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General Description

This is an ideal career for analytical thinkers. The job of an actuary involves analysing data, whether it be mathematical, statistical, demographic, financial or economic, so as to predict and calculate long-term risks regarding financial decisions and planning.

Career Advice - Actuary Career

Major economic and management decisions in both the public and private sector reply on the insights and interpretation of complex analysis.  In addition to analysis, actuaries must communicate complex concepts to a wide range of audiences with differing levels of technical understanding.

Most commonly, actuaries work for life insurance companies, general insurance companies, health insurance companies, banks, the government, consulting firms, or ratings organisations.

Employment turnover tends to be fairly low, but opportunities are likely to increase due to the expanding diversity of the areas where actuaries work.

What you do every day

Depending on your area of actuarial involvement, you could perform a number of tasks during a standard working day. You may analyse statistical data relating to death, illness, accident, or trends in the economy. To avoid financial failues, such as those caused by the recent global subprime lending fiasco, you may ensure that insurance companies have adequate financial reserves to meet future claims. You may advise companies on investment policy and the allocation of profits to policyholders; or offer advice to people wishing to buy or sell a company. Using your crystal ball you predict the future probabilities of unemployment, illness or alterations in interest rates in order to determine appropriate premiums or conditions and rates of return.

If you work for the government, state or federal, it is likely that you will provide advice on the likely costs of superannuation and insurance programs, or work in a regulatory role, supervising financial institutions. If you find work as a consulting actuary, your clients may include a wide range of private companies, public companies, unions and non-profit organisations who are looking for specialist advice. Actuaries are also involved in education, performing research as well as lecturing at universities.

Australian skills are highly regarded and there are opportunities to apply these skills overseas, perhaps assisting in the design of financial systems in developing countries. Actuaries have also been involved in more diverse activities such as applying their modelling and predictive skills to estimate future prices for gas and electricity and develop suitable bases for carbon trading.

Regardless of which area you choose to work as an actuary, your daily work will involve skills such as financial mathematics, knowledge of business, statistical analysis, probability assessment, building computer models and complex problem solving.

Personality that best fits this career

Actuaries must possess very strong analytical, thinking project management and problem solving skills. You should be passionate about and exceptionally good at mathematics, statistics and probability. You will need good business sense, with an aptitude for finance, accounting and economics. Your job will require you to have strong computing skills, with the ability to use word processing programs, spreadsheets, statistical analysis programs, and database manipulation.

The best actuaries also have good oral and written communication skills, not only to interact with colleagues and clients effectively during data analysis , but also to write reports, summarise findings, and present the key issues to your senior management.

You will also need self-motivation, creativity, discipline, and the ability to work with others. Actuaries enjoy learning and solving complicated problems. 

Best thing about this career

Actuaries provide vital information for companies that make financial decisions and future planning. Without the complex work of actuaries, these companies – which form a very important backbone in our society – would find it impossible to predict the future trends and make informed business decisions. Your work is fascinating and challenging, and the conclusions you reach will often give you a great sense of job satisfaction. The position of an actuary is highly sought after, and very much respected in the business and government community.

Worst thing about this career

The growth of the profession has meant that there is an ongoing challenge to balance supply and demand for actuaries. You have to work very hard at your education to first become a Fellow of the Institute of Actuaries of Australia, and then to maintain your continued professional development requirements, on top of your demanding workload. There is a strong employer expectation you will make accurate predictions and recommendations of risk which affects the future of their company. An inaccurate conclusion could result in millions of dollars lost with consequences for both the individual and the business