Please note. This article has been archived and no longer forms part of the live data on this system. Please use the menu on the left to read current articles.

Key Issues

Actuaries Stay Safe from Credit Crunch Turmoil

With every financial service industry under the spotlight of the ubiquitous credit crunch, what does the future hold for wannabe actuaries?
Back in 2005, Michael Pomery, President of the Institute of Actuaries confidently told students and graduates the Actuarial Profession would only ‘continue to grow in numbers’ and demand would increase for the skills of an actuary.

His forecasts came after the profession was under the spotlight following deficits in occupational pension funds. The actuarial profession recovered and emerged to become stronger than ever.

Need for actuaries
Today, we can see the predictions made by Michael Pomery were spot on. The need for actuaries has grown in our fast moving world, in fact it has never been greater. Even in 2008, with the credit crunch in full swing, it seems the actuarial profession remains a stable and secure industry to start out in.

Despite this, it seems graduates may be staying well clear of the financial industry altogether through the credit crunch fear factor, flagged up in press reports daily across the UK. But it appears the more experienced hires within the big investment banks have been the worst affected by the crunch.

Figures highlighted in the press are enough to drive any high achieving bright young graduate away from the financial services sector altogether. However it needn’t be all doom and gloom. In reality the chances of securing a role in the actuarial profession are far more optimistic than it has ever been.

According to research by the AGR, graduate vacancies will grow by 16.4% in 2008. This will be the fifth consecutive year of growth with 2008 enjoying the highest percentage growth in a decade.

Actuaries here and now
Michael Stefan, Manager of Hays Actuarial, comments on the state of the current market:

“The ‘credit crunch’ hasn’t really affected most of the actuarial profession. This is because there are a small number of experienced candidates in the field (compared to other sectors such as banking and general finance), meaning that, at any given point in time, there are more jobs than candidates. As a result, most actuaries are ‘recession-proof’ and indeed, whenever an insurance company has made redundancies - which are a rare occurrence anyway - the vast majority of both part-qualified and qualified have found another position in a short timeframe.”

So what does this spell for those ready to carve a career and just what do you need to succeed?

“Most employers (both insurance companies and consultancies) are still recruiting and some are experiencing sustained growth phases,” Michael continues.

“Obtaining your first position straight out of university will always be difficult, but once you’ve entered the profession, the prospects are excellent – steady pay increases, a recognised professional qualification and job security. Those graduates struggling to obtain their first role can increase their chances of finding a position by being willing to relocate.”

With the actuarial profession being relatively small compared to other professional groups, it remains far more resilient during periods of rapid change, whether that be deregulation, privatisation or demutualisation.

President of the Faculty of Actuaries, Ronald Bowie is assured the actuarial profession can only become stronger offering more opportunities further into the future.

“There is an important and exciting role for actuaries in the future, in financial risk management and beyond. The only thing we can be truly certain of is that the demands on actuaries will become more diverse and more dynamic. “

With the Institute of Actuaries saying almost 30% of the UK’s qualified actuaries are based overseas, it seems opportunities are endless. Most overseas opportunities arise in Australia, continental Europe, India, New Zealand, Pakistan and South Africa.

Dr Geraldine Kaye, Managing Director at GAAPS Recruitment offers advice to those considering a career in the actuarial profession.

“With the credit crunch hitting the headlines, GAAPS has never been busier. The UK Actuarial profession does not seem to have been hit in the same way as other areas of financial services in terms of redundancies. And as one might expect, the graduate entry market for actuaries has become even more competitive.

Top tips from Dr Geraldine Kaye

• First and foremost: work for the best degree result that you can.
• In applications and in interviews, always demonstrate your enthusiasm and sense of dedication. This will show you are motivated enough to study for the actuarial exams whilst working.
• Remember at an interview to explain what the organisation can gain by you working for them rather than what you want to achieve by working for them.
• Finally: stay positive!

Geraldine concludes: “As a graduate entry actuary, you will most likely work within a team, supporting the work of your seniors. Depending on the company, you will take on differing levels of responsibility from the start. Salaries can range from £20,000-£26,000 per annum. Good luck!”

Keep up to date with the latest industry news -
sign up to our news alerts