Poor financial decisions can ruin your business. Similarly, a poor assessment of risks regarding vital business decisions can also harm it. Instead of constantly battling with financial statements and balance sheets, you can get an actuary to help you.
An actuary can help you make better financial decisions through proper risk assessment and other factors. However, if you cannot hire one, you can learn how to become an actuary, especially if you do business in the UK.
According to Forbes, to have any chance at success, you need to know your small business financial numbers. When you run a business, there is no room for unorganized, inaccurate accounting.
The desire to take risks always toils with the financial numbers of any company. Hence, when the risk is not adequately assessed and fails, it becomes a big problem.
While discussing how to avoid risks, we will intensely focus on becoming an actuary in the UK. The table of content below can easily help you navigate this content.
Table of Contents
- Why Study Actuarial Science in the UK?
- What Does an Actuary Do?
- What is the Salary and Job Outlook of an Actuary in the UK?
- How Long Does it Take to Become an Actuary in the UK?
- How Much Does it Cost to Become an Actuary in the UK?
- What are the Requirements to Become an Actuary?
- How to Become an Actuary in the UK
- What are the Best Places to Study Actuarial Science in the UK?
- FAQ on How to Become an Actuary in the UK
- Conclusion
- References
- Author’s Recommendations
Why Study Actuarial Science in the UK?
A good number of health problems usually stem from money problems. A poor assessment of an idea before a complete commitment. Of course, that is what actuarial science seeks to avoid.
In almost every financial firm, professionals with actuarial science degrees are in strong demand. Indeed, no one wants to make critical decisions again.
Due to the number of the few professions in this field, actuaries earn high salaries. Of course, it is true when you compare it with other financial experts. Maybe we could say they have superpowers because they can predict futuristic events.
As an actuary, you can help many individuals win the battle of their money and investment problems. No amount of money may be able to compete with the feeling of helping a family go from being broke to a level of financial stability.
So, with so many opportunities, you should surely want to know how to become an actuary, especially when you live in the UK.
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What Does an Actuary Do?
Actuaries are financial advisors. To be precise, they ensure you understand the implication of every risk you want to take even before you take them.
Depending on the organization, actuaries perform a lot of responsibilities. According to Prospects, these responsibilities include and are not limited to;
- using mathematical modelling techniques and statistical concepts to determine probability and assess risks, such as
- analyzing pension scheme liabilities, to price commercial insurance
- analyzing statistical data to calculate, for example, accident rates for particular groups of people
- developing new financial products
- preparing presentations, reports, valuations and quarterly update
- monitoring risk within trading positions in investment banking to ensure excessive risks are not taken during the fast pace of trading
- presenting reports, explaining their implications to managers and directors and advising on risk limitation
- advising on issues such as the selection of investment managers or the administration of pensions and benefit
- working with IT professionals to develop systems to ensure compliance with the requirements of regulatory bodies
- carrying out relationship management, liaising with clients such as investment managers, financial directors and external stakeholder
- supervising staff
- working with mergers and acquisitions.
Conclusively, an actuary can help you save much money you would have lost to bad financial decisions.
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What is the Salary and Job Outlook of an Actuary in the UK?
Becoming an actuary in the UK isn’t such an easy task. It demands a lot of patience and diligence to pull through. However, it’s always worth it in the end.
According to Prospects, the average salary of an actuary is £32,000. This doesn’t include any bonuses and is basically for entry-level actuary professionals. At a senior level, you can earn up to £60,000.
In the same vein, actuary positions remain open due to the number of institutions they fit in. The demands of the job include a lot of travelling and brainstorming. Indeed, it’s now clear why they receive such huge financial benefits.
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How Long Does it Take to Become an Actuary in the UK?
There are certain processes you must pass through to become an actuary in the UK. While the major is getting a bachelor’s degree, there is a strong lineup of exams you must pass.
The actuarial science bachelor’s degree basically takes four years to complete in the UK. More so, the actuarial qualification exams and certifications take about 3-4 years to complete.
Generally, when you consider basic education and certification, it takes about 7-8 years to become an actuary in the UK.
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How Much Does it Cost to Become an Actuary in the UK?
It will cost you when you want to become an actuary in the UK. You must complete your bachelor degree program and pass all the qualification exams.
To complete your bachelor’s program in actuarial science, you need a minimum of £45,000, especially when you’re not on an actuary scholarship.
Furthermore, you will need to write all the necessary exams, which cost an average of £1,000, depending on the exam.
Generally, it costs an average of £70,000 to become an actuary in the UK.
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What are the Requirements to Become an Actuary?
Before becoming an actuary in the UK, you must fulfil the necessary requirements. This job description involves a large use of arithmetic in addition to forecasting.
Although each school has separate unique requirements, we will precisely focus on the general requirements. Some of which include;
- Qualifications
- ID Documents
- License
- Entrance Tests
- References
- Interviews
Qualifications
You must possess a set of qualifications if you want to become an actuary in the U.K. While the most important is a bachelor degree, other qualifications, such as language proficiency, remain important.
Entrance Tests
An entrance test gives you the eligibility to join a league. Many universities and even the professional body of actuaries in the U.K require a range of entrance tests.
You must ensure you hit a high pass mark in all of them.
ID Documents
There are documents you must have to start an actuarial science degree. In the same way, there are other documents you need to practice professionally.
These documents are usually statement letters, recommendation letters, citizenship and visa permits – for international students – are necessary.
References
You need references. References give you the one lost credibility that can grant you employment. Similarly, you can miss out on an admission when you don’t have it.
You can get references from your religious leaders, family members and former teachers.
License
The license you get to practice as an actuary in the U.K comes from the Institute and Faculty of Actuaries (IFoA). You get this license after you’ve completed a set of exams.
Interviews
Interviews will always be part of your process. You need an interview for a job opening, admission into the school and so much more.
Every interview has its unique questions but you need to approach all of them with confidence, poise and clarity.
How to Become an Actuary in the UK
At this point, we are familiar with the job descriptions and requirements of the actuary profession. So, now is the time to draw the line which shows how to go from dreaming and talking about the profession to becoming it.
If you want to become an actuary in the UK, you have to;
- Get a Bachelor’s Degree from a UK University
- Demonstrate High Work Ethic
- Build Technical and I.T Skills
- Pass A Minimum of Two Exams Before Graduation
- Get an Internship
- Join the Institute and Faculty of Actuaries (IFoA)
- Get a Job
Get a Bachelor’s Degree from a UK University
This is usually the first way you indicate your interest in pursuing a career in actuary.
A bachelor’s degree in actuary will expose you to the necessary foundational knowledge. Specifically, you learn about arithmetics, algebra, social science, and data analysis.
You can pursue an actuarial science bachelor degree in any quality UK institution.
Build Technical and I.T Skills
Technological development has advanced the human cause greatly. Similarly, actuaries can access developed I.T systems that help them perform optimally.
Good knowledge of these systems as an actuary is essential, especially in a technological world. So, you must consistently learn essential programs such as Excel, PowerPoint, Word and a little of MySQL.
Get an Internship
In every profession, experience trumps theoretical knowledge. So, you need a lot of working experience to push for high positions as an actuary.
Immediately, you complete your college program; you should seek for an internship position in any compatible firm. Your internship will connect you to your senior colleagues from whom you can learn and grow.
Demonstrate High Work Ethic
The actuary profession demands you have a high work ethic. You must be able to work for long hours while meeting up with the stated deadlines.
In order to build a high work ethic, you would have to set and beat your everyday goals. A high work ethic guarantees you will excel in this profession.
Pass A Minimum of Two Exams Before Graduation
Your actuary profession actually begins when you have completed college and finished at least two exams.
When you complete exams like the Actuarial Statistics (CS) and Actuarial Mathematics (CM), you can qualify to become an associate or a fellow. As we advance, you must complete the remaining exams to do well.
Join the Institute and Faculty of Actuaries (IFoA)
The Institute and Faculty of Actuaries (IFoA) is the only body that accredits, regulates and endorses every actuary in the UK.
In order to become a full member of this institute, you must pass several exams. These exams sequentially follow each other so you can gauge your progress as a professional actuary.
Get a Job
As much as an internship helps you, getting a job would do much better. At least you get paid to use your internship experience and solve real risk assessment issues.
Due to the wide scope of actuarial science, you can work with insurance companies, financial institutions and other industries as an actuary.
What are the Best Places to Study Actuarial Science in the UK?
As a top field demanding core knowledge of financial processes, you must build the right foundation for a fantastic actuary career.
One key step would be to get your actuarial science bachelor’s degree from a standard UK institution. Although many institutions offer actuarial science programs, a few have results to show for it.
According to Study in UK, some of the best universities that offer actuarial science programs include;
- City, University of London Business School
- London School of Economics and Political Science
- Heriot-Watt Universit
- University of Warwick
- University of Southampton
- Queen Mary University London
- University of Manchester
- Kent University
- University of Leicester
- University of Leeds
FAQ on How to Become an Actuary in the UK
According to the Bureau of Labor Statistics, actuaries are expected to be in demand 24% more than the average profession between 2020 and 2030. This statistic is undoubtedly a source of worry for insurers already short on actuarial staff, and it begs the question of who will fill those positions.
Simply put, there is a growing need for actuaries, but the supply is not keeping up.
The typical person will need 6–8 years to become an actuary (if they have no exemptions at the start of their actuarial career). It would be anticipated that the period of time would be shorter with university exemptions.
Actuaries in UK make an average of £75,109 per year. The additional cash compensation for an Actuary in UK ranges from £2,926 to £29,966, with an average of £9,364.
They are unquestionably more challenging than the typical school math exams. You must be ready to put in months of diligent study as an actuarial student because passing these actuarial exams necessitates that kind of effort.
Yes, actuaries are compensated well to respond briefly to your question. The long answer is that trainee actuaries begin with higher salaries than the UK average salary. As they advance in their careers and gain certification, their salaries continue to rise.
Conclusion
Only a few jobs reward you emotionally, financially, and mentally. Becoming an actuary will surely do that in so many ways.
Of course, you can’t say you don’t know to become an actuary in the UK anymore unless you skipped this whole content to this point. We spelt it out to make your reading simple, fun and exciting.
I hope you read not only, but take action to start a fantastic career as an actuary.
References
- Prospects – Actuary job profile
- Study in UK – Study Actuarial Science in the UK
- Actuaries – Why is the IFoA launching a new curriculum?
- Actuaries – Exam Bookings
- Studying in UK – UK University Entry Requirements
- Accounting Degree – Top 50 Best Actuarial Science Degree Programs
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