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Actuary

Actuaries predict and assess the financial risks and impacts of future events. They work in areas such as insurance, superannuation, investment and any other field where future financial risks need to be evaluated and managed.

 

Tasks & duties

Actuaries may do some or all of the following:

  • collect and analyse statistics about financial events from the past
  • forecast the financial impact of future events
  • analyse and solve business problems using mathematical and statistical modelling techniques
  • work out how to best manage the risks involved in business
  • give advice to businesses and the government on managing financial and other business risks
  • prepare reports and advise on insurance, investment, superannuation and management of funds
  • make predictions on how often insurance claims are going to occur and what they will cost
  • assess the value a new service will have for the customer and business
  • calculate the assets and liabilities of insurance companies
  • advise on how lump sums of money can be fairly divided in cases such as wills or bulk funding
  • determine the financial strength of insurance companies
  • ensure investments are being suitably managed
  • work out what the premiums for insurance services should be set at
  • be involved with the development of new financial and insurance services
  • help to determine a company's financial results

 

Specialisations

Actuaries can specialise in a variety of areas, such as:

  • superannuation
  • insurance
  • electricity pricing
  • banking and finance
  • carbon crediting

 

Skills & knowledge

Actuaries need to have:

  • knowledge of maths, statistics, economics, accounting, finance and investments skills
  • skill in analysing information, including the ability to interpret and draw conclusions from results
  • understanding of the risks involved in running a business
  • knowledge of business management and law, including economic and social law
  • computer skills
  • knowledge of computer software, including databases, spreadsheets, presentation programs and programming languages
  • communication skills
  • report-writing skills
  • planning skills
  • problem-solving and decision-making skills

 

Entry requirements

To begin training as an actuary it is recommended you have one of the following:

a degree in maths, economics, finance or related subjects (statistics, calculus and basic accounting papers are useful)

an Honours degree, which can be in a non-mathematical subject.

To become a fully qualified actuary you must pass a number of exams, which are set by the UK Institute of Actuaries. You can sit these exams in New Zealand through the Institute of Actuaries in Australia, or the UK Institute of Actuaries.

Most people sitting their exams work part time – ideally in an insurance firm or actuarial business – while they are studying.  It takes five to eight years to complete the exams.

On completing your exams you are required to register as a Fellow of the New Zealand Society of Actuaries.

 

Secondary education

A tertiary entrance qualification is required to enter further training. Good grades in English, and maths with calculus and statistics are required. Economics is also useful.

 

Training on the job

Training on the job is an important component of becoming an actuary, and the process normally takes up to eight years.

While working for an actuarial employer, trainee actuaries in New Zealand sit exams through the Institute of Actuaries of Australia, or the UK Institute of Actuaries.

 

Registration

All trainee actuaries in New Zealand must apply to be associates of the New Zealand Society of Actuaries and when qualified can register as fellows of the society.

 

Useful experience

Useful experience for actuaries includes:

  • work for an insurance company
  • accounting and computer work
  • experience analysing financial statements
  • any work involving maths and statistics

 

Related courses

Accounting
Banking and Finance
Insurance and Actuarial Studies

 

For more information, please refer to Career Services.

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