Becoming an actuary

For many graduates, even those with an interest in finance, the work of an actuary, apart from being a tongue-twister at parties ("I'm an actuary, actually"), is often a bit of a mystery. Even actuaries.org.uk, the website for the Faculty and Institute of Actuaries, concedes that telling someone you are an actuary is likely to lead to blank looks.

Nevertheless, actuaries are a vitally important part of the financial services sector; without them much of the insurance and investment banking community would grind to a halt. What's more, with many companies (such as those listed below) running structured graduate training programmes, it can offer significant career opportunities for numerate graduates.

Actuaries, in a nutshell, calculate and evaluate the costs associated with certain risks. This includes things such as how much insurance companies should be charging policyholders or setting aside for unpaid claims, and the likely costs of investment programmes. Being an actuary is all about assessing how likely an event is and the costs that would be associated with it. Within the investment banking arena, actuaries will often be involved in work around the pricing of financial derivatives, fund management or quantitative investment research.

When it comes to careers, actuaries tend to work mostly for insurance companies, consultancies, government departments, investment and retail banks, large corporations and accounting firms. Becoming an actuary takes time and lots of exams, with the average qualification period being three to six years. Most firms look for candidates with a strong maths, statistical or other numerical background. There are four levels of examination - core technical, core applications, specialist technical and specialist applications - but it is also possible to get qualifications in areas such as derivatives or financial mathematics.

Many universities now offer actuarial degrees that can lead you to being exempted from the corresponding professional exam and a quicker route to qualification. If you do a maths degree you might also be exempt from certain areas, such as probability or mathematical statistics.

Who offers actuarial graduate programmes?

Some of the organisations that offer actuarial training are listed below.

Aon

Applications for the company's 2010 graduate actuarial consulting programme are expected to open around Christmas time, with students advised to keep a watching brief from September onwards. Exact numbers being hired have yet to be confirmed. Applications will be through: https://www.whatifaon.co.uk/

AXA

The company's actuarial student programme takes between three and seven years to complete, after which students will be qualified actuaries. Although details for the 2010 programme have yet to be confirmed, those interested should visit https://gs6.globalsuccessor.com/fe/tpl_axa05.asp?newms=jj&id=51705 to register their details.

Barnett Waddingham

The consultancy normally takes over around seven to 10 graduates on as pension actuarial trainees or general insurance actuarial trainees, with applications for its 2010 programme due to open from September. Apply to: hr@barnett-waddingham.co.uk

Ernst & Young

While no decision has yet been made on the number of graduates it intends to take on to its 2010 general insurance, life insurance and pensions programmes, the application process will start from September. Applications to: https://www.careers.ey.gtios.com/Vacancy/Search/PreLogonSearchPostedCriteria.asp

First Actuarial

Though a relatively small actuarial consultancy, employing around 80 people across offices in Basingstoke, Leeds, Manchester, Peterborough and Tonbridge, it will be taking between five and 10 graduates on to its 2010 graduate programme, with no formal opening date for applications. The email address for applications is: graduates@firstactuarial.co.uk

Hewitt Associates

The company's 4ward graduate programme, which aims to bring people to consultant or manager level within four years, will open for applications for 2010 from mid-September, with between 20 and 30 graduates expected to be hired. Applications through: https://www.jobpartners.com/jpapps/hewitt_uk/users/dataprotection.jsp

Lane Clark & Peacock

Its three-year programme will, for 2010, be taking on around 15 graduates, based in London and Winchester, with a deadline for applications of 23 November. Applications should be made through: www.lcp.uk.com/graduatecareers

PricewaterhouseCoopers

No decision has yet been made on the number of graduates it intends to take on to its 2010 actuarial programme, through its PwCExperience programme. But the application process will start from September, with applications through: https://www.pwc.com/uk/eng/car-inexp/student/experience.html