There is a strong and consistent demand for actuarial staff so far in 2012. This is a continuation of a similar, and possibly even stronger, trend over recent years.

As you probably know, an actuary compiles and analyses statistics and uses them to calculate risks and premiums. Insurance companies have had to recalculate their short-, medium- and long-term risk strategies in light of recent changes in statistics. These include natural disasters, global warming, increases in population, and changing life-expectancy forecasts. All these affect the pricing, and ultimately, the profitability of insurance products.

As the insurance industry continues to grow, competition between firms is increasing, too. So it is vital that pricing and profitability forecasts are accurate. This is where actuaries come to the fore.

It takes on average between three and six years to qualify as an actuary. It is a highly skilled role, which requires a mathematical and statistical mind. Not everyone suits the academic profile for this work, so you can’t just get anyone in to do the job.

Skill-shortage alert

I am seeing a healthy demand in all areas of seniority. There are obviously more roles at pre-qualified and newly-qualified levels, but the need for qualified, senior actuaries is still high.

However, there is currently a skills shortage and insurers are addressing this by initiating attractive graduate programs, with study assistance and exam leave. Most firms are also eager to recruit from overseas.

Generally speaking, people in this profession change firms for more than just a salary increase. The “actuarial world” is a small one and actuaries tend to be conservative about moving jobs. They consider issues such as the branding, leadership, the culture of an organisation, career advancement prospects, and the intellectual challenge of a role.

Actuarial work was traditionally always within the insurance industry. However, actuarial-risk methodologies are being used more and more by other industries because risk is a key focus in many organisations. So the demand for actuaries is increasing as a result. Insurance is still the main area where actuaries work, but we are definitely seeing some people moving sectors.

Toby Berryman, senior associate, Callaways