How to become an actuary

Actuaries use mathematics, statistics, and financial theory to assess risk and uncertainty in various industries. They analyse data to calculate the probability of events like accidents, illnesses, natural disasters, or market fluctuations. They then use these findings to help organisations make more informed business decisions. 

Actuaries can help ensure that financial institutions are stable enough to meet their obligations to customers and members. For example, in pensions, actuaries assess how much money needs to be set aside today to meet future retirement plans. 

Investment firms utilise actuaries to assess portfolio risks and comply with regulatory requirements. In insurance, actuaries can help determine the likelihood of claims and their potential costs, while adhering to rigorous ethical standards that ensure objectivity and protect public trust.

Actuaries typically need strong mathematical skills and some professional qualifications. 

Most actuaries are expected to have degrees in mathematics, actuarial science, statistics, economics, or finance. However, those with degrees in subjects such as physics or engineering, which also involve the use of numbers and statistics, may also be eligible for actuarial positions. 

The Institute and Faculty of Actuaries (IFoA) (external link), which sets the professional standards for qualified actuaries in the UK, requires a series of professional examinations. These exams cover subjects such as probability, statistics, and financial mathematics, as well as specialist areas like life insurance or pensions. 

The qualification process can take seven to 10 years.¹ (external link) Many employers support trainee actuaries with study programmes, providing time off for studying and covering examination fees.

Actuaries typically need advanced mathematical abilities, technical proficiency, and strong communication skills.

Some of the most desired mathematical and analytical skills in actuaries include: 

• Probability theory and statistical modelling techniques.
• Financial mathematics. Data analysis techniques.
• Risk assessment methods. 

Many qualified actuaries require proficiency in: 

• Programming languages (such as R, Python, or SQL) for data analysis.
• Actuarial software (including Prophet, MoSes, or ResQ).
• Excel, for financial modelling and analysis.
• Data manipulation tools. 

Some of the most prized professional skills include: 

• Strong written and verbal communication to explain technical findings clearly.
• Attention to detail when working with complex datasets.
• Problem-solving abilities for addressing unique business challenges.
• Project management skills for handling multiple projects and tight deadlines.

There are various ways to gain actuarial experience. However, since actuaries need to apply theory to real-world situations, employers typically value hands-on experience. 

Many businesses also offer placement years for university students, allowing them to gain a year’s experience before completing their degree. Internships, whether during or after university, are common pathways for gaining practical experience. Some companies offer graduate programmes for trainees, involving placements across departments and exam study support. 

Beyond the initial qualification, actuaries are also required to undertake continuing professional development (CPD) throughout their careers, ensuring their skills and knowledge remain up to date with evolving industry practices and regulations.

Actuarial exams typically start with core theory in subjects like mathematics, statistics, economics, and business, followed by applications in more practical work. Many trainees have one or two exams per year, so time management skills and commitment can be essential for those balancing studying with full-time work.² (external link)

Students with relevant university degrees may be eligible to skip early examinations, potentially cutting their total examination time by one or two years. Many employers can help support trainee actuaries, including offering paid leave, covering fees, and providing access to relevant courses and materials.

Actuaries work across various industries, each requiring specific expertise.

For example: 

• Insurance actuaries calculate premium rates and assess risks.
• Pensions and retirement actuaries value pension schemes, advise on funding and use patterns, and manage retirement planning products.
• Investment actuaries evaluate asset management, investment risk assessment, and portfolio optimisation for various companies.
• Enterprise risk management actuaries assess business risk for large organisations, developing risk frameworks and supporting decision-making.
• Government actuaries work for public sector organisations, assessing risks for things like national insurance schemes, government pension plans, etc.

While the qualification process for becoming an actuary can be lengthy and challenging, it can also offer rewarding careers and competitive salaries. Qualified actuaries are typically expected to stay up to date with regulatory changes and identify emerging risks, providing opportunities for professional development. If you enjoy working with numbers, solving problems, and continuous learning, then actuarial work might be for you.