Actuarial analyst
Using their strong mathematical ability, actuarial analysts analyse data to assess risk
In life insurance, for example, this could involve working out the average life expectancy of different demographics to determine the policy premiums each should be charged.
Analysts use specialist computational software and spreadsheets, so an interest in and aptitude for using IT is useful. You could work in various areas of the financial services industry and will often be engaged in a support role within an actuarial team.
Types of actuarial analyst
You'll usually specialise in one of the following areas:
- finance
- general insurance (pricing and reserving)
- health and care
- life assurance (pricing and reserving)
- pensions and other employee benefits
- savings and investments
- software development (usually in an actuarial team).
Responsibilities
As an actuarial analyst, you'll be required to:
- understand and use complex mathematical formulas, particularly in the area of advanced statistics and modelling
- use spreadsheets or other specialist software to complete data analysis tasks
- provide technical support to a team of actuaries, producing statistical reports and analysis
- write reports on your computations with results of your findings and produce these reports in a format that non-specialists can understand.
Salary
- Starting salaries for student or trainee actuarial analysts are usually in the region of £20,000 to £26,000.
- Qualified actuarial analysts, with around 5-10 years' experience can expect to earn up to £65,000.
- As a senior analyst, you could earn up to £100,000.
Benefits can include bonuses, a company pension scheme, medical insurance, gym membership and other discounted insurance options.
Income figures are intended as a guide only.
Working hours
Hours are usually 9am to 5.30pm. You may need to work some evenings and weekends, especially when working on complex projects such as marketing campaigns or year-end returns to the pensions regulator.
Paid overtime is rare, although some organisations will offer time off in lieu.
What to expect
- Roles are office based although attending meetings is a feature of the job.
- You'll need good concentration to work on complex calculations, using spreadsheets and specialist software.
- Opportunities exist in the UK and overseas. An actuarial qualification with the Institute and Faculty of Actuaries (IFoA) is globally recognised.
- Formal dress is the norm, although some companies may have relaxed casual days at the end of the week.
Qualifications
Entry to training as an actuarial analyst does not necessarily require a degree and you can study for CAA exams before obtaining a relevant job.
The CAA qualification from the IFoA is designed for those who want to get into analytics and data; candidates might be currently working in an analytical role or might be new to financial and statistical work. It is a career pathway designed to allow you to study for the CAA while working full time, taking on average, two to three years of part-time study to complete.
Becoming qualified includes six exams, as well as an online professionalism awareness test (OPAT). You must also complete one year of relevant work-based skills. Once you are qualified, you will need to join the IFoA and will be able to use the CAA designation after your name.
The minimum entry requirement for the Fellow of the Institute of Actuaries (FIA) route to qualify as an actuary is an A-level in mathematics at grade B or above. However, most entrants have a degree in a numerate subject such as mathematics. Other relevant degree subjects include:
- business studies, where the course includes numerate options or core modules
- economics
- engineering
- physics
- statistics.
There are also specific degrees in actuarial science which can provide some exemptions from professional examinations. Companies usually look for applicants with a 2:1 or first class degree, although there are exceptions to this.
Search for postgraduate courses in actuarial science.
If you wish to become a qualified actuary, you'll need to take several exams while working as an analyst or trainee actuary.
Skills
You'll need to demonstrate:
- a strong ability in mathematics
- the capacity to analyse data and solve problems
- the ability to carry out statistical analysis, such as scanning and cleaning data and interpreting trends and relationships between data sets
- good communication skills to be able to feed back findings to non-actuarial colleagues or clients
- the ability to produce reports and summaries of data analyses that non-specialists can understand
- commercial awareness as you'll need to adopt a business-like approach when dealing with clients
- an aptitude for collaborative working.
Work experience
Although prior commercial experience is not essential, it will give you an advantage if you gain some in financial services - particularly insurance - either as part of your degree or after graduation. Other work experience in any role or sector is also looked upon favourably, especially if you can demonstrate relevant transferable skills.
It may be possible to undertake a paid summer internship at a relevant company during your studies. Some larger companies such as the 'big four' consultancies (PwC, EY, KPMG and Deloitte) advertise actuarial internships. For a paid six-week summer internship, you'll typically need a predicted relevant 2:1 degree, or a predicted first class degree. However, it is advisable to check for the relevant requirements at each internship provider. Opportunities to undertake 12-month paid internships are also available.
Some smaller companies may not advertise, so you will need to make speculative applications to enquire about opportunities. You should include examples in your CV of any opportunities you have had to gain relevant skills, such as numeracy, data analysis, IT and problem solving, from your degree or other placements including part-time and vacation work.
Find out more about the different kinds of work experience and internships that are available.
Employers
Actuarial analysts are found in a range of large to medium-sized organisations, including the 'big four' consultancies, as well as other financial services companies and all major insurers.
Employers are located in most major cities, in particular:
- Birmingham
- Bournemouth
- Bristol
- Edinburgh
- Glasgow
- Leeds
- Liverpool
- London
- Manchester.
Some of these are pan-European or international, so opportunities to work overseas are common - though less so for trainees.
You can search for job vacancies at:
Recruitment agencies include:
Professional development
Entrants can either train as a CAA, or work towards becoming a professional actuary with recognition as an FIA or a Fellow of the Faculty of Actuaries (FFA).
There are no entry requirements for becoming a CAA, and the qualification can be studied via part-time distance learning through the IFoA over the course of two to three years. The CAA is a professional qualification which not only enables you to become an actuarial analyst, but also equips you with transferable skills. These skills enable you to work in any analytical role across other sectors, for example as a business or climate analyst.
For those wishing to study for the CAA or professional actuarial examinations, paid study time is usually available - typically half a day a week.
Career prospects
The skills and expertise of actuarial analysts are in demand as most of the work relates to a dynamic area of the financial services sector, notably pensions and life insurance. Those with highly developed numerical and analytical skills will find opportunities for graduate entry positions. The competition for these roles is fierce.
Once you've become CAA qualified, and qualified as an actuarial analyst, it's possible to progress and take the FIA exams to gain recognition as a qualified actuary. Alternatively, you can seek senior positions as a senior actuarial analyst.
Undertaking the professional exams to become a fully qualified actuary provides the greatest opportunity for your development in the profession. From qualification, you'll be able to progress further into senior roles or consultancy work.
You can find comprehensive information on the types of roles and areas of speciality within the sector, along with details of the CAA qualifications, from the IFoA.