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Home , Actuary

Becoming an Actuary

A GUIDE TO A CAREER AS AN ACTUARY Updated: September 2019

Table of Contents

1. About actuaries 2

2. Why become an actuary? 3

3. Where do actuaries work? 4

4. Actuarial Exams 5

5. Actuarial Students 6

6. in Ireland 10

Society of Actuaries in Ireland Page 1 1 About Actuaries

An actuary is a business professional who works on problems that involve financial or future uncertainty.

Actuaries can work in any area that involves future financial uncertainty To do their work, actuaries use and can hold any position from trainee statistical and mathematical to CEO and beyond. techniques to study past events and anticipate future events. Most actuaries work in the financial Through their education and services sector - including , training, actuaries develop strong , healthcare, corporate analytical skills together with a , , thorough knowledge of financial and banking – in technical, consulting theory, and the and general management roles. legislation and regulation that

applies to .

Their work includes: The actuarial qualification is highly regarded, both nationally and • Calculating an appropriate internationally. As an actuary’s price for insurance contracts career progresses, so too do the

• Advising insurance and opportunities for a variety of companies on how to intellectually and financially invest so that they can make rewarding career paths, from payments to customers when specialising in technical research they fall due (which might be to focusing on more commercial many years from now) activities.

• Advising on the amount of The actuarial profession is an savings needed in order to ethical profession with the have a comfortable highest standards of practice. retirement To become an actuary, you • Developing mathematical and need to be hard working, financial models to help confident with numbers and companies understand and prepared for many years of manage their study. However, if you enjoy problem solving and A growing number of actuaries are communicating your solutions to expanding into business areas such as others, there are few careers data analytics, aviation finance and wider with more to offer. fields beyond financial services, where their analytical and risk management expertise add considerable value.

Page 2 Society of Actuaries in Ireland 2 Why become an actuary?

There are many reasons why becoming an actuary is an attractive career.

Diverse practice areas Opportunity to work overseas

Actuaries work in a variety of roles Actuarial skills can take you across a wide range of employment anywhere in the world. The Society sectors including insurance, of Actuaries in Ireland has a number , corporate finance, of mutual qualification recognition banking, healthcare, aviation agreements in place with actuarial finance and risk management. As bodies around the globe. This allows the skillsets of the actuarial you to practice as a fully qualified profession are increasingly actuary in any of these countries recognised and valued, actuaries under your existing qualification continue to branch out from the awarded by the Society of Actuaries traditional areas of practice. in Ireland.

Earning potential Professional influence

Salaries and employee benefit Applying their unique skills, packages are generally very actuaries are often involved in competitive, and the actuarial formulating strategies, developing profession is regarded as one policy and shaping opinion at the of the highest paid professions. highest levels of politics, commerce and academia. Intellectual challenge Professional integrity Working as an actuary is an intellectually rewarding career. Actuaries maintain the highest Actuaries combine technical analysis, professional standards and are commercial awareness and expert widely recognised for the ethical, judgement to solve complex professional and trustworthy manner problems, answer challenging in which they conduct their work. questions, and bring lucrative opportunities to fruition. A healthy work life balance

Intellectual satisfaction An actuarial career allows the Actuaries are problem solvers, flexibility to balance professional conscious of emerging trends and obligations with interests outside issues, through their interpretation of work. of statistical data and knowledge of social and economic systems.

Society of Actuaries in Ireland Page 3 3 Where do actuaries work?

Actuaries are involved in a diverse range of fields all over the world.

Over time, actuaries have been actuaries work in many different recognised for their wide range of types of companies such as skills and competencies. These skills insurance and include strong technical ability, sound companies, consultancies and judgement and effective broking operations in roles communication. As such, actuaries including pricing, reserving and have become involved in new and financial modelling. emerging sectors of the market whilst maintaining a strong presence in the Investments more traditional fields of . Even within the traditional has been a practice areas, actuaries work in a growing industry for actuaries in recent wide variety of roles. years. This can be attributed to the fact that actuaries’ skills in identifying, The categories below describe analysing and mitigating risk are longstanding areas of employment ideally suited to the fast-paced world for actuaries. of investments. Actuaries are typically involved in analysing investment portfolios, buying and selling and managing portfolios of stocks and Actuaries are well established within shares. the life insurance industry and are involved in many different areas Pensions including product development, pricing, risk assessment, financial reporting, Pension actuaries work with other governance and marketing. As well as specialists to help pension schemes life insurance itself, the life insurance meet the needs of trustees, sector incorporates other areas such employers and scheme members. as pensions, critical illness and income As schemes will be affected by the protection. Life insurance actuaries investment market, changing also work as consultants providing legislation and regulation, an in relation to the actuary will be on hand to provide products above. specialist advice. The typical work undertaken by a pension actuary includes advising the scheme General Insurance trustees and companies on funding, The general insurance field investment, scheme design, continues to evolve, covering a accounting for pensions, managing wide variety of products. These risk, corporate transactions and range from the more traditional individual benefits. fields of motor and to new fields such as cyber insurance. General insurance

Page 4 Society of Actuaries in Ireland

4 Actuarial Exams

To qualify as an actuary, students must complete a number of exams.

There is no Irish-specific examining Typically, a student works as an body. Therefore, most Irish actuarial trainee in a professional students qualify through the environment and studies for the professional examinations and exams in his or her spare time. experience requirements of the Employers generally provide support Institute and Faculty of Actuaries, for actuarial trainees in the form of based in the UK. paid study leave, membership of the

Institute and Faculty of Actuaries and The exams are held twice a year – the Society of Actuaries in Ireland, on- once in the spring and again in the the-job training and support for study autumn. You may sit the exams in materials. whatever order you choose.

Full details of the actuarial exams are On average, it takes 3 to 6 years available on the Institute and Faculty of to complete the exams, Actuaries website (www.actuaries.org.uk) depending on the extent to which in their ‘Becoming an Actuary Guide’. you can claim exemptions from certain subjects based on relevant third-level qualifications.

Society of Actuaries in Ireland Page 5

5 Actuarial Students

There are a number of routes you may take to qualify as an actuary.

University Education As the future of the actuarial profession, actuarial students are In the past, many actuaries began highly valued. Actuarial students in their careers from secondary Ireland are typically members of school, working as interns in the both the Society of Actuaries in larger insurance companies while Ireland, and the Institute and simultaneously studying for the Faculty of Actuaries in the UK. actuarial exams. However, in recent times the trend has been for school- The actuarial profession has leavers to attend university before undergone many changes over applying for a graduate actuarial the past number of years, trainee position. including an updated exam syllabus introduced in 2019. Details of some of the actuarial science and other relevant degrees - including master degrees - aimed at graduates of non-actuarial courses available from Irish universities are as follows:

University Course Title Faculty / School

University College - Actuarial and School of Dublin Financial Studies and - MSc Actuarial Science Statistics

Dublin City University - Actuarial Mathematics School of Mathematical Sciences

University College - Financial Mathematics College of Science Cork and Actuarial Science Engineering and Food - MSc Actuarial Science Science

Queen’s University - Actuarial Science Queens University Belfast and Risk Management Management School

National University of - Financial Mathematics College of Science / Ireland, Galway and Economics College of Arts

University of Limerick - Financial Mathematics Department of Mathematics and Statistics

Page 6 Society of Actuaries in Ireland

5 Actuarial Students

Continued from page 6

It is worth noting that to qualify as an Certified Actuarial Analyst (CAA) actuary a university degree in This membership level of the Institute actuarial science is not essential, and Faculty of Actuaries gives a although many of the subjects taught under such degrees are of professional qualification to those who significant benefit to an aspiring are interested in working in the financial actuary. sector but do not want to complete the full actuarial qualification. Further details Employers are open-minded when it of the CAA qualification are available on comes to the specific university the Institute and Faculty of Actuaries degree obtained when considering website (www.actuaries.org.uk) candidates for actuarial positions. However, numerate degrees such as Associate actuarial science, mathematics, statistics, economics, engineering, Students who become Associate chemistry or physics are more suited members of the Institute and Faculty of to the type of work that actuaries do, Actuaries can describe themselves as and so better prepare students for an actuary. They are then entitled to an actuarial career. apply for Associate membership of the In certain instances, universities in Society of Actuaries in Ireland and can Ireland have accreditation or use the designatory letters ASAI. exemption arrangements in place with the Institute and Faculty of As an actuary and an Associate, you Actuaries in the UK. Where this will have a breadth of expertise that arrangement is in place, exams brings wide and varied career completed under these university opportunities. Associates have the degrees may exempt you from some right to vote on matters affecting the of the professional exams required to future of the profession and the qualify as an actuary with the opportunity to be involved in Institute and Faculty of Actuaries. membership forums, events and research. Further information on the exemptions available for specific degree courses can be obtained directly from the relevant university

faculty overseeing the degree.

Society of Actuaries in Ireland Page 7

5 Actuarial Students

Continued from page 7

Fellow To become an Associate you must complete the Core Principles modules Members of the profession who wish (CS1-2, CM1-2, and CB1-3), the Core to continue their studies to an Practices modules (CP1-3) and one advanced level, or who wish to year’s worth of Personal and specialise in a particular actuarial Professional Development (PPD) field, may take further specialist requirements. You will also be exams to qualify as a Fellow. required to complete the Online Fellows are highly sought after as Professional Awareness Test (OPAT) experts in their chosen field. and attend a professionalism course. To transfer to Associate membership Members will be admitted to the of the Society, participation in a class of Fellow on successful Graduation Programme organised by completion of the Associate the Society of Actuaries in Ireland will modules (Core Principles and Core Practices subjects), two of the be required. Specialist Principles modules (SP0-9) and one of the Specialist Advanced modules (SA0-6).

Members must also have met the Personal and Professional Development (PPD) requirements and fulfilled the required professionalism training. These members will be eligible for Fellow membership of the Society of Actuaries in Ireland once they have participated in the Society’s Graduation Programme.

The Society hosts Fellowship Ceremonies to celebrate the successful completion of the actuarial exams and confers new qualifiers with Fellowship of the Society of Actuaries in Ireland. Fellows can then use the designatory letters FSAI.

Page 8 Society of Actuaries in Ireland

5 Actuarial Students

Continued from page 8

CERA – There are two ways in which members Chartered Enterprise Risk Actuary of the profession can be eligible to receive the CERA qualification: CERA is a global risk management qualification awarded to members • become an Associate of the profession who meet certain member and pass SP9, the criteria. It is one of the most Specialist Principles module comprehensive and rigorous in enterprise risk enterprise risk management management; qualifications available. It aims to • become a Fellow member and address the urgent need for highly have passed SP9 as one of qualified risk management your SP modules for professionals worldwide, especially Fellowship or as an additional in the financial sector. SP subject;

CERA is designed to equip Attendance at a CERA seminar to actuaries to fulfil roles such as enable investigation and discussion Chief Risk Officer (CRO) in fields of more practical applications of such as insurance, reinsurance, enterprise risk management is also consulting, energy, infrastructure, required. transport, manufacturing, technology, media and healthcare.

Importantly for complex financial institutions, CERA considers individual risk categories and how they interact. The qualification requires understanding of how to measure, model and manage risks, and how capital can be best applied.

Society of Actuaries in Ireland Page 9

6 Society of Actuaries in Ireland

The Society of Actuaries in Ireland is the professional body representing the actuarial profession in Ireland.

The Society is dedicated to serving the public by fostering the Student Society - highest standards of Society of Actuaries in Ireland professionalism and competence All students of the Society are in actuarial practice. automatically members of the The Society: Society’s Student Society and • establishes and maintains receive emails about social events, tutorials and other student matters. professional standards, for the

protection of the public As a member of the Society, you are

• provides continuing professional entitled to apply for a Student Travel Card. This gives great discounts on education rail travel, cinema tickets and student

• creates forums for discussion discounts in many shops. This card can be obtained by visiting the about contemporary and relevant Student Union Office in Trinity issues College Dublin (TCD). New Society students should bring along a copy of • promotes research and their Society membership development of actuarial science acceptance letter together with • makes informed contributions to the photographic ID. debate on issues of public interest. Attending student events is the • publishes a Newsletter, regular best way to meet other actuarial eNews bulletins and Practice students. Committee Updates to keep If you are interested in pursuing an members informed actuarial career, we recommend The Society regularly organises meetings that you discuss it with an actuary, at which a member, or guest speaker, who should be able to answer any presents for discussion on a topical or questions that you may have. academic issue. Professionalism Alternatively, by contacting the courses, practice committee forums, Society, we can put you in touch seminars, workshops, personal development training and an annual with one of our Fellow members convention are also organised by the from the Careers Panel. Society. All of these events form part of the Society’s Lifelong Learning Programme.

Page 10 Society of Actuaries in Ireland

6 Society of Actuaries in Ireland

Member Support Service

Throughout the path to becoming an This ‘buddy system’ is a great actuary, students are encouraged to opportunity for students to be partnered take advantage of our Member Support with a recent qualifier. The idea is for the Service. This is a group of recently mentor to provide guidance on study and qualified actuaries who provide students work-related issues to those who are with mentoring and support as they working through the exams. In being study for the exams. This is a flexible paired with a recent qualifier, the student service, and the mentee may decide if it will have the dual benefit of learning from involves one meeting or phone call with someone who has successfully balanced a mentor, or if periodic meetings over a work and study in order to qualify, but more extended period might be who also still recalls the specific preferable. challenges of being a student actuary.

Member Support Service

Society of Actuaries in Ireland Page 11

NOTES

NOTES

Clanwilliam House, Clanwilliam Place, Dublin 2, Ireland, D02 AV90. Tel. + 353 1 634 0020 Fax. + 353 1 634 0039 Email. [email protected] LinkedIn: society-of-actuaries-in-ireland Web. www.actuaries.ie