An actuary evaluates, manages and advises on financial risks. They use their knowledge of business and economics, together with their understanding of probability theory, statistics and investment theory, to provide strategic, commercial and financial advice.

As an actuary, you'll use financial and statistical theories to assess the likelihood of a particular event occurring and its possible financial costs.

You'll need to apply your mathematical, economic and statistical awareness to real-life situations in the financial world and be able to communicate difficult topics to non-specialists. Therefore, it's important that you're an excellent communicator, possessing the ability to discuss complex topics in a simple way.

Types of actuary

Actuaries work in these areas:

• banking
• corporate finance
• investment management
• life, healthcare and general insurance
• pensions.

Responsibilities

Specific tasks vary, but your work might include:

• using mathematical modelling techniques and statistical concepts to determine probability and assess risks, such as analysing pension scheme liabilities, to price commercial insurance
• analysing statistical data in order to calculate, for example, accident rates for particular groups of people
• developing new financial products
• preparing presentations, reports, valuations and quarterly updates
• monitoring risk within trading positions in investment banking to ensure excessive risks are not taken during the fast pace of trading
• presenting reports, explaining their implications to managers and directors and advising on risk limitation
• advising on issues such as the selection of investment managers or the administration of pensions and benefits
• working with IT professionals to develop systems to ensure compliance with the requirements of regulatory bodies
• carrying out relationship management, liaising with clients such as investment managers, financial directors and external stakeholders
• supervising staff
• working with mergers and acquisitions.

What to expect

• Self-employment and freelance work are possible but very unusual, as most actuaries are employed by large financial institutions.
• Jobs are widely available in most large towns and cities in the UK, although London has the largest proportion of jobs.
• There are more than 30,000 members of the Institute and Faculty of Actuaries (IFoA), of which over 40% are under the age of 30.
• There tends to be more men working as actuaries in the UK.
• You'll be expected to maintain a smart business dress code, but this varies between employers.
• Examinations are an important part of an actuarial student's training, and study during this period may impact on your social and personal life.
• Opportunities to travel vary between employers. An insurance company with offices around the UK or abroad may require actuaries to travel from time to time, for instance. Visits to corporate clients may also be necessary, e.g. for those working in reinsurance. The amount of travel varies according to the type of actuarial work and the regional area.

Qualifications

Although this area of work is open to all graduates with strong numerical skills, the following degree subjects may increase your chances:

• actuarial science or actuarial mathematics
• business or finance
• economics
• engineering
• mathematics or statistics
• risk management
• science, e.g. physics and chemistry.

The majority of UK entrants to the IFoA are graduates with a first or second class honours degree. Graduates must have a minimum of grade B in A-level mathematics and a grade C in another A-level subject.

Employers typically look for a 2:1 or above, ideally in a numerate subject such as mathematics, statistics or economics. Eligibility of other qualifications, including those from outside the UK and Ireland, can be checked with the admissions team at the IFoA. Entry with an HND only is highly unlikely.

A degree, postgraduate diploma or MSc in actuarial science may give exemption from core technical subjects and allow qualification in a shorter time. It is also possible to get exemptions having studied a numerical degree such as mathematics or economics, provided modules include some focus on statistics and probability. The Directory of Actuarial Employers has a list of companies that may offer sponsorship for postgraduate study.

Alternatively, you can search for postgraduate courses in actuarial science.

The Certificate in Financial Mathematics (CT1) is offered by the IFoA to non-members such as university students and people working in financial services. It provides a useful starting point for those considering a career as an actuary. The exam also goes towards completing the professional qualification.

Skills

You'll need to have:

• a high level of numeracy
• good communication skills, including the ability to convey complex information to clients
• analytical, research and creative problem-solving skills
• IT skills
• the ability to write clear reports
• the ability to take responsibility
• excellent people, interpersonal and listening skills
• a strong teamwork ethic
• self-discipline, determination and an appreciation of the demands of studying while working
• sound judgement and a genuine interest in business
• commitment to an actuarial career.

Work experience

Although pre-entry experience is not a requirement, talking to people already in the job and acquiring some work experience will prove invaluable. Some companies offer work placements or internships for students interested in becoming actuaries.

Internships and placements can potentially be helpful in securing a graduate job, however this is dependent on the organisation. Approach professionals at careers events or enquire about work shadowing where possible.

Find out more about the different kinds of work experience and internships that are available.