By : Zakarya El-Sherief

What is an actuary?
Actuaries are experts in risk management.

They use their mathematical skills to help measure the probability

and risk of future events. This information is useful to many industries, including healthcare, pensions, insurance, banking and investments, where a single decision can have a major financial impact. Actuaries in the UK belong to the Institute and Faculty of Actuaries. It is a global profession with internationally-recognised qualifications. It is also very highly regarded, in the way that medicine and law are, and an actuarial career can be one of the most diverse, exciting and rewarding in the world. In fact, due to the difficult exams and the expertise required, being an actuary carries quite a reputation.

What skills do actuaries have?

People who work as actuaries come from all sorts of backgrounds,

though clearly they share a love of maths. Actuaries are problem solvers and strategic thinkers with a deep understanding of financial systems. On the way to achieving a qualification, you'll develop
these and other key skills - analysing data, evaluating financial risks, communicating clearly - through exams and work-based training.

What does an Actuary do ?

Out of our 23,950 members
22% work in Pensions 27% work in Life Insurance

12% work in General Insurance

5% work in Investment 2% work in Education 1% work in Health and Care

33% work in other sectors

What are the main industry sectors I could work in?

Consultancies - offering advice on issues such as acquisitions,

mergers and financing capital projects, and also on occupational pension schemes. Investment - involved in research and on the pricing and management of investments, particularly in mitigating the risk of investments. Insurance - providing a service to companies which need a huge range of numerical information investigated, analysed and explained; for example to create and price polices, or to ensure they have the money to cover claims. Pensions - designing and advising on company pension schemes, especially placing a value on accumulated pension commitments.

What kind of projects do actuaries work on?

Every area of business is subject to risks so an actuarial career

offers many options. A typical business problem might involve analysing future financial events, especially when elements are
uncertain. But it could also involve understanding something like the weather: assessing when and where devastating storms may hit

and their associated costs, for investments or insurance.

Due to an actuary's skill the opportunities open to them are

endless, they can even be employed in the marketing and

development of financial products.

Can I work in other areas?

The skills that you will gain as an actuary will be invaluable to you

in your future career, whether that is as an actuary or other. Many actuaries change practice area and career paths. They move into

teaching, alternative risk roles, consultants, business operations managers, career advisers the list is endless.

Can I work abroad?

Yes - With the skills you will gain with the UK Profession, they

can take you anywhere in the world. With mutual recognition agreements with some of the other actuarial professional bodies, once you have qualified it may be easy to transfer to another

professional body if your work takes you that way.

Where do actuaries work?

Insurance and Consultancy - what is the difference? Working in an insurance company environment means that there is usually only one client; your employer. A variety of work is available but tends to come more slowly often youll be asked to work in one area for a period of about one year before moving on to the next challenge, taking the experience you have gained with you. The day to day work within consultancy firms tends to be more varied, as in any year you are likely to work for a number of different clients solving different types of problems. This can become particularly challenging if you have a number of projects running in parallel and you need to ensure that you meet and manage each of your clients expectations and deadlines. This can give you an excellent opportunity to work with other people and see the running of an organisation other than your own. You may also find yourself working on just part of a project rather than seeing it all the way through from start to finish.

Where do actuaries work? Con.

Consultancy Actuarial consultancies are the biggest employers of actuaries in the UK. Consultancies will offer a range of services to their clients, such as pensions, enterprise risk management, merger and acquisition advice, corporate recovery and financing capital projects. The Government Actuarys Department (GAD) provides advice to the Government via Royal Commissions, as well as giving advice to other government departments and a wide range of public sector bodies, including local authorities and the NHS.

Where do actuaries work? Con.

Insurance industry

Life insurance Life insurance companies provide life insurance, pensions and other financial services. Actuaries are involved at all stages in the product development and in the pricing, risk assessment and marketing of the products. With recent legislation leading to more private healthcare provision, insurance companies are extending their range of products to include medical insurance, critical illness and disability insurance.

Where do actuaries work? Con.

Insurance industry

General insurance General insurance is a fast-growing area for actuaries, both within insurance companies and consultancies as well as reinsurance and broking operations. General insurance includes personal insurance, such as home and motor insurance, as well as insurance for large commercial risks. Terrorist attacks, Caribbean windstorms and industrial diseases like asbestosis are all examples of insurance liabilities where actuaries have been integrally involved in estimating ultimate costs into an uncertain future.

Where do actuaries work? Con.

Finance and investment

Investment management Actuaries have been involved in the field of investment management for decades. Indeed, it is probably true to say that more people see the word actuaries through the daily stock exchange indices than through any other source. Actuaries are involved in buying and selling assets, investment analysis and portfolio management. Many employers recognise the skills that the training provides and have allowed actuaries to develop these skills as well as others, such as the skills of financial economists.

Where do actuaries work? Con.

Finance and investment

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

Where do actuaries work? Con.

Finance and investment

Banking Actuaries are becoming increasingly involved in banking. For example, some of the leading insurance companies now have their own established banking operations, with actuaries filling some of the senior executive positions for finance and risk. The leading retail banks are also increasingly employing actuaries, as they recognise that the longer term approaches advocated by actuaries can add value to their businesses. As the insurance and banking markets continue to converge, we can expect to see the demand for actuaries within banking fields continue to grow.

Why become an actuary?

The variety of work

You can work in specialist areas of insurance, pensions, benefits, healthcare, investments and banking, or for any large organisation where risk management plays an important role, or for a consultancy advising on all sorts of different projects. An influential role The unique skills of actuaries are behind many high-level strategic decisions made by large companies and governments, and can have a positive impact on legislation, businesses and individuals. The rewards Salaries and benefits packages are excellent from the beginning. In fact, it's one of the highest paid professions.

Why become an actuary? Con.

Intellectual satisfaction

Actuaries are problem solvers, in tune with what's happening in business through their interpretation of statistical data and knowledge of social and economic systems. International opportunities Once you're qualified, actuarial skills can take you anywhere in the world. High standards Actuaries combine good business sense with safeguarding the public's financial interests, upholding the highest professional standards. A good life balance There is flexibility to balance professional commitments with personal interests.

What can an Actuary earn ?

Wherever you go in the world, you'll find the actuarial profession is one of the highest paid.

Here is the basic salary you might expect to earn at different levels of responsibility.

Responsibility level

Average basic salary () per year

Chief actuary, senior partner Senior function head, practice director

Function head, practice head Department manager, managing consultant Section manager, senior consultant

221,250+ 134,343
110,747 87,557 81,239

Section leader, consultant Senior actuary, junior consultant

Actuary Student actuary

67,298 59,836
46,515 32,842

Source: XpertHR Salary survey of actuaries and actuarial students, 2011-12 For more information visit www.xperthr.co.uk

Can I work in other areas?

The skills that you will gain as an actuary will be invaluable to

you in your future career, whether that is as an actuary or other. Many actuaries change practice area and career paths. They move into teaching, alternative risk roles, consultants, business operations managers, career advisers the list is endless.

Can I work abroad?

Yes - With the skills you will gain, they can take you

anywhere in the world. once you have qualified it may be easy to transfer to another professional body if your work takes you that way.

How to become an Actuary ?

After graduation If you have taken Exemptions in CT1 : CT8 from the Institute. Now you have two ways : 1- Society of Actuaries (SOA) : FAP : 8 Modules (2:3) years. 2- Faculty and Royal Institute of Actuaries: CT9 Business Awareness (Online) CA1, CA2 & CA3