profession hasrecently actively sought new opportunitieswhilst at the same time consolidating itspresence in traditional employment areas.Through its Finance Investment and RiskManagement and Social Policy Boards andthose working in these fields, the Professionseeks to expand the recognition of andemployment opportunities for actuaries.Ageing populations, damages, finance,genetics, healthcare, personal financeplanning and risk management are all newareas in which the effective contribution ofactuaries has been recognised.

WHERE DO ACTUARIES WORK?Of the UK fellows of the Profession, 48%work in consultancy, 35% work within theinsurance industry, 9% work in finance andinvestment and the remaining 8% work in thepublic service and education, as well as othernewer areas such as industry.

CONSULTANCYActuarial consultancies are the biggest

employers of actuaries in the UK. Many offeradvice to employers and trustees who runoccupational pension schemes. The 1995Pensions Act made it a statutory requirement forthe trustees of a pension scheme to appoint anactuary. The advice to clients covers a widerange of topics from setting up a new scheme toassessing the level of contribution to be paid bythe members and valuing the fund if thecompany is to be taken over. Additionally,consultancies will offer a range of services totheir clients, such as enterprise risk management,merger and acquisition advice, corporaterecovery and financing capital projects.

The Government Actuary’s Department(GAD) provides advice to the Government viaRoyal Commissions, as well as giving advice toother government departments and a widerange of public sector bodies, including localauthorities and the National Health Service(NHS). An important part of this workconcerns the occupational pensions for aboutfour million people via the operation of theNational Insurance Fund. GAD also producesthe official national population projections forthe UK and reports regularly to Parliament.

INSURANCE INDUSTRYLife assuranceLife assurance companies provide lifeassurance, pensions and other financial services.Actuaries are involved at all stages in theproduct development and in the pricing, riskassessment and marketing of the products. Inaddition, actuaries fill key roles in financialmanagement and the investment ofpolicyholders’ money by developing strategies

Fields of WorkThe business world today is becoming more complex, fraught with uncertaintyand often with conflicting pressures.

actuaries, both within insurance companies,consultancies and at Lloyd’s of London, wherethey have certain statutory duties. Many areemployed by consultancies who provide servicesto insurers and Lloyd’s syndicates. Generalinsurance actuaries are also to be found inreinsurance and broking operations and with theFSA, the UK Financial Services regulator.General insurance includes personal insurance,such as home and motor insurance, as well asinsurance for large commercial risks. As thereare many different factors that can affect the sizeand number of claims, general insurancecompanies employ actuaries to assist with theirfinancial management, in particular inconnection with premium rating and reserving.Actuarial and statistical techniques are usedextensively in the analysis of often substantialamounts of available data. Statistical models arethus a key part of an actuary’s work. This analysisis then used to rate the risks and to ensure thatclaims reserves are adequate to meet the eventualsettlement of insurance claims. The World TradeCenter attacks, Caribbean hurricanes, such asKatrina and Rita, and industrial diseases likeasbestosis are all examples of insurance liabilitieswhere actuaries have been integrally involved inestimating ultimate costs into an uncertain future.


THE PROFESSION

that ensure customers get a good return. It iscurrently a legislative requirement that each UKlife office appoints one or more actuaries toperform the ‘actuarial function’, advising thefirm’s directors on the firm’s ability to payclaims and how to ensure that the life assuranceand pensions benefits from the many millionsof pounds invested by policyholders are secure.Firms that have with-profits business must alsoappoint one or more with-profits actuaries toadvise the firm’s directors on the use ofdiscretion in the management of with-profitsfunds and in particular the addition of bonusesto policies, having regard to the fair treatmentof with-profits policyholders.

With recent legislation leading to moreprivate healthcare provision, insurancecompanies are extending their range ofproducts to include medical insurance, criticalillness and disability insurance.

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

General insuranceGeneral insurance is a fast-growing area for

Insurance or Reinsurance 35%

Consulting Firm/Business Advisory 48%

Investment Management 3%

Investment Bank 2%

Retail Bank or Building Society 2%

Public Service 2%

Education 1%

Other Financial Company 2%

Other Company (non-financial) 2%

Undisclosed 3%

UK FELLOWS BY EMPLOYER

FINANCE AND INVESTMENT Investment managementActuaries have been involved in the field ofinvestment management for decades; indeed, itis probably true to say that more people see theword ‘actuaries’ through the daily stock exchangeindices than through any other source. Actuariesare involved in buying and selling assets,investment analysis and portfolio management.In addition, actuarial techniques are ideal for usein measuring investment performance. Solvingproblems while making correct investmentdecisions is a constant stimulus.

Many employers recognise the skills that thetraining provides and have allowed actuaries todevelop these skills as well as others, such as,the skills of financial economists. Actuaries areseeking to improve their tools both in thedevelopment of valuation models and in therefinement of traditional methods.

Corporate financeAlthough generally regarded as the province ofthe investment banker, actuaries can add value inthis area. An actuary’s basic skills in forecastingand assessing risks are ideal for estimatingwhether a capital project (eg, for a new hospitalor a transport infrastructure project) isfinancially viable. Employers might includegovernment departments,management consultancies,or property companiesspecialising in this area.

BankingActuaries are becomingincreasingly involved inbanking.

For example, some of theleading insurance companiesnow have their ownestablished bankingoperations, with actuariesfilling some of the seniorexecutive positions in finance

and risk. The leading retail banks are alsoincreasingly employing actuaries as theyrecognise that the longer term approachesadvocated by actuaries can add value to theirbusinesses. As insurance companies increasinglyhedge their risks, we have seen a correspondingincrease in the demand for actuaries from theinvestment banks that provide the hedgeproducts.

As the insurance and banking marketscontinue to converge, we can expect to seethe demand for actuaries within bankingfields continue to grow.

OPPORTUNITIES ABROADThe UK qualification is highly valuedthroughout the world. Of the qualifiedmembers of the UK Profession, 71% are basedin the UK, the remaining 29% overseas. TheProfession works with other internationalactuarial bodies to arrange reciprocal recognitionof the professional qualifications between thedifferent bodies. Most overseas opportunitiesarise in Australia, continental Europe, India,New Zealand, Pakistan and South Africa.

Hopefully this brief overview demonstratesthe variety of opportunities available. Thequalification is an excellent base for a businesscareer that is recognised worldwide.


THE PROFESSION

UK 5,034

Ireland 414

Other EU 160

South Africa 596

Canada 62

USA 153

Australia & NZ 321

India 38

Other Countries 298

ALL FELLOWS EMPLOYMENT BY COUNTRY

TOTAL 7,078 (Active only, no Associates) as at September 2006

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THE PROFESSION

WHAT DO WE DO?The Actuarial Profession has the twin roles ofrepresenting members to the outside worldand regulating members for the benefit ofthe outside world. These aims can beamplified as:

• regulation of members by enforcingadherence with the Profession’s ethicalstandards, which are produced by theBoard for Actuarial Standards (BAS), anindependent body under the FinancialReporting Council (FRC);

• education of new entrants who wish tobecome actuaries and continuingprofessional development of existingactuaries;

• co-operation with government, business,regulators and other professions, etc;

• innovation through research and debate,to expand the horizons of actuarialknowledge;

• promotion of the work of actuaries ingeneral (but not of individuals or firms).

The Profession has a strong tradition ofseeking to foster community andcompanionship amongst its members,locally and internationally. There is closeco-operation between actuarial societiesaround the world: several internationalbodies have mutual recognition agreementswith the UK Profession, enabling qualified

actuaries from one country to obtain fullmembership status in the other.

OVERSIGHTDuring 2004/5 there was a governmentsponsored review of the Profession by SirDerek Morris which recommendedindependent oversight of the Profession’sregulatory roles by the FRC. We welcomedthese developments and worked with themto effect the change.

BAS has taken over from the Professionthe role of setting technical standards. Inaddition the Professional Oversight Boardof the FRC has extended its remit tooversee how the Professional bodyexecutes its remaining regulatory functions.‘Public interest’ discipline cases in futurewill be investigated and judged through theFRC’s separate discipline arrangements,while the Profession’s Discipline Board willcontinue to operate our own schemes forall other cases.

WHAT MAKES US A PROFESSION?A profession can be defined as: ‘Anoccupation in which an individual uses anintellectual skill based on an establishedbody of knowledge and practice to providea specialised service in a defined area,exercising independent judgement inaccordance with a code of ethics and inthe public interest’.

The UK ActuarialProfessionThe Faculty of Actuaries in Scotland and The Institute of Actuaries in Englandand Wales are the two Chartered professional bodies for UK actuaries,working together across the UK as the Actuarial Profession.

actively involved in the workings of theProfession. The staff of the Professionhelp to formulate policy and plans andwork as one to implement the decisionsreached by the councils, boards andcommittees.

The corporate plan is agreed each year bythe joint Faculty and Institute councils andpublished on the website. This sets strategicdirection (the themes that are to beaddressed) and outlines core ongoing activityover five years, identifying the specificpriorities to be delivered by the FIMC duringthe current year.

During 2005/6 we had a strategic reviewthat concluded that the Profession’s primaryfocus should be supporting actuariesthroughout their careers so they have theskills, attributes and knowledge appropriatefor the evolving needs of the UK financialsector, primarily as quantitative riskprofessionals.

BENEFITS OF MEMBERSHIPThe actuarial qualification carries with itprestige and esteem. In becoming amember, individuals join a small group ofprofessionals who have made a personalcommitment to high standards ofeducation, competence and integrity. Inreturn for this professional commitment,the Profession offers attractive andrelevant benefits to all members. Keyamongst these benefits are the professionaleducation programmes and networkingopportunities that membership brings.

Services to members include:

• a continuing professional developmentprogramme;

• opportunities to discuss latestdevelopments at seminars, sessionalmeetings, conferences and through its


THE PROFESSION

Quoting from the Faculty’s RoyalCharter of Incorporation in 1868: ‘...theresponsibility attached to the profession ofActuary is consequently great, requiring theservices of well educated and trustworthymen, specially trained in Actuarial businessand calculations, more especially as thesubject of their professional study is onewith which the general public are mostentirely unacquainted and in which,therefore, they must be wholly dependentupon the skill and integrity of the Actuaryemployed...’

The Profession is passionate aboutidentifying matters of public concern whereour input and involvement can be of benefitto society.

ORGANISATION OF THE PROFESSION The Faculty and Institute are each governedby a council elected by the membership.These two groups manage the work for theProfession jointly through the Faculty andInstitute Management Committee (FIMC).A variety of boards and committees reportto FIMC, covering both practice andbusiness areas.

Members are encouraged to volunteer tojoin one or more of these boards or theircommittees and, through them, helpinfluence government and regulators aswell as influencing thinking within theProfession. In total, over 500 people are

“THE PROFESSION IS PASSIONATE ABOUT

IDENTIFYING MATTERS OF PUBLIC CONCERN

WHERE OUR INPUT AND INVOLVEMENT CAN

BE OF BENEFIT TO SOCIETY”

website and email discussion boards;• access to a vast amount of information

via the website (www.actuaries.org.uk) andthe Profession’s library service;

• receipt of the Actuary Magazine;• professional recognition through the use

of designatory letters (FIA, FFA, AIA,AFA);

• local actuarial societies;• working with other overseas professional

actuarial bodies;• maintaining professional ethical

standards.

CONTACT DETAILS Faculty of Actuaries Maclaurin House, 18 Dublin StreetEdinburgh EH1 3PPTel: 0131 240 1300Fax: 0131 240 1313Email: [email protected]

Institute of ActuariesStaple Inn Hall, High HolbornLondon WC1V 7QJTel: 020 7632 2100Fax: 020 7632 2111Email: [email protected]: www.actuaries.org.uk

CAROLINE INSTANCE, Chief Executive,THE ACTUARIAL PROFESSION


THE PROFESSION

measuring and managing financial risks.Many of these methods have been developedin the context of traditional areas ofactuarial activity, but their potentialapplication is much wider. Around the worldan increasing number of actuaries areworking in new areas, such as climate change,genetics, energy supply and majorinfrastructure projects. This trend is expectedto continue. Within the financial sector, theinvolvement of actuaries in both retail andinvestment banking is likely to continue togrow.

More generally, it is clear that themodern actuarial skill set equips actuaries toplay a key role in risk managementthroughout the financial sector and beyond,particularly in areas where a long-termperspective is important. Internationally,actuarial professional bodies are co-operating to promote the involvement ofactuaries in risk management, which is nowa high profile activity in all areas ofbusiness. This will be an important initiativein the years ahead.

EDUCATION AND TRAININGThis activity will be supported by changes toeducation and training, to ensure thatactuaries working in this area have all the


THE PROFESSION

In response to these changes, actuarieshave continued to expand the range oftechniques they are able to bring to bear

in analysing complex long-term liabilities. Inlife insurance these techniques include theuse of option pricing theory to valueminimum benefit guarantees andsophisticated modelling of the range anddistribution of possible outcomes reflectingvarying investment and other conditions.Some of these techniques have been in usefor many years in a limited way, but theynow form part of the actuary’s regulartoolkit.

There has been dramatic growth in thenumber of actuaries working in generalinsurance over the past 20 years. Generalinsurance actuaries have also developed newtechniques, including the use of complexmultivariate analysis to calculate premiumrates based on a comprehensive range of riskfactors. In addition, they have tailored expertprediction models to evaluate the potentialinsured losses arising from naturalcatastrophes such as hurricanes andearthquakes.

MANAGING FINANCIAL RISKActuaries now have an impressive array ofmethods at their disposal for analysing,

The Future forActuariesDespite a significant increase in numbers over the past ten years, actuariesworking in the UK are busier than ever. The major traditional users ofactuarial advice – life insurance companies and final salary pension schemes– are demanding more sophisticated analysis to cope with changes in theregulatory environment and pressure on their financial position resulting fromlow interest rates and increasing longevity.


THE PROFESSION

knowledge they need. Other changes are likelyto be made to education methods andsyllabuses to equip actuaries for the challengesthey are likely to face in the future, as well asthose that are around today. An increasingproportion of training is expected to takeplace face-to-face in a university environment,although self-study will remain available as analternative for the foreseeable future.

In recent years there has been increasingconvergence of actuarial education systemsaround the world, largely as a result of theefforts of international actuarial bodies such asthe International Actuarial Association and theGroupe Consultatif (which covers the EU).While some major differences remain at adetailed level, many countries now adhere tothe same minimum ‘core syllabus’. This hasimproved the portability of actuarialqualifications and many actuaries now qualifyin one country and end up working in another.UK actuarial qualifications continue to enjoy ahigh reputation throughout the world and thejob prospects of internationally-minded UKactuaries are excellent.

ASSOCIATESHIPUntil recently, attaining Fellowship of theFaculty and Institute of Actuaries has beenthe primary goal of most actuarial trainees.However, the Associateship qualification nowcovers all the major actuarial techniques andconcepts and is a self-contained qualificationthat may be particularly suitable for those

intending to work outside mainstreamactuarial areas, with the benefit of asignificantly shorter time commitment.

COMMUNICATIONS CHALLENGEOne of the key challenges facing actuaries ishow to communicate the results of our workto users of our advice. Insurance companydirectors and pension fund trustees needadequate information and understanding toenable them to take informed decisions onkey financial issues, but they themselves arein many cases not experts on actuarialmatters. As the investigations we carry outbecome more complex, the challenge ofexplaining our findings in a comprehensibleform becomes greater. As a result, actuariesnow need to put more effort into bridgingthe ‘understanding gap’ referred to by SirDerek Morris in his review of the UKActuarial Profession.

Much of our work relates to thequantification of the potential cost ofuncertain future events. While a single figureanswer may often be required for regulatoryor reporting purposes, it is important thatactuaries also provide information on theuncertainty surrounding their calculations intheir advice to employers or clients. This alladds to the communication challenge and theneed for actuaries to be articulate and fully intouch with the business world.

There is an important and exciting role foractuaries in the future, in financial riskmanagement and beyond. The ActuarialProfession will be working hard to ensurethat actuaries have the training and supportthey need and that they are well placed totake advantage of the opportunities that awaitthem.

NICK DUMBRECK, President,THE INSTITUTE OF ACTUARIES

“DESPITE A SIGNIFICANT INCREASE IN

NUMBERS OVER THE PAST TEN YEARS,

ACTUARIES WORKING IN THE UK ARE

BUSIER THAN EVER”


THE PROFESSION

?WHAT QUALIFICATIONS DO I NEED TO BECOME AN ACTUARY?

In practice the majority of employers arelooking for graduates with at least a 2.1 andexcellent A Levels or equivalent. (Themajority of entrants to the ActuarialProfession (95%) possess a degree.) Theminimum entrance requirements foradmittance as a student of the ActuarialProfession are maths A Level at grade B,along with a second A Level or equivalent inany subject at grade C, English GCSE atgrade C and two other GCSEs in any subjectat grade C (or equivalent).

For holders of a second class Honoursdegree or above in any subject, the maths ALevel requirement is reduced to a grade C. Forholders of a third class Honours or above in amathematical or actuarial science degree, themaths A Level requirement is dropped.

?WHICH DEGREE SUBJECTSHOULD I STUDY?

The Profession welcomes graduates from anydiscipline provided the minimum entrancerequirements have been met. However, mostemployers recruit numerate graduates –mathematics, statistics, actuarial science,economics, business degrees, engineering,physics and chemistry. For the top ten mostpopular degree subjects for new entrants,please refer to the list in the ‘Information andStatistics’ article in this guide.

?WILL I BENEFIT FROM STUDYING A DEGREE IN ACTUARIAL SCIENCE?

Several universities offer undergraduatedegrees in actuarial science. Some of these

degrees offer exemptions from all the CoreTechnical subject examinations. Otheractuarial degrees offer exemptions from asubset of these subjects. You can find a list ofthese courses in the ‘University ActuarialDepartments’ article.

The advantages of studying for one ofthese actuarial degrees are:• An opportunity to find out more about

actuarial work before startingemployment

• If a sufficiently high standard is achievedin the appropriate university exams, thenthe student will be recommended forexemption from the correspondingprofessional exam

• A graduate from an actuarial degree shouldbe able to qualify more quickly than agraduate from another course with fewerexemptions. This may lead to them beingmore focused on their work and promotedmore quickly

• A higher number of exam passes maymean that the actuarial graduate mayreceive a higher salary (probably staggeredand dependent on future exam success)

• An actuarial degree gives an excellentgrounding in subjects like economics,finance, mathematics and statistics, as wellas the more actuarial subjects (makingactuarial graduates suitable for a range ofcareers, not just actuarial work).

?BUT I WON’T BE AT A DISADVANTAGE IF I’M NOT DOING AN ACTUARIAL DEGREE, WILL I?

There are benefits to studying alternativedegrees:

Frequently AskedQuestions


THE PROFESSION

• Non-actuarial degrees enable students toexperience a greater range of courses andto pursue a variety of interests outsideactuarial work

• Non-actuarial degrees may be lead toexemption from a few of the CoreTechnical subjects (eg, CT3 Probabilityand Mathematical Statistics)

• Some employers are less enthusiastic thanothers about employing actuarial sciencegraduates, so you may wish to seek theviews of your favoured employers

• Experience in the office is at least asimportant as exam passes. Actuarialgraduates should not expect that they willnecessarily be paid more than othergraduates.

?WHAT ABOUT POSTGRADUATE DEGREES?

Postgraduate degrees that offer exemptionfrom Core Technical subjects or SpecialistTechnical subjects are available. These havesimilar advantages to the actuarial sciencedegrees noted above. However, studentstypically have to find private funding forthese postgraduate courses.

?WHAT OTHER SKILLS ARE EMPLOYERS LOOKING FOR?

Employers will look beyond academicachievements and numerical ability – they willwant to see evidence of other skills vital toactuaries in business. Excellentcommunication skills are an essential part ofactuarial work and good interpersonal skills(particularly important to consultancy firms)need to be apparent as these will be critical toyour success in teamwork. Evidence ofproblem solving skills and creative thinkingare also sought after. You can read moreabout the qualities employers are looking forin the ‘Key Skills and Minimum Requirements’article.

?WHERE CAN I GET WORK EXPERIENCE?

Work experience can prove to be a real assetwhen job hunting and indeed is now oftenused as part of the recruitment process.However, it can be really hard to get as placesare limited and you need to apply early.Companies which offer work experienceplacements are indicated in the List ofActuarial Employers which is available on theProfession’s website www.actuaries.org.uk.Inside Careers also list work experienceopportunities on their website atwww.insidecareers.co.uk/act.

?WHERE CAN I GETSPONSORSHIP?

It is more usual for employers to sponsorstudents through their professionalexaminations, as opposed to undergraduateor postgraduate study. There are somecompanies who offer postgraduate studysponsorship and they are highlighted in theList of Actuarial Employers.

?HOW MANY YEARS DOES IT TAKETO QUALIFY?

In order to become a Fellow of the Facultyor Institute (FFA, FIA), students must passexaminations, demonstrate satisfactorycompletion of modules and acquire asatisfactory level of work-based skills.Average qualification time is currently threeto six years. It is also possible to qualify as anAssociate by passing (or gaining exemptionfrom) the Core Technical and CoreApplications subjects. The Associateship is avaluable qualification that increases theprofile of actuarial skills and experience atthe Associate level and increases themarketability and career options for thatgroup of our members. We have introducedthe Associateship at a level that is consistentwith the minimum requirements to be an

actuary in many countries of the world. Bydoing this we have brought the UKProfession in to line with other internationalactuarial bodies. As an Associate you will becalled an actuary by the Profession and willbe given the initials AFA (Faculty) or AIA(Institute). Qualification as an Associate takeson average one to three years and requires atleast one year’s work experience.

?WHAT EXEMPTIONS FROM THE PROFESSIONAL EXAMINATIONSWILL I OBTAIN?

Exemptions are always looked at on anindividual basis as the multiplicity of, andfrequent changes in, university and othercourses, as well as the wide choice of subjectsoften allowed, makes it impractical to give anycomprehensive and detailed list of possibleexemptions. They will depend in each case onthe scope and standard of the subjectscovered by the particular examinations andon the achievement of a satisfactory level ofperformance by the applicant. In general suchexemptions will normally be limited to CoreTechnical Subjects CT3 and CT7. However,some university programmes include anumber of modules in actuarial science andoffer more exemptions. It is possible to gainexemptions from all eight of the CoreTechnical subjects on some undergraduateand postgraduate degrees. Otherpostgraduate degrees offer the opportunityfor exemptions from Core Application andSpecialist Technical subjects. Details areavailable on the Profession’s website athttp://www.actuaries.org.uk/Display_Page.cgi?url=/students/exemptions.html

?WHAT IS THE DIFFERENCE BETWEEN WORKING FOR A CONSULTANCY AND AN INSURANCE COMPANY?

Although there are many opportunities

available to actuaries, generally actuarialtrainees start working for either an insurancecompany office or a consultancy firm.Having decided on a career as an actuary youought to contrast and compare theopportunities offered by the life, non-life andpensions companies, as well as theconsultancy firms. These opportunities offerdifferent lifestyles and challenges. Working inan insurance company environment meansthat there is usually only one client; youremployer. Variety of work is available buttends to come more slowly – often you’ll beasked to work in one area for a period ofabout one year before moving on to the nextchallenge, taking the experience you havegained with you. The day-to-day work withinconsultancy firms tends to be more varied, asin any year you are likely to work for anumber of different clients (and partners)solving different types of problems. This canbecome particularly challenging if you have anumber of projects running in parallel andyou need to ensure that you meet andmanage each of your clients’ expectationsand deadlines. Some consultancy projects caninvolve working at the client’s site, whichmay not be in the same town as your ownoffice. This can give you an excellentopportunity to work with other people andsee the running of an organisation otherthan your own consultancy. However, youwould need to consider the impact of beingaway from home. You may also find yourselfworking on just part of a project rather thanseeing it all the way through from start tofinish.

?WHERE ARE ACTUARIES BASEDIN THE UK?

Actuaries work in cities throughout the UKand not just London. Full listings of actuarialemployers by location are indicated in the Listof Actuarial Employers.


THE PROFESSION


THE PROFESSION

?HOW DO I OBTAIN A WORK PERMITTO WORK IN THE UK?

Work permits are issued by Work Permits(UK) which are a UK governmentdepartment. Work permit applications canonly be made by employers based in the UKwho wish to employ people from outside theEuropean economic area. Individuals are notallowed to make applications on their ownbehalf.

To find out more information aboutWork Permits (UK) visit their website:http://www.workingintheuk.gov.uk/working_in_the_uk/en/homepage/work_perm.

?DO I HAVE TO WORK AS AN ACTUARY TO QUALIFY?

Yes – as well as passing the examinations,Fellowship requires the satisfactorycompletion of a work-based learning log.

?WILL I NEED TO CONTINUE TRAINING ONCE I HAVE QUALIFIED?

Fellows are required to maintain their

competence once qualified throughcontinuing professional development. This ismandatory for regulated roles.

?HOW MUCH CAN I EXPECTTO EARN?

Although qualifying as an actuary is ademanding process, the rewards areconsiderable. An actuarial career offers achallenging, well-respected and well-paidfuture. Graduate entry salaries are offeredbetween £20,000 and £28,000 and senioractuaries can earn £100,000 plus.

?WHAT RECOMMENDATIONS DO YOU GIVE MATURE ENTRANTS?

There is no age limit for joining theProfession but securing employment andsponsorship for the professional examinationsmay prove difficult for mature entrants as theywill be competing against 22-year-olds. Werecommend that they study for one or twoexaminations independently in order toimprove their chances of employment.

Recent Graduates

Total Reward and Benefits

Consultancy

The Government Actuary’s Department

Life Company

General Insurance – Consultancy

General Insurance – Insurance Company

Pensions

Actuary in Europe

“ I LOVE THE CHALLENGES OF

PENSIONS WORK AND THE

FRIENDLY AND HELPFUL

PEOPLE THAT MAKE EACH

DAY ENJOYABLE”

Joni Bruce UNIVERSITY:City University

DEGREE: BSc (Hons)Actuarial Science

EMPLOYER: Deloitte TotalReward and Benefits Limited

LOCATION: London


RECENT GRADUATES

Total Reward andBenefits

Idecided I wanted to be an actuary aftermeeting one at a careers day in highschool. An actuary is a respected, skilled

professional and I was convinced I had theability to do well in this field. After A Levels,I enrolled in the actuarial science course atCity University. This gave me a solidfoundation in the field and also helped meearn exemption from CT1 – CT8 of theexams before I entered the working world.

In my final year, I received a job offerfrom Deloitte and I grabbed the opportunityto start work in September, followinggraduation. I applied to Deloitte TotalReward and Benefits Limited (DTRB)because I developed a love for pensions workduring university.

DTRB provides advice on all aspects ofpension schemes and work can range fromtransfer value calculations for individualmembers or valuing an entire pensionscheme, to providing advice to companies orto trustees in a merger. The only thing typicalabout my week is that there is alwayssomething to do. The job has several

challenges and varying requirements and I’veworked on several different projects duringmy first year at DTRB.

MONDAYI get into the office at around 09.15, stillwondering how the weekend disappearedso quickly. I check my emails and gothrough my tasks list, adding any new workthat has arisen out of my emails. I thenprioritise this list based on deadlines given.

The draft report for a highly confidentialmerger and acquisition (M&A) transactionthat I have been working on needs updatingbased on new information received over theweekend. This is extremely urgent as thedeadline for us to get the report out is thefollowing day. I write an email to the newgraduate on the project with instructions toenter the information and to have it ready forme to check by the end of the morning sothat it can be with the consultant on the jobby early afternoon. These reports need to gothrough a series of checks before they can bereleased.


RECENT GRADUATES

While my colleague is working on thereport, I get to work on a presentation to thetrustees of a pension scheme on theproposed pension arrangements for schememembers who are being transferred out ofthe current scheme due to the sale of part ofthe company’s business. I am working on thisdirectly with the manager who will be makingthe presentation at the end of the week. Ischedule a meeting with the manager for justafter lunch so that we can catch up on myprogress.

At 11.30 the new graduate working withme on the M&A transaction comes over toinform me that he has finished inputting thenew data and we have a small chat aboutaspects of the project. I spend about an hourthoroughly checking the new figures andcalculations, and update the wording in thereport to incorporate our new findings. Irelay this to the consultant for checking. Ithen head to lunch with my peers.

My day has gone to plan and I spend therest of the afternoon working on the trusteepresentation after my meeting with mymanager. I leave the office around 17.35.

TUESDAYThere’s an email in my inbox asking if I havetime to take on the audit of a company’sshare option scheme. I accept, knowing thatmy other projects should be concludingshortly. In fact, the M&A report has beensent out so all that is left to be done is toorganise the project management exercise –filing, our project fees for billing andinvoicing and setting up a feedback meetingwith the team.

I go over to talk to the consultant aboutthe share option audit, and I’m left to carrythis out myself. I request the market data Ineed from our research team – hopefully I’llhave this by early afternoon so that I cancarry out initial checks before the end of the

day and give my consultant an update.For the rest of the morning I work on the

trustee presentation. My manager would liketo go through it first thing after lunch so thatwe can meet with the partner involved todiscuss and incorporate his comments beforethe end of the day. We have a fairly longlunch scheduled today to welcome a newconsultant who recently joined ourdepartment.

I wrap up my work on the presentation ataround 12.15 and head to lunch with the restof the department.

I return about two hours later and have anemail from the research team with the marketdata I requested earlier for the share optionaudit. I’m not meeting with the manager andpartner to discuss the trustee presentationuntil 16.00 so I get to work on the initialchecks for the audit. The department hasspreadsheet tools for this so it’s just a matterof putting in the correct data and doing highlevel checks on the company’s figures. I gothrough my findings with my consultant andwe conclude that we require moreinformation from the client. She suggests wecall the client to discuss. On the call, the clientasked if we could send someone out to themto collect and collate the data we require. Myconsultant asks if I am ok to go out to theclient tomorrow. Wednesday is my usual studyday but I agree to rearrange this and go out tothe client first thing in the morning.

After my meeting at 16.00, I let mymanager know that I won’t be in tomorrowmorning but I can pick up where I left off inthe afternoon. This is agreed.

I get my things ready for my visit to theclient and then head down to our Deloittechoir practice – we’re preparing for ourconcert with the BBC singers.

WEDNESDAYI spend the morning at the client site

collecting their share option schemes data.This was the first time I’ve attended a clientmeeting on my own but both my consultantand I knew that I was ready based on havinga year’s experience. The morning went welland I was able to answer any questions andgo through the data requirements with theclient. I left at about 12.30 to return to theoffice, knowing that I now had all of the dataneeded to carry out extensive audit checks.

When I get to the office, the draft trusteepresentation is on my desk with changes tobe made and useful comments from mymanager but before I get to this I decide toget a new graduate to help with the shareoption audit calculations as this would bemore efficient.

I spend some time explaining what needs tobe done to the graduate who volunteered tohelp and let her know she has the rest of theafternoon to work on the calculations and thatshe can ask me if she had any furtherquestions. After this, I get to work on finishingthe trustee presentation to get it back to mymanager for final editing before the end of theday – the presentation is to be made tomorrow.

With the presentation out of the way, Ican now focus all of my attention to theshare option audit. I conduct high levelchecks on the new graduate’s calculations,write an email to my consultant summarisingthe results and concerns arising from theaudit and draft an initial memo to be sent tothe client. This meant staying in the officepast 17.30 but my intention is to studytomorrow so I couldn’t leave it until themorning. At 18.30 I switch my out-of-officeassistant on and head home.

THURSDAYIt’s my study day, so I plan my day at home. Idon’t have a tutorial scheduled for today so itwill just be private study at home. I gothrough the reading material for my next

tutorial, have a long lunch and finish theActEd (Actuarial Education Company whoprovide study support for the examinations)assignment that is due next week. All in all, ithas been a productive day.

FRIDAYI get to work at exactly 09.30 and grab a cupof coffee. It takes about half an hour tocheck through emails and start organising myrecords of time spent on each piece of workfor the week so that I can fill in my week’stime sheet at the end of the day.

The manager that I worked on the trusteepresentation with comes over to chat abouthow it all went and thanks me for my help.He promises to get me involved in anyfollow-on work that arises.

The consultant comes to my desk with theshare option draft memo marked withchanges and queries. We spend some timegoing through this and then I tidy things upand we arrange a meeting with the managerto go through the memo so that it could besent out before the end of the day. The entiremorning is spent on this.

After lunch, I receive an email asking if I’dlike to get involved in an actuarial valuationfor a fairly large scheme during next week. Ithen have a meeting with the manager andsenior manager working on this to be briefedabout the work that needs to be done. I startorganising the data that was sent through andchecking for reasonableness. Within 15minutes of this, the audit memo comes backwith minor formatting changes needed. It isfinally completed and ready to be sent to theaudit team.

I finish my reasonableness checks on thescheme data, send my findings to themanager for review, fill in my time sheet andclear the papers off my desk. Time for afew drinks with my friends and then hometo enjoy the weekend.


RECENT GRADUATES

“THE JOB IS ABOUT TAKING

DIFFICULT CONCEPTS AND

QUESTIONS AND BREAKING THEM

DOWN TO FIND A SOLUTION THAT IS

NOT ONLY EASILY UNDERSTANDABLE

BUT ALSO READILY IMPLEMENTED”

Marisa McDonald UNIVERSITY: CASSBusiness School

DEGREE: BSc (Hons) /MSc(Dist) Actuarial Science

EMPLOYER: Watson WyattLimited

LOCATION: Leeds

Consultancy

In September 2005 I joined Watson Wyattas an investment analyst in the specialistclient consulting team. I was excited about

my appointment as it provided theopportunity to apply mathematics in ‘realworld’ circumstances and to join a dynamicorganisation that truly valued its employees.Over the last year and half my outlook andunderstanding of the position has deepenedand so has my enthusiasm for the job. So,what’s a typical day as an analyst at WatsonWyatt like?

08.45I get to work around 08.45 and am greeted bythe usual Monday morning moaning aboutthe difficulty of waking up, the latestweekend updates, and the ongoing debate onthe quality of Premiership football players (towhich my contribution is that Arsenal playersare the best!). I go to my desk and start bychecking my emails. I go through them,flagging what work needs to be followed upon and prioritising what needs to becompleted before the end of the day.

There is always a lot of work to get donebut I thoroughly enjoy it. At Watson Wyatt,the work environment is very supportive.There is always someone willing to help ifyou are struggling with a particular problemand although some of my colleagues may beon different client teams, they are able toprovide examples from their own experiencethat help tremendously with idea generation.And that’s what the job is all about – takingdifficult concepts and questions and breakingthem down to find a solution that is not onlyeasily understandable but also readilyimplemented.

09.30I start writing up a meeting note for one ofmy clients who recently undertook a managerselection exercise. The client wanted todiversify their assets from the moretraditional equity investments and introduceproperty and private equity into theirportfolio. Our manager research team hadalready conducted a due-diligence exercise ona number of property and private equity

RECENT GRADUATES


managers that fitted the client’s needs andcreated some briefing papers that basicallygave a summary of each manager’scapabilities. I went to London for two dayswith the senior consultant to meet with theshort-listed managers – our job was basicallyto help the client select the ones that werebest suited to manage the mandates. Clientexposure comes at an early stage in theinvestment practice at Watson Wyatt which isgreat because it makes the job even moreinteresting and enjoyable.

11.30After writing up the meeting note I startdrafting a report for the trustee body andinvestment committee of another one of myclients. At Watsons, we believe that goodgovernance of pension schemes is reallyimportant and so we regularly conducttrustee training sessions to encourage trusteesto have a better understanding of variousinvestment issues. The report that I ampreparing goes through the basics ofdifferent alternative asset classes such ashedge funds and commodities. I need toensure that the report is not only informativebut also interesting so that the trustees willenjoy the learning process. One of mycolleagues designed a brilliant investmentgame that highlighted the importance of thetrade-off between risk and return. We plan anin-house mock run of the game just to ironout any kinks in it before it is presented tothe trustees.

13.00Today we have a lunchtime knowledgesharing session for some of the youngermembers of our team. These sessions arenormally held every other Monday and gothrough various aspects of our investmentpractice in a tutorial styled version. Thesessions are really helpful because they ensure

that junior analysts have a solid grasp ofinvestment concepts that are used everyday.Everyone gets a chance to present if theychoose to do so and the topics range frombasic discussions of the different asset classtypes to more complicated and highlytechnical investment issues. Training is aregular part of the life of every employee.The aim is not only to develop your technical,consulting and management skills, but also toencourage your personal developmentthroughout your career. The opportunitiesfor training and development are not limitedto in-house exercises and over the past yearI’ve been on several training courses rangingfrom Excel master classes to timemanagement courses. At the beginning ofevery year you have a career developmentreview with your mentor where you highlightwhatever training you may want throughoutthe year.

The knowledge sharing session isnormally followed by our investment teammeeting in which the more senior membersof our team join. The team meeting isdesigned to allow everyone to catch up onbits of work being done for our clients. Italso is great time to find out if anyone hasany capacity for work or contrastingly isoverly busy. We go through the issues thatanyone might want to raise and the meetingconcludes with a technical session. Thetechnical session is designed not only to shareinteresting work being done, but also toimprove our awareness of any new andexciting areas in the investment field.

15.00It’s reporting season here at Watson Wyattand so life is a bit more hectic than usual –at the end of every quarter we are chargedwith preparing reports for our clients whichoutline not only the performance of theirassets but also give a qualitative review of


RECENT GRADUATES

their investment managers. I’m thankful thatI started checking this report yesterdaybecause it is a time consuming job with apressing deadline. Using information fromour client reporting teams I go throughnumerous spreadsheets to ensure that thedata to produce the charts are accurate. I amencouraged by the senior consultants towrite value-added comments, which analyse the significance of any changes over the quarter and what this might meanto the client in a broader context.Everything at Watson Wyatt goes through athree-stage work excellence process: do,check, review. After checking the report forany errors I pass it on to one of theconsultants on the team for their review.

FINALLY, THE END OF WORK…Hopefully tomorrow should be a lot morerelaxing because it’s my study day. I have alittle less than a month before my exams. In

the investment practice you have the optionof doing either the Chartered FinancialAnalyst (CFA) exams or the actuarial exams.As I was already granted exemptions from mydegree, continuing with the actuarial examswas the obvious choice for me. Watson Wyattoffers a great study package and in addition toa set number of days I get for each exam,I have a bank of study days as ‘back up’ incase I need some more. Additionally, you get aan allowance for each exam, which you arefree to spend on whatever materials you needand a study mentor which acts as a constantsource of support in case you have anyquestions. For each exam that you pass in thefirm they offer you a salary increase, which isa great incentive for getting through theexams as quickly as possible!

It’s now 17.45 and I am exhausted.I quickly fill in my time sheet for the day, saygoodbye to my colleagues and run outside tocatch the bus home.

RECENT GRADUATES


“ BALANCING A JOB, STUDYING

AND A SOCIAL LIFE CAN BE

TOUGH – IF PEOPLE ARE

WILLING TO MAKE YOUR LIFE

EASIER, LET THEM”

Sophie Dennett UNIVERSITY:Nottingham University

DEGREE: BSc (Hons) Economics

EMPLOYER: GovernmentActuary’s Department

LOCATION: London

The GovernmentActuary’s Department

Imoved to London to start work for theGovernment Actuary’s Department(GAD) straight after graduating in 2004.

I decided to pursue a career in the Professionas the job description seemed to fit meperfectly:• problem solving;• gaining a highly regarded professional

qualification;• using high level numeracy skills; and• communicating technical ideas.

I’ve been here nearly two and a half yearsnow and am heavily involved in all sorts ofprojects, chiefly within pensions policy.Probably the most enjoyable aspect of myjob is the huge variety of tasks I do, as you’llsee from an average week…

MONDAYI try to make it into the office around 08.30.GAD’s offices are in Central London, justaround the corner from the Institute atStaple Inn. I live quite nearby so thismorning I enjoy my walk to the office in the

sunshine.The first part of the day is spent checking

my emails and planning what tasks I havethis week. Probably the most challengingpart of my job is trying to juggle manyprojects at once. Working closely with ourclients means that projects evolve as we areworking on them. Planning my time is crucialbut you have to be flexible as urgent workcan come up at any time. If I have concernsabout my workload or about meetingdeadlines, I’m able to have a chat with myline manager or team leader to see whethersome of my tasks could be rescheduled orreallocated to another student.

This morning I go with one of theactuaries in my team to a meeting at thePension Protection Fund (PPF) in Croydon.The PPF was established to paycompensation to members of eligible definedbenefit pension schemes where the employerbecomes insolvent and the scheme does nothave enough money to pay pensions at thePPF compensation level. Schemes pay a levyto the PPF in return for this protection – the


RECENT GRADUATES

size of the levy partly reflecting how risky thescheme is perceived to be in terms of thefunding level and likelihood of employerinsolvency. In 2006 I helped develop a modelthat was used as part of the calculations forthis risk based levy. Then throughout thesummer we ran batches of data through themodel and returned the results to the PPF sothat they could calculate the levy each schemehad to pay. The model takes valuation resultsthat schemes have provided and then altersthem to ensure all schemes are measured inthe same way and from the same startingpoint. That means we have to roll the resultsforwards (or backwards) in time and, if needbe, change the underlying assumptions sothat all the valuation results are given on thesame basis at the same point in time: as youcan imagine it’s a fairly complex model!

We’re due to start receiving data for the2007/8 levy calculations in a few months’time so it’s time to revisit the model. We’vealready been working together with theactuaries at the PPF to update themethodology that will be used. There are anumber of changes since last year and all ofthese have to be incorporated into themodel.

Changes can be as simple as noting we’llbe receiving data in a different order or maybe a really technical point about the discountrates used. It’s important to look at allaspects of the project – from data collectionand validation through to the detail of thecalculations to make sure everything runssmoothly.

The meeting has been called to discussprogress so far and to finalise some decisionsas to the roles GAD and PPF will play, forexample who is in charge of validatingcertain data items and to what extent ourmodel should double check this.

The meeting with the PPF goes well andwe’re back by lunchtime – time for a quick

sandwich before getting on with the workfrom the meeting. A lot of my work involvesproblem-solving and detective work andtoday is no exception. I review carefullywhere the existing model needs updating andthen find a way to code in the necessarychanges.

One of the benefits of my role at GAD isthat I get to work on high-profile projectssuch as this. The size of the risk based levy isa key issue in UK pensions at the moment.Another project I was involved in was toupdate the income drawdown tables for HMRevenue & Customs. At retirement, ratherthan buying an annuity guaranteeing a certainlevel of income for life, under certainconditions individuals have the choice toleave some or all of their accumulatedpension fund invested and to drawdownmoney to be used as income directly fromthe fund. The income drawdown tablesspecify the maximum amount that may betaken from the fund each year to ensure thatindividuals do not use up all their savings tooquickly.

Another high profile project I worked onwas the Government Actuary’s report toparliament on his review of the terms forcontracting out of the state second pension(S2P). Individuals are able to contract out ofS2P (and its predecessor SERPS), meaningthey will forgo part of their SERPS/S2Pfrom the state when they retire; however theywill still be entitled to receive the Basic StatePension and various other benefits. Bycontracting out they, and their employers, paylower National Insurance contributions, asthey will be receiving a lower benefit afterretirement. The review worked to calculatehow much lower National Insurancecontributions should be for these people toensure that the choice between contracting inand contracting out is broadly ‘actuariallyequivalent’.

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Projects like these really test your Excelskills, with extensive spreadsheets tounderstand and rework. I use the skills I’vedeveloped in training sessions and on-the-joblearning to alter the macro to do the rightcalculations. GAD is a small consultancywith just over 100 staff, of whom just over athird are qualified actuaries, just under a thirdare students and the rest HR, finance andsupport staff. This means that the job foractuarial students is very hands-on – doingnearly all your own programming, filing,admin and so on.

Time flies by and I leave the office justbefore 17.00 to fit in an hour or two ofstudying.

TUESDAYOne of my most enjoyable tasks each monthis checking the randomness of the PremiumBond draw. With over £34 billion of people’ssavings invested in Premium Bonds it’s veryimportant that ERNIE (the machine thatgenerates the winning bond numbers eachmonth) generates truly random numbers andthat it is not biased. Each month theGovernment Actuary certifies that there isno reason to believe that the draw is notrandom. So far we’ve never had any reasonto doubt this.

Today I receive the monthly draw in thepost on CD; I have to run it through aprogramme, which tests each bond numbergenerated. Then it’s more detective work toinvestigate the results that look odd, forexample if numbers ending in a three weregenerated more often than we would expect.Each draw runs to well over 3 millionnumbers, so we’d expect a one in a millionevent to happen three times each month!

Once I’ve investigated the programme’soutput I summarise my results and pass thedraw to my line manager. This work goes allthe way up to the Government Actuary for

his approval, so I have to get it right.By the time I’ve finished it has gone 16.00

so I decide to take advantage of flexi-timeand go home early to study. Working onflexi-time is a definite advantage as it allowsyou to tailor your work times to your ownparticular circumstances to a certain extentand also to have the odd morning orafternoon off provided you have worked upthe appropriate hours earlier. Obviously youhave to be flexible when work’s heavy, butwithin certain limits you can take off anyovertime you build up as extra leave.

WEDNESDAY This morning I have some checking to do ona document we’re sending to the Departmentfor Work and Pensions about the PersonalAccounts that will be introduced by theGovernment in the next few years to make iteasier for more people to save more for theirretirement. I have to proofread the actuary’scomments as well as check the figures we’requoting. I’ve found the work on this jobreally interesting as it’s an entirely new areaof government policy. GAD’s been involvedin helping to construct an appropriateexemption test so that employers runningpension schemes whose benefits are ‘goodenough’ do not have to auto-enrol theiremployees into Personal Accounts as well.

I take my lunch downstairs in thecommon room where we can watch TV andrelax. There are a number of social eventsthat go on at lunchtimes at GAD includingchess, bridge and backgammon games. OnFridays there’s usually a football match andother evenings host an ongoing badmintonladder.

After lunch I’m given some urgent work.One of the actuaries in my team asks me tocheck some figures for a court case involvingpension sharing on divorce. The calculationsare quite involved, so I spend the rest of the


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day on this. I build a spreadsheet to helpcheck the figures, which should save a lot oftime in the future for other cases.

THURSDAYStudy day today – GAD pays for our studymaterials and tutorials and grants us studyleave of about one day a week. Thismorning I travel to Regent’s Park for atutorial. I find ActEd’s tutorial’s really useful– it’s a great chance to check yourunderstanding, ask questions and get adifferent view of the material. The tutors areall really helpful and understanding. Comingfrom an economics background I didstruggle with the maths in my first session.However, by putting the practice in, andwith the tutors’ help, I soon felt I was ontrack. The most valuable lesson I’ve learntsince graduating is to take advantage of anyhelp that is offered your way. Balancing ajob, studying and a social life can be tough –if people are willing to make your life easier,let them. Don’t feel you have to manage it allon your own.

This afternoon I go back over some ofthe questions we tried in the tutorial and trythe assignment. It’s quite tough but I get itdone in just over the three hoursrecommended. I think I’ve earned the rest ofthe evening off.

FRIDAYBack into work this morning. After catchingup on my emails I finish off the work onPersonal Accounts and pass it back to the

actuary. As my team is quite small my workis usually checked by an actuary andsometimes I can be asked to check parts oftheir work. I’ve found a few typos in thedocument and one error in the figures.Everyone is very open to suggestions; Iredraft one section of the note to try andmake it clearer.

This morning I receive a letter from anunhappy Premium Bond holder. I probablyget about one complaint like this a month. Ialways find this quite interesting; trying toassure them that the draws really are randomcan be quite difficult! This particular personis worried that he hasn’t won a prize fornearly a year on his bond holdings.

I draft a reply explaining how ERNIEworks and the odds of winning in hisparticular case. Although his experience isworse than expected it isn’t significantly so.Hopefully he’ll win next month!

Another piece of urgent work comes in.Earlier this year I helped to produce factorsused to decide whether an individual can‘buy back’ their pension in the state pensionscheme. The factors have to be set out inlegislation and we’ve just received the finaldraft Statutory Instrument. It’s my job tocheck the factors against those on ourrecords and to have a final read through thedocument. It’s a bit laborious but perfectFriday afternoon work when I’m windingdown for the weekend. By the time I’m doneit’s time to head off to the pub to celebrate acolleague’s birthday before heading homefor a well-earned rest.

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“ TAKE THE

OPPORTUNITIES TO

SHOW WHAT YOU

CAN DO ”

Jane Pearson UNIVERSITY: Oxford University

DEGREE: BSc Mathematics

EMPLOYER: Standard Life

LOCATION: Edinburgh


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Life Company

Istarted working for Standard Life as anactuarial trainee in September 2004. It wasthe summer before my final year at

university (a maths degree at Oxford) that Idecided I could handle taking more exams inorder to pursue an actuarial career. AStandard Life representative at a careers fairhad given me a good feel for the companyand the sort of work involved. The appeal ofan Edinburgh location was an added bonus.

MONDAYIt’s Monday morning and I’ve just arrived inthe office. I like to get into work early as itgives me a chance to catch up with my emailsand organise my work before any meetingsstart.

I work in the international team within theactuarial research department. We areresponsible for producing financialprojections for the international branches andproviding other branch support. I work withour German branch, which thankfully speaksgood English, as my German isn’t really up toscratch.

There are four in our team, two actuariesand two actuarial trainees. Although we allhave different responsibilities we work veryclosely together and catch up through weeklyteam meetings. I often use other teammembers as a sounding board when I’mtrying to find solutions to problems. It’suseful to have someone who knows yourwork well enough to be able to give a secondopinion or try and spot an issue youoverlooked.

Before I left on Friday I set off some runson the model we use to project the Germanbranch. The model is a computer programmethat uses data about the business we currentlyhave and what we expect to sell in future.This data is projected forward using actuarialassumptions. For example, we will assumehow long people will live and how the stockmarket will perform. The model projectsfuture financial performance of the branch.All the figures it calculates are then stored ina file for us to use.

I spend some time this morning analysingthe model output. The key outputs from my


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work are what we think the assets, liabilitiesand profits will be for the German branch infuture years. Every time I change theassumptions and re-run the model I have tosee what effect these changes have had on thekey outputs. I need to work out why theoutputs have changed in this way and willusually meet with my manager to discuss thechanges.

In the afternoon I have a meeting withsome German colleagues who are over inEdinburgh to catch up on the work we aredoing. My manager spends some timeexplaining the results of our work before Itake one of the German actuarial traineesthrough the spreadsheets I have been using. Ifind that being asked questions about why wehave taken a certain approach is useful indeveloping my communication skills.

TUESDAYFirst thing this morning I meet my mentorfor a catch up meeting. He’s a recentlyqualified actuary and helps me with any studyproblems and in deciding which exams totake. It’s also useful to have someone to speakto about working in the various departmentsin the company. I’m about to movedepartments soon – trainees usually moveevery couple of years – so I’m hoping to findout more about the opportunities that will beavailable.

Just before lunch I have a meeting withmy manager to explain the results of themodel runs I analysed yesterday morning. Weknow that the numbers have changed becausewe altered some assumptions but we alsowant to know which changes had the biggesteffect. I leave the meeting with some actionpoints. The numbers are used by themanagement at the German branch to decidefuture strategy so it’s important that weunderstand them fully.

After lunch, I’ve got a tutorial at the

Faculty of Actuaries with the ActuarialEducation Company (ActEd). I think thetutorials are really useful to get you thinkingabout the harder parts of the course. Youalso have the chance to look at exam stylequestions under the guidance and advice ofthe tutor. These tutorials are in addition toour normal study day and give you theopportunity to meet other trainees outsidethe company.

I almost have to run from the tutorial tothe cinema to catch a film with the StandardLife movie club. The club is one of thecompany’s many social clubs and the films area great way to relax after a day at work or atutorial.

WEDNESDAYWednesday is my usual study day – I find itbreaks up the week and it’s good to use it as afollow up session after any early weektutorials. Standard Life gives you a generousbank of study days for each exam andencourages you to take them regularly.Sometimes you have to be flexible with theday you take for study, especially if it’s busy inthe office.

Some of the other trainees prefer to taketwo half days to study but I find I get moredone if I focus on either study or work forthe whole day.

I’ll spend most of the day reading throughcourse notes or completing an assignment setby ActEd. These are designed to test yourknowledge of the course so far and help toreinforce the techniques you learn in thetutorials.

In the evening I’ve arranged to playbadminton with a couple of the othertrainees – a great way to let off steam afterwork.

THURSDAYBack in the office I find an email waiting for


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me from a former Edinburgh colleague whonow works out in the German office. Shetells me about new products that theGerman branch plans to launch soon. Themodel we use will have to model theseproducts correctly and so I prepare adocument outlining the features of theproducts and how this might impact ourwork.

In the afternoon I meet with one of thestudents on our actuarial summer placementscheme. Although they’re working in adifferent area at the moment I will tell themabout the work I do and what I think it’s liketo be an actuarial trainee. They’ve made agood start by doing a summer placement asthese give you a helpful insight into the workyou might do. However, the traineeplacements through the company are sovaried it’s useful to show them how different

each area’s work is.After work I’ll head home to do a few

hours study – it helps make sure I’m keepingon top of it.

FRIDAYFriday morning is filled with checkingspreadsheets that have been sent over by aGerman colleague. Following on from this Ineed to develop the spreadsheets we use inEdinburgh.

Later in the day we’ve got a team meetingand I’m doing a short presentation about theGerman business to some colleagues whowork in the UK team. It’s useful to give themsome background as a lot of their work canby used by our team if we modify it a bit.After the meeting we all finish off the lastpiece of work for the week before heading tothe pub for a drink.


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“ THE WORK IS

VARIED AND THERE IS

SOMETHING NEW AND

CHALLENGING TO WORK

ON EVERY WEEK”

Gauri Shah UNIVERSITY: City University

DEGREE: BSc (Hons) Actuarial Science

OCCUPATION: Consulting Actuary

EMPLOYER:PricewaterhouseCoopers(PwC)

LOCATION: London

General Insurance –Consultancy

Istudied actuarial science at CityUniversity. The degree was an excellentintroduction to life as an actuary and

gave me the core technical knowledge andeight exemptions – a great head start beforeentering the working world. During thesecond year of my degree,PriceWaterhouseCoopers (PwC) offered mea place on their eight-week summerinternship. This provided me with a greatopportunity to find out about the differentareas that actuaries work in and what it is liketo work as an actuary at PwC. At the end ofthis internship PwC offered me a permanentjob to come back to after completing myfinal year. I seized the opportunity.

I have now been with PwC since 2004 andam a consultant in their general insurancepractice. I have worked on a variety ofprojects ranging from advising companies onhow much money to set aside for payingclaims, to working on mergers andacquisitions to working on companies that arein financial trouble. I am usually working onthree to four projects at any one time – the

work is varied and there is something newand challenging to work on every week.

MONDAYI get in to the office at 09.30, get my cup oftea and set up my laptop. I go through myemails quickly, respond to two urgentmessages and then go to see our financesecretary as I need to send a bill to one ofour clients.

Just as I am walking back to my desk,Mohammad, an associate director in ourdepartment, comes to tell me that we havewon a new job! It’s working with a newcompany that has just recently set up in theUK. This is an excellent opportunity for meas I haven’t worked on a project like thisbefore. We have a meeting with the client at11.30 to discuss the next steps. I have justunder an hour to prepare for this meeting.

Since this is a new company our client isnot very familiar with the UK regulationsand the way general insurance firms here dobusiness. One of the requirements for allinsurance companies in the UK is that they


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hold enough capital (money put away safely)so that they can make payments topolicyholders and not fall into financialtrouble. I gather some useful informationfor them that we have provided to similarclients in the recent past. At the meeting, weadvise the client that the next step should beto identify all the risks that the companyfaces and then quantify them – this can bequite a time consuming task and requiresinput from all the departments of thecompany. The client suggests that we set upa meeting tomorrow for 12.00 withmembers from other departments as well tobrainstorm on all the risks. In addition theywould like us to provide a template withsome example risks for them to look at bythe end of the day.

Straight after the meeting I quickly go toget a sandwich for lunch and head straightback to my desk and get started on thetemplate that client wants. I’m done by about17.00 and send it off to Mohammad forreview. In the meantime, I draft the email tosend to the client. Mohammad is happy withthe template so I attach it to my email andsend it off. Time to go home now.

TUESDAYAs usual, I go through my emails first. I haveto write a short memo for a reserving job Iwas working on last week so I decide toquickly get that out of the way before themeeting today.

It’s 11.30 and I start getting ready for theclient meeting. Mohammad and I head downto the meeting together. This is going to bequite a challenging meeting with some verysenior people from the client present. We getstarted immediately with everyone tossingideas/thoughts on the risks faced by thecompany: ‘more claims than expected’, ‘shareprice falling’, ‘IT failure’, ‘sell less businessthan planned’, ‘senior actuary leaves job’,

‘UK economy crashes’, ‘catastrophe’… Imade sure that I recorded all the risks andalso suggested where possible that certainrisks should be combined. We also thoughtabout what the company could do to avoidsome risks by controls that could be put inplace to minimise the effect of these risks.Five hours later and we’re done – a longmeeting but very productive indeed.Mohammad suggests that I head hometonight and pull together the risk registerwith the full list of the risks discussedtomorrow morning.

WEDNESDAYI decide to work from home today so that Ican pull together the risk register asdiscussed. I think this will be more efficientas I will save on the travelling time and will beable to work without any distractions. I startworking at 08.15. I spend a good eight hourspulling together the list of all the risks andalso prioritise them in terms of importance. Ihave one more look through and send it offto Mohammad to review at 16.30. I decide tocall it a day and head over to my friend’s placefor dinner.

THURSDAYI get in to work a little early today as in theafternoon I will be going to an actuarialrecruitment fair for university students.Mohammad has left a marked up copy ofthe risk register with some suggestedchanges for me to work on. There aren’tmany changes so it should only take meabout an hour to put them through. I get onwith it straight away send it back to him tohave one final check before I send it off tothe client.

Now I have just enough time to get somemarketing material and free goodies to handout at the recruitment fair. All set! I head offwith some of my other colleagues.


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FRIDAYStudy day today! I get the whole day off toprepare for my exams… And I’m lookingforward to the weekend.

WHAT ASPECTS OF YOURJOB DO YOU ENJOY THE MOST?The people! It’s great to be working with somany interesting people from so many variedbackgrounds here at PwC. I learn so muchfrom my colleagues just by listening to themtalk about the experiences they have had. Theenvironment is also one of learning.I am provided with endless opportunities tochallenge and improve myself and mycolleagues are always on hand to ensure Ireceive any help I might need.

TELL US ABOUT THE MOST STRESSFULEXPERIENCE ON THE JOB. Nothingstrikes out as being stressful…but I haveworked through the night once to meet adeadline…

WHAT IS THE MOST VALUABLE LESSONYOU HAVE LEARNED SINCEGRADUATION?Time management is crucial to be able todeliver on client projects, study at the sametime and have a good social life.

For as long as I can remember, I alwaysthought I wanted to be a dentist! However,during my A Levels I met an actuary whocame to visit our school. I enjoyed his talkabout actuaries and what they did. I carriedfurther research by talking to otheractuaries, actuarial students and searchingthe internet and found out how highlyrespected and skilled the Profession is. Thefinal deciding factor was that the actuarialdegree was a three-year degree as opposedto the five-year long dentistry degree! Ofcourse I did not at the time account for theexams you have to sit after the degree (aslight omission in my research…) but Ihaven’t regretted my decision to be anactuary at all.

“ THE MOST

ENJOYABLE ASPECT OF

MY ROLE IS THE NEW

PRODUCT LAUNCHES”

David Robinson UNIVERSITY: CardiffUniversity

DEGREE: BSc (Hons)Mathematics, OperationalResearch and Statistics

EMPLOYER: AXA Insurance

LOCATION: London


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General Insurance –Insurance Company

Istarted working for AXA as a student inAugust 2002 after graduating fromCardiff University in June. At that time

I knew very little about insurance but wasfairly certain that I wanted to pursue acareer as an actuary to utilise mymathematical skills and also gain arecognised professional qualification. AXAprovide both a generous and supportivestudy package and the opportunity to workin a variety of actuarial disciplinesworldwide.

Initially, I was placed in the personallines pricing team, working predominantlyon the household and travel accounts. Inthe past year, I have moved into thecommercial auto-rated team, pricingproducts that are aimed at small to mediumsized businesses. I’ve also been exposed toreserving property business and spent amonth on secondment looking at financialmodels for new business opportunities. Themost enjoyable aspect of my role is the newproduct launches. These provide exposureto a variety of teams within the company

such as sales, underwriting and marketingand are challenging but help to develop abetter understanding of how the businessworks.

MONDAYI arrive in the office around 09.00 stillsmarting from losing a pub quiz the nightbefore (again!). After having a coffee andcatching up with the team, I check both myinbox and calendar to try and plan the weekahead. It is just over a month to go until theexams so I find good time managementvital.

The main focus of my work at present isthe re-pricing of our property packageproduct. This product is aimed at shops,offices, pubs and restaurants and provides acomprehensive level of cover to thecustomer. My role is to analyse the pastperformance, breaking the product down intothe various perils covered (such as fire, stormand theft) to find areas where the premiumcan be altered to either improve our marketshare or profitability. I spent the remainder of


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the morning preparing for a meeting with aproperty underwriter to discuss my progressand findings so far. We work very closely withthe underwriting team and meet regularly toboth share knowledge and ensure our plansare aligned.

In the afternoon, I produce a profitabilityanalysis for our business finance team whoare currently assessing the performance of akey partner. I leave my desk around 18.00 andfind a meeting room to study in. I prefer tostudy in the office so I can fully relax when Iget home.

TUESDAYI take a study day each week, usually on aTuesday. I take a full day, rather than two halfdays during the week as I find I am morefocused. I have been reasonably successful inthe exams so far but appreciate how difficultthey are so resist the temptation to becomedistracted and spend most of the day lookingat past questions.

WEDNESDAYAs part of the pricing project mentionedpreviously, I am analysing the effect locationhas on claims experience. Perils such asflood and subsidence are prone to occur incertain areas and part of my task is toensure that our pricing is correct in theseareas and also investigate any locations thathave altered in risk recently. Examples couldbe a new flood defence being built, or morespecifically the dynamic of the locationchanging such as the Docklands in London,which has become a more affluent area inthe past few years.

I spend most of the day with an externalconsultant (also an actuary) who works for acompany that have recently provided asoftware package to us to help with our areamodelling. The visit proves to be extremelyuseful and I end the day by meeting with a

colleague working on a similar project for ourhousehold team to discuss our relativeprogress and synergies that we can utilise.

I leave my desk around 18.15 and headto a room to study. I spend the next coupleof hours trying to memorise somemnemonics that I am using to helpremember important lists that I need for theexam.

THURSDAYI arrive at the office early and catch up on anyoutstanding emails from the past two days.Part of my role involves providingprofitability figures to various areas of thebusiness to help them in renewalnegotiations. I deal with one such request andthen begin to analyse my theft models usingthe software package that I was introduced toyesterday.

In the afternoon, I catch up with mybusiness mentor. He works outside of theactuarial team and provides career rather thantechnical guidance and helps to build mynetwork of contacts within the organisationand challenges my goals. The discussionusually lasts around an hour and we finish bydebating the recent performance of theEngland Rugby Team.

After work we go for a team bowling andcurry evening. An enjoyable night out but nota successful one on my part!

FRIDAYIn the morning I have a work progressmeeting with my manager. These are heldmonthly and are used to check progress oncurrent objectives and also to highlight anyproblems or obstacles I am facing at the time.It is also a useful opportunity to document alltasks that have been carried out over the pastmonth.

The remainder of the morning I spendcarrying out another monthly task. This is to


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monitor the performance of a product thatwe sell – targeted at tradesmen. I write up myfindings and issue them to the underwriter incharge of the product and also otherinterested parties.

For lunch, I head to a local pizzarestaurant with a few work colleagues. AXAhas a great variety of nationalities working inLondon and I find myself to be the onlyEnglish person at the table!

In the afternoon, I continue with thepricing project, analysing the effect thatdifferent occupations have on performanceand try to rationalise my findings. I discussthese with some senior colleagues to ensure Ihave not overlooked anything of significance.

I head off around 17.30 to enjoy arelaxing evening in a local pub with some oldschool friends before spending most of theweekend studying.


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“SELF-DISCIPLINE IS ESSENTIAL

TO ENSURE I USE MY TIME

EFFICIENTLY. STUDYING WHILST

WORKING REQUIRES DEDICATION

AND HARD WORK BUT THE

REWARDS ARE MOTIVATING ”

Louisa Taylor UNIVERSITY: Oxford University

DEGREE: BA Mathematics &Philosophy

OCCUPATION: Trainee PensionsActuary

EMPLOYER: Punter Southall

LOCATION: Guildford

Pensions

Ijoined Punter Southall as an actuarialtrainee in September 2005. This followeda successful summer placement in my

penultimate year at university. An actuarialcareer was attractive to me for severalreasons; it would be a challenging role inwhich I could apply maths to real-worldsituations, work as part of a team, have clientcontact and gain a highly respectedqualification.

No two weeks at work are the same;experience has broadened the range of tasksI do but our work is fundamentally driven bythe needs of our clients. Below is an outlineof a ‘week in my job’.

MONDAYI work in a team of six people of differinglevels of experience, ranging from a newgraduate to qualified actuaries with severalyears’ post-qualification experience. Firstthing on Monday mornings we have a teammeeting in order to discuss work for theweek, re-allocating work if necessary toensure everyone has a manageable

workload. This helps me to plan my workand to see what the other members of myteam are doing in order to understand howmy work fits into the bigger picture ofclient work.

We receive technical emails each weekabout current issues in pensions and take it inturns to brief others in the team at the end ofour meetings. It’s useful to discuss theseissues to help me gain the knowledge Irequire for my job.

I have been asked to prepare a report thatwill be checked by someone else in the teamso I begin this after the meeting. The reportcontains the results of an actuarial valuationthat we have undertaken for one of ourclients. An actuarial valuation summarises thecurrent financial position of a pensionscheme. It compares the value of thescheme’s investments with the estimated costof meeting the benefits the scheme haspromised to its members. We have to carryout valuations for our clients every threeyears and they involve a great deal of work.

We have already completed the valuation


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calculations for this client and so my job is toadapt Punter Southall’s standard report sothat it is specific to the scheme and to add inthe valuation results. We have to disclose avariety of figures and information in order tocomply with current legislation andprofessional guidance, so it takes me most ofthe day to do this. Once I have adapted thereport I pass it on to the ‘checker’ – a studentwho has about three years’ experience – sothat they can check my work and see if thereis anything further to add, before they pass iton to someone else in the team who willscrutinise the report.

As it’s getting close to exams I’m headingto the library after work to fit in a couple ofhours study. I like to do this earlier on in theweek so that it’s over and done with! A few ofthe other actuarial students join me in thelibrary.

TUESDAYI’ve got a few calculations for individualmembers of pension schemes to look attoday that have been passed to me by theclient administration team. The calculationsare transfer values that are used todetermine the current value of the pensionbenefits that a member is entitled to. Thisamount could then be paid to anotherpension scheme if the member wanted totransfer his/her pension benefits. The jobinvolves some calculations on a spreadsheetand also a reasonableness check by hand.

Some of the calculations lookstraightforward and so I pass them on to ourteam’s new graduate (who started a year afterme). I’ve been teaching him how to checktransfer values so that he can do them and Ican check them. Two of the transfer valueslook complicated and so I decide to calculatethem and do rough checks myself. Onemember is an executive and has differentbenefits to other members of the scheme. I

have to use the scheme rules to look up thebenefits for this member to ensure that thecalculations are correct. The resulting transfervalues are very high and so I pass them on toa more senior member of my team to checkfurther.

The checker of the valuation report Iworked on yesterday also gives it back to meto make a few changes. It’s now ready to bepassed to the ‘scrutiniser’.

Tonight I am going to the leisure centre toplay badminton with a few friends fromwork.

WEDNESDAYI didn’t have to go into work today as it wasmy study day. I usually have one day a weekto study for actuarial exams, which breaksup the week nicely. However, there is a lotof study to do and so it is not like having aday off – self-discipline is essential toensure I use my time efficiently. Studyingwhilst working requires dedication and hardwork but the rewards are motivating,including pay rises and celebratory drinks inthe pub!

THURSDAYI spend today updating a spreadsheet totake account of changes in legislation. Thespreadsheet is designed to help us estimatethe levies that companies have to pay to thePension Protection Fund, which is agovernment scheme set up to providecompensation for members in the event ofinsolvency of their employer. I make thechanges to the sheet, which will be used bycolleagues in all our offices, and send it to amore senior colleague in a different officeto check. I prioritised the work ahead ofmy other tasks as a colleague informed usyesterday that they needed it urgently forsome client work.

Tonight we are having a staff night,


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which is an activity night organised for allthe members of the Guildford office. Forthis evening a quiz has been planned. Pastevents have ranged from going to the horseracing to a trip to the bingo! These staffsocial events help foster a supportive andfriendly office environment.

FRIDAYMy main task for today is to begin someaccounting work for one of our clients.Companies are required to providedisclosures of information about theirpension schemes in their accounts. As thepension scheme I am looking at is quitesimple, the new graduate has completed someof the work. I am checking this as well as

completing some of the more complexcalculations, before passing it on to a moresenior colleague. We have to make sure thatwe document our work thoroughly in orderto answer any potential queries from theauditors who will check the employer’saccounts.

Also today I have a few corrections tomake to the spreadsheet I worked onyesterday and it is then released onto theintranet for everyone to use. I enjoy beinginvolved in work that will be used bycolleagues throughout the company, as well asworking on individual client work within myteam.

Finally at 17.30 it’s time to head to the pubwith my colleagues to begin the weekend.

Igraduated from UWIC but a large part ofmy studies were spent in Germany andIreland. Before I graduated, I undertook

several internships – the last of which waswith a global energy company where Iworked in the Human Resources (HR)Department while the company was updatingits pension provisions, which prompted myinterest in employee benefits.

I applied originally to Hewitt to studytowards a Pensions Management Institutequalification but the company offered me aposition as an actuarial trainee. I did notknow what an actuary was so Hewitt put mein touch with a recently qualified associateand we had an enlightening conversationabout the job, its challenges, and its rewards.

I was intrigued by the opportunity todevelop both my quantitative and consultingskills and joined the Epsom office inSeptember 2004 as an actuarial trainee. Myexperience has confirmed that I made theright decision. I support corporate pensionconsultants and scheme actuaries bycarrying out actuarial calculations and

“ ACTUARIES ADD VALUE

WHEN THEY ARE ABLE TO

SHOW THE FINANCIAL AND HR

IMPACT OF PENSION

DECISIONS”

Kai Hoffmann UNIVERSITY: University WalesInstitute, Cardiff

DEGREE: BA InternationalBusiness Management

EMPLOYER: Hewitt

LOCATION: Epsom, Surrey

Actuary in Europe

drafting advice to employers and pensionscheme trustees.

After five months in Epsom, I wasoffered the opportunity to work in Hewitt’sWiesbaden office for six months. While inGermany, I worked as client service manager,project managed a client seminar, draftedbenchmark reports, worked on a benefitreview, and prepared a multi-decrementtable.

CLIENT SERVICE MANAGERA US client of ours had recently acquired afinancial services provider in Germany. TheWiesbaden office started serving this clientabout a month before my transfer. The clienthad a myriad of pension plans and theacquirer had re-staffed the HR department.Pension issues had not been a priority for theacquirer but they were rapidly moving to thetop of his list as the financial implicationsbecame clear. It was our role to work closelywith the HR department to solve outstandingissues quickly and improve the HRadministrator’s understanding of pensions. I


RECENT GRADUATES

joined the client team in a junior role,assisting the in-house administrators whendrafting benefit statements. I soon becamethe primary client contact for day-to-day taskslike data reconciliation, benefit calculationsand member communication. This involvedensuring that other team members met clientexpectations. I had a number of meetingswith the client contact and enjoyed buildingup a trust-based relationship. I enjoyed seeingwhole jobs through, from raising an issuewith the client to delivering the requiredsolution.

CLIENT SEMINARThe Wiesbaden office had a substantialnumber of clients that were subsidiaries ofinternational companies. To help train staff atthese clients, Hewitt organised a seminar onthe basics of German pensions. I hadresponsibility to ensure that the two-dayevent would run smoothly. I coordinated thepreparation of materials, copy read the mainpresentations, and liaised with facilitatorsfrom other offices. On the day itself, Iwelcomed the participants and acted as firstpoint of contact for queries ranging fromprinciples of occupational pensions torecommended restaurants in the area. Afterthe second day, I enjoyed coordinating thefeedback process that allowed us to fine-tuneour approach for the next seminar.

BENCHMARK REPORTSOur clients regularly benchmark their benefitpackages against their competitors’. Animportant part of those benefits is pensionprovision. I worked closely with anexperienced actuarial consultant and anumber of compensation consultants to draftreports summarising the benefits in particularindustries in our geographic areas. Cross-practice co-operation allowed me to speak tooffices in a number of other European

locations. It was great to see seamless co-operation across borders.

PENSION PLAN BENEFIT REVIEWA Belgian company had recently acquired aGerman manufacturing business and asked usto review the pension plan. It had last beenupdated about a decade earlier. Bothlegislation and the general approach toemployer-sponsored pension plans had seenconsiderable change over that period. I waspart of a team of consultants workingthrough the plan documents to bring themup-to-date. We worked closely with the clientto ensure that our proposal would be in linewith the client’s wider HR objectives. Thelead consultant was a lawyer and I enjoyedworking in a team with different professions.He anticipated negotiations with workscouncils and the balance of power. Theactuarial consultants focussed on the financialaccuracy of annuity rates. My role wasdrafting the revised plan based on thediscussions with the team and preparingclient presentations that explained thechanges. The difference in language betweenthe more technical plan documents and theoutcome-focussed client presentations taughtme to keep the audience in mind whenpreparing communication.

MULTI-DECREMENT TABLEOur Polish office required a client-specificmulti-decrement table for a post-retirementbenefit valuation. (A multi-decrement table isa matrix that summarises different causes ofterminating membership of a group. It is usedto calculate the probability of certain eventsoccurring.) The Warsaw office had fittedstandard tables of individual decrements tothe client data (retirement in good health,early retirement in ill health, leavingemployment, deaths after retirement in goodhealth…) and I used Excel and some basic


RECENT GRADUATES

actuarial techniques to combine thosedecrements. The resulting table was loadedinto the Polish valuation software. This wasthe most technical of my projects inGermany. Liaising with the actuary in Warsawand providing the tools needed to satisfyclient demands at short notice generated aparticular buzz that I have since seen manytimes in the Epsom office.

The six months in Wiesbaden have been a

great experience. And although theoccupational pension system is quitedifferent from the British one, the key taskscarried out by a pension consultant are verysimilar. The time in Germany taught me theimportance of focussing on a client’sparticular situation. Technical prowess is seenas a given; actuaries add value when we areable to show the financial and HR impact ofpension decisions.


RECENT GRADUATES

Career paths

Director of Actuarial Services

Healthcare Actuary

Investment Consultant

Actuary in Business

Pensions Consultant


CAREER PATHS

Ihave always been good at maths – notbrilliant but better than most. It was,along with art, my area of talent. When I

left sixth form college to go to university inCardiff, my aim was to be an architect. I feltthis best fitted my artistic and mathematicalside. I dreamt of being the next Frank LloydWright or Norman Foster combining designwith structural engineering. After three two-hour lectures on the aesthetic value ofbricks I knew that this wasn’t for me andswitched to a statistics degree and it was alldownhill from there.

FOLLOWING IN THE FAMILYFOOTSTEPSWith a first class degree in statistics fromthe University of Wales I decided to followin the family footsteps and join theinsurance industry – the fourth generationto do so. Whilst my father was a senioractuary I had no idea that what was aheadof me involved six years studying whilstaccommodating a full time job and afamily. Having said that I wouldn’t changeit for the world. The Profession has beengreat for me: I have had a variety of jobswhich have stretched my technical,communication, and managerial skills, had

a great time in the process, and been paidwell into the bargain. What more could youwant? But let’s start at the beginning.

BEGINNINGSOn leaving university I joined a small butgrowing company called UK Provident. Ispent six happy years there learning mytrade and working with many people whoare now successful industry figures.Unfortunately, it all came to an abrupt endwhen, due to ill-advised investmentdecisions combined with rapid growth, thecompany ran out of money and had to berescued by Friends Provident. I learnt manylessons from this experience: firstly howlife companies run; secondly, howimportant actuaries are to the running of alife office; and thirdly what teamwork is allabout. I also started to understand thatpeople are involved – as customers andemployees. It is easy to forget sometimesthat what we do impacts upon people’slives.

With one exam left to pass I decided topursue my career elsewhere, rather than waitand see what happened with FriendsProvident, and joined General Accident Lifein York. At this time General Accident was a

Director of ActuarialServicesJohn Lister is Chief Actuary and Director of Actuarial Services for NorwichUnion Life, prior to which he worked in a variety of roles at Norwich Unionand its predecessor companies, General Accident and CGU. John is a CouncilMember for the Institute of Actuaries, sits on the Life Board, and chairs theLife Research Committee. He was an examiner for the Profession for a numberof years and has contributed to several professional papers on with-profits.

1980Graduated with First class degree inStatistics, University of Wales

1980Joined UK Provident as Trainee

1986 – 1987Joined General Accident Life, York,Qualified as an Actuary

1988Became Assistant Examiner inCompound Interest

1990Moved into a marketing role forGeneral Accident Life

1994Moved back to Actuarial

2002Appointed Council Member,Institute of Actuaries

2004Appointed With-Profit Actuary andDirector of Actuarial Services NorwichUnion Life

2005Appointed Chief Actuary and aDirector of NU Life

Career PathJohn ListerNorwich Union Life


CAREER PATHS

small but growing company, which specialisedin providing life protection products. Thatwas in 1988 and I have been with thecompany in its various manifestations eversince.

QUALIFYING AS AN ACTUARY Within nine months of moving to York I qualified as an actuary and moved intodeveloping the firms embedded valuereporting area. This, at the time, was a newarea with shareholder owned companiesonly just beginning to publish the worth oftheir life companies. I found it a fascinatinginsight into the profitability of the companyand the drivers of profit. It was also hardwork and took a long time to get results(systems weren’t that great back in the late1980s). At the same time I took theopportunity to continue my professionaldevelopment by becoming an assistantexaminer in compound interest (and lateron an examiner in life office practice) andlectured at York University on compoundinterest.

BUILDING MY CAREERAfter about 18 months in that role I wasasked to move to the marketing area of thecompany. With much trepidation I moved and what a great move it was. Itopened my eyes to areas I hadn’t seen orthought about before. Not only did I have todevelop new products but I had to get ‘buy

“ IT’S HARD WORK BUT IF YOU ARE

PREPARED TO PUT THE EFFORT IN

AND CONTINUE LEARNING, IT’S A

REWARDING CAREER”


CAREER PATHS

in’ to those ideas from the sales managementand actuarial team, convince IFA’s they metcustomers needs, and, most frighteningly,talk to the press!

Over the four years I was there I builtmy own team of marketing and actuarialprofessionals, developed a network ofcontacts within and outside the company,and, most importantly made great personalstrides in developing my managerial,communication, and influencing skills. Itproved to be the foundation of my careeras it provided me with skill and experiencefew other actuaries had.

In 1994 I moved back to actuarial to headup areas looking after embedded valuereporting and new business profitability.After General Accident acquired ProvidentMutual in late 1995 I was involved indeveloping a risk framework for ourinvestment management division – workingclosely with our investment managers – andstarted taking an active role in themanagement of the with-profit fund, both ofwhich I am still actively involved in today.

Consolidation within the life industry ledto General Accident merging withCommercial Union in 1998 and NorwichUnion in 2000. On both occasions I waslead on one of the merger work-streamsresponsible for ensuring that the actuarialteams came together and the new companywas ready to launch on time. Both were

fascinating experiences and, I’m glad to say,successful. There were slip-ups but againteamwork got us through. I also learnt a lotabout project management and managingpeople through uncertainty.

MY ROLE TODAYToday I am chief actuary, director of aninternational company based in Dublin,responsible for around £1 billion ofcommercial mortgage lending a year, andhave an actuarial team of around 200 peoplereporting to me. I am also a member of NU Life’s executive team.

Have I enjoyed myself ? Absolutely! I have been very lucky throughout my career.Opportunities have arisen and I have takenthem and learnt new skills in the process –skills that have enabled me to progress inboth my managerial and professionalcapacity.

So would I recommend my children tobecome the third generation of actuariesand the fifth generation involved ininsurance? Of course, it’s hard work but ifyou are prepared to put the effort in andcontinue learning (even after you havequalified) it’s a rewarding career and youmeet interesting people. You are also helpingpeople deal with some of the mostchallenging issues in their lives, namelyprotecting their family and saving for theirfuture.


CAREER PATHS

A s a child I always enjoyed numbers. Ifigure skated all my life which isperhaps where it all began – going

from ‘figure eights’ to ‘morbidity rates’! Myinterest in maths continued all through myacademic years and my decision to studyactuarial science at university was based onsome advice I had sought from my grade13 calculus teacher, as I wasn't sure whichtopic to major in for my maths degree. Hereplied, ‘Sue, knowing your personality Iwould suggest actuarial science’.

At the time I had no idea that actuarieswere notorious for their boring stereotypicalimage! Anyway, I have never looked back andit has been a very rich and rewarding career.It has taken me to many far away places(most recently a two week tour of AsiaPacific) where I have made many life longfriends.

OFF TO WATERLOOI set off to the University of Waterloo (inOntario, Canada) in September 1979 toembark on my five-year degree. It took fiveyears because it was a co-op programmeduring which students had the chance togain some work experience whilst studying.It did, however, mean moving every fourmonths when you switched between school

HealthcareActuarySue Elliott (a Principal Consultant at Watson Wyatt Limited) advises clients onall aspects of the healthcare product cycle, from an actuarial and non-actuarialperspective. Although based in the UK, Sue provides support to other WatsonWyatt offices around the globe. She has a Bachelor of mathematics (with anactuarial science major) and qualified as an actuary in 1988.

and work (unless you were fortunate enoughto have arranged both of them to be in thesame city).

BECOMING A ‘FELLOW’ IN THREECOUNTRIESIn 1988 I first qualified as an actuary,becoming a Fellow of the Society ofActuaries (FSA) in North America. Followingthat I obtained my professional qualificationas a Fellow of the Canadian Institute ofActuaries (FCIA) for which I had sat theCanadian content of the last few exams onthe syllabus. This qualification was requiredto practice in Canada. In 2001, throughreciprocity, I became a Fellow in the UK(FIA).

I struggled a bit with the first five exams,but made up some time on the last five. Formy last exam I sat the healthcare specialistpaper along with the long-term careelective. My career as a healthcare actuaryhad begun!

GROWING UP WITH A REINSURERDuring university I did all my co-op workterms with M&G Re (‘M&G’) in Torontoworking my way through all the variousdepartments. When I graduated in 1984 Ijoined M&G as an actuarial student. It was

“YOU ARE DEALING WITH

‘LIVING BENEFITS’ FOR ‘LIVING

PEOPLE’”


CAREER PATHS

at that time that I virtually ‘fell into’healthcare because all the other studentswho had been involved in healthcare hadjust left. I decided to accept the challengeand I don't regret it to this day. I had anexcellent mentor (to whom I am verygrateful) and whom I am still in touch withtoday.

I started out in disability income(income protection or PHI in the UK) andthen expanded into long-term care. Mywork spanned across Canada, theCaribbean, and the US. Unfortunately, itdid not involve travel to the Caribbean!

In 1993 I accepted a three-yearsecondment to the UK to take up the roleof health & group actuary with M&G Rein the UK. My first task was to increaseeveryone's PHI rates (not a popular move),but it did allow me to get to know themarket very quickly in a very short timeframe. I became so engrossed in thisreview that at one point I was quoted inMoney Marketing, out of context, assaying, ‘I love PHI’. The response from mycolleagues was, ‘Sue – get a life!’.

My role eventually became permanent(after Swiss Re acquisition of M&G Re in1996). I continued to focus on healthcare,as health business manager, expanding myremit to include critical illness.

MAKING THE BIG CHANGEIn 2002 (after 18 years with oneorganisation) I decided that it was time for achange. I was looking for some newchallenges (albeit continuing in healthcare).Watson Wyatt was looking at developingtheir healthcare offering, so after a lot ofsoul searching (for two years) I finallydecided to make the move from reinsuranceinto consulting.

In some ways working in a consultingenvironment is very similar to reinsurancein that it is based on client relationships,providing advice, and taking risks. It hasbeen a very exciting four years and it hasbeen quite enjoyable teaching life actuariesabout healthcare pricing. They now knowthat ‘DLR’ stands for ‘disabled life reserve’and not the ‘Docklands Light Railway’ andthat ‘CABG’ is a critical illness conditionand not a vegetable!

My healthcare work has not just beenfocused on valuations. It has expanded toinvolve work with mergers & acquisitions,product development, product strategy,capital management, and reinsurance.Given my global background this hasextended to other parts of the world where I provide support to our localoffices.

Watson Wyatt has also encouraged me to continue my work within theactuarial profession as a member of thehealth & care committee. I have alsoexpanded it globally by taking an activerole in the newly formed IAA healthsection as the UK representative for theactuarial profession and I also lead theglobal critical illness topic team. Inaddition I have continued my membershipwith the Society of Actuaries (SOA) andthe Canadian Institute of Actuaries (CAS)to keep up-to-date with developmentsacross the Atlantic.

1984Graduated, University of Waterloo(Canada)

1984Actuarial student Mercantile & GeneralReinsurance (M&G Re)

1988Qualified as a Fellow of the Society ofActuaries (FSA)

1989Qualified as a Fellow of the CanadianInstitute of Actuaries (FCIA)

1993Accepted a three-year secondment toM&G Re UK as health and group actuary

1996 – 1997Swiss Re bought M&G. Took permanentposition with Swiss Re as disabilityproduct leader

2001Qualified as a Fellow of the Instituteof Actuaries (FIA)

2002Joined Watson Wyatt to lead healthcareactuarial work

2004Promoted to partner to lead globalhealthcare development, Watson Wyatt

Career PathSue ElliottWatson Wyatt Limited


CAREER PATHS

THE ‘HEALTHY’ OPTIONTo me the field of healthcare is much moreexciting than life. You are dealing with‘living benefits’ for ‘living people’.It also involves all disciplines within aninsurance organisation, working towards acommon goal of a sound product withsound experience going forwards. Over theyears I have learned so much from mycolleagues in underwriting and claims withthe latter being fundamental to helping anactuary understand the emerging claimsexperience.

If I were to give one bit of advice tothose considering an actuarial career itwould be to never joke with US customsofficials. When I was once asked what anactuary did I replied, ‘I figure out when youare going to die’. He was not amused.


CAREER PATHS

I ’d always liked maths, but I never saw itas a career route until a friend of thefamily suggested I might enjoy being an

actuary. After looking into what that reallyentailed, it seemed they might be right.However, I didn’t want to limit myself bydoing a specific actuarial degree. So I chosea mathematics and economics degreeinstead. From my point of view it was theperfect combination. I’d always enjoyed theanalytical and technical side of maths, butmy studies also gave me the chance to seehow it could be applied to the biggerpicture – ie, wider financial and economicissues.

That ability to look at the bigger picturehas proved useful throughout my career,and is especially important in my currentrole. I’m ultimately responsible for makingsure Mercer Investment Consulting meetsour business goals in the UK. Among otherthings, this involves identifying newbusiness opportunities, looking at howwe’re structured, and ensuring our peoplehave all the resources they need to delivergreat client advice and have fulfillingcareers.

What attracted me to Mercer? Well, Istarted looking at potential employers inmy final year at University and knew Iwanted to join a large consulting firm. Iwent to a few events organised by firms,

including one by Mercer, and the cultureseemed a good fit. But what really sold itto me was the fact they were a trulyinternational organisation, withopportunities to match.

I joined the graduate programme inSeptember 1988, and started out as a traineeactuary in Mercer’s Westminster office. Icompleted my actuarial training in 1993,after passing a series of technical exams.They were pretty tough, and I think it’s still avery difficult process today – especially asyou have to be able to juggle study alongsidefull-time work. But we do what we can tohelp, providing a very good supportprogramme. Also, in investment consulting,graduates now have the choice betweenactuarial and CFA (Chartered FinancialAnalyst) exams.

Once I’d gained my actuarialqualification, I started to look around atthe different options open to me. I’dalways been interested in investments andit just so happened that Mercer’sinvestment consulting business wasexpanding and needed new people. So Icontacted HR, and had a chat to one ofthe consultants about what they did andwhat the opportunities were. I wasattracted by the opportunity to influenceinvestment decisions for our pension fundclients as well as using the liability

InvestmentConsultantFiona Dunsire is Head of the UK Investment Consulting business for Mercer,one of the world’s largest HR and related financial services consultancies.She’s achieved a great deal since joining their graduate programme 19 yearsago. And she’s managed to have two children along the way.

1988Graduated from StrathclydeUniversity with a degree inMathematics & Economics

1988Joined Mercer Human ResourceConsulting as a trainee actuary

1994Joined UK Investment Consultingbusiness

1998Team Leader within InvestmentConsulting

2001Head of Investment Consulting withinTelford House office

2004Made Worldwide Partner

2006Head of UK Investment Consulting

Career PathFiona DunsireMercer


CAREER PATHS

knowledge I’d acquired while studying formy actuarial exams.

When I joined in 1994, the investmentconsulting business was quite small – 45people split between London andBirmingham. It was a steep learning curve. Ihad to learn about researching and selectingasset managers, setting investmentstrategies, including asset and liabilitymodelling, and all of the operational side ofthe asset advice we give. I really enjoyed thefact that the investment environment isalways changing and we need to respond tothat in the advice we give our clients.I quickly took on more client and peoplemanagement responsibilities, finallybecoming a team leader for one of theconsulting teams around 1998.

Once I’d gained a bit of experience,I took over as unit head of investmentconsulting for our Telford House office inLondon. This new role had more of a peoplemanagement emphasis to it, and I foundmyself co-ordinating the team leaders we hadbased across London.

The next few years saw impressive growthin the UK, with new investment consultingoffices opening in Leeds, Liverpool,Edinburgh and Windsor. I was experiencingsome growth of my own and went onmaternity leave in 1999. When I came back Ihad to make some changes to the way Iworked. Before, I used to prefer working laterather than getting up early. But with a babyI obviously had to be back home at a certaintime. I talked to the business about workinga bit more flexibly, and they were verysupportive. Basically, as long as my clients’needs were met I could fit my work aroundmy responsibilities outside the office.

As well as giving me the chance to honemy people management skills, heading upTelford House helped me from a businessdevelopment point of view too. I learnt


CAREER PATHS

how to ‘sell on’ our services, and picked upa lot of new clients because of it. It didn’tgo unnoticed and I continued to bepromoted. It proved to be a good time forcelebrating because I also found myself inneed of some more maternity leave in 2003.

Promotion at Mercer is based onresponsibility you can handle, the experienceyou have and the contribution you make tothe wider business. Of course, everyonestarts by developing their technical andconsulting skills. But once you’ve developeda good level of expertise in these areas youcan start to take on more complexchallenges and work on projects that span anumber of business areas or countries. Ifyou can manage the extra responsibility thattype of work brings, then you can lookforward to plenty of progressionopportunities.

After my second child, it felt like theperfect time for a new challenge. Theopportunity came up to support AndrewKirton who, at that time, was head ofinvestment consulting for the UK. I took itand found myself responsible for co-ordinating our teams across the country.

At the beginning of 2006, Mercerrestructured and I moved into my currentrole as head of UK investment consulting.I’m also part of Mercer’s UK executivegroup and a worldwide partner. I have a lotof management responsibilities, includingdelivering the plans that help us achieve ourUK business goals. But I still try to spend atleast half of my time leading clientrelationships and doing day-to-day

consulting – because that’s what I enjoy themost.

One thing I would have loved to do waswork abroad. But the timing was never quiteright. These days we offer an exchangeprogramme with our offices in Australia. Soevery six months we take on one of theiranalysts, and they take on one of ours. Wealso have colleagues who have joined usfrom overseas and others that have movedfrom the UK to places like Hong Kong. It’sa good example of how far our business hascome, and how much it’s grown. In the mid1990s, we had 45 people in the UKinvestment consulting business. We nowhave 260.

Investment consulting itself has also gotmore complex. Originally, our clients werejust the trustees of pension funds. Nowwe’re advising on pools of assets, regardlessof who owns them – and that advice ishappening on a global scale. Our advice isalso now as much around how to managerisk as to generate return, which meansdealing with investment banks as well asasset managers. All of which opens up somegreat opportunities.

If I had to offer one piece of advice tograduates, I’d say make sure you do plenty ofresearch. As far as possible try to get a feelfor the culture of a company – and if youcan meet a lot of their people beforeapplying, even better. That’s why I thinkplacements are such a great idea. Plus, ifyou’re good enough, you’ll have a greatchance of joining them further down theline.


CAREER PATHS

Actuary inBusinessNeil Mitchell is Managing Director of Mitchell Consulting Actuaries Limited, apensions consultancy practice based in Manchester. He started his career atR Watson & Sons in 1989, moved to Coopers & Lybrand in 1994 andqualified as an actuary in 1996. He started his own business in 1998.

Actuarial consultancy is not the firstchoice for people thinking of settingup in business – there are lots of self

employed accountants, solicitors, plumbers,gardeners, etc, but not many actuaries. Butthis is what I did, and here’s how.

ACTUWHAT?There were no early signs of an actuarialcareer, I hadn’t even heard of it until Istarted looking at careers in my final year ofan economics and econometrics degree atLeeds University. I picked up the careersguide, tried to skim read it (an essentialattribute, I now realise, to running abusiness), quickly became overwhelmed andmade an attempt at a detailed read startingwith ‘A’. Accountancy (not cool), Actuary(come back to that), Acupuncture (ouch!),Advertising (not good at telling lies)….bored now, OK, return to Actuthingy.

And that was it – logged – I put off theinevitable for another year, opting for furtherblackboard gazing courtesy of a Master’sdegree at Southampton University, and thenwent back to ‘Actuary’. A couple of jobapplications later and Watsons offered mewhat at the time seemed a massive salary, andthe decision was made. I justified taking thejob on the grounds that I was good at mathsand interested in economics, so I fitted the

bill, but actually the main reason was that Ihad a big overdraft and the only other joboffer I’d had was at the Treasury on buttonsand a fixed salary scale. It was a short termview (contrary to the long term viewrequired of an actuary) but actuallysomething ideally suited to going intobusiness – I’ll explain that one later.

LIFE AS AN ACTUARIAL STUDENT I had suspected that maybe I would end uprunning a business (I hated, and still hatebeing told what to do), and a career in thecivil service or academia was not going tofulfil this ambition. Of course, I had noidea how difficult it would be to start abusiness as an actuary, particularly advisingoccupational pension schemes (generallyassociated with bigger companies, whowant big advisers with deep pockets).

Watsons provided excellent training, andI’m grateful to one or two individuals therefor most of what I know about pensions.For me, life was deathly dull most of thetime – my biggest client was a £1 billionfund which required annual valuations, eachof which took around a year to complete –variety did not feature. Not only that, tobecome a scheme actuary, I would have topush half a dozen people out of the wayfirst, and ruthless is something I am not (by


CAREER PATHS

the way, you don’t need to be ruthless tosucceed in business, quite the opposite infact).

LUCKY BREAKSOver the following five years, I was in aconstant battle with my actuarial career.A chequered exam history left me within twoexams of qualification, during which I came close to changing careers on a numberof occasions. Let there be no doubt, theactuarial exams are very tough, and failingtakes some getting used to when you’ve beenused to flying through university. With hardwork however, the rewards are certainlyworth it.

Two things happened to get me back ontrack. Firstly I passed an exam I wasconvinced I had failed, which made merealise that luck as well as ability is requiredto succeed, and maybe therefore I had achance. Secondly, one of my qualifiedcolleagues moved to Coopers & Lybrand toset up an actuarial department, andimmediately poached me. I took a year offstudying, and qualified two years laterhaving passed the remaining exams.

LIFE AS A CONSULTANTThere will be other contributors to thisguide who will describe a career intraditional pensions consultancy; I don’tneed to do that. However, for the record,Coopers was a significantly differentexperience to Watsons. Watsons, nowWatson Wyatt, were an excellent traditionalactuarial firm to work for, but it wasn’t thelife for me. Coopers on the other hand(now PricewaterhouseCoopers) offeredexposure to many other disciplines –accountancy, tax experts, HR experts,corporate finance, insolvency practitioners,etc – and a huge variety of work. Also, wewere a small team, and I largely ran the

operational aspects. I was still being toldwhat to do, but it was up to me how I did it.I loved it.

After almost four years of tremendouslyhard work and a lot of fun, I was providedwith an opportunity to move to a smallerconsultancy. I took it. It hardly matterswho it is now, let’s just say it didn’t workout – they were taken over within sixmonths, and nobody tells me what to do!So I jumped. Without really thinking, I setup an actuarial consultancy in partnershipwith another actuary. Whether I wouldhave ever done it without that unforeseenopportunity, I don’t know. Actuaries aresupposed to be good at predicting thefuture, but mapping a career out is rarelystraightforward, and much of it happensoutside of your control. As it happens, itwas the biggest, and best, turning point todate.

STARTING AGAINFor the next few months we operated out ofa terraced house using our savings to get by.At the beginning of 1998 I was advisingmultinational companies on global pensionprovision, by the end of the year I wasordering fax machines and putting deskstogether. It was as big a comedown as youcould imagine. But one or two clients camewith us, and we managed to earn somemoney.

And, several years later I now run anestablished pensions consultancy with 12staff, including three qualified actuaries. Wehave around 60 pension scheme clients,advise around 100 intermediaries, and carryout actuarial work, pensions administration,treasury, payroll, consultancy, investmentadvice, etc. We have clients with over 1,000members and over £50 million of assets –small fry compared to the Watsons days, butwe have them in our sights!

1988Graduated in Economics &Econometrics, University of Leeds

1989Started work as an actuarial trainee at R Watson & Sons

1994Moved to Coopers & Lybrand to set up Actuarial department

1998Moved to smaller firm to managePensions department

1998Set up own actuarial consultancy

Career PathNeil MitchellMitchell Consulting Actuaries


CAREER PATHS

LIFE AS A BUSINESSMANRunning any business is challenging, but anactuarial business especially so. You have to bejack of all trades and master of some of themas well. There is no typical day. I could befixing the printer one minute, advising onstochastic modelling techniques the next,drafting scheme accounts the next. I am out ofthe office as much as I am in, which couldmean meeting clients or marketing gurus, andwhen I’m in I can spend all day computerprogramming or all day on the phone. It is farand away the most rewarding and variedexperience I could have imagined I would have.

A key element to running a business is tostay focused on today and tomorrow, andonly keep a weather eye on beyond that. Thisis contrary to an actuary’s training, but inbusiness, there is so much that can happen toscupper any plans, that there isn’t much pointin resting too much on them.

If I have to give one piece of advice toanyone setting up in business, it is to makesure you surround yourself by decent peoplewho respect you and you can trust. And letthose people tell you what to do!

THE FUTURERealistically, the future for an actuarialbusiness advising occupational pensionschemes is not rosy. Schemes are closingdown every day. I’ve still got a weather eye onthe future and what is happening around, andwe will inevitably have to get involved inother areas. And therein lies anotherrequirement of an actuary in business –ability to live with the uncertainty of anunknown future. Given the nature of the job,it should come as second nature to anactuary.


CAREER PATHS

My role at KPMG provides me witha broad exposure to the corporateworld in what is proving to be an

intriguing and challenging period in thehistory of the UK pensions market. It hasnot been possible lately to pick up anewspaper without seeing yet anotherpensions issue grabbing the headlines. Thiswill only intensify as the many stakeholdersin this country’s pension schemes becomemore and more educated on the subject,and seek to find solutions that areincreasingly innovative. It is incrediblyrewarding to witness, and contribute to, thedevelopment of an industry which is at theforefront of the minds of both companiesand individuals alike. Only this morning I attended a meeting with a FTSE 25company to discuss their pensions situationwhich is currently costing over £500 millionper year.

SO WHAT DOES AN ACTUARYACTUALLY DO?A question my parents still cannot answer.As daft as it may sound I had wanted to bean actuary since I was about 15. Atsecondary school we had a ‘careerscomputer’ which gave you a list of yourclosest matching career paths based on your

answers to 50 or so questions. Each time Idid it, it always outputted ‘actuary’ as numberone. (Although to put it into context, I think‘farmer’ was the suggested number two onmost occasions.)

Rest assured however, the vast majorityof my peers had not even heard of anactuary before college or university, and tobe honest I had no real idea of what oneactually did until my final year at Warwick.Once I had more of an idea of what wasinvolved, the big attraction to me was theopportunity to combine mathematical,economic and analytical skills withcommercial awareness and consultingabilities, such that I would be able todevelop all of these areas in a workingenvironment where they were valued.

Most actuarial students will start outfocusing on carrying out numerical basedcalculations, rather than the advice givenaround them. As experience develops, thereis a shift from one to the other, with an evergreater reliance on the results of calculationscarried out by others when forming youradvice to a client. Although the speed ofthis shift is somewhat dependent on thenumber of years you have under your belt,in the right firm there are plenty ofopportunities to demonstrate and develop

PensionsConsultantRyan Ellett is a Manager in the Pensions Practice at KPMG in London, andworks in the Corporate Advisory environment. He began an actuarial career in2000 and qualified as a pensions actuary in 2006. Ryan graduated from theUniversity of Warwick in 1999 having spent three years studying for anEconomics Bsc Hons degree.

1999Graduated Economics BSc Hons 2.1University of Warwick

2000Began career as an actuarial studentBacon & Woodrow (later to becomeHewitt Associates) London

2005Joined KPMG as a senior actuarialstudent London

2006Qualified as a Fellow of the Instituteof Actuaries (FIA)

2006Promoted to Manager at KPMG

Career PathRyan ElletKPMG


CAREER PATHS

consulting skills as soon as you begin youractuarial career.

THE BEGINNING AND THE NOWIn 2000, I joined the London office of afirm called Bacon & Woodrow (a pensionsand investment actuarial consultancy), andbegan my career as an actuarial student.Although the combination of an effectivefour day a week full-time job with one day aweek of study was initially difficult (I don’tthink I have ever slept so well as I did in myfirst six months of work) there were manypluses. Firstly, having been used to manyyears of studying for exams, thisconsistency provided some sort of comfortin the first few months of uncertainty in theworld of work. Secondly, as the months goon, you’d be surprised at how quickly thestudy and the work align themselves andstart to compliment each other, whichbecomes increasingly rewarding.

Studying for an actuarial qualification atthe same time as working does require a lotof determination and commitment. Therewill be times when you give up a day or twoof your weekend studying, and, as examsapproach you will probably think aboutnothing else. However, it is totallyachievable and the rewards for doing so arewell worth it – both financially andotherwise.

The first five years or so of my careerwere spent on the pension scheme trustee

“ I AM REALLY ENJOYING MY CAREER AS

A CORPORATE PENSIONS ACTUARY AND AT

KPMG I FIND IT CHALLENGING, FLEXIBLE,

SUPPORTIVE AND REWARDING”


CAREER PATHS

side of advice, working closely with pensionscheme actuaries and trustee groups. Thenature of this type of work was generallyfocused on detailed calculations and meetingthe legislative requirements of operating apension scheme within the UK. Althoughthis gave me a good grounding in theactuarial field I felt that it did not provideme with the level of exposure to commercial issues that I was after.

Therefore in 2005 I joined the KPMG Pensions department in London.The focus of this department is on thecorporate advice opportunities that existaround pensions, with a particular emphasison developing innovative solutions forcompany sponsors of pension schemes andadvising potential purchasers or sellers ofcompanies on the pensions issues that mayarise upon a merger or acquisition.

The recent Ferrovial take-over of theBritish Airports Authority (BAA) was anexciting deal where pensions was at the centreof the whole event. A solution had to bereached between Ferrovial and the trustees ofthe BAA pension scheme in order for thedeal to go ahead. There was intensenegotiation and discussion between all partiesinvolved, and it was very satisfying to read inthe daily press about a project I was workingon.

Most of my work is project based,operating in teams of between three and sixpeople, ranging from new graduates topartners. I find that this project based

environment supports a great deal offlexibility both in terms of the type of workthat I do and the people I work with.

THE BIGGER PICTUREAs well as performing my pensions actuaryrole, I am also able to be heavily involved inseveral other areas. Within the office part ofmy time is spent on recruitment whichincludes reviewing applications, conductinginterviews, and feeding into widerrecruitment strategies. I am also aperformance manager for four actuarialstudents. This involves a combination ofinformal mentoring and formal appraising,with the focus on how best to enable thedevelopment of each individual. I amfinding this role very rewarding as it hasallowed me to gain a greater appreciation ofhow each member of our team is motivatedby different things and approaches work indifferent ways. This is a great way to reflecton how you approach things and whetherthat approach is suitable for all.

I manage to strike a healthy work–lifebalance and this year have managed to trainand complete the April 2007 Londonmarathon, buy a new flat and continue myappreciation of good food and wine.

I am really enjoying my career as acorporate pensions actuary and at KPMG Ifind it challenging, flexible, supportive andrewarding. I am very pleased that I didn’t optfor the second choice suggestion of myschool’s ‘careers computer’!

Finding the Right Job

Salaries and Rewards

Key Skills and MinimumRequirements

CV and Interview Techniques

Finding and Benefiting fromWork Experience

Meet the Placement Student

Graduate Training Schemes

Information and Statistics

TREVOR MORRISS, Reward Consultant,CELRE


FINDING THE RIGHT JOB

T he key findings from the SalarySurvey of Actuaries and ActuarialStudents, October 2006, are as

follows:

INCREASE IN AVERAGE EARNINGS Movement in earnings and salaries figures,based on a matched sample of individuals,shows that average earnings increased by7.6% in the 12 months to August 2006,compared to an 8.0% increase seen in 2005.Actuaries working in firms of consultantssaw their earnings increase by only 4.4%,whilst their colleagues in financial sectorcompanies saw their earnings increase by amassive 12.2%. Average basic salariesincreased by 4.9% overall during the surveyperiod (well down on the figure of 6.9%recorded in 2005). Salary movement year onyear for consultants, at 3.8% was wellbehind the rate recorded in financialservices, at 6.7%.

There has been a very slight increase inthe incidence of bonus payments overall(despite a very slight fall recorded infinancial services) when compared to theresults of all the previous surveys. 71.5%received bonus payments (up from 70.95%last year). In the financial sector the averagebonus payment was £8,554, up 34% on last

year. The consultants receiving bonuses sawonly a very marginal increase in their averagebonus payment – to a level of £9,232 (from£9,212 last year).

RECRUITMENT The survey reveals that all the consultanciesand over 90% of financial sector companieswere looking for qualified actuaries in the12 months to August 2006.

SALARIESMedian salaries for qualified actuaries wereof the order of £58,500 and for thoseemployed in financial service sectorcompanies more of the order of £56,000.

The median salary for a recent graduatewith less than a year’s experience in theprofession was £23,650 (financial servicesonly – consultancies seem less inclined torecruit so many graduates and reliable paydata at that level is not available).

Median salary figures as actuariesprogress up the career ladder are shown onthe following page.

Salaries andRewardsEvery year in October, Remuneration Economics (CELRE) publishes their SalarySurvey of Actuaries and Actuarial Students. For this guide, we have taken someinformation from the latest salary survey information available to give a flavourof what is happening in the employment market for actuaries at present.



MEDIAN ACTUARY EARNINGS

Responsibility Level Salary

Chief Actuary/Senior Partner £156,000

Senior Function Head/Practice Director £136,800

Function Head/Practice Head £108,450

Department Manager/Managing Consultant £81,800

Section Manager/Senior Consultant £66,000

Section Leader/Consultant £58,500

Senior Actuary/Junior Consultant £48,072

Actuary £42,500

Student Actuary £30,500

Source: Salary Survey of Actuaries & Actuarial Students – 2006 (published byRemuneration Economics, in association with The Actuarial Profession)



Traditionally, a mathematics, statistics oractuarial science degree has been theeasiest way to demonstrate the two

main skills needed. However, manyemployers positively welcome applicationsfrom other disciplines such as finance,business, economics, engineering, chemistry,or physics. Overall, your degree discipline isnot important provided you can show thatyou have the necessary level of numeracy andcommitment.

ENTRANCE REQUIREMENTSThe Councils of the Faculty and Institute ofActuaries, at their discretion, will normallyadmit as a Student an applicant who hasachieved the standards given below:

Those who hold a degree awarded by auniversity in the UK or Republic of Irelandand has either:• obtained a first or second class Honours

degree in any subject, together with atleast a grade C at A Level maths;

• studied mathematical sciences as a majorsubject, as part of an Honours degree andgained at least third class Honours in thatdegree;

• GCSE examination passes (grade C orabove) one of which must be English;together with two passes at A Level, oneof which must be maths, grade B orabove and the other must be at least gradeC;

• or the Scottish Certificate of Educationwith passes at the Higher Grade, inmathematics at grade A and in English.

OTHER SKILLS ACTUARIALEMPLOYERS LOOK FORWhen making applications, all employers willwant to see some evidence of your numeracyskills.

However, employers will look beyond thisfor other skills vital to actuaries in business.Excellent communications skills are anessential part of actuarial work. You may berequired to explain detailed technicalinformation to an individual client or thesenior management of a company; or youmay be required to summarise a large amountof information concisely and clearly. Thiscommunication will require good verbal,written and analytical skills.

All employers now seek goodinterpersonal skills, particularly consultancy

Key Skills and MinimumRequirementsTo become an actuary you must have two important technical skills:Firstly, you need to be able to prove your intelligence — usually by meansof an impressive exam track record (most recently qualified actuarieshave a first or upper second class degree.) Secondly, you must be acompetent mathematician. There is a minimum entry requirement ofgrade B at A Level mathematics or grade A at Higher Grade in Scotland orequivalent.



firms, who will demand strong evidence ofsuch skills at the application and interviewstage. They’ll need to be certain you couldcreate and maintain the best impressionwith their valued clients. Actuariesfrequently work in teams and interpersonalskills are vital to the success of teamwork.Evidence of problem solving skills andcreative thinking are also sought after.

Employers will look for commitment andyour realistic appreciation of what the nextfive years’ study and training will entail. Thiscommitment to, and knowledge of, theProfession are easily demonstrated on yourCV by a period of vacation work. Manyemployers offer vacation work (see the List ofActuarial Employers available on the websitewww.actuaries.org.uk).

Another quality you ought to have,

although no employer will ever ask you, isyour ability to cope with exam failure and itis worth checking beforehand what theirpolicy is regarding exam retakes, just incase.

FURTHER INFORMATIONThe Careers Team (+44 (0)1865 268 228or [email protected]) provides aselection of information for thoseconsidering an actuarial career. TheProfession also coordinates a UK-widenetwork of volunteer actuarial careeradvisers. Careers Advisers (CA’s) areactuaries who are happy to talk toindividuals about the Profession andanswer questions. The Careers Team cangive you the contact details of your localCA.



CREATING A CVWhen creating a CV, you should consider thefollowing;

• Length: Your CV should be concise –normally no more than two pages in total.

• Style: Consider whether the format ofyour CV will be skills based or timebased. One of the most commonlyaccepted ways to present your CV isreverse chronological, and details workexperience with key achievements listedbelow. However, you may choose to setyour information so as to highlightskills that are relevant to the position,giving examples of where you havedemonstrated such skills.

• Layout and language: The layout andfonts should be consistent throughoutthe CV. Try to use active language ratherthan passive and make sure you are tothe point and avoid the use ofbuzzwords and abbreviations. Alwayscheck carefully for spelling andgrammatical errors.

• Accuracy: The details must be accurate,for instance academic achievements anddates of work experience. And behonest. Your CV will be the basis for anyfuture interview and you need to be able

to support any of the statementscontained in it.

• Education and qualifications: Thinkabout what emphasis these should havein your CV, for instance there is no needto list all your GCSEs if you have adegree – a summary of results will do.

• Skills and experience: Consider all yourskills and experience carefully and makesure that they are included on your CV –have your included your computer skills?Are you fluent in any languages? Have youincluded that voluntary project thatdeveloped your team working abilities?

• Tailoring your CV: Just as you need toanswer the question in an exam, your CVneeds to address those things that theemployer is looking for. Tailor your CV tothe position and company you areapplying to.

• Stand out: Try to find ways ofdifferentiating your CV from otherpotential candidates, particularly throughyour interests or experience.

• Personal details: Finally, ensure that yourpersonal and contact details are correct, asthe employer will use these to reply toyour application.Most CVs are screened in the initial

stages, so your information needs to be

CV and InterviewTechniquesPotential employers will look at your CV as a summary of what you haveachieved in your career so far. It allows a candidate to set out their skills,achievements and experience to date. Although there is no definitive or setway to create a CV, this is your opportunity to persuade an employer that youare an excellent candidate for the position you are applying for.



concise and to the point. You will only havea short time to impress your potentialemployer, so it is vital your CV presentsyou at your best.

It is more professional if you include acovering letter with your CV, outlining whyyou have applied for the position and whyyou have applied to this particular employer.This will also demonstrate that you haveresearched the company and considered theapplication carefully. Finally, your CVshould always be addressed to the correctperson.

Your university careers service will havemore information and advice on creating CVsand covering letters, which you will find veryuseful. Also, graduate careers websites willhave further advice and your careers servicewill have further contact details.

INTERVIEWSThe next stage in the application process willbe an interview. Some companies willconduct a telephone interview initially andthen invite a successful candidate to a face toface interview. The face to face interview mayinclude verbal and/or numerical tests, as wellas a mock presentation.

PREPARATIONBefore the interview, you should consider thefollowing;

• Details: It may seem basic, but doublecheck that you have the correct detailsabout the interview, in particular the date,time, location and the person you are dueto meet.

• Practice: Think about what theinterviewer will want to ask you andappropriate answers.

• Research: Look into the position you areapplying for carefully, including thepractice area you may be working in (moredetails on the different practice areas are

available in this guide and on the websitefor the Actuarial Professionwww.actuaries.org.uk). Also, research thecompany thoroughly, if you have notalready done so.

• Prepare: Consider if you will need to takeverbal or numerical tests; or if you willneed to demonstrate your skills in a groupinterview or a presentation. Read throughyour CV and consider any furtherinformation you may want to include inthe interview, for instance a summary ofyour skills or achievements. And print outextra copies of your CV to take to theinterview.

• Travelling to the interview: Plan yourjourney in advance and allow plenty oftime for delays. (If your interview is beingconducted by telephone, make sure youare in a quiet place, where you will not bedisturbed, a few minutes before you aredue to be called.)

• Appearance: Make sure that the clothesyou will be wearing are clean, your shoesare polished and your appearance is neatand professional.

Interviewers will take first impressions veryseriously and it is essential that yourappearance does not let you down. Generallyemployers will expect candidates to dress inbusiness wear at the interview stage, even ifthe office generally has a dress down policy.Spending time on creating a professionalimage is an essential part of the pre interviewstage.

THE INTERVIEW ITSELFAs first impressions are so important,remember to greet the interviewerprofessionally with a handshake. Try to relaxduring the interview, smile and maintain eyecontact throughout.

When answering questions try to beconcise and make sure you are actually



answering the question you have beenasked. Where possible, give examples ofyour skills and achievements from your ownexperience. This will provide clear evidenceof your suitability to the role. If you need amoment to think about your response, donot be afraid to respond with ‘that’s a veryinteresting question, I would like a momentto think about that’, or ask for the questionto be repeated, then answer as directly aspossible.

As the interview is a two way process,use this opportunity to ask any questions or

raise any concerns you may have and checkif this role is the right one for you. Ensureany questions you ask are brief and relevantto the position. Ask the interviewerswhether there is anything else they need toknow, or that you have not coveredproperly, and ask what the next step is ifthis has not already been covered.

At the end of the interview, smile, shakehands and thank the interviewer – your finalimpression is as vital as the first.

Finally, always ask for feedback from yourinterview, even if it was not successful.



Work experience offers anexcellent opportunity to see whatthe job entails within a ‘live’

commercial environment. It also provides achance to network within the close knit,friendly community that is the ActuarialProfession.

From an employer’s point of view, agraduate who has already taken the troubleto find work as an actuary has demonstrateda level of determination, drive and initiativethat may well set him or her apart from thecompetition.

Such experience also provides solidevidence of your ability to relate your studiesto real life situations and your capacity tolearn beyond the classroom. No longer areemployers just looking for an excellentacademic record; you need to demonstratethat academic success can also translate intocommercial suitability. Work experience helpsyou do just that.

WHERE TO FIND WORK EXPERIENCEThe Actuarial ProfessionEach year The Actuarial Professionpublishes the List of Actuarial Employersavailable on the Profession’s websitewww.actuaries.org.uk. Reading thisimportant publication is an essential first

step in the process. It indicates whichemployers offer the opportunity to gaincommercial experience. Over 40 companiesand organisations are represented here.Applications for work placements areusually made by sending your CV togetherwith a covering letter, or by completing thecompany’s own application form.

Or, there is no reason why you shouldnot ‘create your own placement’ by usingthe list as an information source,approaching companies with speculativeapplications. Some employers, particularlythe smaller or newer ones, may have neverconsidered offering work experienceplacements before. A well-crafted letterextolling the many skills and assets thatyou could bring to a company mighttherefore lead not only to a short termwork placement but also to a secure, well-paid career opportunity in the future.

University careers servicesOne of the best sources of workexperience vacancies and additionaldetailed information is available from youruniversity careers service. Careers advisersactively support such programmes and areconstantly seeking out companies whooffer work placements. Careers services

Finding and Benefitingfrom Work ExperienceIt’s time to start thinking about a career. If you have an aptitude formathematics and problem solving, you may already be considering becomingan actuary. If so, an excellent first step would be to gain a real understandingof what an actuary does by doing some work experience at one of the manyemployers who, every year, cry out for bright, numerate undergraduates.

“ SUCH EXPERIENCE ALSO PROVIDES

SOLID EVIDENCE OF YOUR ABILITY TO

RELATE YOUR STUDIES TO REAL LIFE

SITUATIONS”



usually begin to receive details of vacanciesfrom mid October, continuing through toMarch. However, it is never too late toapply as there is demand for actuarial workexperience candidates all year round.

Inside Careers work experience serviceThe Inside Careers website(www.insidecareers.co.uk) now provides

listings of current work experienceopportunities. Students can apply directly toany vacancies online.

OTHER ROUTES If you still have not found a placement, it isoften worthwhile approaching largeinsurance companies for general office-based work experience. In this environment,there is a great deal of work that is deemedsuitable for a student, such asadministration, data entry and filing.Although this may not be the kind ofexperience you had in mind it still gives auseful insight into how the insuranceindustry works. It may also be possible,once you have established yourself, tomention that you have a particular interestin actuarial work and ask ‘might it bepossible to spend some time with theactuaries?’.



WHAT LED YOU TO UNDERTAKEAN INTERNSHIP?After finishing my second year of BSCcourse in physics, I decided to go on mysandwich placement. I was keen to gain anexperience of industry, and see how things Ihad learnt at university were applicable in theworkplace. I spent much of my second yeardeliberating where to go and what to do andsettled on a research placement with aspecialist laser developer, as is the associatednorm on a physics course; physicists doresearch.

On starting the placement I decidedalmost immediately that research anddevelopment was not the future for me, so Istarted looking and applying for summerinternships in the financial sector. It wasthen that I first came across the idea ofbecoming an actuary – a word that is rarelyheard of outside the areas relating to theirwork. About three months into myplacement with the laser developer theywent into receivership and all employeeswere made redundant. I made a few polite(begging) phone calls, chasing the

applications for internships I had madepreviously, and, a week later, found myselfsitting at my new desk at Hazell Carr.

WHAT DREW YOU TO THE COMPANY?I had originally been attracted to apply toHazell Carr because of the strength of theactuarial services they offer, and the big-nameclients they work with. I decided it wouldbenefit me to be involved in as manydifferent aspects of the work as possible, andin my view there was hardly a better place tostart my career than with a company thatoffers a large range of services to the topmarket clients.

WHAT AREA DO YOU WORK IN?I joined as a member of the wind up team,which is involved in the discontinuance ofpension schemes. The majority of my timeis devoted to discontinuing a huge definedbenefit scheme – one of the largest to evergo into wind up in the UK. Winding up apension scheme is a very technical andspecialised area of work, and one in whichHazell Carr has years of experience. As a

“ STUDYING PHYSICS, A SUBJECT THATIS SLIGHTLY OUTSIDE THE USUAL

REQUIREMENTS FOR AN ACTUARIALCAREER, IT WAS VALUABLE TO SEE THAT

THE SKILLS I HAVE PICKED UP ON MYCOURSE ARE TRANSFERABLE AND IN HIGH

DEMAND IN THIS AREA OF WORK”

Daryl BoxallUNIVERSITY:Bath University

DEGREE:Bsc Physics (Hons)

EMPLOYER:Hazell Carr

LOCATION: Reading

Meet the PlacementStudent



complete newcomer, I found myself gettingquite lost in the jargon that the old handsthrew around without even noticing, butwithin a few weeks I had picked up enoughto hold my own.

A wind up project is quite a long task,and I was lucky enough to join at the earlystages and contribute as it progresses, whichmeans I have gained a useful insight intohow the process works from beginning toend. The work is varied, which I really enjoy– knowing I can turn up to work and bedoing almost anything from supplyingfigures to auditors, to setting up a member’sindividual pension.

A WORKING WEEKMondayMy team and I have a client meeting in theearly afternoon, regarding some stumblingblocks in a scheme wind up. We spend themajority of the morning going over theprevious meeting minutes, and organisinghandouts and key examples of problemcases to talk over with the client. I have onlyrecently been involved in these types ofmeetings as they can be quite competitive attimes. I find it helps with my understandingof the scheme, as you discuss technicalitiesthat you would not normally consider inyour everyday work. A wind up involves amore specialist scheme knowledge then anactive scheme, and a lot of correspondencewith the actuaries and trustees, so it isimportant to maintain these relationships. Ispend the afternoon writing up the minutesto the meeting – this always takes me awhile, as I tend to drift in and out of takingnotes, which is something I must reallyimprove on.

TuesdayI spent the majority of the day draftingletters for member queries. This is one ofthe less glamorous, but vital parts to the job.

Many members of a discontinuing schemeare concerned about losing the pension theyhave accrued. For someone facingretirement with the fear of no income, thisis an incredibly daunting prospect andluckily it only happens in extremely rarecases. I find these queries quite challenging– you need quite a detailed knowledge ofthe scheme rules and government legislationto be confident in giving customers thecorrect information. There was a bit of abacklog so these letters take up the best partof the day, and I leave promptly at 17.00 togo and play football for the company six a-side team (they always need a left-footer!).

WednesdayLate on Tuesday we received an actionresponse from Monday’s client meeting. Mycolleagues and I had a brief meeting todiscuss what issues this has created andsolved in the winding up process. Thescheme is at a pivotal point, and there are anumber of issues that need addressingbefore any further progress can be made. Ispend the rest of the day writing up a planof action, outlining proposals that it ishoped will solve the outstanding problems.This proves to be quite an awkwarddocument to write, and calls on all myknowledge of wind-ups and my specificknowledge of the scheme. When dealingwith clients in an outsourced arrangementsuch as ours, it is important to put the rightinformation in the right way for the client,so my wording is carefully chosen and thedocument is then submitted for externalvetting. All work to external sources goesthrough this vetting procedure, andfeedback is given to ensure quality andconsistency.

ThursdayUrgent work has come up on a differentscheme and I am asked to help out. Quite



often if last minute problems look like theywill affect a deadline, I will get called towork on other schemes. I don’t tend tomind, as working solely on a single schemecan be quite limiting, so I enjoy the varietyin my work. I am required to providemembership details and pension amounts tobe used in the assessment of schemeaccounts. This work is going to the trusteesso it is important to be prompt and ensurequality – I have to work quite quickly, butwith care; errors in a piece of work like thiscan be costly. This takes until earlyafternoon and is then submitted for vetting.This gets off to the trustees by the end ofthe day, before the deadline. The rest of theday is spent dealing with more memberqueries on a scheme

FridayThe scheme actuary has produced a fundvaluation on one of the winding upschemes, and I am to prepare costinginformation to be used in applying anaugmentation to member’s benefits. I needto collect all the information we have on themember’s entitlements, and provide thecosts for securing these benefits with theprovider. Using these figures, the actuarywill calculate the amount of uplift available

to members from the scheme funds. Again,this is another delicate piece of work as anymissing members or benefits will mean acomplete recalculation. I spend the morningcollecting the information and setting outthe figures, with most of the morningchasing the annuity provider for costinginformation. This is all put together, andsent up to the actuary to look at first thingon Monday.

UPS AND DOWNSThe most enjoyable part of my placementhas been being able to work on importantprojects. Much of my work has gone out toclients, which means it had to be of the highquality that they expect to see. Being involvedin meetings and encouraged to contribute hasbeen a great experience – it is nice to knowthat you’re a member of the team not justmaking up the numbers.

It can be stressful though – we received acomplaint on one of the schemes weadminister which meant a very quick changein focus of the team; trying to improveservice levels to meet the complaint, andjuggling our responsibilities to other schemes.That was the first time I had felt real pressureover my work – very different to missing acoursework deadline!



Starting a new career is a dauntingprospect for anyone. Your learningcurve during the first year will be

steeper than at any other time. To ease thetransition from university to work, and tohelp facilitate this learning process,structured graduate training anddevelopment initiatives are typically offered.Graduate training can take many forms.However, increasingly it is the case that, aswell as helping you succeed in theprofessional examinations and acquire thetechnical knowledge required to do yourjob, employers are also spending more timeand money helping you develop ‘softer’skills (eg, project management, relationshipbuilding) as these become more importantin many actuarial roles.

GRADUATE DEVELOPMENTIf you join a firm with a structured graduatetraining and development scheme in place,it is likely to begin with an induction ofsome kind. This varies according to theorganisation but an initial residential courseis not unusual. Induction is a greatopportunity for you to learn more about therole you are going into and the companyyou have joined. You also get to meet yourfellow new recruits, many of whom you willremain in contact with throughout yourcareer.

The induction is only the start. Duringyour training you will take part in otherspecially designed courses that fit in with thedemands of your work and your increasinglevels of responsibility. The content of thesecourses will be determined by the type oforganisation that you have joined but all willbe accompanied by hands-on workexperience on the job.

IN THE OFFICEDepending on the size of the organisationyou may also have a local office inductionthat is tailored towards the office structure,procedures and work done in your particularlocation or business area. As a new graduateyou could be assigned a buddy (usually asecond year actuarial trainee) who will bethere to help you through your first fewmonths, providing you with practical andinformal support. You may also be given amore senior performance adviser who willhelp you to set your goals, give you guidancewhen you are planning your developmentand co-ordinate the feedback on yourperformance. This adviser will remain withyou even after the graduate scheme hasended and become something of a mentorfigure. Even though it is not explicittraining, most learning will take place on thejob. You will be encouraged to askquestions, get involved with a variety of

Graduate TrainingSchemesGraduate training schemes may differ from company to company but are alllikely to share a very similar objective: equipping you with the skills you needto do your job now and to build the foundations for the skills you’ll need to besuccessful in your future career.



become a qualified actuary. An organisationcommitted to developing its people will havea professional development programme inplace which enables you to maintain yourposition at the forefront of the professionand also provide you with developmentopportunities to take your career in thedirection you want. Actuarial careers in allindustries are dynamic and the roles andresponsibilities you undertake will be variedand challenging.

Developing yourself is not just aboutwhat you do in the workplace. Your companymight offer you opportunities outside of yourdaily responsibilities that can enhance anddevelop your skills – for example, mentoringschemes with local schools and colleges. Astime goes by you may become a buddyyourself and eventually a team leader andpeople manager. Global or multi-specialistorganisations may also offer you theopportunity to do secondments to otherbusiness areas or to other countries once youhave qualified.

One final point to bear in mind: it isbecoming more and more important that youtake responsibility for your own learning anddevelopment. Use the support, expertise andresources that you have available. Get themost out of the opportunities you are offeredbecause the people who succeed in theircareers are usually those who don’t just sitback and expect opportunities to come tothem.

JO KLEANTHOUS manages graduaterecruitment at MERCER HUMANRESOURCES CONSULTING and has arole in the design and implementation ofboth graduate and summer interndevelopment programmes.

“ THE PEOPLE WHO SUCCEED IN THEIR

CAREERS ARE USUALLY THOSE WHO

DON’T JUST SIT BACK AND EXPECT

OPPORTUNITIES TO COME TO THEM”projects and to take charge of your owndevelopment by seeking out newopportunities.

PROFESSIONAL EXAMSTo complete the actuarial exams successfully itis essential that you are committed from dayone. You will be given course information onyour induction and then be expected to spendbetween 15 and 20 hours per week studyinguntil you have qualified (between three and sixyears later!). These exams are not for thefaint-hearted. They are tough – for moreinformation on them see the ‘Education,training & development’ chapter in this guide.In many cases the company that you work forwill offer you additional support to maximiseyour chances of achieving success. Most willprovide you with a bank of paid study days(taking up to a day off per week to study) andwill fund your learning material and examentry fees. Organisations able to give moresupport may also provide you with internaland external tutorials and have a studysupport network within the company. Thiscould consist of study champions – availableto answer individual queries about particularspecialist areas – study groups, training onexam techniques and even setting andmarking mock exams for you.

CONTINUING YOUR DEVELOPMENTTraining and learning does not stop once you



T he Faculty has a membership of1,395 fellows while the Institute has7,357 fellows (as at 31 January 2007).

Each has a significant number of students,associates and affiliates, both within the UKand throughout the rest of the world.

STUDENT INFORMATIONThe Profession continues to attract newstudents into an actuarial career. During theyear ending December 2006 1,549 newstudents joined either the Faculty or theInstitute. Despite the lower numbers ofwomen studying mathematics at school, theratio of male to female members continues toeven out.

Whilst it is possible to enter the ActuarialProfession with a degree in any discipline (seethe ‘Key Skills & Minimum Requirements’article for full details of the entryrequirements), most employers currently lookfor graduates from numerate disciplines. Thisis reflected in the subjects studied by newentrants joining the profession.

WORKING LOCATIONS OF TRAINEESThe trainees in the Profession are basedthroughout the UK, including Belfast,Birmingham, Bristol, Edinburgh, Glasgow,Leeds, Liverpool, London, Manchester,Norwich, Reading, Stirling and York.

Information andStatisticsWhilst the UK Actuarial Profession is relatively small in comparison with otherprofessional organisations, its membership has been steadily increasing.

UNIVERSITIES ATTENDEDThe universities from which the highestnumbers of trainees joined the Professionin 2006 were City University (51), Warwick(49), Oxford (38), London School ofEconomics (33), Heriot-Watt (31),Nottingham (27), Cambridge (27),University College Dublin (27), Dublin CityUniversity (25), University of Kent atCanterbury (25), University CollegeLondon (21), Southampton (20), Bath (18),Birmingham (17), Leeds (17), Bristol (16),Manchester (16), Edinburgh (15), Durham(15) and Imperial College London (13).Other universities where large numbers oftrainee actuaries were drawn from includeBrunel, Cork, East Anglia, Exeter, Galway,Glasgow, Kings College London, Lancaster,Liverpool, Loughborough, QueensUniversity Belfast, Sheffield, St Andrews,Strathclyde and York.

DEGREE SUBJECTS STUDIEDOver a third of trainee actuaries who joinedthe Actuarial Profession in 2006 studiedmathematics or statistics, with 21% havingstudied actuarial science at first degree orpostgraduate level. Other popular firstdegree subjects included finance andbusiness, economics, physics and chemistryand engineering.



TOP TWENTY UNIVERSITIESATTENDED BY NEW ENTRANTS

IN 2006*

College Total

The City University 51

Warwick University 49

Oxford University 38

University Of London(London School Of Economics) 33

Heriot Watt University 31

Nottingham University 27

University of Cambridge 27

University Of Dublin(University College) 27

Dublin City University 25

University of Kent at Canterbury 25

University Of London(University College) 21

Southampton University 20

Bath University 18

Birmingham University 17

Leeds University 17

Bristol University 16

Manchester University 16

Edinburgh University 15

University of Durham 15

Imperial College 13

MOST POPULAR FIRST DEGREESUBJECTS STUDIED BY NEW

ENTRANTS IN 2006**

Subject Total

MATHEMATICS 365

ACTUARIAL SCIENCE 158

ECONOMICS 37

FINANCE 28

PHYSICS 25

SCIENCE 20

MATHEMATICS – MORSE 17

COMPUTER SCIENCE 13

ACCOUNTING 10

STATISTICS 9

CHEMISTRY 7

ENGINEERING 7

ENGINEERING – AERONAUTICAL 5

ENGINEERING –ELECTRICAL/ELECTRONIC 5

BUSINESS 3

ENGINEERING – CIVIL 3

LAW 3

SCIENCE -– OTHER 3

ASTROPHYSICS 2

BUSINESS ADMINISTRATION 2

* Only first degrees are included, ie, postgraduate diplomas and MSc courses have not been counted.** The degrees have been categorised by primary subject (eg, pure and applied mathematics degreewould be classified under ‘mathematics’, whilst mathematics and economics would be classified as‘mathematics and other’. Only first degrees are included, ie, postgraduate diplomas and MSc courseshave not been counted.

Education, Trainingand Development

Actuarial Syllabus and Examinations

University ActuarialDepartments

Professional Qualifications

Continuing ProfessionalDevelopment


EDUCATION, TRAINING & DEVELOPMENT

A lthough the education arrangementsare common to students of both theFaculty and the Institute,

prospective students choose to which ofthese professional bodies they wish tobelong.

The emphasis is on a good, sharedunderstanding through the syllabuses andCore Reading between examiners, studentsand tutors of the requirements of theactuarial profession at initial training.

QUALIFICATIONSThe syllabus and examinations describedbelow cover the full range of study requiredup to Fellowship.

SYLLABUSThe system is based on learning objective-based syllabuses, which give details of whata student is required to learn in the periodof initial training before qualification. Theindividual syllabuses are reviewed andupdated each year. In addition theProfession has prepared an extendedversion of the syllabuses termed CoreReading. Core Reading is reviewed eachyear. Examinations are based on theseextended syllabuses.

Core Technical StageThe Core Technical Stage is designed to give

students a solid grounding in the keyactuarial techniques. These are examined bya three-hour examination containing shortanswer questions and longer problem-solving questions.

CT1 Financial MathematicsCT2 Finance and Financial

ReportingCT3 Probability and Mathematical

StatisticsCT4 ModelsCT5 ContingenciesCT6 Statistical MethodsCT7 EconomicsCT8 Financial Economics

In addition, a Business Awareness module(CT9) is taken about a year after joining theprofession. This includes attendance at atwo-day introductory course, online studyand examination.

Core Applications StageThe aim of the Core Applications Stage is toteach actuarial concepts across a range ofapplication areas. The aim is to encouragethought about how these concepts can beapplied, in both familiar and unfamiliarsituations.

Actuarial Syllabusand ExaminationsThe Faculty of Actuaries and Institute of Actuaries work together as TheActuarial Profession and have a joint system of actuarial education. This wasintroduced in the autumn of 1993 and applied to the examinations sat fromApril 1994 onwards.

The main Core Applications conceptssubject (CA1) is assessed by twoexaminations of three-hours.

In addition, there is a Modelling module(CA2) with the aim of ensuring that acandidate has data analysis skills and cancommunicate the results to a technicalaudience. It involves the use ofspreadsheets for producing models fromgiven data sets. Students are assessed at theend of a two-day event, which is held at alimited number of locations.

The third part of the assessment at thisstage is an examination of three-hourslength on communication (CA3). The aimof the communications paper is to ensurethat a candidate can communicate with anon-technical audience.

Specialist Technical StageThis stage builds on the Core ApplicationsStage, but in individual specialisms withchoice introduced at this stage. The studentchooses two subjects from the list shownbelow.

ST1 Health and CareST2 Life InsuranceST3 General InsuranceST4 Pensions and Other BenefitsST5 Finance and Investment (A)ST6 Finance and Investment (B)

Each Specialist Technical subject, which isnon-country specific, is assessed by onethree-hour examination.

Specialist Applications StageThe final stage of the examinations is onespecialist subject chosen from the list at thetop of the next column.

Each subject is offered within a UK context.There is only one compulsory (three-hour)



SA1 Health and CareSA2 Life InsuranceSA3 General InsuranceSA4 Pensions and Other BenefitsSA5 FinanceSA6 Investment

paper at this stage. There is no requirementto have passed the corresponding SpecialistTechnical subject, however, the SpecialistApplications subjects will typically assumeknowledge of the corresponding SpecialistTechnical subject. In addition the studentshave to pass a short test of UK practice,regulation, guidance and taxation if they wishto work in a regulatory role in the UK.

WORK-BASED SKILLSStudents will be required to maintain alogbook of work undertaken and of coursesattended and other learning activitiesundertaken as part of the development oftheir work-based skills. This includes sometechnical actuarial skills as well as moregeneral business and management skills.

EXEMPTIONS AND EXAMSUniversity exemptions for students reachingthe agreed standard are available for all stagesexcept the Specialist Applications stage.Candidates may also gain an exemption fromone Specialist Technical paper if they havea relevant professional qualificationrecognised by the profession.

All examinations for all subjects, exceptBusiness Awareness and Modelling, are heldtwice yearly. With two opportunities eachyear, students, in consultation with theiremployer, determine the optimal pace ofstudy through the subjects. For the CoreTechnical subjects students are only allowedfour attempts at any one subject todiscourage students from too manyunprepared attempts.



TUITION OPPORTUNITIESThe syllabuses and Core Reading providethe guide to tutors preparing tuitionmaterial for students working for theexaminations. Examinations are based onthe syllabuses and Core Reading sostudents can prepare for them in any waythey choose. As the key route, the Facultyand Institute have an agreement with atuition-provider, The Actuarial EducationCompany (ActEd), for a series of distance-learning texts which cover the syllabuses.These texts are written with a key emphasison making this material user-friendly andstudent-orientated to help students preparefor the examinations in an effective and

efficient way. A series of units have beenwritten for each subject covering the corelearning and the objectives of the syllabusand containing a number of self-assessment questions and solutions. Thematerial is presented in loose-leaf formand is updated from year to year wherenecessary. Assignments are included whichcan be used independently or inconjunction with a marking service. ActEd,can be contacted at:

ActEd, 31 Bath Street,Abingdon, Oxon OX14 3FF www.acted.co.uk



Degrees with an actuarial contentleading to possible exemptions fromthe professional examinations are

offered at the following universities in theUK and Ireland:• City University, London;• Dublin City University;• University College Dublin;• University of Edinburgh;• Heriot-Watt University, Edinburgh;• Imperial College, London;• University of Kent, Canterbury;• London School of Economics;• University of Oxford;• Southampton University;• University of Wales, Swansea;• University of Warwick.

In addition, degrees with an actuarial elementare offered at the following universitiesoverseas:• Australian National University;• Bulawayo University, Zimbabwe;• University of Cairo, Egypt;• University of Cape Town, South Africa;• University of the Free State, South Africa;• University of Haifa, Israel;• University of Hong Kong;• University of Kwazulu-Natal, South

Africa;

• Macquarie University, Australia;• University of Melbourne, Australia;• Nanyang Technological University,

Singapore;• University of New South Wales, Australia;• North West University, South Africa;• Pretoria University, South Africa;• Stellenbosch University, South Africa;• Victoria University of Wellington, New

Zealand;• University of Witwatersrand, South

Africa.

There are two ways in which universities canoffer courses leading to possible exemptionfrom the Profession’s examinations. The firstis on a subject-by-subject basis; the second ison an accreditation basis whereby theuniversity course can give exemption from apre-specified group of the Profession’sexaminations.

UNDERGRADUATE BSC COURSESThe principal feature of full-time degreecourses in actuarial science is the exemptionsthat successful students can gain from theprofessional examinations of the Faculty andInstitute of Actuaries.

The first eight Core Technical subjectscan be regarded as covering the theoretical

University ActuarialDepartmentsUniversity departments of actuarial science in the UK can trace their historyback to the early 1970s and considerable development has taken place sincethe establishment of the department of actuarial mathematics and statisticsat Heriot-Watt University in 1972 and the establishment of the actuarialscience unit (now the CASS Business School) at City University in 1973.

“ THE COURSES ARE AIMED PRIMARILY AT

HIGHLY MOTIVATED AND INTELLECTUALLY

ABLE GRADUATES WHO HAVE DECIDED ON

AN ACTUARIAL CAREER”



parts of the professional syllabus, while theremaining subjects cover the practicalapplication of this theoretical material.

The successful student, on graduation,may be exempted from most, or all of thefirst eight Core Technical subjects at thefollowing universities: City, Dublin City,University College Dublin, Heriot-Watt,Kent, LSE, Oxford, Swansea and Warwick.The other UK universities offer exemptionfrom some of the Core Technical subjects.Exemptions depend on a candidateachieving the appropriate standard ofperformance in the corresponding degreeexamination papers – this standard isconsiderably higher than the degree passstandard.

A BSc degree in actuarial science soundshighly specialised and narrow. Yet this is farfrom the case. All courses provide a broadfoundation for financial managementenabling students to gain familiarity withaccounting, computing, economics andstatistics, as well as specialised actuarialtopics.

POSTGRADUATE MSC ANDDIPLOMA COURSES In response to the needs of the ActuarialProfession, City and Heriot-Watt set upfull-time postgraduate diploma courses in1985 with their first intakes the same year.In September 2002 Kent Universityadmitted its first students to its diploma inactuarial science. These courses are full-time, wholly taught courses running over asingle academic year. Imperial Collegeoffer two-year part-time MSc in actuarialfinance that is an accredited course whichcan lead to exemption from most of theProfession’s examinations.

The full-time courses are very intensivewith about 18 contact hours per week(lectures and tutorials) and students areexpected to spend many more hours (both

during the term and vacations) in privatestudy. The courses are aimed primarily athighly motivated and intellectually ablegraduates who have decided on an actuarialcareer.

Some students on the courses aresponsored by employers. The Faculty andInstitute of Actuaries publish a list of thoseemployers who may be prepared to offersponsorship. It is usually a condition of anysponsorship that a student will work for thesponsoring employer for at least two yearson completion of the diploma.

The entry requirements for the diplomasare generally a second class Honoursdegree in economics, mathematics, statisticsor a related subject. However, there isflexibility in these requirements andgraduates with a different degree subjectmay be accepted, if a mathematical aptitudecan be demonstrated.

At the end of the course the successfulstudent, in addition to being awarded thediploma of the university, may berecommended for exemption from some ofthe Profession’s examinations. Theexemptions depend on a student achievingan appropriate level of performance in therelevant university examinations. (Thisstandard is considerably higher than thediploma pass standard.)

BENEFITS OF STUDYINGACTUARIAL SCIENCEThere are two main advantages to the studenttaking either a BSc or a postgraduate diploma



in actuarial science. Firstly, the student shouldprogress through the professionalexaminations more quickly than he or sheotherwise would do.

The second advantage is that thesuccessful graduate in actuarial science has,on starting their actuarial career, much of thetheoretical knowledge required for the job.He or she should therefore be of greater andmore immediate use to any employer than,say, a graduate from another discipline.

RESEARCHThe contribution of university academics tothe actuarial profession does not lie only inthe areas of teaching and examining. The staffin university actuarial departments contributeactively to the education services of the

Actuarial Profession. Mention must also bemade of research – both in its theoreticalfoundations and in the practical application ofthe theory. The research is bothcommissioned and self-generated.

Given the current pressures in thebusiness world, the actuarial academic isprobably better placed than his or hercolleagues in commerce to pursue researchinto many problems.

FURTHER INFORMATIONA full list of universities offering degrees inactuarial science or degrees with actuarialoptions is available on the Profession’swebsite www.actuaries.org.uk.

Details of particular courses should beobtained from the relevant university.



S trictly speaking, there is no suchthing as a ‘qualified actuary’, eventhough you quite often hear the

term mentioned. Only those who havebecome Fellows of either the Faculty orthe Institute are ‘actuaries’ in the strictsense of the word and so the adjective‘qualified’ is not necessary. Of course,there are other classes of membership ofthe UK profession and actuarial knowledgeis not limited just to those with FFA orFIA after their names. However, when itcomes to giving actuarial opinions orproducing reports in connection with theUK regulatory system, the regulations arevery precise in their requirements of whatis meant by an ‘actuary’. Basically, you haveto be a Fellow of either body. In fact, youneed to be more than that – you need tohave sufficient relevant experience as well(which is always a prerequisite for anyactuary taking on actuarial responsibility).

As the use of the term is not so precisewithin some circles, you sometimes seereferences to ‘part-qualified actuaries’ and‘qualified actuaries’. These are not termsthat the professional bodies use to describetheir membership, however. Instead, wehave a number of different membershipclasses, as the following section explains.

As will become obvious from whatfollows, while there is a common approach

to actuarial education and exams betweenthe two UK professional bodies, there areslight differences when it comes tomembership categories. The following boxshows the current membership categories ofthe Institute:

Classes of MembershipStudent

AssociateFellow

Honorary FellowAffiliate

In the Faculty, while students and affiliatesare enrolled they are not members, butotherwise the membership classes are asabove.

Assuming you satisfy the entryrequirements (see the profession’s websitewww.actuaries.org.uk), you join the professionas a Student in order to start sitting theexams.

In order to qualify as a Fellow, Studentsmust pass examinations, demonstratesatisfactory completion of certain modulesand acquire a satisfactory level of work-basedskills.

Both professional bodies reserve theright to admit appropriate persons (for

ProfessionalQualificationsAll members of the Actuarial Profession can share the friendship andnetworking which a small profession makes possible. In addition, allparticipate in the maintenance of the professional standards that are key tothe respect and trust afforded us.



example, eminent mathematicians,statisticians or other scientists and financialexperts) to Honorary Fellowship. HonoraryFellowship of the Faculty is also sometimesaccorded to retired Faculty Fellows whohave served the profession in a particularlynoteworthy manner.

Enrolment as an Affiliate can be granted,without examination, to those who possessthe qualifications and/or experience therelevant Council deems appropriate and thiscategory is not confined to those withactuarial qualifications.

It is important to stress that, whateverthe category of membership held by anindividual, the same high standards ofprofessional behaviour are expected.

THE DIFFERENT QUALIFICATIONS Various qualifications are granted byexamination by the UK actuarial bodies andthese are listed as follows:

QualificationsFellowship (FFA, FIA)

Associateship (AFA, AIA)Diploma in Actuarial Techniques (DAT)

Certificate in Finance and Investment (CFI)Certificate in Derivatives

Certificate in Practical Financial Economics

Associateship is awarded to Students who

have completed the Core Technical and CoreApplications stage, have a minimum of oneyear’s work-based skills and have attended aone-day professionalism course. TheCertificate in Finance and Investment isawarded to those Students who complete orare exempted from Subjects CT1, CT2, CT4,CT7, CT8, CT9 and CA1. There is also theDiploma in Actuarial Techniques, which isawarded to those students completingSubjects CT1 – CT9.

The Certificate in Derivatives and theCertificate in Practical Financial Economicsare not required for Fellowship but areadditional optional examinations.

WHAT DOES THIS MEAN?Only students who qualify as Associates oras Fellows can be called actuaries from theProfession’s perspective and are subject tothe rules of professional conduct. However,within the UK, there are other actuarialqualifications and classes of membershipand these are well worth attaining. Inparticular, the Diploma in ActuarialTechniques, the Certificate in Finance andInvestment and Associateship mentionedabove have been introduced to cater forthose individuals who have actuarial aspectsto their jobs (and for whom, therefore, it isuseful to be able to demonstrate arecognised level of knowledge) but, for onereason or another, may not wish to pursuethe broader Fellowship qualification.



The continuing professionaldevelopment (CPD) scheme startedin 1992 and has been developing ever

since. Since July 2006 all working actuarieshave been required to fulfil certainminimum requirements CPD has beendefined as ‘the maintenance, improvementand broadening of knowledge and skill andthe development of the personal qualities,necessary for the execution of professionaland associated technical duties throughoutthe actuary’s working life’.

TECHNICAL SKILLSIn its early days, the CPD scheme focusedon how actuaries were keeping theirtechnical skills up to date. Technical skillsare those that complement the basicactuarial training obtained through passingthe examinations. Actuaries need to keep upto date with current thinking andmethodologies in their field and may needto increase their depth of knowledge intheir own or other fields.

Since its formation the ActuarialProfession has encouraged the exchange ofprofessional information through memberspublishing papers and then debating thecontent with other members at meetings.The format of these meetings has evolved

over time to meet the changing needs of theprofession. As well as Faculty and Institutemeetings roughly once a month, theProfession now runs about one conferenceor seminar a week on technical subjects.

In a small profession the conferences arealways full of familiar faces and the debatesflow freely. Even if you work for competingemployers, active discussions mean that thewhole profession can develop. Theconferences also provide a forum for muchof the profession’s research into technicalareas –, with discussions leading tosuggestions for areas which are worthresearching before the next conference.Members of the Profession can thenvolunteer to join a research working party,which is an excellent way to develop notonly technical skills but also communicationskills in writing papers and givingpresentations.

BUSINESS AND MANAGEMENT SKILLSThe CPD scheme plays an important role byencouraging actuaries to develop thebusiness and management skills not coveredby the examinations. These skills are notunique to actuaries but will increase theireffectiveness as individuals. They includespecific skills such as report writing or

Continuing ProfessionalDevelopmentMembership of any profession brings with it responsibilities beyond obtainingformal qualifications. The learning does not stop on completing the exams. Allmembers of The Actuarial Profession need to make sure that they remain upto date with the neverending stream of developments in their area of work todo a professional job for their clients and employers.



influencing and extend to the broadergeneral management and personaldevelopment skills.

Acquiring these skills equips actuaries totake up more influential positions in businessand commerce.

PROFESSIONALISMThe CPD scheme also covers the knowledgeand skills actuaries need to understand theirresponsibilities as a professionals. Theprofessional skills come from the standardsthat the public and those who employactuaries expect of a member of a leadingprofession.

Actuaries have to attend professionalismcourses which include instruction on theProfession’s code of conduct anddisciplinary scheme. The courses involveworking through difficult case studies to helpexpose some of the ethical problems andencourage participants to think hard aboutwhat the public expect of them. It’s not justabout passing exams and having letters afteryour name. Actuaries must attend thesecourses within a year of qualification andfurther similar events for experiencedactuaries at least once every ten yearsthereafter. (The requirement to attend theevents for experienced actuaries was a newone from 2006 and is being phased in overthe course of five years.)

THE REQUIREMENTSThe CPD oblige all qualified actuaries whowork in technical actuarial areas, which aredefined by reference to the exam syllabus, tocomplete at least 15 hours of CPD everyyear. A certain amount of this has to comefrom activities not provided by theiremployers and some has to be relevant tothe area of work they practise in. Those whoare working outside these technical areasmay define their own needs by reference totheir work and are required to complete an

appropriate CPD programme. Actuarieswho are not working at all are exempt fromany requirements.

Some qualified actuaries need a formalpractising certificate allowing them toassume roles with particular officialresponsibilities. These include membersacting in reserved roles for life insurancecompanies and friendly societies, such as thewith-profits actuary, members acting as ascheme actuary to a pension scheme, thosegiving statements of actuarial opinion forsyndicates at Lloyd’s of London andmembers authorised to give investmentadvice. These actuaries have slightly morestringent requirements about what may becounted as CPD, relating largely to verifyingtheir activities, the amount of CPD that isexternal to their employers and relevance totheir work.

The sort of activity that counts as CPDincludes attendance at professional meetingsor courses, other events of equal standing,research, private study and involvement withthe Profession’s boards and committees.Attending events through the internet canalso be counted. However, actuaries whoneed practising certificates will need to makeprivate activities verifiable in some way, sothat there is evidence that a disinterestedobserver would accept that they haveactually done the activity claimed for.

Attendance at courses on management,communication and other business andmanagement skills in an actuarial context maybe included in CPD, although it is unlikelythat a member would claim formal CPD inthese events every year, nor the full 15 hoursin any one year.

To help actuaries in the planning of theirneeds, the CPD Committee of the Facultyand Institute publishes a CPD Handbookavailable on the Profession’s website(www.actuaries.org.uk), identifying CPDrequirements and opportunities. The



handbook subdivides the skills into the threeareas outlined above: technical, professionaland business and management skills.

In the technical areas, the handbookrecognises that some actuaries will need ageneral awareness of a topic and some willneed a detailed knowledge. Others may beable to rely on the detailed knowledge oftheir colleagues but need to be aware of thewider application or consequences of thetopic.

CPD plays an important role whenactuaries move from one area of work toanother and need to develop new areas oftechnical expertise. Actuaries practising indifferent areas produce guidance in theCPD Handbook as signposts for thoselooking to make a change. The scope ofthis help increases as the fields in whichactuaries work continue to grow – the2000/1 handbook saw banking covered for

the first time. All actuaries are encouragedto broaden their outlook beyond theircurrent field of expertise when planningtheir CPD. But most of all they areencouraged to keep learning and developingas professionals.

Actuaries are expected to keep a recordof their CPD activities, usually through theform kept for each member on theProfession’s website. The Professionmonitors every qualified member’s recordevery year to ensure that the requirementsare being met.

JULIAN LEIGH is a Fellow of theINSTITUTE OF ACTUARIES andChairman of the CPD Committee of theFaculty and Institute. He works for amajor firm of consultants advisingcompanies on general insurance issues.

Company profiles, course providers& recruitment consultants

Company profiles:Consulting actuariesAonBarnett Waddingham LLPDeloitteEMB Consultancy LLPErnst & YoungGovernment Actuary’s DepartmentGrant ThorntonHewittHSBC Actuaries and Consultants LimitedHymans Robertson LLPLane Clark & PeacockMazars LLPMercerPricewaterhouseCoopers LLPPunter Southall LimitedTowers PerrinWatson WyattXafinity Consulting

Company profiles:Insurance companiesAXA UKCanada Life LimitedFriends Provident plcHBOS plcLegal & GeneralLloyds TSB InsuranceNorwich UnionPrudentialResolution plcRoyal & SunAllianceScottish WidowsStandard LifeWesleyan Assurance SocietyZurich Financial Services

Course providersCass Business SchoolHeriot-Watt University, EdinburghTanaka Business School, Imperial

College LondonUniversity of Kent

Recruitment consultantsGAAPS Specialist Actuarial Recruitment

Group

www.insidecareers.co.uk |

Detailed information on companies and vacancies, as wellas course providers are provided on the web.

For the latestup to dateinformation onthe web click onthe links below:Graduate vacanciesWork experienceCompany profilesCourse providers

http://www.insidecareers.co.uk/k.nsf/c/797ftx

http://www.insidecareers.co.uk/k.nsf/c/797ftd

http://www.insidecareers.co.uk/k.nsf/c/797fsy

http://www.insidecareers.co.uk/k.nsf/c/797fsm

actuary 07l08

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