1. Actuarial Placements Presenter: Chris Cannon Director
11th November 2010
Presenter: Chris Cannon
Director

2. Agenda Understanding what you want to do What Do Actuaries Really Do
Actuaries in Risk Management
Actuarial Placements
The current actuarial industry climate
A very useful website - graduateactuarialvacancies.com
Questions

3. 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

4. Understanding what you want to do
What type of work do you want to do and why?
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

5. Understanding what you want to do
Why do you want to become an actuary?
Money, Maths/Finance, Stability, W/L balance
Need to understand your own motivations to find a job you’ll be happy in
Which practice area (Life, Non-Life, Pensions etc..) is of most interest to you? Why?
What sector do you want to work in and why?
Insurance
Reinsurance
Consultancy

6. Understanding what you want to do
Company or Consultancy?
Why?
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?
Research the different fields of work and be honest to yourself about what is really important to you.

7. Different environments offer different opportunities
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:
Variety of work
Impact on business performance
Work/Life balance
Interaction with others
End to end involvement
General culture
Friendly/social
Development focus
Financially driven
Run like a machine

8. Understanding what you want to do
Where do you want to work?
London, Abroad or in the Provinces?
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

9. Where do you want to work?
Understanding what you want to do
Where do you want to work?
Geographical Spread of GI Actuarial Market
Very concentrated in London

10. Understanding what you want to do
Geographical Spread of Life Actuarial Market
NU Life (York 110)
CIS (Manchester 74), AEGON (Lytham 14)
Liberata (7), Royal Liver (Liverpool 30)
Unisys (Liverpool 3), Resolution (Liverpool 14)
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)
Capita (Whitstable 11),
Forester Life (Bromley 4),
Reliance Mutual (TunbWells 4)
HCL (Romford 6)
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)
HSBC (Soton 44)
Skandia Life (Soton 26)
Axa (Winterthur Life) (Bstoke 28)
Abbey Life (Bournemouth 12)
Liv Vic (Bournemouth 26)
SLoC (Bournemouth 4)
Teachers Ass (Bournemouth 3)
Unisys (Bournemouth 4)
Friends Prov (Dorking 67)
MGM (Worthing 9)
Capita (Worthing 2)

11. What Do Actuaries Really Do?
“So… what do you do for a living?”

12. What Do Actuaries Really Do?
“WOW!!”

13. What Do Actuaries Really Do?
“AMAZING”

14. What Do Actuaries Really Do?
“WHAT THE ****?!

15. What Do Actuaries Really Do?
“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)
“An actuary is a business professional who analyzes the financial consequences of risk.” (Society of Actuaries)
“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” (

16. What Do Actuaries Really Do?

17. What Do Actuaries Really Do?
Product Development
Pricing
Reserving / Financial Reporting
Asset Liability Matching
Capital Modelling
Pension Scheme Management
Investment Management
Risk Management
Systems Development

18. What Do Actuaries Really Do? Life Insurance Products
“Common” Products:
Term Assurance
Whole of Life
Endowment
Immediate Annuity
Deferred Annuity
Critical Illness
Long-term Care
Long-term Sickness
Variations Include:
Convertible / Renewable
Index Linked
Unit-Linked
With-Profits / Non-Profits

19. What Do Actuaries Really Do? Pensions / Benefits Products
Defined Benefit (DB) / Final Salary occupational schemes
Defined Contribution (DC) occupational schemes
DC individual schemes (such as stakeholder pensions)
Employee Benefit Services
Overlap with Life products (long term duration / savings)
Car / gym / flexi-days / vouchers / dental / private medical insurance (flexible benefits)
Merger & Acquisition Work

20. What Do Actuaries Really Do? Investments
Advising on client investment portfolios
Risk/reward + matching = key concepts
A lot based on investments of pension funds
ALM / LDI analysis
Quant analysis
Hedging strategy

21. What Do Actuaries Really Do? General Insurance Products
“Common” Products:
3rd Party Liability
Employer’s Liability
Product Liability
Marine
Aviation
Commercial Property
Financial Loss
“Little Less Common”:
Weather Exposure
Contingency
Riot Insurance
Terrorism
War
Fine Art
Live Stock / Blood Stock
Commercial Space & Launch

22. What Do Actuaries Really Do?
And all these exams are for what exactly?!
Qualifications
Diploma in Actuarial Techniques (“DAT”) – complete CT1-9
Certificate in Finance & Investments (“CFI”) – CT1, CT2, CT4, CT7, CT8, CT9, CA1
Associate (“AIA” / “AFA”) – complete CT1-9, CA1-3 plus 1 year’s work experience if joined after 1 July 2004
Fellowship (“FIA” / “FFA”) – complete all exams & complete relevant work experience (minimum 3 yrs for FIA)

23. Communication Skills What Do Actuaries Really Do? Technical Skills
Key Attributes:
Technical Skills
Detail Conscious
Good Judgement
Commerciality
Communication Skills

24. An example of Insurance Risk Management - Categories
Actuaries in Risk Management
An example of Insurance Risk Management - Categories
Categories
Responsibilities
Risk Managers and their teams are responsible for measuring, limiting and managing the component items within these risk categories
Credit
Market
Insurance
Operational
S&P: ERM Insurance Company Practices

25. An example of Risk Management - Components
Actuaries in Risk Management
An example of Risk Management - Components
Categories
Components:
Bonds, CDOs, Loans, Reinsurance ceded, other assets
Components:
Interest rate, equity, derivatives, forex, real estate
Credit
Market
Components:
Distribution, process, people, fraud, internal control, IT, HR, legislation, compliance, business continuity
Insurance
Operational
Components:
Pricing, reserving, catastrophe, claims, policyholder behaviour
S&P: ERM Insurance Company Practices

26. An example of Insurance Risk Management - Actions
Actuaries in Risk Management
An example of Insurance Risk Management - Actions
Components:
Bonds, CDOs, Loans, Reinsurance ceded, other assets
Category
Risk Measurement Actions:
Concentrations, credit value at risk,
name exposure, and compliance
reports
Credit
Operational
Risk Limiting Actions:
Concentration limits,
underwriting guidelines,
counterparty limits, and
portfolio value at risk
Risk Management Actions:
Diversification, hedging, selling
discipline, and underwriting
S&P: ERM Insurance Company Practices

27. An example of Insurance Risk Management - Actions
Actuaries in Risk Management
An example of Insurance Risk Management - Actions
Components:
Interest rate, equity, derivatives, forex, real estate
Risk Measurement Actions:
Value at risk, duration and notional value
Category
Market
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

28. An example of Insurance Risk Management - Actions
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
Risk Limiting Actions:
Per-risk limits, per-market
limits, per-case limits,
and authority limits
Category
Insurance
Risk Management Actions:
Reinsurance, contract design,
benefit design, customer
communications, market avoidance,
and underwriting
Components:
Pricing, reserving, catastrophe, claims, policyholder behaviour
S&P: ERM Insurance Company Practices

29. An example of Insurance Risk Management - Actions
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.
Category
Operational
Risk Limiting Actions:
Processing lags,
complaints, and supplier
limits
Components:
Distribution, process, people, fraud, internal control, IT, HR, legislation, compliance, business continuity
Risk Management Actions:
Action triggers, training,
documentation, policies and
procedures, contingency plans,
codes of conduct and ethics.
S&P: ERM Insurance Company Practices

30. Actuarial Placement Overview 12-Month Paid Actuarial Placements
Opportunities Throughout the UK
2nd Year/Postgraduate Students
Placements Start Jul-Sep 2011
‘Proper’ Actuarial Work
Counts Towards Experience Requirement

31. Actuarial Placement The Process:
Download and fill in CV template on our website
over the completed template to
CV Feedback Provided
Mock/Screening Interviews + Feedback
Employer Selection Process
Offer + Acceptance
Start Work!

32. Actuarial Placement The Benefits: Gain Relevant Work Experience
Prove Yourself to an Employer
Develop Technical Knowledge/Soft Skills
Make Actuarial Contacts
Earn a Salary
Benefit from Expert Coaching
Enhance Your Marketability!

33. Actuarial Placement
What The ARC can offer in finding actuarial placements:
It’s Free!
One Application  Multiple Employers
Efficient for Employers – they value our relationship
CV feedback and advice
Mock interview feedback & coaching
All by experienced actuaries with recruitment experience

34. Actuarial Placement Next Steps Visit The ARC Website:
Read Information
Fill in the CV template and it back to us
Deadline: ongoing
Apply early to benefit from early employer opportunities

35. The Current Actuarial Industry Climate
Where did the recession have most impact?
On Investment sector, but proportion of actuaries is low there, now recovering
Life and pensions reduced in 2009, life now much stronger, pensions recovering slowly
Lower impact on non life sector, hiring consistently strong
Still a mixed market – some hiring, some not, some permanent, some contract
What are the prospects for the actuarial industry
They remain as strong, if not stronger than before the financial crisis
New Solvency 2 legislation, new areas e.g. risk management and risk transfer
Remains a relatively small and specialist profession

36. A really useful website !!
A specialist website service for actuarial graduates

37. Contact Details Website: www.the-arc.co.uk
Chris Cannon BA CFI DAT M: E: