Transcript www2.cmp.uea.ac.uk

Actuarial Placements
www.the-arc.co.uk
11th November 2010
Presenter:
Chris Cannon
Director
[email protected]
Agenda
1. Understanding what you want to do
2. What Do Actuaries Really Do
3. Actuaries in Risk Management
4. Actuarial Placements
5. The current actuarial industry climate
6. A very useful website - graduateactuarialvacancies.com
7. Questions
Introduction
ME: Chris Cannon
A part qualified actuary who worked for two large UK life offices in actuarial and
transformation roles before moving into insurance management consultancy for over 6
years, working with most of the major UK life insurers. Also had recruitment
responsibility within employers before joining The ARC in July 2006 to develop the Life,
Pensions and Investment recruitment operation.
THE ACTUARIAL RECRUITMENT COMPANY:
Established in 2004 by Roger Massey & Andy Clark with an initial focus on Non Life
recruitment.
The business has made over 350 placements of actuaries and trainees in new roles
across 85 clients.
The ARC now has global capabilities and access to roles and candidates in all
countries around the world through strategic agency partnerships
Understanding what you want to do
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What type of work do you want to do and why?
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Technical / Analytical or Client facing / People focused?
Specialist or Generalist?
Managerial?
Even within the same discipline and qualification, each individual has their own
strengths and interests, and will be suited to different role types. Be honest with
yourself about what interests you and what matches your strengths
Understanding what you want to do
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Why do you want to become an actuary?
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Money, Maths/Finance, Stability, W/L balance
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Need to understand your own motivations to find a job you’ll be happy in
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Which practice area (Life, Non-Life, Pensions etc..) is of most interest to you?
Why?
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What sector do you want to work in and why?
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Insurance
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Reinsurance
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Consultancy
Understanding what you want to do
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Company or Consultancy?
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Why?
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What is the difference in the kind of work? What are the different
working environments like? Speed of development? Potential
financial rewards? Where will I be in 5 years time – family, location?
What happens if I don’t qualify?
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Research the different fields of work and be honest to yourself about
what is really important to you.
Understanding what you want to do
Different environments offer different opportunities
Environments:
 UK Household Names (RSA,
NU, AXA, Zurich)
 Large London Market/Lloyd’s
 Small London Market/Lloyd’s
 Reinsurers
 Reinsurance Brokers
 Rating Agencies
 Regulator/Franchisor
 Consultancy
Nature of Opportunity:
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Variety of work
Impact on business performance
Work/Life balance
Interaction with others
End to end involvement
General culture
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Friendly/social
Development focus
Financially driven
Run like a machine
Understanding what you want to do
Where do you want to work?
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London, Abroad or in the Provinces?
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Why?
If it doesn’t work out will you have to relocate to find a new role? Work/life
balance vis-à-vis study? GI is basically SE. Life is Nationwide. Pensions is
Nationwide
Understanding what you want to do
Where do you want to work?
Geographical Spread of GI Actuarial Market
Very concentrated in London
Understanding what you want to do
Geographical Spread of Life Actuarial Market
CIS (Manchester 74), AEGON (Lytham 14)
Liberata (7), Royal Liver (Liverpool 30)
Unisys (Liverpool 3), Resolution (Liverpool 14)
NU Life (York 110)
NU Life (Norwich 10)
Canada Life (Potters Bar 37)
Royal London (Wilmslow 31)
Windsor Life (Telford 25)
Prudential Life (London 100)
Met Life (London 20)
SCOR Re (London 10)
Pacific Re (London 20)
Gen Re (London 25)
NFU (Stratford 32)
Phoenix (Birmingham 34)
Wesleyan (27)
Axa (Bristol 89),
Capita (Gloucs 8)
LBG (Bristol 40)
Lincoln Ass (Gloucester 10)
St James Pl (Cirencester 15)
Zurich Life (Swindon 40)
Abbey Life (Bournemouth 12)
Liv Vic (Bournemouth 26)
SLoC (Bournemouth 4)
Teachers Ass (Bournemouth 3)
Unisys (Bournemouth 4)
Capita (Whitstable 11),
Forester Life (Bromley 4),
Reliance Mutual (TunbWells 4)
HCL (Romford 6)
HSBC (Soton 44)
Skandia Life (Soton 26)
Axa (Winterthur Life) (Bstoke 28)
Friends Prov (Dorking 67)
MGM (Worthing 9)
Capita (Worthing 2)
Capita (Banstead 6),
L&G (Tad 140)
Hannover Re (Virginia water 18)
Liberata (Croydon 13)
AIG / American Life (Croydon 16)
Sterling Life (Richmond 2)
UNUUM (Dorking 14)
What Do Actuaries Really Do?
“So… what do you do for a living?”
What Do Actuaries Really Do?
“WOW!!”
What Do Actuaries Really Do?
“AMAZING”
What Do Actuaries Really Do?
“WHAT THE ****?!
What Do Actuaries Really Do?
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“Making financial sense of the future… Actuaries are problem solvers, business
analysts, consultants and financial risk assessors who look at past and present
information, to develop and communicate a picture of the future”
(Faculty & Institute of Actuaries)
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“An actuary is a business professional who analyzes the financial consequences of
risk.”
(Society of Actuaries)
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“An actuary is an expert in assessing the financial impact of tomorrow's uncertain
events by:
- Analysing the past
- Modelling the future
- Assessing the risks involved, and
- Communicating what the results mean in financial terms”
(www.actuaries.org)
What Do Actuaries Really Do?
Qualified Actuaries by Field of Work - 2007/8
Unknown, 6%
Other, 17%
Life, 31%
Investments,
6%
Non-Life,
10%
Pensions, 29%
What Do Actuaries Really Do?
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Product Development
Pricing
Reserving / Financial Reporting
Asset Liability Matching
Capital Modelling
Pension Scheme Management
Investment Management
Risk Management
Systems Development
What Do Actuaries Really Do?
Life Insurance Products
“Common” Products:
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Term Assurance
Whole of Life
Endowment
Immediate Annuity
Deferred Annuity
Critical Illness
Long-term Care
Long-term Sickness
Variations Include:
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Convertible /
Renewable
Index Linked
Unit-Linked
With-Profits / NonProfits
What Do Actuaries Really Do?
Pensions / Benefits Products
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Defined Benefit (DB) / Final Salary occupational schemes
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Defined Contribution (DC) occupational schemes
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DC individual schemes (such as stakeholder pensions)
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Employee Benefit Services
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Overlap with Life products (long term duration / savings)
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Car / gym / flexi-days / vouchers / dental / private medical
insurance (flexible benefits)
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Merger & Acquisition Work
What Do Actuaries Really Do?
Investments
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Advising on client investment portfolios
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Risk/reward + matching = key concepts
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A lot based on investments of pension funds
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ALM / LDI analysis
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Quant analysis
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Hedging strategy
What Do Actuaries Really Do?
General Insurance Products
“Common” Products:
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3rd Party Liability
Employer’s Liability
Product Liability
Marine
Aviation
Commercial Property
Financial Loss
“Little Less Common”:
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Weather Exposure
Contingency
Riot Insurance
Terrorism
War
Fine Art
Live Stock / Blood Stock
Commercial Space &
Launch
What Do Actuaries Really Do?
And all these exams are for what exactly?!
Qualifications
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Diploma in Actuarial Techniques (“DAT”) – complete CT1-9
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Certificate in Finance & Investments (“CFI”) – CT1, CT2, CT4, CT7,
CT8, CT9, CA1
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Associate (“AIA” / “AFA”) – complete CT1-9, CA1-3 plus 1 year’s work
experience if joined after 1 July 2004
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Fellowship (“FIA” / “FFA”) – complete all exams & complete relevant
work experience (minimum 3 yrs for FIA)
What Do Actuaries Really Do?
Key Attributes:
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Technical Skills
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Detail Conscious
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Good Judgement
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Commerciality
Communication
Skills
Actuaries in Risk Management
An example of Insurance Risk Management - Categories
Categories
Credit
Insurance
Market
Operational
S&P: ERM Insurance Company Practices
Responsibilities
Risk Managers and
their teams are
responsible for
measuring, limiting
and managing the
component items
within these risk
categories
Actuaries in Risk Management
An example of Risk Management - Components
Categories
Components:
Bonds, CDOs, Loans,
Reinsurance ceded,
other assets
Components:
Pricing, reserving,
catastrophe, claims,
policyholder behaviour
Credit
Insurance
S&P: ERM Insurance Company Practices
Market
Operational
Components:
Interest rate,
equity, derivatives,
forex, real estate
Components:
Distribution, process,
people, fraud,
internal control, IT,
HR, legislation,
compliance, business
continuity
Actuaries in Risk Management
An example of Insurance Risk Management - Actions
Components:
Bonds, CDOs, Loans,
Reinsurance ceded,
other assets
Category
Credit
Risk Measurement Actions:
Concentrations, credit value at
risk,
name exposure, and
compliance
reports
Operational
Risk Management Actions:
Diversification, hedging,
selling
discipline, and underwriting
S&P: ERM Insurance Company Practices
Risk Limiting Actions:
Concentration limits,
underwriting guidelines,
counterparty limits, and
portfolio value at risk
Actuaries in Risk Management
An example of Insurance Risk Management - Actions
Risk Measurement Actions:
Value at risk, duration and
notional value
Risk Limiting Actions:
Value at risk limits and
tolerances
Risk Management Actions:
Asset/liability matching, hedging,
and selling discipline
S&P: ERM Insurance Company Practices
Category
Market
Components:
Interest rate,
equity, derivatives,
forex, real estate
Actuaries in Risk Management
An example of Insurance Risk Management - Actions
Risk Measurement Actions:
Claims reporting, compliance
reports, exposure reports, and
lapse
and renewal studies
Category
Risk Limiting Actions:
Per-risk limits, per-market
limits, per-case limits,
and authority limits
Insurance
Components:
Pricing, reserving,
catastrophe, claims,
policyholder behaviour
S&P: ERM Insurance Company Practices
Risk Management Actions:
Reinsurance, contract design,
benefit design, customer
communications, market avoidance,
and underwriting
Actuaries in Risk Management
An example of Insurance Risk Management - Actions
Risk Measurement Actions:
Compliance reports, exception
reports, loss-event reports, self
Assessment and risk register.
Risk Limiting Actions:
Processing lags,
complaints, and supplier
limits
Risk Management Actions:
Action triggers, training,
documentation, policies and
procedures, contingency plans,
codes of conduct and ethics.
S&P: ERM Insurance Company Practices
Category
Operational
Components:
Distribution, process,
people, fraud,
internal control, IT,
HR, legislation,
compliance, business
continuity
Actuarial Placement
Overview
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12-Month Paid Actuarial Placements
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Opportunities Throughout the UK
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2nd Year/Postgraduate Students
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Placements Start Jul-Sep 2011
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‘Proper’ Actuarial Work
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Counts Towards Experience Requirement
Actuarial Placement
The Process:
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Download and fill in CV template on our website
www.the-arc.co.uk/actuarial-placement
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Email over the completed template to [email protected]
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CV Feedback Provided
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Mock/Screening Interviews + Feedback
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Employer Selection Process
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Offer + Acceptance
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Start Work!
Actuarial Placement
The Benefits:
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Gain Relevant Work Experience
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Prove Yourself to an Employer
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Develop Technical Knowledge/Soft Skills
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Make Actuarial Contacts
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Earn a Salary
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Benefit from Expert Coaching
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Enhance Your Marketability!
Actuarial Placement
What The ARC can offer in finding actuarial placements:
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It’s Free!
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One Application  Multiple Employers
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Efficient for Employers – they value our relationship
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CV feedback and advice
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Mock interview feedback & coaching
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All by experienced actuaries with recruitment experience
Actuarial Placement
Next Steps
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Visit The ARC Website:
www.the-arc.co.uk/actuarial-placement/
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Read Information
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Fill in the CV template and email it back to us
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Deadline: ongoing
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Apply early to benefit from early employer opportunities
The Current Actuarial Industry Climate
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Where did the recession have most impact?
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On Investment sector, but proportion of actuaries is low there, now
recovering
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Life and pensions reduced in 2009, life now much stronger, pensions
recovering slowly
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Lower impact on non life sector, hiring consistently strong
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Still a mixed market – some hiring, some not, some permanent, some
contract
What are the prospects for the actuarial industry
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They remain as strong, if not stronger than before the financial crisis
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New Solvency 2 legislation, new areas e.g. risk management and risk
transfer
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Remains a relatively small and specialist profession
A really useful website !!
www.graduateactuarialvacancies.com
A specialist website service for actuarial graduates
Contact Details
Website:
www.the-arc.co.uk
Email:
[email protected]
Chris Cannon
BA CFI DAT
M: 07711 228 449
E: [email protected]