Actuarial consulting is an advisory service that companies often call upon when they are toying with big business decisions, for example developing and launching a new product (like a pension scheme), considering an investment or a merger or acquisition. Whenever there is anything up for review, an actuarial consultant’s know-how and guidance can be a huge advantage!
A key part of actuarial consulting is to ascertain the types and level of risk associated with a plan. They might look into how likely it will be that a particular eventuality will occur in the designing stages for an insurance package, or the level of financial risk involved with a proposed merger, for instance.
The Mystic Megs of consulting…kind of
Actuarial consultants use their wide-spreading knowledge of the economy and finance, commercial developments, the law and skills in statistics and mathematical modelling to create a kind of crystal ball insight for a company on a particular plan or project.
Professionals in this field will use software to aid their work with mathematical modelling in order to study current and past statistics and information and make forecasts and projections. They then present their client with information and guidance based on these predictions. It’s all a matter of probability, and an actuary cannot predict everything, but their solid reasoning stemmed in statistical evidence can provide excellent grounding for business decisions.
Actuarial consultants also keep a hawk eye on economic and commercial developments and research into any changes to help them provide the best advice possible for clients in making their decisions. These experts work closely with the client’s top decisions makers, often spending a lot of time liaising on-site at their offices.
Where can actuarial consultants work?
Actuarial consulting work can largely be shaped by the type of clients they work for. Pensions and insurance companies cannot survive without actuarial guidance, and larger businesses in general value the input and advice of an expert in this field, which means that work and the industries actuarial consultants work with can be really varied. Employers are actuarial consultancies and professional services firms.
How do I get into actuarial consulting?
It’s not easy to break into this area; actuaries need to develop exceptional understanding of a number of different areas, from economics to business and law, plus sensational skills with mathematics and logical thinking. As such, excellent academic records, work experience and a related degree discipline are all vital.
And the salary? Well, trainee actuarial consultants can start on around £35,000; the most senior roles in this area can reel in salaries well into six-figure sum territory!