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Go to work in the future
Actuarial profession
www.actuaries.org.uk | 3
Getting started?
Contents
We’ve put this brochure together to
introduce you to the actuarial profession
and to help you plan for the future. If you
decide it’s for you (and we very much
hope you do) you’ll find some useful
pointers on the following pages.
Part of our role, as the sole chartered professional body for actuaries
in the UK, is as a provider of trusted and credible information about
the industry and our membership.
We hope that the facts and figures we’ve provided will be useful and
that they will help you come to the best decision for your future.
We are also here to inspire you. And that means getting a better idea of
what being an actuary is really like. That’s why we’ve talked to actuaries,
many of them right at the start of their career, and included their
thoughts, tips and insights in this brochure, in their own words.
To find out more about the Institute and Faculty of Actuaries (IFoA)
and our important role in supporting our members to achieve their
goals within it, take a look at the very last pages.
Getting started? 3
Join the actuarial profession and join the forward thinkers 4
Launch a career that speaks volumes about your skills 6
The numbers 8
The opportunities 9
You’re tempted? So where do you start? 10
Making the grade 12
In their own words 16
About the IFoA 18
President’s final thoughts 19
Join the actuarial profession and join the forward thinkersIf you’re someone who appreciates numbers
and their potential, you should consider
joining the actuarial profession.
Actuaries are experts in risk management. They use their mathematical
skills to measure the probability and risk of future events and their
financial impact on a business and/or their clients.
As an actuary you would work for:
• Banks
• Insurance companies
• Consultancy firms
• Industry.
There are opportunities nationally and internationally. Within those
companies you would work in the areas of:
• General Insurance
• Health and Care, Investment
• Life Insurance
• Pensions
• Risk Management.
There’s no doubt you’ll be making a difference. A career as an actuary
gives you the chance to apply your skills in maths and statistics to real
world challenges.
Just think about the issues which matter most to populations around
the world - and consider how your skills could be applied. In an
increasingly global economy, the ability to decipher and interpret
complex statistical and financial information will be ever more crucial.
Business and industry increasingly depend on the skills of actuaries
to help them to model, and plan for, the future. It’s a challenging
and rewarding role for thought leaders and innovators. It’s why the
actuarial profession attracts some of the brightest, most ambitious
and creative people you could ever meet.
It’s why the actuarial profession is so highly regarded and respected.
And it’s why actuaries are amongst the best paid of all professional
groups with starting salaries that far outstrip your peers in
other industries.
You’re at a pivotal point in your career. If you’re ready to tackle a
role that’s as rewarding as it is challenging, it’s the right time to
find out more.
Actuaries are amongst the best
paid of all professional groups
how rising rates of obesity
will impact the long term
prospects of the NHS.
You might be asked to consider:
or if global warming will push
up the price of flood insurance
beyond manageable rates.
or whether fluctuating oil
prices, a war or a glut of house
building in China will impact
upon UK pension funds.
4 | Institute and Faculty of Actuaries www.actuaries.org.uk | 5
Secure your future in a career offering limitless opportunity. Find out more at www.actuaries.org.uk/become-actuary
It’s a young, dynamic
profession, with 43% of our
membership 30 or under
6 | Institute and Faculty of Actuaries www.actuaries.org.uk | 7
Launch a career that speaks volumes about your skillsYou’ll be working with a team of bright people who
share your passion for numbers and your ambition
to succeed. It’s a young, energetic and dynamic
profession and the Institute and Faculty of Actuaries
(IFoA) is your professional body.
“I am a Nearly Qualified Actuary working in a software
company TCP LifeSystems which provides systems
solutions to the top life insurance companies in UK.
The thing I enjoy most about my job is dealing with clients
and communicating complex actuarial concepts to a non-actuarial crowd.
Predicting my future isn’t as easy as predicting future premiums!! – but
in the long term I would want to open my own consultancy providing
actuarial services to Insurance companies.
To everyone wanting to get into the industry, I’d say, risk is an opportunity
and so is the actuarial industry- so make complete use of that opportunity.
Model your lives on the basis of positive assumptions (however unrealistic
they may sound) by using data from past experience of your lives, local
statistics of friends and family, national statistics of successful people, and
hope that the model so created has minimal error and provides you with
reliable expected results.”
Neha Agarwal | TCP LifeSystems
“After graduating from the
University of Manchester
with a degree in Mathematics
in July 2015, I considered
my career options carefully.
I’d spent hours attending careers fairs,
networking events and presentations from
potential employers. The actuarial profession
stood out because of the variety of skills
it incorporates – strong communication,
problem solving and teamwork are essential,
as well as core mathematical skills. The
opportunity to utilise those soft skills as well as
use actual maths in my job was a big draw for
me – and the pay isn’t bad either!
There are a lot of new concepts and
techniques to pick up when you first start
so asking loads of questions and letting
colleagues know when I don’t understand
something has been vital.”
Tom Birkin | Xafinity Consulting
“I work in the Energy Analytics
department at LCP and work
on developing the main energy
market model used by the
government to design and
assess policies to meet long term goals.
We predominantly provide bespoke modelling
solutions to our clients as both standalone
software and excel based solutions. We create
long and short term models that generate
energy market projections including outputs
such as the energy price, the generation of
different powerplants and policy costs.
The rise of ‘fintech’ has shown me just how
powerful the use of technology can be.
I want to remain on the cutting edge of
this sector, constantly looking for ways to
apply innovative techniques to new areas.”
Will Blair | LCP
“My initial experience of First Actuarial was through their summer internship
programme. It was a great eye-opener into the actuarial world and gave my CV
real weight when applying to graduate roles. It meant I was fast tracked through
the graduate application process.
Since most actuarial applicants are technically proficient with excellent academic records, to give
yourself the best chance of getting an internship or placement build up your ‘soft skills’ such
as task management, communication and presenting, making sure you are able to back up
those skills with relevant experience. Also, it is often helpful to show that you have a life outside
of work with hobbies or interests to demonstrate you’re a ‘real person’ and not just a number
crunching robot.”
Dom Thurlow | First Actuarial
The numbers The opportunities
8 | Institute and Faculty of Actuaries
www.actuaries.org.uk | 9
If you’re a fan of numbers, take a look at these impressive benefits. It all adds up at www.actuaries.org.uk/become-actuary
The actuarial profession attracts academic and ambitious people with
skills which are in high demand. As you’d expect, it’s well paid right from
the start.
Opportunities for career progression, nationally and internationally, are
huge. In a globalised economy, becoming an actuary makes you part of
a truly international network. 46% of IFoA’s student members are from
outside the UK and the interconnectedness of finance means you’ll be
able to work anywhere in the world.
Take a look at where you’ll start and where you could end up.
The IFoA has
members30,000
International
The average salary
that a graduate
trainee can earn
is higher than a lot
of other graduate
roles. In fact, it is
one of the highest
overall, alongside
investment banking.
8 | Institute and Faculty of Actuaries
Supported by employer and IFoA
Work/life balance
Training Governance Profession for life
Actuaries can earn an average of
Yes
No
Study and sit IFoA exams
whilst working
Get a job as a trainee/
student actuary
Have you just left
university with a
numerate degree?
Have youbeen to
university?
Do youhave good
A-levelsand an A or B
in Maths?
Qualify as a Fellow
or Associate
Contact theCareers Team
The sky’s
thelimit
(can progress)
The world’s
youroyster
Yes
Yes
No
No
Sit the CAAprofessional qualification
Get an apprenticeship.
Earn while you learn
Qualify as a Certified Actuarial
Analyst (CAA)
You’re tempted? So where do you start?
Routes to qualification
First things first. If you want to move into the
actuarial profession you’ll need an aptitude for
maths. If you love data, numbers and problem
solving you’ll be in your element.
10 | Institute and Faculty of Actuaries www.actuaries.org.uk | 11
Remember that different employers have different requirements for
entry into an actuarial role so do take a look at our Directory of
Employers or visit https://www.actuaries.org.uk/become-actuary
for an in depth understanding of the best route for you.
Set your sights high and plan your route to qualification at www.actuaries.org.uk/become-actuary
The IFoA is the UK’s only
chartered professional body
dedicated to educating,
developing and regulating
actuaries based both in
the UK and internationally.
Become a member and
we’ll support you throughout
your career.
Making the gradeThere’s no escaping the fact that becoming
an actuary is challenging academically. You
must be bright, determined and ready to
work hard.
Take a look at our case studies and you’ll see
that, despite the dedication required, it’s well
worth it. But let’s consider, in detail, the steps
you have to take and the challenges you’ll
face along the way.
Your university course If you’re just about to pick your course and you’re certain that a
career as an actuary is for you, an actuarial science degree could be
a great choice. Remember that whichever degree you choose, most
employers will ask that you achieve a 2:1 or a 1st.
If you’re tempted by the actuarial life but not 100% certain that it’s
for you, a numerate degree such as maths is ideal. It’s worth noting
that some employers accept applications from candidates with a
‘semi-numerate’ degree i.e. one which includes one or more modules
related to maths. These could include some IT subjects, economics,
business and management or a science. Remember that if you do
decide to do a degree that isn’t entirely numerate - the requirement
to have a Maths A-level becomes very important.
Remember too that there’s more to university than preparing yourself
for your first job. It’s about preparing yourself for the rest of your life. So
it’s important to choose a subject which you’ll enjoy and which you feel
will be personally enriching. You will spend at least three years of your
life completely immersed in it and it should be a subject you’ll find
truly fascinating.
What if you don’t have a numerate degree? Don’t despair – you can still become an actuary. Employers usually
insist you have a maths A-level at Grade B or A. If you don’t have a
numerate degree employers will also require you to have a 2:1 or 1st
in the degree subject you did choose.
It’s time to talk about the ‘E’ word: Exams Let’s be clear, if you’re hoping to leave University and never take
another exam in your life, the actuarial profession is definitely not
for you.
Actuaries do need to sit a number of exams covering areas such as
finance and financial mathematics, statistics and models, actuarial
mathematics and audit trails. As with many professions, you learn
the skills you need to qualify whilst working.
Ours is a rigorously controlled industry, which means you’ll have
to demonstrate your skills and knowledge at many stages as you
progress towards becoming fully qualified – and throughout
your career.
But don’t worry! Not only will your employer support you through
these exams, they will help you gain the skills and techniques needed
to excel in your career. They’ve been impressed enough with you to
employ you and they will make the effort to invest in your success.
They will also reward you for your hard work and dedication through
a pay rise each time you take and pass an exam, so there is definite
incentive to do well!
12 | Institute and Faculty of Actuaries www.actuaries.org.uk | 13
Take a look at the list of exam and qualification requirements at www.actuaries.org.uk/become-actuary
Degree courses suited to
becoming an actuary:
Actuarial Science
Mathematics
Economics
Physics
Engineering
Chemistry
14 | Institute and Faculty of Actuaries www.actuaries.org.uk | 15
You’ll also be tested as you start to specialise in the later exams for the
Fellowship, in subjects such as Health and Care, Pensions or Insurance.
Take a look at the exams you will have to take here.
In addition to the exams, you will be expected to build your work
based skills. These will include areas such as communication,
presentations and leadership. These competency based assessments
will take place over one or three years. If you’re to be a success in the
industry, you need to perform as well in these areas as you do in the
more formal exam settings.
That continues even after qualification.
All members of the Institute and Faculty of Actuaries have an
obligation under the Actuaries’ Code to maintain their competence:
the Continuing Professional Development Scheme sets out the
framework which assists members in complying with this obligation.
The way we maintain high standards is one way to ensure that our
profession continues to be held in high regard.
Exemptions Depending on the modules you take and the grades you obtain at
university, and whether or not the course you choose is part of an
IFoA accredited programme, you can be exempted from some of
the actuarial exams.
These exemptions are agreed between IFoA and the universities
themselves. Take a look at our website at www.actuaries.org.uk/studying/exam-exemptions to see the full list of participating
universities. You can find out more about the exams process on
our website www.actuaries.org.uk/studying/plan-my-study-route
Lastly - don’t panic This may look complex but there’s plenty of expert support available
if you need to talk through your options. Whether you are at the
beginning of your educational journey, looking for your first job or
already embarking on an actuarial role, we are here to help.
Core Technical exams Format of the examCT1 – Financial Mathematics CT5 – Contingencies One written paper – three hoursCT2 – Finance and Financial reporting CT6 – Statistical modelsCT3 – Probability and mathematical statistics CT7 – Business EconomicsCT4 – Models CT8 – Financial EconomicsCT9 – Business awareness Online exam
Core Technical exams
CT1
CT2
CT3
CT4
CT5
CT6
CT7
CT8
CT9
Format of the exam
Financial Mathematics Contingencies One written paper – three hours
Online exam
Statistical models
Business Economics
Financial EconomicsModels
Business awareness
Finance and Financial reporting
Probability and mathematical statistics
Specialist Technical
ST1
ST2
ST4
ST5
ST6
ST7
ST8
ST9
Format of the exam
Health and Care Finance and investment (B) One written paper – three hours
General Insurance – reserving and capital modelling
General Insurance – pricing
Enterprise Risk Management (Certified Enterprise Risk Actuary, CERA)
Finance and Investment (A)
Life Insurance
Pensions and other benefits
Core Application exams
CA1
CA2
CA3
Format of the exam
Actuarial risk management Two written papers – three hours each
Two written papers – three hours each over two days
Online exam
Model documentation, analysis and reporting
Communications
SA4
SA5
SA6
Pensions and other benefits
Finance
Investment
Specialist Application
SA1
SA2
SA3
Format of the exam
Health and Care One written paper – three hours
Life Insurance
Communications
Take a look at the list of exam and qualification requirements at www. actuaries.org.uk/become-actuary
In their own words
16 | Institute and Faculty of Actuaries www.actuaries.org.uk | 17
“I used to be a Maths teacher, now I’m an actuaire extraordinaire.
I’ve been working at Xafinity a pensions consultancy with
550 clients, for 5 years. I really enjoy it and every time I have
a challenging day I just think that it’s so much better than an
average day of teaching a class of 30+ kids.
My advice when you’re applying is don’t try to stand out just for the sake of
it; quietly confident is much better than being overconfident. Be yourself and
do your best, and try to have fun.
The most important soft skills are communicating well with other people to
make sure deadlines are met.”
Alex Miller | Xafinity
“My name is Prudence Maseko and I am a nearly qualified actuary.
I work for a small life insurance mutual based in Kent. I enjoy my
job. In fact, I love my job.
A typical day could be anything from carrying bonus calculations
for with-profits insurance policies, or calculations on the quarterly valuation
under Solvency II or writing reports for board meetings. No day is the same,
fresh and exciting challenges always come up and that is what I find most
interesting about working in the actuarial industry.
Working as an actuarial analyst while studying for the actuarial exams has
certainly been challenging. It requires hard work, effective time management
and dedication. After qualifying all the hard work pays off through a higher
than average salary, a good work-life balance and an exciting job with
plenty of opportunities to progress.”
Prudence Maseko | Reliance Mutual
“In some ways my route into the profession was traditional – I
graduated from the LSE with a Bachelors in Actuarial Science. My
route since has been less standard. Rather than choosing one of the
‘core’ actuarial roles, I’m working at The Boston Consulting Group
(BCG) for their insurance practice. Working for a consulting group puts me at the
cutting edge of strategy and innovation with the biggest insurers in the world.
The extraordinary diversity of my projects keeps me intellectually engaged. For
example, BCG’s insurance team has been taking on ground-breaking projects
in InsurTech and Artificial Intelligence.
My advice? Get in touch with someone already working in the industry to get
a first-hand perspective of the work e.g. through the Institute of Actuaries or a
company’s HR team. Apply early if you’re applying for a graduate scheme. And
lastly, make the most of your extracurricular activities in interviews – it shows
employers you can juggle your studies with other commitments (which is a
necessary skill for juggling actuarial exams with work!).”
Anam Khan | The Boston Consulting Group
“I attended schools in Hong Kong, Mumbai, and the UK. An
actuary once told me that becoming an actuary is like gaining a
passport to a world of problem solving, and that really appealed.
As did the prospect of being able to work anywhere in the world!
As I work for Pension Risk Transfer, we have a variety of on-going projects to
provide quotes for schemes that are looking for de-risking solutions.
I’m not going to minimise the amount of work involved. It was a steep learning
curve. There was a lot of jargon and a lot of the concepts were new to me, but
the more questions I asked, the quicker I began to understand the
pricing process.
Deadlines can become tight as finalizing the quote can become an iteractive
process. It’s a fast paced role, but it’s never boring.”
Vibha Raj | Legal & General
Fiona Morrison President, Institute and Faculty of Actuaries
About the IFoA President’s final thoughts
18 | Institute and Faculty of Actuaries www.actuaries.org.uk | 19
The IFoA is the UK’s only chartered
professional body dedicated to educating,
developing and regulating actuaries based
both in the UK and internationally.
We have the resources, expertise and commitment to support you at
every stage of your career. We’ll work hard to help you to realise your
professional goals and to continue to develop our industry to ensure
a breadth of opportunity. Join us and you’ll be one of over 30,000
members worldwide. We’re a young bunch - 94% of our members
are under 40 – and we have a truly international reach.
As a member you’ll benefit from:
• Professional recognition of your achievements nationally
and internationally
• Education and career development through the qualification syllabus
and Continuing Professional Development (CPD) programme
• Influence through your involvement with matters of public interest
• Regulation and control of our industry
• Networking as you build a community of your peers to share best
practice and offer support
• Extensive library resources online and hardcopy support for your
studies and research
Visit www.actuaries.org.uk today to join us.
This guide will have provided you with an insight into the career
opportunities that are available within the actuarial profession; for
more information and details on how to begin your journey to qualified
actuary please visit our website https://www.actuaries.org.uk/.
Should you decide that this is the right career for you, I am certain that
the IFoA is the best placed organisation to offer you the professional
support you need to achieve your goals and ambitions.
Your professional needs are at the heart of all we do – providing high
quality, internationally recognised, qualifications and lifelong learning
opportunities. As a regulated profession, the actuarial skill set is of
enormous value to businesses and society and can be applied across
multiple business sectors.
As risk professionals, we are able to simplify complex problems,
communicate them effectively, and translate the outcomes into
meaningful guidance for businesses and the public sector.
The actuarial profession is one with a rich history, dating back as early
as the 17th century; and yet, in this changing world, we are adaptable
and increasingly diverse, with over 50% of the IFoA membership now
based overseas and a growing number of us moving into wider fields
of work.
It will take commitment and hard work to succeed in our profession but
in my opinion it’s a great time to make a difference and be an actuary. Marjorie Ngwenya
President, Institute and Faculty of Actuaries
Email: [email protected]
www.actuaries.org.uk/become-actuary
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