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The data from this survey was collected and analysed by Amanda Patterson AIRP

This Actuarial Market report taken from a study in March was carried out by Actuarial Professionals
in the UK and Ireland. The market report outlines common trends within the market covering niche
and common skillsets, qualification levels, day rate/ salary, increases and bonus levels . The results
also highlight some key concerns and challenges Actuarial Professionals may face in 2013.

KEY POINTS FROM MARCH SURVEY:


Qualification- Looking at the correlation between each professionals level of qualification and
the years of industry experience they possess, the results suggest that the majority of Actuaries
are fully qualified by their 7th and 10th year in industry.
Contract Market - Comparing the UK and Irish market; it is apparent that the UK contract market
is stronger than that of the Irish. Whilst this may be true there are concerns over the decline in
contract vacancies and reduction in day rates in the UK over the last six months.
Industry - The majority of actuaries are currently working within life or general insurance,
actuaries within pension, health and banking were in the minority.
Increases - The average salary increase for last year was between 0-10%
Bonus - The average benefits bonus in 2012 was between 0-10% of their salary.
Future prospects - Half of the Actuarial Professionals asked believed that their compensation
would increase in 2013 in comparison with last year, the other half were divided between a
steady consistent compensation and a decrease in compensation. The majority of Actuarial
Professionals who believed their income would decrease were in the contract market (some of
whom have already experienced a pay cut.)
Common concerns - The common concerns raised by the Actuarial Professionals who
participated in this survey were:
Solvency II related; a slowdown in Solvency II activity with firms taking stock and
focussing efforts on Pillar 2 and 3 elements - with the aim of embedding capital into risk
management.
With regards to liquidation premium

Finding contract work.


Exams and qualification

When carrying out this market


report, the participants were
asked how many years industry
experience they had and how
far they were with their
examinations. This chart

Reference A

Years of Industry Experience vs


Qualification
30
25
20
15
10
5
0
0-2
years

2-5
years

5-7
years

7-10
years
Yes

10-12
years
No

12-15
years

15-20
years

20+
years

The data from this survey was collected and analysed by Amanda Patterson AIRP

highlights the professionals who are pre and post qualified. Looking at the results, a large majority
of professionals passed their actuarial examinations within their 2nd-10th year in industry. The highest
proportion qualifying in their 7th-10th year.
A great deal of actuarial students suggested their biggest challenge of 2013 would be balancing their
work responsibilities with study. However is it evident from the following results that there are
great benefits in qualifying as an Actuary.

Reference B
Actuarial professionals who participated in this survey were asked how many years industry
experience they had, they were
also asked to advise their current
day rate/salary.

Average daily rate in UK ()

1,200

This chart shows the results for


the UK contract market:

1,000
800

Looking at the professionals with


0-10 years experience, there was
a rapid increase in day rate, the
strongest increase was with
professionals with 0-5 years
experience. The day rate for
contractors with 12+ years
experience was stagnant,
professionals within this category
earned on average 1100 per day.

600

Average daily rate in


UK () Daily Rate

400
200
0

This chart shows the results for the Irish contract market:
Day rates in Ireland appear to be lower than those in the UK. The survey results showed that
there were far more contractors within the UK than in Ireland.

Reference C

Whilst UK based professionals started out on an average day rate of


300 per day, professionals based in Ireland started at an average day rate of 150.
The results show a
consistent increase in day
rate with relation to years
experience. There is a
stronger increase in day

Average daily rate in Ireland ()


1,000
800

600
400
200
0
up to 2 2-5 years 5-7 years
years

7-10
years

10-12
years

12-15
years

Average daily rate in Ireland () Day rate

15-20
years

20+

The data from this survey was collected and analysed by Amanda Patterson AIRP

rate for those with 0-10 years experience (up to 700 on average). The increase for those with 10+
years experience was around 200 per day.
This chart shows the results for the UK permanent market:
These results show a
consistent increase in salary in
relation to years industry
experience. The average
student started out on
40,000.The most rapid salary
increase appeared between 510 years. When comparing
this to reference A, the results
suggest that the most rapid
salary increase comes within
the qualifying stages.

Reference D

Average Salary in UK vs Experience


120,000
100,000
80,000
60,000
40,000

20,000
0
up to 2
years

2-5
years

5-7
years

7-10
years

10-12
years

12-15
years

15-20
years

20+

This chart takes the average


Average Salary in UK vs Experience Salary
salary of professionals within a
particular category (in this case years of experience). Although the highest average earning was
110,000, there were participators in this salary survey who earned up to 150,000. Those earning
salarys within this region tended to have titles such as Head of or senior manager. This is also
Reference E
applicable to Reference E in which some participants earned up to 145,000.

This chart shows the results


for the UK permanent market:
Actuarial students based in
Ireland started out on an
average salary of 45,000. The
graph shows a steady increase
of salary throughout. The
steepest increase appeared
between the 5th-7th year in
industry. Looking at reference
A this suggests that this rapid
increase could be down to
part qualified actuaries gaining
their certification.

Contrast Between Years of Industry


Experience and Salary ()
140,000
120,000
100,000
80,000
60,000
40,000
20,000
0

Average Salary in
Ireland () vs
Experience Salery

The data from this survey was collected and analysed by Amanda Patterson AIRP

Most Common Divisions Worked In

2%

6%

5%

11%

Life Insurance
General Insurance

58%

18%

Pension
Banking
Health
Consultancy

Reference F shows the range of


industries the participants work
within. A large percentage of
actuarial professionals work
within life insurance. 18% work
within general insurance and
11% working within a
consulting environment. The
minority work across health,
banking and pensions.

Reference F

Common Skillsets

Reference G

40
35
30

25
20
15
10

5
0
Economic capital
Financial risk
Risk management
Enterprise risk
Financial reporting
Investment
ALM
Product development
Reserving
Pricing
Embedded value
Underwriting
Stochastic Modelling
Solvency II
Basel
IFRS
US GAAP
Prophet
MoSes
MATLAB
Excel
VBA
Other (please specify)
Show Responses

Number of Actuarial Professionals with each skillset

Looking at the salary


results it is evident
that those working
within GI/ London
markets tended to
earn marginally
more that life
insurance actuaries.
This is likely to be
down to the
demand for GI
professionals.

Reference G gives a
breakdown of
common and
uncommon skillsets.
Some of the other
skillsets included
remetrica, Igloo and Unit Linked Business.

The data from this survey was collected and analysed by Amanda Patterson AIRP

Reference H

Showing the Average Bonus


percentage received by Actuarial
Professionals Over the Last Year
Percentage of People

Graph H shows that the majority


of actuarial professionals
received a bonus between 010% of their basic salary last
year. Around 35% of actuaries
received 10-20% and around
15% received 20-30%. The
results demonstrate a pattern
showing that the professionals
who received the largest bonus
were the people with the
greatest experience.

50%
40%
30%

20%
10%

Bonus 0%
Percentage
(based on
earnings)

Chart I shows salary/day rate increases over the last year. The majority of increase was between 010%, however 30% received a 10-30% increase. There were professionals that received an increase
of up to 70-80%, however on average these were individuals who had swapped permanent roles for
contract. Overall the results from this give a positive reflection of a market that is still strong.

3%

Salary/ Day Rate Increase over The Last Year


0-10%

0%

0%

5%

10-20%

11%
38%

5%

20-30%

30-40%

8%

40-50%

14%
16%

50-60%
60-70%

70-80%

Reference I

80-90%

The data from this survey was collected and analysed by Amanda Patterson AIRP

To summarise, it is apparent that the Actuarial market is still strong. Whilst the contract market in
the UK is more buoyant than Ireland, there seems to be a decrease in both contract vacancies and
day rate as a result of the Solvency II deadline being postponed.
The permanent market is steady, although some participants stated concern over redundancies
within their organisation. It appears that there are a high number of predicted vacancies over 2013,
this may be due to contract roles being replaced with BAU opportunities.
When looking at the figures from last year over 50% of participants received a 20-100% bonus and
62% received an increase between 20-100%. 50% of participants believed their compensation would
increase in 2013, with an additional 25% anticipating their compensation would be steady. Those
who felt they would have to endure a reduction were mainly within the contract market.

This Survey was created by Amanda Patterson


Specialist Actuarial Recruitment Consultant at ReThink Recruitment AIRP
web: http://www.rethink-recruitment.com/
w: 0207 367 4444 d: 0207 367 4419 e: apatterson@rethink-recruitment.com
LinkedIn: uk.linkedin.com/pub/amanda-patterson/46/5b4/bb7/
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