Actuary: What is the cost of hiring?

Why hire an actuary

Using their knowledge of statistics, math, and financial theory, an actuary will assess the financial cost of risk or uncertainty. They will help businesses and individual clients develop policies that minimize the cost of that risk and are an essential part of the insurance industry.

Contributions of a great actuary:

• Estimating the probability and economic cost of events
• Designing, testing, and administering insurance policies, investments, and pension plans
• Thoroughly explaining their proposed plans to executives, shareholders, and clients

What are the different types of actuary?

Actuaries will often work in teams of financial analysts and accountants to help large companies set prices for security offerings or help provide market research analysis to forecast demand for new products. That being said, most actuaries work at insurance companies, where they help set premiums and design policies. The following is a list of different types of actuary that are common in the industry.

• Health Insurance Actuary: Helps develop long-term care and health insurance policies.
• Life Insurance Actuary: Helps develop annuity and life insurance policies for individuals or groups of people, taking into account risk factors such as lifestyle, age, gender, and tobacco/alcohol/drug use.
• Property Insurance Actuary: Designs insurance policies for properties such as homes, offices, and cars.
• Pension and Retirement Benefits Actuary: Designs insurance policies around pension or retirement benefits to make sure companies will have enough funds to pay out to retirees.
• Enterprise Risk Actuary: Identifies any risks that may affect a company’s short or long-term plans.

Where to find an actuary

To find the right actuary for your business, consider trying out a few different recruiting strategies:

• Professional associations: There are a few professional organizations for actuaries where you can post jobs and also check the professional standing of an actuary who you might want to hire. The best place to do this is through the Canadian Institute of Actuaries, as they have up-to-date information on the profession.
• Universities with actuarial study programs: To become an actuary, you need training beyond your bachelor’s degree, so if you’re looking for an actuary, it’s important to look at schools that have programs in actuary studies. This would be especially important for companies looking to hire entry-level actuaries, as they can find new grads who will be eager to start their careers.
• Actuary events/conferences: Through professional organizations such as the Society of Actuaries, you can find different events and conferences that you can attend, where you can network with the other attendees. By doing this, you might be able to find your next actuary candidate who will be a great fit for your company.
• Post your job online: Try posting your actuary job on Indeed to find and attract quality actuary candidates.

Skills to look for in a great actuary

A great actuary candidate will have the following skills and attributes as well as work experience that reflects:

• expertise in math and statistical analysis
• communications skills, both oral and written
• high-level computer skills that allow them to use spreadsheets, databases, and statistical analysis tools
• problem-solving skills that allow them to develop ways to manage risk
• ability to work as part of a team

Writing an actuary job description

A thoughtful description is important for finding qualified actuary candidates. An actuary job description includes a compelling summary of the role, detailed list of duties and responsibilities, and the required and preferred skills for the position.

When writing your actuary job description, consider including some or all of the following keywords to improve the visibility of your job posting. These are the most popular search terms leading to clicks on actuary jobs, according to Indeed data:

• actuarial
• actuary
• actuarial analyst
• insurance
• analyst
• actuarial student
• actuarial science

Interviewing actuary candidates

Strong candidates for actuary positions will be confident answering questions regarding:

• experience with designing policies that reflect the client’s needs
• experience with presenting findings and proposals to company executives, government officials, shareholders, or clients
• ability to explain how an event such as death, sickness, or natural disaster can affect a company’s economic risk
• experience of working in a team
• ability to solve complex problems

Need help coming up with interview questions? See our list of actuary interview questions for examples (with sample answers).