How 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 jaime.thorpe@dolanaccountancy.com. Alternatively, contact us via live chat.