What is an Actuarial Analyst?
An Actuarial Analyst employs statistics, probability, and economic ideas to assist a business in maximising its financial risks and possible benefits.
The Actuarial science profession is extremely competitive, and the many job titles can be perplexing at times. An Actuarial Analyst (also known as an Actuarial Associate) is a good place to start if you want to be an Actuary but lack the expertise and ‘know-how’ that comes with a career in this business.
Actuarial science is a highly sought-after discipline that plays a significant part in a company’s success. Accredited Actuaries rely on Actuarial Analysts to make strategic judgments and convey solutions to difficult financial concerns.
When it comes to Actuarial Analysts, there is usually a distinction between individuals who work in life disciplines (life and health insurance) and those who work in non-life disciplines (auto, home, and property insurance).
Depending on the organisation, Actuarial Analysts will generally have the following responsibilities:
- Creating reports based on analysis findings.
- Recognising responsibilities and hazards.
- Assisting in the design and pricing of insurance products.
- Confirming data sources.
- Discovering new data sources
- Employing advanced statistics and modelling in understanding data.
- Providing technical support and analysis to Actuaries.
- Recognising trends
- Creating mechanisms for better data analysis and reporting.
Starting out as an Actuarial Analyst, as your first job out of college, with few passed examinations and minimal experience will put you at the bottom of the Actuarial pay scale. This may be swiftly boosted by completing further examinations, which generally results in salary increases of a few thousand GBP.
The UK national average salary for an Actuarial Analyst is £37,822, ranging from £27,000 to £52,000.
The average income for an Actuarial Analyst in the London Area is £39,753.
The average additional cash compensation for an Actuarial Analyst in London is £2,965, with a range of £1,011 to £8,701.
Working hours and work location
Working hours for Actuarial Analysts are typically from 9 a.m. to 5.30 p.m. As an Actuarial Analyst, you may be required to work certain evenings and weekends, particularly if you are engaged in complicated projects such as marketing campaigns or year-end reporting to the pensions regulator. Paid overtime is uncommon, although some companies will grant time off in exchange. Actuarial Analysts’ work is office-based.
Hiring Actuarial Analysts is beneficial to a wide range of businesses. Some of the most common work settings for Actuarial Analysts are:
- Insurance companies
- Consulting companies
- Investment companies
What to expect
An Actuarial Analyst isn’t often involved in as many high-level decision-making partnerships as some other professionals. Instead, the Actuarial Analyst is in charge of gathering, analysing, and summarising all of the data that the fully certified Actuaries will need to make their work decisions.
When making judgments, Actuaries must evaluate a variety of criteria, and this frequently necessitates the summarisation of vast volumes of data into clearly interpretable statistics. This is when the Actuarial Analyst enters the picture.
The Actuarial Analyst will comprise all the data for the Actuaries to whom they report. This frees up Actuaries’ time to focus on higher-level thinking and decision-making rather than becoming weighed down by the details of data. Actuarial Analysts are frequently in charge of the monthly, quarterly, and yearly reporting processes that Actuarial departments must perform. These are frequently laborious operations that need a thorough understanding of the data, computations, and outcomes.
Despite the fact that Actuarial Analysts may not be able to attend all cooperation sessions, their contributions and opinions are nevertheless extremely significant. An Actuarial Analyst may alert the Actuary to any possible issues that may occur throughout the execution of business changes and choices. As one might think, an Actuarial Analyst’s work obligations are far more technical than those of an Actuary. However, both are required for a company to function.
An Actuarial Analyst’s day-to-day work entails a significant amount of mathematical labour and analysis. It’s a pretty competitive sector, which means that dedication and great collegiate achievement will provide you with an advantage while looking for work.
To begin your career as an Actuarial Analyst, you must first have a Bachelor’s degree.
Many colleges and universities offer Actuarial science degrees. Some other degrees relevant to Actuarial Analysts’ work include:
Entry into training as an Actuarial analyst often does not necessitate a degree, even though a degree could give you an advantage when looking to prepare for Certified Actuarial Analyst tests (CAA tests) before finding a suitable position.
The Institute of Faculty of Actuaries (FoAs) CAA qualification is intended for people who wish to work in analytics and statistics; applicants may already be in an analytical job or be new to financial and statistical work. It is a professional option that allows you to study for the CAA while working full-time, and it typically takes two to three years of part-time study to accomplish.
In order to get qualified, you will require six tests, as well as an online professionalism awareness test (OPAT). In addition to the tests, you must complete one year of applicable work-based skills.
Once qualified, you must join the Institute and Faculty of Actuaries (IFoA) and be authorised to use the CAA designation after your name.
The minimal admission criterion for the Fellow of the Institute of Actuaries (FIA) path to becoming an Actuary is an A-level in mathematics with a grade of B or above.
The job of an Actuarial Analyst is not for everyone; it requires a highly specific set of talents. Fortunately, many of these abilities are learned rather than innate, and they can be honed with commitment and hard effort. These skills include:
must have skills:
- Specialised maths knowledge in calculus, probability, and statistics
- Knowledge of finance, accounting and economics
- Skills in analysis, project management, and problem-solving
- Interpersonal skills
- Computer skills in simple coding, spreadsheet formatting, statistical analysis programs, database manipulation, and programming languages.
- Understanding of the common industries that Actuarial Analysts are employed in such as insurance, banking, and government.
- Ability to work independently as well as collaborate with others
There are also a number of mandatory Actuarial tests that include fundamental skills like mathematics, probability, economics, and business.
Passing these examinations will help you advance along the route to becoming a full-fledged Actuary, as well as help you earn more money.
Although prior commercial experience is not required, it will be advantageous if you do get some in financial services, particularly insurance, as part of your degree or after graduation. Other job experience in any function or area is also valued, especially if it demonstrates significant transferrable abilities.
During your education, you may be able to do a paid summer internship with a related firm. Some major corporations promote Actuarial internships. A forecasted relevant 2:1 degree, or a predicted first-class degree, is often required for a compensated six-week summer internship.
However, it is best to double-check the applicable requirements with each internship provider. There are also opportunities for 12-month paid internships.
If you opt not to pursue a career as an Actuary and instead work as an Actuarial Analyst, your professional progression possibilities will be limited, and switching businesses may be tough (to another Actuarial Analyst position)
Here are some personality qualities and job objectives that would be required to make this a viable career:
- You should be goal-oriented and tenacious.
It may be a long and tough procedure to pass all of the Actuarial tests.
You must be able to endure in the face of setbacks and relish the challenge that each exam presents. If you’re goal-oriented, you’ll push yourself to finish the examinations as fast as possible, and the prospect of a raise will inspire you.
- You should enjoy maths and work with numbers
Actuaries deal with numbers on a daily basis. The majority of them like delving into the specifics and determining why trends arise. Actuarial Analysts employ numbers and mathematical ideas to make business choices that benefit the organisation and its policyholders. If you aren’t excellent at arithmetic or don’t love it, a job as an Actuarial Analyst is unlikely to pique your attention for long.
- You should enjoy problem-solving
Actuarial Analysts’ job frequently entails thinking out answers to issues and using a great deal of judgement. Because there are no right or wrong answers to this subject, it is an Actuarial Analyst’s responsibility to come up with unique ideas and weigh the benefits and drawbacks of each.
The University of the West of Scotland’s one-year full-time program will give you the executive training you need to launch your career in Actuarial Analysis. Since the London Campus is located in the financial centre of London it provides you with a unique perspective on UK business and gives you a hand up on Londons’ lucrative job opportunities