Ifoa Go Guide Becoming Actuary 2013 2014

A guide to

2013/2014

How to qualify as an actuary and the range of opportunities that are available to you as you take the first steps on your career pathwww.actuaries.org.uk

Welcome RecruitmentInstitute and Faculty of Actuaries

Welcometo the first edition of our guide to Becoming an Actuary. I am very pleased that you are interested in understanding more about this varied, exciting and rewarding career.

David Hare President, Institute and Faculty of Actuaries

Fields of work Our qualificationsInternational

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you will find information about the Institute and Faculty of Actuaries (IFoA), the exam system, how to qualify as an actuary and the range of opportunities that can open up to you as you take the first steps on your career path.

The IFoA is the only chartered professional body for actuaries in the UK. We put the needs of our members at the heart of what we do – providing high quality internationally-recognised qualifications and lifelong education opportunities. Our role in regulating our members is key to assuring public confidence in our profession. We work hard to speak up on relevant matters of public interest and to raise awareness of the work that actuaries do as part of advancing all matters relevant to actuarial science.

I am pleased at the increasing diversity of our 25,000 strong membership and that we are attracting fresh new talent from all over the globe with over 40% of our members living or working outside of the UK.

Deciding on a career path is incredibly exciting if not a little daunting. A career as an actuary offers a wide range of opportunities and challenges. It gives you the chance to apply your skills in maths and statistics to real world challenges. These skills give actuaries an exceptional appreciation of financial risk management, one of the growing areas of business.

Actuarial work is especially suited to those who enjoy solving problems by analysis, mathematics and logical reasoning. Yet, development of communication and management skills is also incredibly important in order for actuaries to work in the very demanding business world, no matter where they are based.

There is no doubt in my mind that although it takes hard work and dedication, a career as an actuary can be exceptionally fulfilling and intellectually challenging. I have found that my own career as an actuary has been very rewarding so far and I am glad to say that it continues to be so! I wish you all the very best as you look further into exploring what a career as an actuary could hold for you.


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Institute and Faculty of Actuaries (IFoA)

What is the Institute and Faculty of Actuaries?The IFoA is the UK’s only chartered professional body dedicated to educating, developing and regulating actuaries based both in the UK and internationally.

What is a professional body? A professional body is usually a not for profit organisation seeking to further the interests of its members and the public interest.

The IFoA works with employers of actuaries to encourage and develop their actuarial employees and the financial sector as a whole.

Who employs actuaries?Once you have decided on an actuarial career you would look for an actuarial graduate trainee role with an actuarial employer. These can be found in the Directory of Actuarial Employers and in The Actuary magazine or website (www.the-actuary.com).

You would apply to that employer through their entry route and then join our professional body either once you’ve joined the employer, or independently if you wanted to take some exams prior to getting a job.

What benefits do you get as a member of the IFoA? • Continuing professional development

(CPD) – to maintain a high level of professionalism, skills and knowledge

• Networking and events – a wide range of events that support your career progress and professionalism and give you the chance to network with other actuaries

• Member interest groups – groups with a shared practice or topic interests, or who live and work in the same region

• Forums and discussion groups – groups that tackle subjects relevant or interesting to you or the practice area you belong to

• Extensive library resources – access to over 10,000 books, plus periodicals and DVDs, with a catalogue you can access online

• Research journals – published by the profession, such as the British Actuarial Journal and the Annals of Actuarial Science

What qualifications do you offer? There are a number of different membership qualifications: • Certified Actuarial Analyst (CAA)• Associate• Fellow• CERA

There are also different membership categories as you make your way to qualifying:• Affiliate• Student


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For all these qualifications there will be an element of professional regulation that you must adhere to as a member of the IFoA.

15 exams3 years work‑based

skills

To qualify as a Fellow you must complete:


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IFoA

Who makes up our membership? We have a global membership of 25,215 members (June 2013). Our members come from a variety of different countries, cultures and ethnicities.

There are 12,877 student members in the IFoA currently. The figures below explore who makes up our student membership, from ages, gender and location.

Age groups • 4% are under the age of 21• 73% are under the age of 30 • 94% are under the age of 40

Gender • 37% are female• 63% are male

Location • 47% are in the UK• 53% are international

– 8% rest of Europe – 45% rest of the world

Total number of students

12,877

Practice areas (employment area)

n 17% Pensionsn 23% Life insurancen 14% General insurancen 3% Investmentn 1% Health and care, Enterprise Risk

Management and other emerging fieldsn 42% other – IT, actuarial field,

non-actuarial, education, unknown


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There are 11,240 Fellows in the IFoA. Again, the figures below explore who makes up our fellowship membership, from ages, gender and location.

Age groups • 31% are under the age of 25• 12% are under the age of 30 • 34% are under the age of 40

Gender • 23% are female• 77% are male

Location • 72% are in the UK• 28% are international

– 8% rest of Europe – 20% rest of the world

Total number of Fellows

11,240

Practice areas (employment area)

n 27% Pensionsn 31% Life insurancen 12% General insurancen 6% Investmentn 2% Health and care, Enterprise Risk

Management and other emerging fieldsn 12% retiredn 10% other – IT, actuarial field,

non-actuarial, education, unknown


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Recruitment

What could I expect to earn? Actuarial salaries are notorious for being very high.

High Fliers survey suggests that an average graduate salary is £29,000 so you can see from the salary table below provided to us by XpertHR that the actuarial starting salary as a graduate can be much more – this is dependent on the specific company and its location.

Here is the basic salary you might expect to earn at different levels of responsibility.

Responsibility level Average basic salary (£)

Chief actuary, senior partner

221,250+

Senior function head, practice director

134,343

Function head, practice head

110,747

Department manager, managing consultant

87,557

Section manager, senior consultant

81,239

Section leader, consultant 67,298

Senior actuary, junior consultant

59,836

Actuary 46,515

Student actuary 32,842

Source: XpertHR Salary survey of actuaries and actuarial students

For more information visit www.xperthr.co.uk

What are employers looking for?

Laura Hamilton from Aon Hewitt gives some hints and tips about what they are looking for from candidates going through the interview and assessment centre process.There’s no doubt it is now more competitive than ever to find a graduate job or internship with an actuarial firm, with more and more candidates applying for roles, and employers’ expectations rising as well.

So, what exactly are we looking for from our “consultants of the future”?

The first thing, which goes without saying, is the combination of intelligence, good numerical skills and the ability to work hard.

Some more ways to help you through an assessment centre and any interviews are explored on the following page.


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Communication This is a skill that everyone knows and shamelessly repeats at assessment days, but what does ‘communication’ actually mean? It means being able to quickly understand the person you are interacting with, and adapt your style to suit them and the situation you are in. It also means being articulate when producing written work, and again adapting styles for what your clients or colleagues need.

Understanding and meeting clients’ needsThis is fundamental to being a successful consultant, but a difficult thing to demonstrate before you begin working. We want to see that you listen well, and through effective questioning can work out what is needed and deliver on that. You should be good at planning and prioritising, have the technical ability to solve the problem and are highly focused. Not only this, but you actively seek feedback in order to improve.

Working in teams Another term that is used frequently is “teamwork”. We are looking for individuals who are comfortable in managing and organising a team. You should also be happy to take instruction and able to work individually to meet a shared goal. Those who contribute towards team meetings, inviting views from quieter individuals and can keep focused on the overall aims of the meeting should perform well. Intelligent delegation is essential, so be aware of the skills of the team you are part of.

Business acumen Our business values innovators – those who can take the initiative and can suggest ideas and alternative approaches as it shows you actively think about what’s being done.

Those who often do best in our assessment centres are those who see the “bigger picture” by recognising the overall aim

of the task. These people can recognise when ideas are not feasible and can focus instead on what is achievable given the constraints in the task. Common sense is highly valuable; asking yourself questions like “does this answer look reasonable in the context of the question” will really help.

A positive attitudeIn an interview, assessment process or internship, we are looking for evidence of true motivation for the role. This isn’t something you can fake; good candidates exude this naturally through a high level of knowledge about the company, the industry and role they are applying for. This can only be achieved through research and experience, so if you have no experience, you should seek out those who do and talk to them, don’t just rely on internet research.

Standing out First impressions are very important – assessors will consider you in the same way that a client would, so appearance, punctuality and attitude are very important. You may be nervous on interviews or assessment days, and this is perfectly understandable. The assessors want to see your skills, so will work hard to challenge you, but they are certainly not trying to catch you out.

The key to your success is being able to demonstrate the skills described above in your CV, application forms, interviews and tasks. Use real life examples when answering competency-based interview questions, which can be based on your experiences of work, academic career or extra-curricular activities.

When making decisions on which candidates to offer positions to, assessors always ask themselves “Would I want to work with this person, and would our clients value them as a trusted partner? Can I see them working in our office? Will they contribute significantly to our business?”

The only thing left to say is GOOD LUCK!


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Recruitment

Advice on interviews and CV writing Steve Leeson is the General Manager in the UK for Acumen Resources, a global specialist actuarial recruiter. Acumen Resources employs qualified actuaries, giving the firm a unique insight into the job search market.

In this article we will look at a few themes to consider and some ideas to increase your chances. Quite literally it is a few minutes that could change your life…

It’s a competitive worldThe one thing that you can be sure of is that there are a lot of equally well qualified people going for the same position that you are. If you really want the job, you will need to differentiate yourself.

Preparation Very often clues about what a hiring manager will want you to demonstrate, at interviews, are in the job description. Addressing these and identifying examples of each competency will help you to stand out in the meeting. If you have not prepared examples and you get the inevitable question it can be very embarrassing.

Making the right impressionConsider your dress code for the interview – If you are in doubt, GO SMART. When shaking hands, compose a firm grip and look the interviewer in the eye.

During the conversation your posture, the pace and tone of your voice will all contribute to the judgements that the interviewer makes about you. Try and maintain a neutral position throughout but where you are trying to convey enthusiasm it is useful to use your hands to interject some more positive body language and don’t forget to smile.

Show the research that you have doneInevitably, you will be asked at some stage during the interview why you want to work for the organisation you are applying to. This is a great chance to demonstrate your commercial awareness. If you can talk to someone who has worked in the industry then this will give you honest, first hand insight into becoming an actuary.


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By explaining the research that you’ve done at the interview, it will give evidence of your research skills, your interest in the organisation and also business acumen.

Have your questions prepared Think ahead about who you are going to be meeting and try and find out about them. LinkedIn has made it increasingly easy to get some basic background information on most interviewers and will quite often allow you to identify things you have in common to help build a rapport.

During the meeting it will be interesting and engaging to ask them about why they joined the company, what challenges that they have faced in the job and how they see the role you’re interviewing for developing in the future.

Having the right answers It is highly likely that you will be asked to identify your strengths and weaknesses. Hard as this may be, it is worth considering three in each category, as some interviewers like to hear about more than one.

With your strengths, make sure that they are aligned with the role that you are interviewing for. If the job calls for a good communicator and client facing skills it is

better to focus on these strengths than to just talk about your strong analytical side.

To identify a weakness shows that you are self aware but if you want to make a real difference then discuss what you are doing to overcome your weaknesses, what targets you have set and how you are doing against those targets.

Ask for feedback Your role in the interview is to convince the person over the table that you are the best person for them. One way to do this is to ask, in your own words, how you meet the profile of their ideal candidate. Ideally you are trying to understand where they think you may not have enough experience or relevant skills and how you would overcome these shortcomings.

Tell them you’re interested At the end of the interview if the role is of interest, make sure that you tell the interviewer that you are excited about the opportunity and how you could see yourself developing in the position. In the same way that you have one chance to make a first impression, this might be the lasting impression. Good luck and remember whoever it is asking the questions, they were once sat exactly where you are today.

“ If you can talk to someone in the industry, this will give you honest, first‑hand insight into becoming an actuary”


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Recruitment

Name Ian Mooney

University Durham University

Degree MMATH, Master of Mathematics

Location Kingswood, Surrey

Role Solvency II Analyst

Graduating from university in 2010, I really had no idea about what I wanted to do. A friend suggested I become an actuary, something that I hadn’t even heard of up until that point! After doing a little digging, I decided that it sounded perfect; a role that gave me a chance to use my maths degree and problem solving skills in a practical and ever evolving environment.

I currently work in the Savings Solvency II team, which is preparing the firm for the Solvency II directive that’s due to come into force in 2014. This is perhaps the largest legislative change to happen to the life insurance industry for many years and is an area that is very exciting and rewarding.

What do you enjoy most about your job?I’ve found that no two days are ever the same in this job which has helped to maintain my enthusiasm for my work. The landscape of the industry is constantly changing, with a wave of new laws having come into effect recently. This has created some very exciting project work that I’ve been able to get involved in.

One of the other benefits that I’ve profited from is the student rotation policy. This has enabled me to experience a few different areas within the company and has helped me to determine which areas I’m most interested in.

What would you like to achieve in the future?Once qualified, this profession affords a wealth of international opportunities. It’s a unique opportunity that very few others can offer and is one that I don’t intend to pass up. One of my main aspirations is to work in East Asia for a period of time.

Before getting too ahead of myself, my immediate goal is to qualify. It takes a lot of self-discipline to balance both work and study, but I hope that the hard work will pay off soon.

What ‘soft skills’ have you found useful?Although people tend to place great emphasis on academic achievements, the importance of your ‘soft skills’ shouldn’t be underestimated. It’s these skills that will typically set you apart in the workplace.

In my role, it has not been uncommon to find myself leading small to medium sized projects. At times, I’ve had to work as part of a larger team to complete this task. I would therefore highly recommend getting as much exposure as you can to working in a team environment and taking a leadership role in that setting, where possible.

You will almost certainly find yourself having to deliver and present results to your managers and other superiors, during your time as an analyst. Any experience that you might have in public speaking or delivering presentations would really stand you in good stead here.


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Internships Kim Durniat, a partner within the Insurance Actuarial Practice of Barnett Waddingham and Holly Deakin, a recent intern, talk to you about the value of internships and what they have both learned in the experience.Summer students at Barnett WaddinghamEach summer Barnett Waddingham offers a series of eight week internships in each of its offices. The Insurance Actuarial team in London have found this to be a very worthwhile initiative and offers an excellent experience and opportunity for students. Our team specialises in both Life and General Insurance and our summer students get involved with client work helping with data, calculations, modelling and writing reports, as well as organising staff socials.

Our summer students are also involved with helping us to grow our clients and services through activities relating to marketing and researching target clients. The fresh ideas and new skills that summer students can bring to the team are particularly valuable.

Summer is also a perfect time to focus on project work, keeping up to speed with any developments in the market. Students can expect to delve into researching current issues in the insurance market, including regulation and Solvency II.

Each summer student is assigned a mentor to provide support on a day-to-day basis. We feel it is important for students to gain an understanding of the entire firm and arrange for students to learn about other practice areas.

Working alongside actuarial students and qualified actuaries is an excellent opportunity to ask questions and gain some valuable insight. The opportunity to work in an office environment is excellent preparation for working life after graduation. Of course, students may also be enticed by the competitive pay and opportunity to secure a graduate role with us.

Ultimately the summer programme feeds into our graduate recruitment activity and allows us to get to know potential team members over an eight week period, as opposed to a focused assessment day. It also provides the opportunity for Barnett Waddingham to sell itself as an excellent place to start your career.


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Recruitment

Holly Deakin – Barnett Waddingham Insurance Actuarial summer intern profileWhy did you choose Barnett Waddingham?I wanted to work in the insurance sector and was looking for experience at a firm that had both a strong reputation and a personal touch. Barnett Waddingham’s Insurance Actuarial team offered the range of experience that I was looking for, such as integrating interns into a working team and exposing them to a variety of client work.

What did you get up to during your internship?During the eight weeks I was able to get involved in a variety of client work, such as writing reports, carrying out calculations and running models to test the solvency of firms. I also assisted with various research projects, covering topics such as the upcoming Solvency II regulatory regime.

Interns were given the task of organising two staff socials during our placement. The first was a pub quiz and the second was a dinner at a local restaurant. I also took part in the Barnett Waddingham inter-office football tournament which was great fun and a chance to meet other members of staff.

What did you learn during your internship?I learnt to use my initiative and prioritise multiple tasks in order to meet deadlines for other team members.

My confidence grew as the weeks progressed, and I became comfortable contributing ideas to discussions in weekly team meetings.

In terms of my technical ability, I was introduced to Microsoft Access and learnt how to create queries and run data checks on client information. My Excel ability also improved through practice as a lot of the work I did involved spreadsheets.

What are you currently doing?I am currently at the University of Bristol studying Economics and Finance. I plan to start work as an Actuarial Assistant within the Insurance Actuarial Practice at Barnett Waddingham in autumn 2013.

Do you have any tips for students who might seek to obtain an internship in the future?Always remember that the ability to communicate ideas and integrate into a working team is just as important as your academic ability.

Don’t let the fear of an assessment day put you off! Prepare thoroughly for the interviews, and really know what aspects of the profession appeal to you and why.


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Fields of work

Practice areas Actuaries can work in a wide range of different fields. The following pages give you an idea of those practice areas and also information about what you may be involved in, as a graduate actuarial trainee.

Pensions Pension schemes are important as they are often worth a lot more than the company providing the scheme (i.e. the value of the Company’s assets). There are two main types of scheme – Defined Benefit and Defined Contribution.

In Defined Benefit schemes the pension on retirement is determined by a set formula, based on an employee’s salary and service, which is paid for life, when an employee retires. The chief uncertainty is the cost of this pension, paid for by contributions from the company, which depends on factors such as investment return, future salaries and life expectancy in retirement. If you join a firm of pensions actuaries you may find yourself calculating this cost for your clients.

Defined Contribution schemes are schemes where it is the company contributions that are set, perhaps as a fixed percentage of salaries, and paid into individual funds for each employee. These funds are used to buy the employee a pension on retirement. The chief uncertainty here is the benefit – how much pension the fund can earn. If you work in this area you might be involved in designing a scheme, where the actuary will consider an ideal level of pension at retirement and work backwards to determine an appropriate contribution rate to set, to target this pension.

Risk There are many different areas of work that you could be involved in from capital models to analysing specific risks like operational risk. You could also be involved in investigating mathematical

models of risk to see if they can be used within an organisation. For example using your statistical knowledge to assess if there is enough data.

Established risk modelling actuaries, would either come up with directly, or oversee, the analysis of the model inputs. From analysing the data to see what level of risk there is from a previous instability or checking that those associated with the business (stakeholders) have understood the framework that is in place. Communication is an important skill to have as often those working in risk need to explain the theory behind the models to those who are non-actuaries.

Although risk models should in theory capture everything, it’s important that actuaries analyse risks that may have materialised to check that the models are still appropriate. It’s unlikely and unrealistic to expect everything in the future to be foreseen now.

Life insuranceLife insurance actuaries can work in many roles within insurance companies, reinsurers and actuarial consultancies. Many of these actuaries specialise in the design and pricing of life insurance products, which can include protection products, annuities, pensions and other savings products. These roles themselves involve a range of skills, including modelling, and the understanding of the characteristics of the customers in order to estimate their likely future experience (e.g. mortality rates).

Other actuaries are principally involved in the assessment and management of the solvency of life insurance companies. This includes tasks such as understanding the expected present value of long-term future liabilities to which such companies are exposed, and the amount of additional money that needs to be held in order to ensure that these liabilities can continue to be met.


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Actuaries can also be involved in the assessment of the overall value of a life insurance company to its shareholders, perhaps for financial reporting purposes or as part of a merger or acquisition.

General insuranceThe role of a GI actuary is incredibly varied, and has changed considerably over the years; given the fast-moving dynamics of the industry, the ever-changing regulatory environment and the continuous development of actuarial skills, it’s a safe bet that the role actuaries play in the insurance industry will continue to evolve.

There are four main areas:• Reserving: how much an insurance

company needs to set aside to pay future claims, given how many policies it has sold in the past.

• Pricing: how much an insurance company should charge customers for a new policy, given how much risk is involved (e.g. the personal circumstances of the policyholder, the economic environment, social trends, the strategy of the insurer etc.).

• Capital modelling: all insurers need to put a certain amount of capital aside, e.g. in case claims turn out to be worse than expected or something else goes wrong. Actuaries build models to help them decide how much and what sort of capital to hold.

• ERM/Risk: Actuaries get involved in monitoring and quantifying all risks facing an insurance company, and help devise strategies for dealing with and avoiding these risks.

Health and care Health and care insurance issues such as critical illness, income protection and long-term care insurance are designed like long-term or short-term life insurance policies so actuarial roles are very similar to those described in the insurance section. But although many of the roles and activities are the same, the inherent risks differ. There is more emphasis on understanding morbidity rates (i.e. rates of becoming sick or disabled or needing medical treatment or rates of recovering from sickness), which is more complex than that of mortality (i.e. death) rates.

It is also necessary to consider aspects such as the implications of medical advances, medical cost inflation and interactions with State provision of health and care services. Some health and care actuaries are more closely involved in wider contexts, such as national healthcare funding systems. For example, how best can we ensure that there will be adequate provision for long-term care in old age under increasing national budget pressures and an ageing population?

InvestmentActuaries have been involved in the field of investment management for decades. Actuaries are involved in buying and selling assets, investment analysis and portfolio management.

Although generally regarded as the province of the investment banker, actuaries can add value in this area. An actuary’s basic skills in forecasting and assessing risks are ideal for estimating whether a capital project (e.g. for a new hospital or a transport infrastructure project) is financially viable. Employers might include government departments, management consultancies, or property companies.

Fields of work


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Name Christina Goodwin

University University of Oxford

Degree Mathematics (BA)

Location London

Role Actuarial Analyst at Grant Thornton UK LLP

Why did you decide to become an actuary?When I left university I spent some time writing material for a maths education website and then working on a statistical project in Italy. When I came back from Italy, I decided that I ought to get a sensible career and I remembered that, when I was about six, I’d told people I’d be an actuary when I grew up!

What do you enjoy most about your job?I enjoy the variety of the job. I feel that I’m developing lots of different skills and I’m stimulated and occupied at work.

I’ve been relieved at the amount of interaction with colleagues and clients, and the emphasis on effective communication. I knew a role that only involved number-crunching wouldn’t suit me as I have quite an extrovert personality and value the collaborative sharing of ideas that is an essential part of the job.

What are the most stressful parts of the job?Exam time is inevitably stressful but Grant Thornton offers a generous study package so I have time to prepare for exams and go to tutorials.

There are also stressful times when there’s a big deadline coming up and an unanticipated problem emerges. It’s reassuring to know that there are plenty of people around who are pleased to step in when there’s an issue and I’ve learnt not to be afraid to ask for help when I need it.

Do you have any advice for anyone wanting to get into the industry?I’d definitely encourage people to find out more about becoming an actuary. From what I’ve experienced, it can be a very rewarding career. I also know that the skills I’m learning and the qualification I’m working towards will be valuable and highly regarded in many other fields.

What was the interview process like?I think it’s important to see an interview as a two-way process – as well as being interviewed, you’re interviewing them. My interview at Grant Thornton gave me a clear insight into the ethos and the work environment and I immediately felt that this was a place where I could be comfortable and make a useful contribution.

Any advice for the interview process?Smile! Be enthusiastic and passionate about your experiences and future plans. No one expects you to be an actuarial expert but your attitude to work is important.

After the interview, try to remain philosophical – you’re bound to get some rejections, but you’ll learn something each time from the process.


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Fields of work

Emerging fields – Banking

Dick Rae is a Managing Director in the Strategic Solutions Group at HSBC. He shares with you his experience of working in the banking sector and what employers will expect from graduates wanting to move into this emerging field.

Is there a role for actuaries within banking?Absolutely!Banking is undergoing a revolution as it adapts to a post Lehman world. Politicians and regulators have set out a road map aimed at preventing the type of systemic risk that so nearly caused the collapse of the banking system in 2008. This includes new capital requirements and more sophisticated processes to measure and manage risk. The training of the modern actuary makes him/her well acquainted with financial economics and regulation.

Actuaries can be found in a number of roles within banks:• Mergers & Acquisitions – working as an

industry specialist. • Derivative sales – often selling derivatives

such as interest rate or inflation swaps to pension schemes, insurers, and their assets managers.

• Structuring – tailoring financial instruments to meet the risk/return needs of clients.

• Equity sales or research – typically as an insurance specialist.

• Risk and pricing – the new growth area that cries out for actuaries.

Despite some of the bad headlines of the last few years banking remains a highly challenging and rewarding occupation; and with all the changes to the world’s financial systems it makes it an interesting environment to work in.

Why would a bank be interested in actuaries?To date, banks have usually hired actuaries for their: • Quantitative skills – the ability to analyse

and structure complex solutions. • Expertise in the pensions and insurance

markets – especially their knowledge of the balance sheet, nature of the liabilities and risk capital requirements.


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• Knowledge and understanding of risk – how to measure risk and its impact on products.

So how do I get there?Most banks have recruited qualified actuaries dependent on the skills that they are looking for. So typically this would mean:• M&A – a consultant actuary that has had

experience in working on such transactions.

• Derivative sales and structuring – an actuary from one of the investment/insurance consultancy firms with experience in pension fund/insurers’ hedging strategies.

• Equity sales and research – possibly one with a background in strategy.

• Risk and pricing – this could be any actuary that has worked in the valuation or risk function of an insurer or consultancy.

Another two routes are outlined below.

MBA graduate recruitment programmeThe usual candidate has two to four years’ work experience (for example after qualification) and is sitting an MBA to make a change of career. If this is your route then you need to look to attend one of the top MBA programmes.

It’s competitive but your qualification as an actuary could be one valuable differentiator.

Graduate recruitment programmeIf you are thinking of becoming an actuary and going into banking before qualification then be aware that it is possible but very tough: • Banks pay well and expect a lot from their

recruits. Assume it will be hard work.• Banks do not specifically look to recruit

trainee actuaries so do not expect to get the study package that other actuarial employers offer. Check this out before you apply.

If this is the route that you choose you need to get organised. Some tips:• Banks favour trying out potential

candidates as part of a summer internship. Recruiting usually begins in September/October.

• First term at university – see if banks offer a “taster programme” for interested candidates. This will put you in good stead for getting a summer internship.

• First term of the second year – check out when you need to apply for a summer internship. Talk to anyone you know from the year above that successfully or unsuccessfully applied for one of these courses.

• First and second terms of the second year are when interviews take place. Get the report and accounts of the banks that you are looking to join. Make sure you have a high level understanding of the bank where you are interviewing.

• See if the bank is attending a university campus – this is a great opportunity to learn where your skills would fit best and to impress.

• First term of the third year – check out when to apply for the graduate programme. If you have not been on a summer internship, you’ll need a mixture of determination, strong academic achievement and any other relevant differentiator that suggests you are too good a candidate to pass by.

ConclusionIf this is your chosen career, then early planning is essential for fulfilling your dreams. It is competitive, but if you are unsuccessful on graduation that does not rule out joining the sector once you have a few years’ experience. In which case qualifying as an actuary in the mean time will give you a wealth of relevant knowledge and insight. An actuary is the hallmark of attainment and technical ability in the world of risk and finance.


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Fields of work

What is it? Solvency IISolvency II aims to create a unified framework throughout Europe for the measurement and reporting of risk and risk capital. It encourages the use of modern methods to measure risk and rewards firms who understand and manage their risks the best.

Insurance companies face many risks such as unexpectedly high levels of claims, failure to control their expenses, or investments going bad. To ensure that these risks do not jeopardise insurers’ ability to pay customers, insurers hold “capital” (a mixture of cash and other investments) which could be used to cover losses should the need arise. This capital is held in addition to the reserves which are held for the claims and costs that the insurer expects to incur. Companies calculate the minimum acceptable level of capital that they need to cover the risks they are running. As long as they have enough capital to cover this amount the company is said to be “solvent”. Companies which do not have enough capital are said to be “insolvent”.

Solvency II has been hit by delays since the beginning. It is currently planned to become law on 1 January 2014, though this go-live date seems unlikely. However even if Solvency II never goes live in its expected form there are many parts of it that have already been adopted by companies and local authorities. This modern approach to risk and solvency is already here to stay.

Longevity Average life spans have risen by around five years in the last two decades alone. However huge differences remain between different parts of the UK, with life expectancy in the longest lived local authority exceeding that in the shortest, by over 12 years.

Life expectancy has a huge impact on the pension that people receive. The cost of increasing life spans is a key driver behind the closure of many final salary schemes, and the reason that the state pension age is set to rise. Differences in individuals’ life expectancies affect the amount of pension they can purchase with their pension pots. The introduction of “enhanced annuities” – recognising that those with certain health conditions are likely to draw their pension for a shorter period – means retirees with health problems can now get bigger pensions.

Actuaries make allowance for the variation and increases in life spans when insurance companies set annuity rates. They help pension schemes decide how much money to hold to pay pensions for the life of each member, and will play a crucial role in forthcoming reviews of State Pension Age.

EU Gender Directive In March 2011, the European Court of Justice ruled that as of the 21 December 2012, gender cannot be used as a factor in the calculation of premiums and benefits for the purposes of insurance and related financial services.

The most widely covered business line in the media that has been impacted by this ruling is car insurance – the reason is that the general public are aware of the disparity between male and female premiums. The prevailing view is that female drivers’ premiums will increase, as a result of the ruling and male drivers premiums may fall slightly or remain at their current level but competitive pressure should reduce prices in the long term. Other business lines that use gender heavily in pricing are life insurance, critical illness and other health insurance.

Actuaries have been involved in repricing the affected products to comply with gender neutral premiums. They will also be monitoring the levels of new business as well as the level of claims in order to establish if the premiums set are appropriate.


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Climate change and actuaries

Therese Kieve is a life actuary and a member of the Managing Committee of the IFoA’s Resource and Environment Group. She talks to you about climate change and the role that actuaries play.

What did last year’s severe drought in the US, the 2010 heat wave in Russia, and the 2003 heat wave in Europe have in common?

All are examples of extreme weather linked to climate change, according to a recent study from NASA scientist James Hansen.

These events have had major impacts. For example, the 2010 heat wave broke all records for Russia – temperatures in the central region of the country, including Moscow, were around 10°C higher than normal. More than 50,000 people died from respiratory illnesses and heat stress during that time. The temperatures also had a substantial impact on that year’s Russian wheat harvest, leading to economic losses of more than US$15 billion.

So how is climate change impacting the work of actuaries and what can we do about it? Quite a lot, as it turns out.

Climate change impactsIn recent years we have already seen significant impacts from climate change, even though the temperature rise across the globe has been relatively modest: global mean warming is currently 0.8°C above pre-industrial levels.

However, “Turn Down the Heat”, a report prepared for the World Bank by the Potsdam Institute for Climate Impact Research and Climate Analytics, says that the world is currently on a path to a 4°C increase before 2100. This would lead to unprecedented heat waves, severe drought, famine and floods in many regions, with serious impacts on vital ecosystem services.

Climate change therefore has serious implications for actuaries working in the following areas:• Property insurance – Long-term solvency

could depend on the ability of insurers and reinsurers to anticipate and respond rapidly to changing levels of hazard and risk in relation to hurricanes and other extreme weather events.

a predicted average global temperature increase is not inevitable4°C


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• Life, Health and Savings – Special attention needs to be paid to the potential impact on human health and life expectancy as a result of climate change, for example through the spread of certain vector borne diseases and increased likelihood of food shortages.

• Long-term investments – It is important that we ensure that investments are resilient to the impacts of climate change, and look for new opportunities to invest in low carbon infrastructure.

While the World Bank report indicates that the 4°C scenarios are potentially devastating, it also notes that a 4°C world is not inevitable and that with concerted action at a global and national level, warming can still be held below 2°C, which is the goal adopted by the international community.

However, even achieving this goal would still not totally avoid increased damage and risk to the environment and human populations. Therefore investment is needed in both mitigation and adaptation.

The role of actuariesIt is in this context that actuarial skills are needed more than ever. In particular, actuaries’ skills in estimating the financial impact of uncertain events, as well as our ability to translate complex probabilistic issues into a form that is easily understood by the general public and policy makers.

Actuaries are currently making a difference in traditional areas such as general insurance and reinsurance pricing, as well as non-traditional areas including sustainable investment, energy consulting and public policy development. There are also further opportunities for actuaries to get involved, for example, in the development of stochastic climate models and the modelling of economic scenarios to quantify the effects of climate change.

As the risks and opportunities of climate change continue to unfold, it is clear that actuaries have a key role to play both in understanding the changing climate, and helping to address its causes and consequences.

Fields of work


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Auto‑enrolment and the pensions industry

Laura Hamilton from Aon Hewitt and Jane Hamilton from Prudential talk to you about the auto‑enrolment scheme that the government has just put in place and also about the future of the pensions industry.

There is much speculation that pensions is a “dying industry” and the need for actuaries will quickly diminish in the years to come. However this is not necessarily the case…

There is currently an ongoing shift in occupational pension schemes – from traditional defined-benefit arrangements, where employers reward long-serving employees with a guaranteed proportion of their final salary to replace their income on retirement, to newer defined contribution schemes, where contributions and investment returns accumulated over an individual’s career are used to “buy” a pension at retirement.

Under new laws, employers are now becoming obliged to set up and automatically enrol their employees into an occupational pension scheme. The government introduced this initiative with the intention of educating workers to make an informed decision for their future planning. The effect of this is explored below.

What does this mean?The government explains that auto-enrolment is critical because saving for the future is at a low, with only 38% of working-age people saving into private pensions1. Lower savings and the rise in the average life expectancy will mean less money for many in retirement. The Government are urging the younger generation to think about a pension in their 20s for them to start saving early in order to have a comfortable amount to retire with.

For employeesIf an employee is not a member of a scheme and is an “eligible member” they will be automatically enrolled into a pension scheme. To be eligible they must be above 22 and below the state pension age and have earnings above the income tax personal allowance (currently £7,475). 1 Department for Work and Pensions, December 2011

Press Release – www.dwp.gov.uk/newsroom/press-releases/2011/dec-2011/dwp152-11.shtml


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If workers wish to opt-out they will be refunded any contributions taken and will be in the same position as before the enrolment. Employees will be automatically enrolled every three years: this includes temporary and contract workers.

For employersEmployers must choose how to incorporate the new members into their company scheme. The employer has four choices:1. continue with the existing scheme,

allowing members to come in at the defined contribution rates;

2. level down the existing scheme, creating lower contribution levels that members can choose to pay;

3. all auto-enrolment members join the Government National Employment Savings Trust (NEST) scheme, supplying a separate scheme for higher contributing employees; and

4. move all members to NEST.

For pension providersThe reform means a lot more work for pension providers. Existing corporate clients (employer) will wish to review their schemes to find an auto-enrolment solution.

They must also consider the costs of the new members:• moving platforms and changing processes

to adhere with Government criteria;• the new members will require to be set up

and will incur administration fees;• information on all aspects of the scheme

must be sent out to inform the members of their rights;

• many auto-enrolment members may not wish to make any investment decisions, which would then fall on the pension provider to create a “default” fund choice; and

• after all this the member may wish to opt out and would need to be refunded any contributions paid within opt out window.

What does this mean for the pensions industry in the future? Governments change regularly, and often they want to introduce new ideas and leave a lasting legacy. For example, our current Government has recently introduced a simplification for future State Pension provision and this has meant a lot of new work for actuaries, advising clients on the impact of the changes upon their employees and the design of their pension schemes.

The current Government is also looking into changing legislation to allow employers to introduce a new type of pension provision, a middle ground “Defined Ambition” pension scheme for their employees. The aim is to provide better guarantees for employees and a better spread of risk between employers and scheme members than defined benefit schemes. If used, the opportunities for pensions actuaries to provide advice to the varying parties involved are wide ranging.

Who knows how future governments and changing (hopefully improving!) economic conditions will affect pension provision and the work for actuaries in the future? What is clear is that this industry is far from “dying” – it is constantly evolving!

Fields of work


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International

There is an ever increasing number of international members joining the IFoA each year. 53% of our student membership is international, which shows the dynamic and varied membership body that you could join.

Why join the UK professional body? There are a number of different professional bodies around the world, and a lot of different career paths. There are a number of different reasons why you should consider the UK professional body as a serious contender. • Exams – You can take the exams

anywhere in the world. With 145 exam centres across the world, you can take the exams in your home country.

• Recognition – UK qualifications are internationally recognised; you can take your qualifications anywhere with you and they will be recognised.

• Mutual recognition – with some professional bodies you can become a member of their professional body/ or ours without having to take any more exams.

• Kudos – taking our qualification requires dedication, enthusiasm, a broad knowledge of maths and the business world, and application. It is not a qualification that will be simple to achieve but the recognition of your achievement within the industry will be high.

• Reward – Due to the risky nature of the work that you will undertake the rewards are substantial, especially as a qualified actuary.

• Network – with such a huge variety of members based all over the world, it is a fantastic opportunity to meet with like-minded people with common interests and goals.

• Opportunity – As the work internationally grows there is a fantastic opportunity for actuaries based overseas to get involved with the profession, to grow networks, to provide advice to those who are looking to come into the profession and to make their mark.

What does the IFoA offer me? The IFoA offers international students exactly the same benefits as UK members; from CPD opportunities and events, to member interest groups, newsletters, discussion groups and international visits from our executive and presidential teams.

How do I get a visa? Work permits are issued by the Borders and Immigration Agency, which is part of the Home Office. Work permit applications can only be made by employers based in the UK who wish to employ people from outside the European Economic Area. Individuals are not able to make applications on their own behalf.

www.ukba.homeoffice.gov.uk

Contact details: www.ukba.homeoffice.gov.uk/aboutus/contact

Are there people I can talk to? Yes, there are a number of people that are available for you to talk to if you want specific advice from someone working internationally.

Career Ambassadors – are working actuaries at all levels of qualification that can advise you on what it is like to work as an actuary, what the working environment is like and what a move might be like if you are transferring to another country.

Education advisers – advise students and those contemplating an actuarial career on matters related to the profession, particularly with regard to the education, tuition and examination activities, including special local arrangements.


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International

Career Ambassadors based in Kenya have provided an overview of an actuarial emerging market. This article discusses Kenya as a country and what opportunities it opens up for those interested in an actuarial career.

Kenya is situated in the East African region, with a population of over 40 million. Kenya is the largest economy in the region with a GDP of US$34 billion as in 2011.

The major stock market in Kenya – the Nairobi Stock Exchange – is the third largest in Sub-Saharan African and was ranked third best performer in the world and the second best performer in Africa in 2012. The major stocks that are traded are equity and bonds.

The political landscape in Kenya is one that attracts a lot of international interest. A new constitution came into place in 2010 which has created a lot of optimism in the country with the expectation of more foreign investments in the pipeline.

The Vision 2030 is a proposal that would position Kenya as Africa’s top investment destination. There is already quite a lot of hype around the expected development of Konza city, already being dubbed the Silicon Valley of Africa.

Insurance in KenyaUnfairly labelled the “ugly sister” by the other financial institutions in Kenya, insurance has experienced low growth and currently stands at about 3% of the country’s GDP. This has previously been attributed to a poor image as a result of non-payment of claims, collapse of insurance companies and inappropriate products.

This trend is appearing to change after the Insurance Regulatory Authority (IRA), the regulator in Kenya, advanced several measures that are slowly beginning to be appreciated by the market. Of most importance is the requirement that all insurance companies must have fully functioning actuarial and risk departments. This requirement is expected to be in effect from June 2013.

There has also been an increase in purchasing of health insurance products in Kenya. Also, foreign owned companies, especially from South Africa, have acquired or increased their stake in Kenya insurers. This has brought with it professionalism which until now has been lacking in the insurance industry in Kenya.

Another major development in the sector involves the use of mobile technology as a means of distributing insurance products. M-Pesa, the mobile money technology as is known in Kenya, is now being promoted to replace the old check-off method. This is expected to positively change the insurance landscape in the country.

Emerging market

Kenya


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Actuarial science in KenyaThe number of qualified Kenyan actuaries working in Kenya is currently less than ten. However, the number is expected to rise in the near future as many Kenyans, who are based abroad, especially in the UK, are beginning to move back. There are in addition a few expatriate actuaries working in Kenya and their expertise has proved invaluable in the development of the profession.

There is strong growth potential within the insurance industry, and insurers are slowly beginning to appreciate the role of actuaries and this is expected to have a positive impact on actuarial opportunities in Kenya. However initially there are limitations in the number of job opportunities and the lack of proper mentorship. Students are encouraged to look at wider fields to gain work. For career guidance, the Institute and Faculty of Actuaries (IFoA) and Actuaries Without Borders have previously conducted actuarial mentorship programmes in Kenya to nurture the young actuaries.

To develop the pool of talent required to grow the profession in Kenya the regulator, IRA, is now sponsoring five actuarial students each year at Cass Business School, to undertake a Masters in Actuarial Science degree. This move is anticipated to increase the pool of qualified actuaries, especially at the regulator’s office which still lacks adequate resources to implement its actuarial programmes.

The Actuarial Society of Kenya (TASK)TASK was started in 2005 and it brings together qualified and trainee actuaries in professional and educational organisations with an aim of promoting the actuarial profession in Kenya. It became a full member of the International Actuarial Association at the International Congress of Actuaries in Cape Town in 2010.

Working as an actuary in KenyaActuaries in Kenya tend to largely work in the following areas:1. valuation of life insurance liabilities

and solvency assessment;2. pension liabilities assessment;3. design and pricing of life

insurance products; and4. management of both life and general

insurance businesses.

However there are some new opportunities for actuaries in Kenya. The IRA has stated that in 2013 every insurer has to have an actuarial department. In addition, the regulator is planning to implement risk-based supervision. This will again increase work opportunities for actuaries.

Other sectors of finance, for example investment management, have showed considerable growth. Some of the leading asset management and investment funds/firms have started recruiting trainee actuaries to assist in investment appraisal, valuation of securities and financial modelling. This is one area that practising actuaries and student actuaries in Kenya can seriously consider as the profession aims to promote actuarial involvement in wider fields.

Salary scales vary significantly depending on whether or not one is qualified. Actuarial students, fresh from university, would not have higher salaries than those employed in other competing professions. However, qualified actuaries would be remunerated in a similar scale to actuaries based abroad.


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Our qualifications

What will employers look for?Most employers are looking for graduates with at least a 2.1 degree and excellent A-levels or equivalent:• Maths A-level (or equivalent) at grade B

or higher.• A degree at 2:1 or higher, in any numerate

discipline (other disciplines may be considered).

• Many employers also look for candidates who have a basic knowledge about the IFoA and the qualification route applicable to them.

• Employers will not expect students to have passed any of the IFoA exams on entry to the company. However, you can take the Certificate in Financial Mathematics (CT1) exam to gain an insight into the exams and to show an employer that you can take and pass the exams independently.

What will the IFoA look for? The minimum requirements for admission as a student of the IFoA are:• Maths A-level (or equivalent) at grade B.• A second A-level (or equivalent) in any

subject at grade C.• English GCSE (or equivalent) at grade C.• Two other GCSEs (or equivalent) in any

subject at grade C.

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.

What skills do I need? Understanding how businesses operate, and how legislation may affect them, is vital. But what really sets actuaries apart is their natural mathematical, economic and statistical awareness, and their ability to apply this to real situations in the financial world.

Aside from the technical knowledge that actuaries need to have, they also need to show experience of good communication skills, leadership, team working, organisational skills, motivation and good problem solving skills.

Obviously you may not have experience of all of these things, but integrity, willingness to learn and enthusiasm for the work will set you apart at interview stage and get you the placement.

What qualifications can I achieve with the IFoA? AssociateshipAs an Associate you can practice as an actuary. As an actuary and an Associate, you will have a breadth of expertise that brings wide and varied opportunities. Associates have the right to vote on matters affecting the future of the profession and the opportunity to be involved in membership forums, events and research.

In order to be an Associate you need to take Core Technical subjects (CT1-9), Core Application subjects (CA1-3), complete one year of Work-Based Skills in the four key dimensions of practical application of actuarial skills, professional and ethical, communication and commercial and complete the professionalism requirement.

Entry Requirements


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Fellowship As a Fellow you will have completed your studies to an advanced level or be specialist in a particular practice area. You can use the letters FIA or FFA and will be highly sought after in your chosen field.

In order to be a Fellow you need to have completed all of the Associate exams (Core Technical and Core Applications subjects), two of the Specialist Technical subjects, one of the Specialist Applications subjects, meet the three years of work-based skills requirement and complete the professionalism requirement.

ProfessionalismProfessional skills is a key part of your training and ongoing development.

Students joining after 1 March 2012 need to do the Online Professional Awareness Test (OPAT) before they can apply to take CT9 – Business Awareness. Members then need to complete a Professional Skills Course either within a year of qualification as Fellow or between four to six years post admission to the IFoA, whichever comes first. Stage 3 requirements then apply which is an annual requirement to do a minimum of two hours of relevant professional skills training.

Chartered Enterprise Risk Actuary (CERA) CERA is a global risk management qualification which the IFoA is accredited to award to members who meet certain criteria. It is one of the most comprehensive and rigorous enterprise risk management qualifications available. It aims to address the urgent need for highly-qualified risk management professionals worldwide, especially in the financial sector.

You can gain this qualification by taking or being exempt from ST9 – Enterprise risk management, or from being a Verifiable Experience Practitioner (VEP).

Those passing or being granted exemption for ST9 exam after 1 September 2012 will need to attend a CERA Seminar.

The CERA Seminar will enable candidates to investigate and discuss more practical elements of enterprise risk management.

You can use the letters CERA after your name in addition to your other qualifications.

Certified Actuarial Analyst (CAA)This new qualification currently being developed by the IFoA is due to be launched in 2013/2014. It is not another level of qualified actuary, but will give those working in actuarial support roles a path to acquire sound technical skills. The qualification is designed to be applicable across a broad range of financial roles. It would be particularly useful for those who want to differentiate themselves in a competitive market, those who are working in emerging markets such as Kenya, Ghana and India, those who work in actuarial functions but do not want to achieve Fellowship and post A-level students who do not want to go to university but want to work in the financial sector and learn whilst earning.

To complete the qualification you need to take five modules and one year of Work-Based Skills.


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School leaver

What university should I go to?

Have you got work experience?

Graduating university

Do you have an A-level (or equivalent) in Maths or another numerate subject – Grade A or B?

Most employers will expect this as a minimum entry requirement. If you do not have a numerate degree, this becomes even more important.

This is the minimum entry requirement to join the IFoA and the first main entry requirement that employers will look for.

Employers will usually look for candidates with a numerate degree – maths, physics, chemistry, engineering etc. Choose a university and course that you will enjoy.

You could take some exams independently to show an employer you’re keen and a good investment. This may not exempt you from the degree requirement.

You could be eligible for exemptions depending on your course and your grades. You can still apply for exemptions independently if you did not do an accredited course.

Seek advice from an employer to see where you are falling down in terms of their requirements. Once you have that feedback you can act on it.

Use the Directory of Actuarial Employers to find employers who have graduate actuarial trainee positions. Congratulations!

All work experience is useful whether it is with an actuarial employer or not – it will show an employer that you do things other than study. Soft skills are just as important as your qualifications.

Do you have a 2:1 or 1st (or equivalent) in a numerate subject?

N

Y

N

N

Y

Y

Qualification routesRoutes to gaining an actuarial role


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Graduate trainee position

IFoA exams

Did you gain an actuarial graduate trainee position?

Even if you haven’t managed to get an actuarial position you can still use the experience for good. If it is a firm that takes on actuaries you could try and gain some experience or see if they would sponsor you to do some exams.

Most employers will have a set graduate scheme that they will expect you to follow to qualification, including study leave and incremental pay as you take and pass exams.

DAT certificate completion of all CT subjects

Take and pass 12 exams either independently or through exemptions and one year of Work-Based Skills.

Complete the professionalism requirement.

Qualify as an Associate of the IFoA

Take and pass 15 exams either independently or through exemptions and three years of Work-Based Skills.

Complete the professionalism requirement.

Qualify as a Fellow of the IFoA – In usually three to six years.

N

Y

Routes to qualification


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Our qualifications

Our actuarial exams explained In this section you will find information on what exams you need to take and pass in order to become an actuary. It will also give you details on other elements that you must consider when looking to qualify with the IFoA.

Core Technical Core Technical Format of exam

CT1 – Financial mathematics CT2 – Finance and financial reporting

One written paper, three hours

CT3 – Probability and mathematical statistics

CT4 – Models

CT5 – Contingencies CT6 – Statistical models

CT7 – Business economics CT8 – Financial economics

CT9 – Business awareness Two day residential practical exam and an online exam after the residential element

The Core Technical exams are the building blocks for key actuarial techniques. All students have to complete these exams.

The CT9 exam has been designed to help those joining the IFoA to understand the business environment, tackling business problems and your professional responsibilities.


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Core Application Core Applications Format of exam

CA1 – Actuarial risk management Two written papers, three hours each

CA2 – Model documentation, analysis and reporting Two day practical exam with an assessment on the second day

CA3 – Communications Online revision materials to be completed before you attend the exam. Then attendance at either online or face-to-face exam

The Core Applications stage covers actuarial concepts. All students have to complete these exams.

The purpose of the first day of the CA2 exam is to ensure that you understand the nature of the assessment and are familiar with the software provided. On the second day the assessment takes place.

CA3 is based on the concepts in the Core Technical subjects, and on CA1 Actuarial risk management and questions are set within a financial framework.

Both CA2 and CA3 are available for both UK and international students.


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Specialist Technical Specialist Technical Format of exam

ST1 – Health and care ST6 – Finance and investment (B)

One written paper, three hours

ST2 – Life insurance ST7 – General insurance – reserving and capital modelling

ST4 – Pensions and other benefits

ST8 – General insurance – pricing

ST5 – Finance and investment (A)

ST9 – Enterprise risk management

This stage builds on your knowledge of the Core Technical and Core Application stages. You only have to pick two exams from this stage to complete in line with your expertise and your organisation’s business function. STO – Alternative Specialist Technical is awarded if we exempt you from a Specialist Technical examination because you have undertaken alternative study for a professional qualification, and gained that qualification.

Specialist ApplicationSpecialist Applications Format of exam

SA1 – Health and care SA4 – Pensions and other benefits

One written paper, three hoursSA2 – Life insurance SA5 – Finance

SA3 – General insurance SA6 – Investment

You only need to complete one of these subjects. There is no requirement to have passed the corresponding Specialist Technical subject. However many of the Specialist Applications subjects typically assume knowledge of the corresponding Specialist Technical subject.

Our qualifications


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Where do I get my study material from? The Actuarial Education Company (ActEd) is contracted to provide actuarial tuition for students, both by correspondence courses and in person. Their website offers a brochure with information on tuition materials and fees.

ActEd provides and sells all the study material for the courses. This material is not available from the IFoA.

Website: www.acted.co.uk email: [email protected]

The syllabus and past papers for each exam are on the profession’s website – www.actuaries.org.uk.

Work Based SkillsThe aims of work based skills are to help you:• understand the interaction between

theory and practice when using actuarial techniques;

• understand the commercial environment;• work within a professional and

ethical framework;• communicate with stakeholders

and colleagues;• develop management skills including

self-management;• satisfy the public need for competence;• understand the need for continuing

development; and• develop processes for reflection and

self-assessment.

How much do I have to do?• Associate – one year.• Fellow – three years.

If you have any questions email [email protected]


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Our qualifications

What university should I go to? What course should I take?One of the hardest decisions to make is what university you should go to and what course you should study.

Most employers will want a 2:1 or 1st from your degree. It is therefore important to pick a course and university that you will enjoy and get the most from to achieve those grades.

There are certain things that you should keep in mind picking a course and university:• What is the content of the course?

Universities will have very similar courses, so do your research and work out what it is that you want to achieve from your course.

• Where is the university? Is it on campus or is it spread out around a city? Is it close to home or the other side of the country/world?

• What is the support like at university/on your course? How is the course made up? Purely lectures or are there one-to-one tutorials too? Is there a career guidance service? What clubs/societies are there?

• How long is the course? Does it have an additional placement year?

• What do employers want? Most employers will want a degree with a numerate element and development of other softer skills such as team work, communication and leadership.

What are exemptions?Depending on the modules taken, and the grades obtained, completion of programmes at the universities below can lead to a recommendation for exemption from some of our exams:• Accredited programmes can lead to

exemptions based on your overall performance during the course.

• Other actuarial and non-actuarial degree courses can lead to exemptions from individual exams based on your performance in certain modules of your course.

The subject-by-subject exemption agreements that the IFoA has with the universities are based on information that the relevant university has provided to us. If you are considering applying for one or more programmes on this list, we strongly recommend that you contact the university you are interested in for further information.

Which universities offer exemptions?This is the current list of universities with accreditation or exemption agreements. This may be subject to change. For any updates please look on the website. You will need to contact the university directly if you want to enquire about a specific course.

University courses and exemptions


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Australian National University University of Birmingham

University of Bristol Cairo University

Cass Business School Chinese University of Hong Kong

Curtin University (Australia) Dublin City University

University of East Anglia University of Essex

Heriot-Watt University University of Hong Kong

Imperial College Business School (for actuarial trainees)

Imperial College London (for school leavers)

Indian Statistical Institute (Kolkata) University of Kent

Lancaster University University of Leeds

University of Leicester University of Limerick

University of Liverpool London School of Economics

Macquarie University University of Manchester

Universiti Teknologi MARA (UiTM), Malaysia University of Melbourne

Monash University (Melbourne) Nanyang Technological University (Singapore)

National University of Ireland (Galway) University of New South Wales

Newcastle University University of Nottingham

University of Oxford Queen’s University Belfast

Queen Mary, University of London Said Business School, Oxford

University of Southampton University of Stirling

Technical University of Lisbon University College Cork

University College Dublin University of Technology, Mauritius

University of Warwick University of Waterloo

University of Zambia


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Our qualifications

Case study:

I achieved some exemptions

Case study:

I didn’t get any exemptions

Rajinder Poonian from Sun Gard talks about gaining a job with exemptions. “When attending internship and job interviews having exemptions would not be a requirement for a candidate. However, having them can accelerate your learning in a job as well as shorten the time until qualification. My company, as are most others, is willing to pay for exemptions; however, such passes do not contribute to my salary like a regular pass does which is a little frustrating.

When my exam results came through at university, the department put up a list of those who gained exemptions, so it was easy to know which ones to apply for. Attaining exemptions can be done as soon as you have joined the IFoA as a student, provided your course is accredited with them. I gained three studying MORSE at Warwick, and it gave me a good confident platform to continue studying.”

Martyn Scott from HSBC talks about gaining a job without any exemptions. “I’ve often questioned how different my life as an actuarial student would have been if I had entered the profession with several exam exemptions from an accredited university, as opposed to the Masters degree in Financial Economics I acquired from the University of Sheffield. The truth is, being an actuary wasn’t something I had considered until after starting my degree so for me the decision was academic.

I believe that there is something to be said for passing exams the conventional way. The satisfaction associated with passing significantly enhances the feeling of achievement.

On reflection, despite making my choices without the information you have at your disposal in this guide, if I had to start again I am confident I would not change my choice of degree.”

Where can I work? Our qualificationsInternationalInstitute and

Faculty of A

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Career contact details

Career enquiriesPlease email [email protected]

To attend the Actuarial Careers ReceptionPlease email [email protected]

Would you like a Career Ambassador to give a presentation or attend a school or university fair?Please email [email protected]

Documents

Ifoa Go Guide Becoming Actuary 2013 2014