T ACTUARIES
The Essential Courses and Careers Guide to The Actuarial Industry
Your questions answered. What does an actuary do? How do I choose my university course? Where can I work as an actuary? www.actuaries.org.uk
STUDENT TIMES // 23
ACTUARIES
So what is an actuary? Careers: Areas actuaries work in
Actuaries are some of the brightest people in business today. They’re • problem solvers • business analysts • consultants • and financial risk assessors who consider past and present information to develop and communicate a picture of the future.
Actuaries operate in a wide range of areas and offer a range of services to clients:
Actuaries in a nutshell
Actuarial consultancies offer a range of services to their clients such as: • acquisitions • mergers • corporate recovery • financing capital projects
• It’s all about managing risk • It’s as highly regarded as medicine, architecture and law • It’s a global profession with internationally recognised qualifications • You’ll need an A-level or Higher in maths and a good degree (2.1 or above)
Actuaries in insurance • design new insurance policies • set premium rates • calculate a company’s financial status • answer technical queries from policyholders Actuaries in pensions • design and advise company pension schemes, especially where a value needs to be placed on a scheme’s accumulated pension promises.
6 good reasons to become an actuary
1
Diverse and varied work Actuarial skills are in global demand across many financial sectors - from insurance, pensions and benefits, investment and asset management, to banking and healthcare.
Actuaries in investment are involved in a range of work such as: • pricing financial derivatives • working in fund management • working in quantitative investment research
2
Influential role With specialist training and unique skills, actuaries are usually behind many high level strategic decisions made by financial services companies and governments.
“Actuaries are some of the brightest people in business today. They’re problem solvers, business analysts, consultants and financial risk assessors who consider past and present information to develop and communicate a picture of the future.”
3
Intellectual satisfaction Actuaries are problem solvers. They analyse and interpret data, assess risks and estimate outcomes, and communicate all this to people from a wide range of backgrounds.
4
A good work-life balance With variety comes flexibility, allowing you to balance professional commitments with personal interests.
5
Well paid Salaries and benefits packages are excellent - even for those starting out in their career. In fact, it’s one of the highest paid professions.
6
Professionalism Actuaries uphold the highest professional standards. The job demands that actuaries combine good business sense with safeguarding the public’s future financial interests.
24 // STUDENT TIMES
Actuaries Profiles Hannah
Position: Trainee Actuary - Pensions (partqualified) Studied: MORSE at Warwick University Now working for: Punter Southall, London “I really enjoy maths and statistics and wanted a job that would allow me to apply them to real life situations. My dad had studied actuarial science at university so I already knew a bit about it. I wanted challenge and variety in my career and thought that being an actuary would tick all the boxes. I chose a degree that would help me become an actuary, but I also went to university with an open mind about
other possibilities. I was pleasantly surprised at the amount of support within the teams. At Punter Southall, there are lots of different people to learn from, you can ask people at all different levels for advice. Within pensions there is a lot of job variety. On any one day I could be doing individual member calculations, such as transfer values and costing options, to project work such as an actuarial valuation where we investigate the ability of a pension scheme’s assets to meet its liabilities. There is a lot to learn quickly, but there’s also a lot of training and support. I’m working with new
interns and it’s made me realise that I’ve actually learnt a lot - I know more than I thought! It’s challenging to balance study and work but it is really rewarding. There’s a great variety of work and brilliant development opportunities.”
ADVERTORIAL: KINGSTON UNIVERSITY
Degrees with a Career Focus Many students considering their options for university will be uncertain about the future – and no wonder. The recent upheaval in the world’s major financial markets may make you think twice about a business career, but there will always be a need for well-trained specialists – and with the cyclical nature of the markets, graduating in a few years could be perfect timing. So if you’re considering a course in Actuarial Maths, you’re definitely giving yourself a good start. As the rest of this publication shows, it’s an excellent choice with lots of potential to develop your career. Kingston University, rated by the Guardian Guide 2008 as one of the UK’s top 10 Universities for Maths and “excellent for teaching” in Maths and Stats by the Sunday Times (21.09.2008) has a very strong focus on preparing students for their future careers. “Academic achievement is
obviously a top priority, but we also Pavneet encourage students Arora to take a professional placement during their course. Not only does it give them valuable work experience for their CV, but also our results across all courses show that students who’ve done a placement go on to get higher grades” says Dr Peter Soan, who teaches on the Actuarial Mathematics and Statistics course at Kingston and is also the faculty’s admissions tutor. Dr Soan is a strong advocate of the real business experience gained through a Professional Placement. “Some people are put off by the old description of Sandwich Degree, but a modern professional placement is
an opportunity to get paid for improving your chances of a good career! As well as giving you a major CV advantage when applying for jobs, you may well find that your placement employer will be assessing you for a future career and invite you back when you graduate.” With companies like Royal Bank of Scotland, Accenture and Lloyds TSB coming in to talk to Kingston students about placements, it’s clearly a good way to boost your career potential. As well as the financial world, there are wider opportunities for actuarial students. Pavneet Arora is currently doing a 12 month placement at GSK (Glaxo SmithKline) before returning
to Kingston for her final year of actuarial maths and stats in 2009. “It’s a broad statistical role, working with researchers on clinical trials and development projects, which is fantastic for broadening my knowledge and experience”. Pavneet, originally from India, is very positive about Kingston. “In many ways I was sad to move away from the uni for my placement” she says. “I was a little unsure when I first came here but everyone has been so positive, supportive and friendly. It really helps to put what I’ve learned at Kingston into context and I know I’ll go back for my final year with a lot of confidence.”
For more details go to www.kingston.ac.uk/actuarial or email Peter Soan on cismtutor@kingston.ac.uk
DON’T TAKE RISKS, CALCULATE THEM. Actuarial Mathematics & Statistics BSc (Hons) Choosing a university needn’t be a gamble. In fact, it’s the perfect time to start thinking like an actuary – weighing up important factors to model your own future. Firstly, consider what you’ll learn. With modules including Accounting, Linear Algebra, Regression Modelling and Financial Risk Management, this is a course designed with future professionals in mind. Then there’s location. A thriving riverside town only 25 minutes from the vibrant heart of London, Kingston gives you access to a huge choice of social, cultural and professional activities. And finally, your future. With our strong emphasis on developing your employability as well as your professional skills, you’ll leave us ready to command top salaries across the globe. Worked it out yet? Good, then come to Kingston – you’ve clearly got a great actuarial future. “excellent for teaching in maths and stats” Sunday Times University Guide 21.09.2008
www.kingston.ac.uk/actuarial
The UK’s Premier specialist pension services and employee benefits group
Xafinity Consulting Xafinity House 42-62 Greyfriars Road Reading Berks RG1 1NN
www.xafinity.com graduate.recruitment@xafinityconsulting.com
Get a head start from day one... What would you like to be: a graduate trainee or a consultant? At EMB we’ll give you a real job from day one. With real responsibilities. Real client interaction. And a real role in a real team. You’ll be a consultant in one of the world’s most successful actuarial businesses. With the freedom to study when and how you want. If you’re bright, energetic and independent, then you’ll be just like us. So what are you waiting for? emb.com
EMB is a commited equal opportunities employer.
26 // STUDENT TIMES
Answers to your questions about Actuaries What qualifications do I need to become an actuary? In practice the majority of employers are looking for graduates with at least a 2.1 degree and excellent A-levels or equivalent. The minimum entrance requirements for admission as a student of the Actuarial Profession are maths A-level at grade B, along with a second A-level or equivalent in any subject at grade C, English GCSE at grade C, and two other GCSEs in any subject at grade C (or equivalent). For holders of a second class honours degree or above in any subject, the maths A-level requirement is reduced to a grade C. For holders of a third class honours or above in a mathematical or actuarial science degree, the maths A-level requirement is dropped. How do I choose my university and course? •F or the majority of actuaries, a good degree is essential. •M ost employers prefer candidates with numerate degrees from a university department with a strong reputation. •S tudying a numerate degree may also offer the opportunity for exemptions from some of the Profession’s exams. •A ctuarial science degrees, in particular, are likely to give the most exemptions. Will I benefit from studying a degree in actuarial science? Several universities offer undergraduate degrees in actuarial science. Some of these degrees offer exemptions from all the Core Technical subject examinations. Other actuarial degrees offer exemptions from a subset of these subjects. The advantages of studying for one of these actuarial degrees are: •A n opportunity to find out more about actuarial work before starting employment. • I f a sufficiently high standard is achieved in the appropriate university exams, then the student will be recommended for exemption from the corresponding professional exam.
ACTUARIES
Actuaries Profiles
Gauri Position: Consultant - Insurance (qualified) Studied: Actuarial Science at City University Now working for: PricewaterhouseCoopers, London “My route was reasonably direct. I was good at maths so, before I applied to university, a careers adviser suggested the actuarial profession. As it was a shorter degree than dentistry I went for it! I also knew that it was a reputable profession that solved practical problems. I love the team ethos. On my very first day at PricewaterhouseCoopers, I was taken to a client meeting so I really felt part of things and that I was making a contribution. Strangely enough, another highlight came when I had to work late one evening. I didn’t expect to enjoy it (as normally, I’m off home by 6pm) but I was working with seven or eight other people and I look back on it as a key moment. You get a huge sense of achievement when you complete a tough project and there’s a lot more variety than I expected. I particularly enjoyed meeting senior people on a recent project. I remember one meeting where I was obviously less experienced than many of the Board members, but they really listened to my opinions because I had the specific actuarial knowledge. I also enjoy the nonactuarial aspects of my job, for example, I advise companies generally on risk management, not just general insurance issues, and I enjoy the early responsibility I have been given to manage junior members of my team. And because the profession is constantly evolving, you never get bored. You can also develop a lot of transferable skills. The exams are definitely challenging so you do need to be focused. I qualified in under three years but I had to give up quite a few weekends to do this! But it is definitely worth it. If you’re numerate and analytical, this is a fun, challenging job with great rewards.”
Forecast your future MSc in Actuarial Science MSc in Actuarial Management As one of the world’s leading academic centres in the actuarial and insurance fields, it’s no surprise that gaining a qualification with us can lead to exemption from many of your professional exams. • Both courses are available on either a full-time basis (over one year) or a part-time basis (over two years) • Part-time students attend lectures for one day per week, which fits in well with the study leave package offered by most actuarial employers • Lectures are supplemented by dedicated on-line material • Both courses are accredited by the Actuarial Profession • MSc in Actuarial Science offers exemptions in Subjects CT1 to CT8 • MSc in Actuarial Management offers exemptions in Subjects CA1 and ST1 to ST6 (and students may also complete outstanding CT subjects). Forecast your future by attending one of our regular information sessions. Contact us on +44 (0)20 7040 8468 or visit www.cass.city.ac.uk/masters to book your place.
www.cass.city.ac.uk/masters
ACTUARIES •A graduate from an actuarial degree should be able to qualify more quickly than a graduate from another course with fewer exemptions. This may lead to them being more focused on their work and promoted more quickly. •A higher number of exam passes may mean that the actuarial graduate may receive a higher salary (probably staggered and dependent on future exam success). •A n actuarial degree gives an excellent grounding in subjects like economics, finance, mathematics, and statistics, as well as the more actuarial subjects. This makes actuarial graduates suitable for a range of careers, not just actuarial work.
Actuaries Profiles Mike Position: Trainee Actuarial Consultant - Pensions (part-qualified) Studied: Maths at Sheffield University Now working for: Mercer, Manchester “I always wanted to do something with maths and was looking at things like banking or accountancy, then I heard about actuaries and saw this as a small, elite and prestigious profession where I could fully apply the skills from my degree. I decided to do a summer internship with Mercer, and have been working there for almost three years now. My week generally breaks down into officebased consultancy work, a day of study and sometimes a day with a client. Having said that there’s no such thing as a typical week. I’ve been given a lot of autonomy and the freedom to manage my own workload. It’s also an open professional environment at Mercer, with lots of debate over methods and assumptions and what is right for any particular clients. There is also hard work to be done on your study days in order to prepare for the exams. You need to be committed to get through them. You’ll 422HC_HC Advert_sept08 V2
17/9/08
have 15 exams and it usually takes three to six years to qualify. However, I have a study mentor at Mercer so I’m well supported throughout the process - I get a lot of training and development internally. I was really surprised about how approachable my senior colleagues are. They ask me for my opinions on things and they respect them. It’s definitely an exciting profession to work in - you could quite easily find yourself working for a company’s HR Director, Finance Director or the Chairman of the Board on a project.”
19:57
Page 1
The most diverse career development for trainee actuaries in the UK • Competitive Salary • Excellent Potential for Bonus • Exceptional Study Package • A Unique Challenge
Hazell Carr 27 Kings Road, Reading, RG1 3AR For more information or to apply, email grads@hazellcarr.com or visit www.hazellcarr.com 422HC(09/08)
28 // STUDENT TIMES
But I won’t be at a disadvantage if I’m not doing an actuarial degree, will I? There are benefits to studying alternative degrees: •N on-actuarial degrees enable students to experience a greater range of courses and to pursue a variety of interests outside actuarial work. •N on-actuarial degrees may be lead to exemption from a few of the Core Technical subjects (eg CT3 Probability and Mathematical Statistics). •S ome employers are less enthusiastic than others about employing actuarial science graduates, so you may wish to seek the views of your favoured employers. •E xperience in the office is at least as important as exam passes. Actuarial graduates should not assume that they will necessarily be paid more than other graduates. What about postgraduate degrees? Postgraduate degrees which offer exemption from Core Technical subjects or Specialist Technical subjects are available. These have similar advantages to the actuarial science degrees noted above. However, students typically have to find private funding for these postgraduate courses. Where can I get sponsorship? It is more usual for employers to sponsor students through their professional examinations, as opposed to undergraduate or postgraduate study. There are some companies who offer postgraduate study sponsorship. Please see www.actuaries. org.uk for details. How many years does it take to qualify? In order to become a Fellow of the Faculty or Institute (FFA, FIA), students must pass
examinations, demonstrate satisfactory completion of modules, and acquire a satisfactory level of work-based skills. Average qualification time is currently three to six years. What exemptions from the professional examinations will I obtain? Exemptions are always looked at on an individual basis. They will depend in each case on the scope and standard of the subjects covered by the particular examinations and on the achievement of a satisfactory level of performance by the applicant. Exemptions will normally be limited to Core Technical Subjects CT3 and CT7. However, some university courses include a number of modules in actuarial science and offer more exemptions. It is possible to gain exemptions from all eight of the Core Technical subjects on some undergraduate and postgraduate degrees. Other postgraduate degrees offer the opportunity for exemptions from Core Application and Specialist Technical subjects.
Where are actuaries based in the UK? Actuaries work in cities throughout the UK and not just London. For full listings of actuarial employers by location are indicated in the List of Actuarial Employers at www.actuaries.org.uk.
Do I have to work as an actuary to qualify? Yes - as well as passing the examinations, Associateship and Fellowship requires the satisfactory completion of a work-based learning log. Contact wbs@actuaries.org. uk for further information.
Will I need to continue training once I have qualified? Fellows are required to maintain their competence once qualified through continuing professional development. This is mandatory for regulated roles.
For more information please see www.actuaries.org.uk
Deal yourself a
winning hand
PROFILE: LANE CLARK & PEACOCK
Recruiting now
Find out about the closest thing to a sure thing in your career as an actuary. Want to work for the consultancy named “Actuarial Consultancy of the Year” and “Investment Consultancy of the Year” by the UK Pensions Awards? Now recruiting 15 highly numerate graduates with strong communication skills in London and Winchester within our Pensions, General Insurance and Investment consultancies. We specialise in providing our clients with practical, bespoke and robust solutions, covering corporate pensions, strategic investment advice, general insurance and specialist financial services including risk appraisal, business modelling and valuations. We welcome graduates from a wide range of disciplines who are prepared for a high level of mathematical content. Ideal graduates would have at least a 2:1 honours degree (or equivalent) and an A grade in A-Level mathematics (or equivalent). We also require good A-Level grades in other subjects equating to a total of 320 UCAS points. We have an excellent induction training programme with a buddy system to help you settle into LCP smoothly. We also have a structured training and development programme covering professional and technical skills, structured on the job experience and development and an in-house mentoring system. We also offer an excellent study package including full financial support for a range of professional exams, 40 days study leave per year and study materials. The deadline for applications for our 2009 graduate intake is 24th November 2008. However, competition amongst graduates is high so we encourage those applying to get their applications to us in good time to avoid disappointment.
LCP is a leading actuarial partnership, expanding rapidly and uncompromisingly client focused. As a result we are currently looking for 15 highly numerate graduates with strong communication skills in London and Winchester within our Pensions, Insurance and Investment consultancies. •
Our clients range from major multinational to medium sized private companies
•
We offer the best of both worlds - big enough for specialised practices (e.g. M&A, Trustee Consulting, Corporate Consulting, research, investment, international) but still retaining the essential characteristics of the smaller firm
•
We have 71 partners and 325 staff in offices located in London and Winchester. We also have offices in Belgium, Switzerland, the Netherlands and Ireland
For more infomation and an application form please visit www.lcp.uk.com/graduatecareers
Graduate opportunities with
y?
d ebo
m
n Where ca
I
so be
Work for a Grant Thornton member firm anywhere in the world and you’ll be a valued contributor, right from the start. With a high ratio of partners and directors to staff, you can expect more time with your member firm’s leaders and more direct contact with clients. So today’s big decision could be tomorrow’s reality. To explore opportunities available at Grant Thornton, visit www.grant-thornton.co.uk/graduates
© 2008 Grant Thornton UK LLP. All rights reserved. ‘Grant Thornton’ means Grant Thornton UK LLP, a limited liability partnership. Grant Thornton UK LLP is a member firm within Grant Thornton International Ltd (‘Grant Thornton International’). Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered by the member firms independently.