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Between 2006 and 2009, 0.3% of employed doctoral graduates, or 50 doctoral graduates in total, are known to have been working as actuaries six months after graduation.

Job description

Actuaries are classified in the ‘other common doctoral occupations' cluster of doctoral employment.

Actuaries evaluate, manage and advise on financial risks. They apply their knowledge of business and economics, together with their understanding of probability theory, statistics and investment theory, to provide strategic, commercial and financial advice.

Actuarial work can be diverse and ranges from highly technical roles developing complex financial products in investment banks or pensions and insurance companies to consultancy roles for those seeking a client-facing career.

Actuarial trainees may begin work as trainee pensions consultants or risk analysts while at the same time studying for professional exams. Senior actuaries can be found in consulting firms as partners, in large banks as chief risk officers or in board level positions in insurance companies and other financial services organisations.

Typical work activities

Actuaries apply financial and statistical theories to assess the likelihood of a particular event occurring, and the possible financial costs.
Typical work activities may include:

  • Analysing statistical data in order to calculate, for example, accident rates for particular groups of people; using mathematical modelling techniques and statistical concepts to determine probability and assess risks, such as changing weather patterns, to price commercial insurance
  • 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
  • Advising on investment strategies and developing new financial products
  • Conducting valuations of assets and liabilities
  • Assessing the profitability of an investments portfolio
  • Calculating funding rates for pension schemes
  • Analysing risks related to locations for catastrophe claims
  • Measuring, monitoring and mitigating portfolio and enterprise risks
  • Overseeing asset and liability modelling, product development and profit testing

Actuaries may also be involved with the acceptance of proposals for new policies, with legal and taxation matters affecting life assurance or with the investment of funds.

Entry requirements

The following first and doctoral degree subjects may increase your chances:

  • Actuarial science or actuarial mathematics
  • Mathematics or statistics
  • Economics
  • Engineering
  • Business or finance
  • Science e.g. Physics and chemistry

 Candidates will need to show evidence of the following:

  • A high level of numeracy, analytical and creative problem-solving skills;
  • Good communication skills, including the ability to convey complex information to clients
  • It skills, and the ability to write clear reports
  • An appreciation of the demands of studying while working
  • Sound judgement and a genuine interest in business

The Financial Mathematics Exam, offered by The Actuarial Profession to university students and people working in financial services, provides a useful starting point for those considering a career as an actuary. A Certificate in Financial Mathematics is awarded on successful completion.

Salary

  • Typical salaries for newly qualified actuaries in insurance companies may vary between £45,000 and £55,000. Salary progression is dependent upon the individual, performance and the development of a career path. Increments are usually paid for examination success.
  • Typical salary at senior level/with experience (e.g. after 10-15 years in the role) is over £60,000. There is a wide range of salaries for experienced actuaries, but high financial rewards and excellent benefits packages are common.
  • Salaries in excess of £100,000 are typical for senior actuaries. (All salary data collected November 2009.)

Sector and disciplinary information

Sector information

Doctoral graduates from 2006-9 working in this occupation were known to be employed in the following sectors six months after graduation:

Disciplinary background

The most common subject backgrounds for doctoral graduates (2006-2009) entering actuarial roles were:

Doctoral graduates from other disciplines work in the profession, all from subjects displaying a high degree of numeracy.

Career stories

None available

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