How to become an Actuarial Contractor

(3 minutes to read)

Becoming an actuarial contractor is an excellent career choice for those with an analytical brain and a head for numbers. Here we take a look at what you need to know if you want to become an actuarial contractor.

What does an actuarial contractor do?

An actuarial contractor will analyse data to create complex risk assessments, looking at potential financial consequences for the company or person that they’re working for.

Here are a few examples of who they would typically be hired by are:

  • Insurance companies
  • Accountancy firms
  • Healthcare providers
  • Investment banks
  • Pension companies
  • Government

The type of tasks they would carry out include things like:

  • Analysing statistical data
  • Creating presentations and reports based on their findings
  • Ensuring IT systems are kept both efficient and compliant with current financial regulations
  • Advising companies on decisions such as low-risk policy pricing

What qualifications and skills do I need to become an actuarial contractor?

As mentioned previously, having strong analytical skills with an attention to detail, as well as a logical mind is essential for a successful actuarial career.

Other skills you’ll need to have include:

  • Being able to identify trends and patterns within data
  • Confidence when it comes to mathematics
  • Good at problem-solving
  • Having good communication and being able to explain complex data clearly
  • Being comfortable with having multiple tasks on at the same time – organisation is key!
  • Having a high level of knowledge when it comes to Excel, or any other spreadsheet software, in order to present and make data usable for others

When it comes to qualifications, the most common route is to get a relevant university degree with a 2:1 grade or higher – there are both actuarial science and mathematics degrees, or you could go for a degree in business/finance, economics, risk management or any other science and mathematics-based courses.

There is also the apprenticeship route to consider, but either way, in order to become a fully-certified actuary, you’ll need to pass several exams set by the Institute and Faculty of Actuaries (IFOA)

Benefits of becoming an actuarial contractor

There are certainly many benefits to becoming a self-employed professional in your chosen field.

Financial benefits
A contractor’s rates of pay are often much higher compared to their permanent counterparts, not only that but the more experience and skills you have, the more you can potentially charge.

Being self-employed typically means that you’ll need to pay out for various costs that are essential for you to be able to carry out work – the good news about this, is that you’ll be able to claim back on these expenses and therefore reduce your tax bill at the end of each year.

They will need to be purchases made for business reasons only and can include things like:

  • Travel costs
  • Office costs
  • Training courses
  • Accountancy fees

For more information on expenses, read our Sole Trader Expenses and Subsistence Expenses pages.

Freedom and flexibility
So many people prioritise a better work/life balance when it comes to working.

When you’re self-employed, you’ll have so much more freedom and flexibility compared to an employee. For example, you can choose your own clients, pick the hours that you want to work and decide when you want to work.

Skills and experience
By contracting, you’ll naturally take on a wider variety of work compared to an employee, which means it’s likely that you’ll gain a great deal of experience, as well as skills along the way.

For more information on what you can gain from becoming self-employed, read our page The Benefits of Contracting.

Professional Indemnity Insurance

It’s imperative that anyone who provides advice to clients has the correct insurance should a client decide to make a claim against you.

As an actuarial contractor, looking at potential financial consequences could come with some risk to the client, in which case it is recommended that you have Professional Indemnity Insurance.

For more help and advice on this read our What is Professional Indemnity Insurance? page

We hope you found this page helpful. If you have any further questions, our team of experts are available to answer any queries, so give us a call on 01442 795 100 or email Alternatively, contact us via live chat.

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Why Dolan Accountancy?

With over 25 years experience in contractor accountancy helping thousands of contractors, freelancers and the self employed, Dolan Accountancy has the specialist skills, reputation and credibility you can trust. Working closely with our sister company, Contractor Umbrella, it means we can offer one low cost, fixed fee package at £105 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

  • Free Company Formation – This is where it all begins. Once you have decided on an available name, we will form your company free of charge (if using our accountancy services) and it will be ready for you to use in as little as three hours.
  • Free use of Contractor Umbrella – With IR35 Legislation changes we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, Contractor Umbrella.
  • A Dedicated Accountant – Your accountant will be there for any company or personal tax advice that you require. We will never outsource work, even to internal teams.
  • Free Access to FreeAgent – The founder behind the multi award winning FreeAgent platform was one of Simon’s first clients, therefore it only seems fitting that we offer all of our clients access to FreeAgent, free of charge.
  • Free Business Banking – We have decided to waive our commission so our clients can use Tide free of charge for the first year.
  • Unlimited IR35 Status Reviews – We will review all of your contracts for IR35 purposes and provide you with our professional opinion as to its status.
  • Free Registered and Director’s Service Office Address – Sometimes you just don’t want your home address on display at Companies House. When you sign up to our accountancy services, we will offer the use of our address as an alternative.
  • Your Business and Personal Taxation Needs – This includes Company Accounts, Director’s Personal Tax Return, VAT Returns, Payroll, Corporation Tax and Dividend advice, to name just a few.

If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email or