Heriot Watt Careers Presentation - Life Insurance

7/29/2019 Heriot Watt Careers Presentation - Life Insurance

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Actuaries cant predict the future

but we can predict its impact

Heriot Watt careers presentation

Tuesday 5 February 2013


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The Actuarial ProfessionPromotes the work of actuaries

Oversees the education of actuaries belonging to the body at all stages

Expands actuarial knowledge

Enforces ethical and professional standards

Identifies matters where the work of actuaries would be of benefit to the public

The Institute and Faculty of Actuaries is the professional body that all actuaries in the UK belongto

If you want to be an actuary you must become a member and take all 15 exams and 3 yearswork experience to qualify as a Fellow.


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Who are our members?Youre looking at one!

Over 23,000 members

41% are based outside of the UK

48% are student members

71% are under the age of 40

290 students joined under the age of 21

31,093 exams were sat from September 2010 April 2011

We have approximately 135 exam centres all over the world

Over 12,000 likes on Facebook


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Why become an actuary?

Variety

Influence

Reward

Intellectual

satisfaction

International

opportunities

Support

Network

High

standards


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What can an actuary earn?Chief actuary, senior partner 227,614

Senior function head, practice director 125,736

Function head, practice head 125,736

Department manager, managing consultant 87,902

Section manager, senior consultant 80,113

Section leader, consultant 66,038

Senior actuary, junior consultant 56,351

Actuary 45,329

Student actuary 31,755

Source: XpertHR Salary survey of actuaries and actuarial students, 2010. For more information visit www.xperthr.co.uk
http://www.xperthr.co.uk/http://www.xperthr.co.uk/


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How do I become an actuary? Get your A Levels or Scottish Highers, including a good grade in Maths

Complete your degree, ideally in a numerate subject from a university with a

good reputation

Gain a 2:1 or higher this is a minimum requirement from most employers

An actuarial science degree or diploma offers opportunities for exemptions

from exams

Find a trainee actuarial position with a company

Join the Profession as a student member employers will help you with this


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What do employers want? A good academic record including a 2:1 in your degree

Work experience/internships

Good communication skills

IT skills

An interest in business/relevant industry knowledge

Language skills

Commitment to the exams and your career


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Where can I find a job/work experience? Use the Directory of Actuarial Employers on Becoming

an actuary pages ofwww.actuaries.org.uk

Use The Actuary jobs site - www.theactuaryjobs.com/

Internships are useful - but any work experience is

valuable even if it isnt actuarial

Following market research with High Fliers The

Graduate Market in 2013 - 47% of employers say its

not very likely that students will get a job if they dont

have any work experience (doesnt have to be relevant!)

Soft skills are key it is not just about your qualifications
http://www.actuaries.org.uk/http://www.theactuaryjobs.com/http://www.theactuaryjobs.com/http://www.actuaries.org.uk/


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If youre considering a career as an actuary then sign up to our IACN a global network for

potential actuarial students

Signing up for this network is a first step towards achieving your career goal

What are we offering you?

Access to Career Ambassadors

Networking and links with employers etc

Information on local events

Careers newsletter

What are the benefits to you?

Align yourself with the UK Actuarial Profession

Find out industry knowledge

Get your questions answered by industry specialists

International ActuarialCareers Network - IACN

2012 The Actuarial Profession www.actuaries.org.uk
http://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadorshttp://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadors


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Where can I find out more?

Via the Actuarial Profession

Visit www.actuaries.org.uk/becoming-actuary/pages/becoming-actuary

E-mail [email protected]

Our brochures

Speak to your Careers Adviser

Contact a Careers Ambassador

www.actuaries.org.uk/becoming-actuary/pages/career-ambassadors
http://www.actuaries.org.uk/becoming-actuary/pages/becoming-actuarymailto:[email protected]://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadorshttp://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadorshttp://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadorshttp://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadorshttp://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadorshttp://www.actuaries.org.uk/becoming-actuary/pages/career-ambassadorsmailto:[email protected]://www.actuaries.org.uk/becoming-actuary/pages/becoming-actuaryhttp://www.actuaries.org.uk/becoming-actuary/pages/becoming-actuaryhttp://www.actuaries.org.uk/becoming-actuary/pages/becoming-actuaryhttp://www.actuaries.org.uk/becoming-actuary/pages/becoming-actuaryhttp://www.actuaries.org.uk/becoming-actuary/pages/becoming-actuary


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Life insurance

Name: David Johnson

Company: Independent contractor


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A bit about me

1997 A-levels in Maths, French and Physics

2001 BSc in Mathematics at Birmingham

2003 Joined Norwich Union (now Aviva)

2007 Qualified (FIA)

2010 Became a contractor

2013 Currently on Standard Life Solvency II programme


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What actuarial work have I done?

Reporting

Capital management

Solvency II

Risk function

Working party

Education


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Reverse stress testing What events will render my business model unviable?

Crystallising risks cause the market to lose confidence in the firm

Counterparties and other stakeholders would be unwilling to transact with or provide capital to thefirm

existing counterparties may seek to terminate their contracts

Such a point could be reached well before a firm's regulatory capital is exhausted

Black Monday (1987) stock markets world wide fall by up to 46%

Spanish flu (1918) pandemic kills approx. 1% of GB population

Credit crunch (2007-08) stock markets fall sharply, credit spreads soar andliquidity dries up

How likely are events of this magnitude?


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Practice area : Pensions

Name: Suzanne Vaughan

Company: Towers Watson


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A bit about me

Attended Heriot Watt University (2000 2004)

Started my actuarial career with Scottish Life (2004)

Qualified 2007

Moved to Towers Watson for a new challenge (2009)

Elected on to Actuarial Council and the Scottish Board (2012)


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Why did I choose to be an actuary?

Enjoyed the Actuarial Maths course at Heriot Watt

Picked Pensions because of the client relationship side

Liked the idea of the exams structure, meant clear progression in the job

Good support network

Continual learning and development means job is ever changing


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What do I do in my current role?

Pensions Consultant

Advise Trustees on Scheme Funding, Mergers, Asset Liability studies

Advise Companies on Accounting valuations, Plan design, reducing PPF levies

Settlement Specialist

People manager and recruitment

New business initiatives

Training sessions for clients


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Pension hot topics

Auto - Enrolment

Continuing improvements in longevity

Liability reduction activities i.e. longevity swaps, ETV & PIE, buying out with an

insurer

State Pension Reform

Low gilt yields are leading to some big pension deficits!


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Advice I would giveDont underestimate the exams, they are tough but if you respect them they are

manageable!

Read up on the Companies you apply to, in particular know why you want towork there

Take time over your CV, get as many people to read it as possible before you

send it. Spelling mistakes are a real turn off!

Read up on some hot topics in your preferred industry

Dont be thrown by unusual interview questions, they are just to see how you

react under pressure


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Practice area : From Life Insuranceto Investment Management

Name: Kevin Telfer

Company: Kames Capital


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A bit about me

1973 Born!

1985I want to be an actuary

1991 Started BSc Actuarial Mathematics & Statistics

1995 Graduated, joined Scottish Equitable as an Actuarial Trainee

1998 Moved to Aon Consulting, Senior Actuarial Trainee

2001 Qualified as FFA, promoted to Pensions Consultant

2004 Switched to Investment Consultant role

2006 Joined Kames Capital, Fixed Income Product Specialist


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First job Scottish Equitable 1995-1998

Had previously worked there in summer vacations

Joined as an Actuarial Trainee in Actuarial Department

Generous study support, manageable work/study balance

Mostly performing calculations initially

Then software development and training non-actuarial staff


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Change of direction Aon Consulting1998-2004

Moved to a consultancy to gain direct client contact

Initially focussed on pension scheme valuations

With experience, more overseeing than doing calculations

Mixture of routine valuations, M&As, Company/Scheme failures

More demanding work came with tougher work/study balance

Qualified in 2001, champagne for the office, promotion!

Took on own portfolio of clients Responsible for strategic advice as well as routine tasks

Also required to generate new revenue opportunities


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Natural next step Investment Consultant2004-2006

Switched to investment consulting to be closer to the

solution

Provided investment strategy advice

Asset Liability Modelling, scenario analysis, risk budgeting

Strong need to explain complex concepts and results clearly

Fund manager selection advice

Strategy and fund manager monitoring

Another steep learning curve!


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Next evolutionary step Kames Capital 2006-

Found investment side interesting

so moved to an investment

management company

Product Specialist is a clientcommunication role

Dont need to be an actuary but it helps

Technical knowledge of markets and

clients needs and concerns

Reputation for professionalism,

integrity and knowledge

Actuaries are also involved in fund

management and risk analysis


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What do I do all day?

Meeting clients & prospects

Client reports and queries

New Business proposals Articles

Product design

Training/education

Pension schemes, bankscharities, insurance cos,

advisors


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Overview of fixed income investing

Making money from lending to companies and governments

Provided they dont go bust!

Receive interest on the loans to compensate for the risks Skill is to assess whether the interest rate offered is

appropriate

Investment decisions based on analysis

State of the economy

Strengths and weaknesses of the company

Terms of the loans


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A quick quiz on bonds to finishGuess the yield on these bonds (as of lunch time Friday!)

1. UK Government 2018

2. Italy 2018

3. Tesco 2018

4. House of Fraser 2018

5. Imperial Tobacco 2018

6. Heckler & Koch 20187. Aston Martin 2018

1.5%

6.5%

4.0%

12.0%

3.5%

20.0%15.5%


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Questions?

2012 The Actuarial Profession www.actuaries.org.uk

Documents

Heriot Watt Careers Presentation - Life Insurance