If insurance professionals want big contract rates, they need a sense of adventure
The deadline for implanting Solvency II could be delayed (again), with a January 2015 start date now possible. For many actuaries and risk professionals earning lucrative rates on long-term contracts, this could mean that the gravy train continues to roll on. Unfortunately, if they’ve become accustomed to £1k a day pay packets, they may have to look further afield.
Last week, Michel Barnier, the EU commissioner responsible for regulation, suggested a one-year delay to Solvency II. However, while the deadline continues to be knocked on, insurance firms’ appetite for recruitment has been curtailed.
Few new interim positions for actuaries focused on capital adequacy projects have emerged in the past few months, according to specialist insurance recruiters, and companies have become a little savvier about pay, with some suggesting decreases of 7-10% on the £800-1,000 day rates over the past three months.
“There are already big teams of people working on Solvency II projects and, while their contracts are being extended, there are definitely fewer opportunities now than even six months ago,” says Steve Stubbings, managing director of recruiters the Emerald Group. “That said, there’s still a skills shortage and firms that are recruiting actuaries for these roles remains a challenge.”
The message is that for actuaries, not the most risk-tolerant people anyway, the move into contracting was adventurous enough. Once a long-term contract is secured, many are simply sticking with it rather than attempting to bolster their earning potential by switching to another employer. However, opportunities are starting to emerge elsewhere in the world, where their skills could be applied.
In particular, the Monetary Authority of Singapore is now considering shaking up its capital adequacy regulations for large insurance firms. While this is still in its early stages, this presents an opportunity for those who have worked on Solvency II projects.
“There’s a real chance for actuaries to apply the skills they’ve learnt working on Solvency II projects to international markets,” says Stubbings. “This is still a relatively niche skill-set and as more regulators put pressure on insurers internationally, I’d expect to see more of these roles in the future.”
There’s certainly an appetite among insurance firms in Asia to recruit. As we’ve pointed to previously, UK talent is in demand, but there’s also a concerted push among a number of companies – AIA Group, Zurich Insurance, RSA Insurance, Direct Asia, Swiss Re and Manulife – to increase their headcount in Asia.
