Use mathematical and statistical models to conduct various types of analyses and assessments to predict and manage risks.
A
n actuary’s work revolves heavily around the prediction, evaluation and management of risks using a combination of commercial awareness and statistical and mathematical models. They may also be invited to advise clients about findings as well as help them develop potential solutions. As such, the job scope can be very diverse, encompassing a good mix of client-facing and calculation tasks. Some key day-to-day responsibilities for actuaries include analysing statistical data, preparing reports and presentations, and working with IT professionals to develop and update systems that incorporate solutions to the risks. In some cases, they may even be assigned to develop entirely new financial products. Actuaries are greatly needed in a variety of sectors, including banks and financial services organisations, insurance companies, specialist consultancies and even accounting firms and investment banks.
General overview
General overview While hopefuls are generally required to possess sufficiently high grades in an actuarial science degree, some employers do accept graduates with a background in other numerate degrees, such as statistics, economics, finance, or mathematics – provided that a strong understanding of the financial industry is showcased. Graduates typically start their careers as trainees, assisting senior colleagues in their duties as they pick up the necessary skills required to advance. Hence, a big portion of time will likely be spent handling calculations and using pre-constructed models to generate financial forecasts. As more experience is gained, greater responsibilities such as leading projects, constructing, updating and analysing financial and forecasting models will be given, as well as handling client relationships. Many employers encourage new hires to begin studying for a professional qualification or fellowship as soon as they get on board, which often translates to a challenging time balancing work and study. However, most organisations are very supportive, offering financial assistance and ample study leave to lighten this struggle. A degree in actuarial science may exempt graduates from some of the professional qualification exams that need to be taken in order to become a certified actuary. Upon gaining their qualifications, many actuaries tend to specialise in a specific area of interest, gaining in-depth knowledge, experience and reputations as experts in their fields of choice. Many professionals have also found opportunities in other seemingly unrelated areas of management as well. For instance, actuaries have been known to venture into infrastructure and climate change projects, along with the healthcare and data science industries.
Required skills Actuarial careers are well-suited for those who have excellent numeracy skills, possess an analytical mind and have a keen eye on the future. Skills in problem-solving, research and analysis are vital as well. As the job scope includes presenting data and solutions to clients, most of whom possess a minimal understanding of actuarial science, good interpersonal, communication and presentation skills are important. Accountability is also crucial as actuaries need to diligently follow up on clients throughout the process of implementing solutions. Actuaries should also be flexible, adaptable and able to handle ambiguity as the job scope can be very diverse, with adhoc tasks and projects regularly coming up.
Pros and cons Actuaries are involved in a variety of tasks and industries, making the job an extremely interesting and challenging one. This is made even more exciting by the rapid development of IT and technology, leading to new risks and need for creative solutions. Many also enjoy steady career advancement and attractive remuneration, especially upon obtaining a fellowship from a recognised actuarial association. However, the workload can get stressful and may lead to longer working hours – especially when it comes to pursuing a fellowship.
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FINANCIAL SERVICES - Areas of Work
ACTUARIAL SCIENCE
