Actuarial analyst
If you love maths and enjoy analysing data, consider a career as an actuarial analyst
Actuarial analysts use specialist computational software and spreadsheets to analyse data in order to assess risk. In life insurance, for example, this could involve working out the average life expectancy of different demographics to determine the policy premiums each should be charged.
You can work in various areas of the financial services industry and will often be employed in a support role within an actuarial team. An interest in and aptitude for using IT is useful.
Types of actuarial analyst
You'll usually work in one of the following areas:
- insurance
- pensions
- banking, finance and investment.
However, there are opportunities emerging in other areas such as healthcare, cyber security, technology, data science and climate change.
Whichever sector you work in, you'll work as part of a team, developing your actuarial, business and data skills, and will support qualified actuaries to help manage risks for clients.
Responsibilities
As an actuarial analyst, you'll need to:
- use complex mathematical formulas, particularly in the area of advanced statistics and modelling, in order to assess a variety of risks
- use spreadsheets or other specialist software to complete data analysis tasks
- carry out statistical analysis, such as scanning and cleaning data and interpreting trends and relationships between data sets
- provide technical support to an actuarial or other financial team, producing statistical reports and analysis
- write reports on your computations with results of your findings and produce these reports in a format that non-specialists can understand.
Salary
- Starting salaries for student or trainee actuarial analysts are usually in the region of £20,000 to £26,000.
- Qualified actuarial analysts, with around five to ten years' experience can expect to earn up to £65,000.
- As a senior analyst, you could earn up to £100,000.
Salaries vary depending on the type of employer, industry, location and also your qualifications, skills, experience and level of responsibility.
Benefits can include bonuses, a company pension scheme, medical insurance, gym membership and other discounted insurance options.
Income figures are intended as a guide only.
Working hours
You will usually work a normal working week, Monday to Friday, 9am to 5.30pm. You may work some extra hours, especially if working on year-end returns to the pensions regulator, for example.
What to expect
- Roles are office based and you'll spend most of your time working on a computer. There may be some opportunities for hybrid working.
- You'll need good concentration to work on complex calculations, using spreadsheets and specialist software.
- Opportunities exist in major towns and cities throughout the UK.
- You may need to travel to attend meetings or for training.
Qualifications
Some employers use the role of actuarial analyst as a stepping stone to training to become an actuary. They may advertise analyst roles for student or part-qualified actuaries. This will depend on the employer, however, and you should check with them directly about their specific progression routes.
Graduates interested in becoming an actuary should consider graduate roles such as actuarial trainee or risk analyst. Graduate trainees then complete a series of professional exams during their graduate trainee programme. Find out more about becoming an actuary.
You can also to get into the industry by taking a Level 4 Actuarial Technician apprenticeship. This entry-level qualification combines paid work with study, meaning that you can train on the job to become an actuarial technician. With further experience and training, it may be possible to move into the role of actuarial analyst.
You will typically need A-level maths to get a place, but you should check with employers as entry requirements vary. Apprenticeships usually last between two and three years, depending on your experience. Contact employers direct to find out what qualifications and experience they are looking for. Find an apprenticeship.
Skills
You'll need to have:
- strong numerical skills
- the ability to analyse financial data and solve problems
- the ability to carry out statistical analysis, such as scanning and cleaning data and interpreting trends and relationships between data sets
- good communication skills to be able to feedback findings to senior actuaries and other managers, as well as non-actuarial colleagues or clients
- report writing skills and the ability to create summaries of data analyses that non-specialists can understand
- commercial awareness as you'll need to adopt a business-like approach when dealing with clients
- an aptitude for collaborative working
- IT skills, particularly the use of Excel
- time management, planning and organisation skills.
Work experience
Although pre-entry experience isn't essential, getting experience in the financial services, particularly insurance and pensions, is very useful.
Other work experience in the finance or other sectors is also looked upon favourably, especially if you can demonstrate relevant transferable skills.
Try to talk to people already in the job and ask if you could work shadow them to find out more about the work of an actuarial analyst. You should include examples in your CV of any opportunities you have had to gain relevant skills, such as numeracy, data analysis, IT and problem solving.
Find out more about the different kinds of work experience and internships that are available.
Employers
Actuarial analysts are found in a range of large to medium-sized organisations, including the 'big four' consultancies, as well as other financial services companies and all major insurers.
If you're working for an insurance company, for example, you will only have one client (your employer). However, if you work for a consultancy firm, you will have a range of clients.
You can search for job vacancies at:
Recruitment agencies include:
Professional development
If you started your career as an actuarial technician, it's possible to move into an actuarial analyst position by doing further on-the-job training. You will learn from more experienced staff and take relevant courses and training, which may be provided in-house or through organisations such as the Institute and Faculty of Actuaries (IFoA).
Membership of the IFoA is useful for careers advice and networking opportunities, as well as training and events. There are no academic admissions criteria for student membership of the IFoA, but they recommend that applicants have a maths-based degree or, if not, take one of their non-member exams.
It may be possible for experienced actuarial analysts to take the Level 7 Actuary Apprenticeship in order to qualify as an actuary.
If you are a graduate actuarial analyst, who is a student or part-qualified actuary and receiving support from your employer to become fully qualified, you will need to study for professional exams at the same time as working. However, most new students who want to become an actuary, will join a company as actuarial trainee or risk analyst.
Career prospects
The skills and expertise of actuarial analysts are in demand as most of the work relates to a dynamic area of the financial services sector, notably pensions and life insurance. The competition for roles is fierce so you will need highly developed numerical and analytical skills to find opportunities.
With experience, it's possible to move into a senior actuarial analyst role with a more strategic role and responsibility for junior staff or into a senior analyst role in the broader financial services sector.
It may also be possible to qualify as an actuary by undertaking the IFoA professional exams.