An Actuary is a professional who uses mathematical and statistical methods to assess and manage risks in various industries, primarily in the insurance and finance sectors. Actuaries play a crucial role in analyzing data, evaluating potential risks, and providing recommendations to help organizations make informed decisions. In this blog post, we will delve into the primary responsibilities of actuaries and discuss the most in-demand hard and soft skills required for success in this field.

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Main Responsibilities of an Actuary

The following list describes the typical responsibilities of an Actuary:

Analyze

• Analyze and document causes with regards to variances in valuation results.

• Analyze business process and identifying automation opportunities and assess automation feasibility.

• Analyze experience and other Actuarial analysis.

• Analyze profitability and communicate results to more senior actuaries or supervisor.

• Analyze requirements for deficiency and work with stakeholders to resolve issues uncovered.

• Analyze results and documenting causes of variance.

• Analyze data and performing complex calculations to assess risk.

Anticipate

• Anticipate external market trends, internal practice knowledge-building needs and / or client needs.

• Anticipate trends and responds by implementing appropriate changes.

Apply

Apply basic understanding of product and risk assessment and possible outcomes by scenario testing.

Approve

Approve all product design and pricing changes.

Assess

• Assess and adapt as needed to ensure quality of execution.

• Assess the financial impact of catastrophic events and natural disasters.

• Assess the financial solvency and stability of insurance companies.

• Assess the impact of emerging risks, such as cybersecurity threats or climate change.

• Assess pension risks, calculate premiums, and customized contract terms.

• Assess pension risks, calculate premiums, and negotiate contract terms.

Assist in

• Assist in identifying new classes of business through profitability studies.

• Assist in IFRS 17 actuarial and financial model development, testing and validation.

• Assist in performing asset sensitivities and PfAD analysis.

• Assist in the calculation of Stat, tax and GAAP reserves.

• Assist in the development of market leading protection products.

• Assist the Reserving team to validate and improve assumptions.

• Assist the transit from approval to launch.

• Assist with effective knowledge transfer within team.

• Assist with plan design, benchmarking and modeling projects.

• Assist with the coding of products into the valuation systems.

• Assist with the research and development of pricing basis when required.

• Assist with understanding the performance drivers of the inforce life block.

Attend

Attend as an invited guest of the Investment Committee.

Build

Build and maintain strong working relationships with finance and risk managers.

Calculate

Calculate figures across a range of products in line with agreed controls.

Champion

Champion a diverse hiring practice, iterate and review our ways of working and metrics.

Collaborate with

• Collaborate with the pricing team on innovative annuity products.

• Collaborate with Underwriting on large account pricing.

• Collaborate with data scientists and IT professionals to enhance data collection and analysis methods.

• Collaborate with marketing teams to develop and price new insurance products.

• Collaborate with underwriters, investment managers, and other professionals to develop risk management strategies.

Communicate

• Communicate and track new issues to and for management.

• Communicate conclusions and influence decisions toward appropriate actions and changes.

• Communicate strategically with brokers, re-insurers, and clients in anticipation of client needs.

• Communicate complex concepts and findings to non-technical stakeholders.

Compile

Compile and analyze actuarial assumption data for audit clients.

Complete

Complete understanding of GAAP and statutory guidance as it relates to actuarial items.

Conduct

• Conduct analysis, review, and reporting of the business's earnings and reserves.

• Conduct audits and quality assurance checks on actuarial processes.

• Conduct mortality studies and projecting life expectancy.

• Conduct profitability analysis and identifying areas for improvement.

• Conduct research and analyzing trends to anticipate future risks and opportunities.

• Conduct sensitivity and stress testing to evaluate potential scenarios.

Contribute to

Contribute to and / or presents business cases to management and / or senior management.

Coordinate with

• Coordinate and develop team resources to meet current and anticipated business objectives.

• Coordinate and directs special actuarial projects.

• Coordinate with other team members to facilitate the consolidation.

• Coordinate with teams across departments to execute on key organizational priorities.

Create

• Create and validate models to answer business questions as assigned.

• Create documentation for use by data stakeholders on the team's Wiki.

• Create materials / shaders and apply PBR workflow (when appropriate).

Deliver

Deliver timely, high quality financial results and analysis.

Designing

• Design and price insurance policies, pension plans, and other financial products.

• Design validation strategies and other controls.

Develop

• Develop and deliver presentations to the actuarial group and other departments.

• Develop creative new approaches to problem solving.

• Develop effective plans that define activities, resources, and timelines.

• Develop expertise and understanding of distribution.

• Develop and maintain mathematical models to forecast financial outcomes.

• Develop risk management frameworks and strategies.

• Develop risk management policies and procedures.

• Develop queries to extract and summarize data in response to requests.

• Develop structure for regular review of rate adequacy and profitability.

Direct

• Direct managerial accountability for pricing practices and profitability across product lines.

• Direct the completion and review cash flow testing.

• Direct the preparation of monthly, quarterly, and annual actuarial reports.

Draft

Draft the formal, written pricing report, and submits to Actuary for approval.

Enable

Enable service user to improve self-management techniques.

Enforce

Enforce MDLC and oversee the work of junior team members.

Ensure

• Ensure account pricing is completed in an accurate and timely fashion.

• Ensure all materials produced are appropriate to share with Reinsurers and Trustees.

• Ensure IFRS17 readiness in post-conversion models.

• Ensure models are updated and aligned to comply with EDC's Model Risk Management policies.

• Ensure qualifying accounts are submitted for review and provide peer review for other team members.

• Ensure repeatable, controlled processes for fixed annuity model development and coding.

• Ensure that all activities are performed to established standards.

• Ensure that a risk culture is embedded within the pricing team.

• Ensure that products are properly coded and tested in the valuation systems.

• Ensure the lessons learned from EPoCs and dry runs are taken into the next cycle.

• Ensure the valuation systems / models work properly and valuation control processes are in place.

• Ensure compliance with regulatory standards and reporting requirements.

Enter

Enter data and tables, run models, and generate reports.

Establish

• Establish and produce annual actuarial function report.

• Establish disposition for existing SLIME entries.

Estimate

Estimate future liabilities and determining appropriate reserves.

Evaluate

• Evaluate the financial impact of potential business decisions.

• Evaluate the financial viability of new business ventures and product lines.

Execute

• Execute actuarial model risk management framework including model development and testing.

• Execute model risk management framework including model development and testing.

Expand

Expand client services beyond reinsurance transactions to drive business development.

Explore

Explore and implement advanced pricing methods in collaboration with the predictive analytics team.

Gather

Gather, organize, test, and review client or vendor data for accuracy, validity, and reasonableness.

Guide

Guide institutional clients through onboarding and lead cross function collaboration.

Help

• Help ensure that the company meets any requirements under the relevant risk standards.

• Help spearhead broader DaVita initiatives to utilize data as a strategic asset.

• Help write and structure client presentations, including development of recommendations.

Identify

• Identify current capabilities and gaps in data capture.

• Identify new risks and appropriate mitigating controls and raise through the appropriate route.

Implement

• Implement and validate required assumptions (default and spreads) unlocking related to assets.

• Implement changes in response to shifting trends.

Improve

Improve asset and market data specification and automation.

Initiate

Initiate wage increases, promotions, disciplinary action or terminations, as required.

Interpret

Interpret government regulations and internal policies.

Involve

Involve in planning for ongoing staffing needs (point person for the market.

Keep

Keep records of payments, fundings and underwriting policies.

Lead

• Lead projects identified to improve profitability and / or optimize risk / return balance.

• Lead the development of actuarial talent within the organization.

• Lead the implementation of Secure Index valuation in Prophet.

• Lead the ratemaking process and develop pricing indications so as to attain an underwriting profit.

• Lead various pricing and product development special projects.

Lend

Lend your actuarial and technical expertise to improve existing processes and new designs.

Maintain

Maintain documentation of actuarial research and analyses.

Manage

• Manage all staff in the actuarial organization.

• Manage and collaborate group wide pricing projects.

• Manage and develop our own rate for the personal insurance.

• Manage and lead all the development work for fixed annuity and legacy payout model.

• Manage defined benefit pension plan's benefit calculations, modeling, and testing.

• Manage / mentor 2 team members.

• Manage people and lead a team capable of delivering the desired business results.

• Manage small actuarial pricing team and interact with various internal and external stakeholders.

• Manage special research projects.

• Manage the on-going quarterly valuation of the Secure Index inforce.

Measure

Measure the efficiency of any pricing initiatives.

Mentor

Mentor and provide guidance to junior actuaries and other team members.

Mentor

Mentor junior team members to help understand effects of loss liabilities that may impact client.

Model

Model and encourage use of best practices of actuarial techniques, modelling and analytics.

Monitor

• Monitor and provides feedback to senior leaders.

• Monitor and track quarterly rate changes.

• Monitor exposure accumulations to find opportunities for profitable growth and risk control.

• Monitor and evaluate the performance of insurance portfolios.

• Monitor industry trends and staying updated on changes in regulations and best practices.

Monitor

• Monitor pricing assumptions and provides approval for required changes.

• Monitor rate, exposure, retention, new, lost business changes.

Operate

• Operate at a group / enterprise-wide level and serves as a senior specialist resource across BMO.

• Operate with the highest integrity and demonstrates the Transamerica / Aegon values.

Oversee

Oversee the preparation of actuarial memorandums and rate manuals to support regulatory filings.

Oversight

Oversight of the UK Technical Pricing function to enhance pricing and modelling capabilities.

Participate in

• Participate in meetings with clients, including fact-finding interviews, and presentations.

• Participate in professional development activities to maintain expertise and stay updated with industry trends.

• Participate in the design and implementation of actuarial systems and tools.

Perform

• Perform basic cost projections using client cost and enrollment data.

• Perform experience and rate indication studies across accounts, portfolios and business segments.

• Perform financial analysis of LTC blocks for GAAP, Statutory, and Tax financial reporting.

• Perform Monthly, Quarterly & Annual Valuations.

• Perform monthly valuations and projections processes.

• Perform, peer review for Actuarial work performed both by other A&H Actuarial staff.

• Perform profitability studies by country, and by segment.

Prepare

• Prepare actuarial reports to help business effectively manage existing portfolios.

• Prepare and present results to senior leaders.

• Prepare implementation documentations.

Produce

• Produce a variety of reports including, loss activity and premium, IBNR forecasts and profitability.

• Produce clear presentations of pricing model findings and analysis.

• Produce EPoC & dry run results, delivered to Ireland Life SME's for review and sign off.

• Produce high quality artwork in a variety of pre-defined art styles.

• Produce various results to help interpret IFRS 17 results, e.g. bridges from IFRS 4 & SII.

Promote

Promote colleague engagement and satisfaction (including collaboration with generalists).

Provide

• Provide analytical support to DaVita IKC executive leadership and interdepartmental consumers.

• Provide and communicate meaningful MIS, analysis and decision support to Business Unit Management.

• Provide basic analysis to support business performance reviews.

• Provide business actionable analysis for SPIA business.

• Provide business solutions to maximize risk adjusted profit.

• Provide clear documentation of model changes and financial statement impacts.

• Provide coaching to Artists and Associate Artists where appropriate.

• Provide excellent and timely customer support to Distribution, Marketing, and Customer Service teams.

• Provide input on the structure and pricing of new product features or changes to product features.

• Provide key insights and identifies key questions and issues, using financial and technical skills.

• Provide mandatory actuarial support for US regulatory compliance.

• Provide model change support to business stakeholders on ad-hoc analysis projects.

• Provide pro-active oversight of the business's capital and liquidity management processes.

• Provide support for the Dynamic Capital Adequacy Testing (DCAT) and embedded value (EV) process.

• Provide support to QA team, and production team on model questions as needed.

• Provide timely quantifiable analysis of sensitivities and risks of Fixed Annuity products.

• Provide actuarial support for mergers, acquisitions, and other strategic initiatives.

• Provide guidance and advice to senior management on risk-related matters.

Pull

Pull results from the Aptitude tool & check against an independent model.

Re-calibrate

Re-calibrate and maintain a stochastic economic scenario generator (ESG).

Reconcile

Reconcile pricing results to valuation and explain variances.

Represent

• Represent the Company on highly complex actuarial matters internally and externally.

• Represent the company on industry and professional committees and / or with regulators.

Research

• Research, and consult on technical issues specific to employee benefit plans.

• Research and perform analysis and review on in-force and currently issued products.

• Research, extract, and manipulate complex data from all relevant sources.

• Research & recommend statistical and reporting tools.

Respond to

• Respond to and resolve regulatory questions.

• Respond to demand for actuarial support across the organisation.

• Respond to objections and regulatory requests.

Review

• Review and sign off on other actuarial issues.

• Review ASO financial reconciliations to be provided to Broker.

• Review contract wording and marketing material, escalating issues as required.

• Review current methods against relevant best practices and recommend improvements as needed.

• Review, develops, and implement improvements and changes to existing actuarial tools.

• Review existing data transformations, including comparison of logic between different processes.

• Review of experience investigations and proposing assumptions.

Set

Set direction for direct reports by providing relevant information and establishing goals.

Solicit

Solicit product feedback from stakeholders throughout the company.

Source

Source actuarial data & help explain any differences with accounting data.

Support

• Support Intermediary tender work where required.

• Support Life special quotes, policy administration and illustration software testing.

• Support new business development.

• Support projects such as acquisitions and valuations, as needed.

• Support strategic innovation initiatives through building and evaluating new products and benefits.

• Support the achievement of company's financial objectives and KPIs.

• Support the augmentation of client with data elements from external sources.

• Support the design, pricing, and implementation of fixed annuity products.

• Support the development and implementation of IFRS 17 Policies and Applications.

• Support the development of annual business / financial plan and monthly financial forecasts.

• Support the development of new casualty catastrophe scenarios.

• Support the mentorship and development of junior team members.

• Support the reinsurance team by providing data on purchasing and analyzing reinsurance strategies.

• Support the review of regular experience studies on non-economic experience.

Take

• Take charge and own the client relationship.

• Take initiative on projects and assignments.

Use

• Use data about customers to guide decisions and strategies for placing products in the market.

• Use data about processes to guide decisions about implementation and optimization.

• Use data based in facts to drive decision making.

Work with

• Work with accounting teams to investigate and solve any discrepancies.

• Work with Head Office actuaries on pricing models and ensuring proper Canadian considerations.

• Work with PCoE to develop and validate Stat / GAAP / Tax reserve calculations in Prophet.

• Work with the distribution team to develop tactical pricing initiatives as appropriate.

Most In-demand Hard Skills

The following list describes the most required technical skills of an Actuary:

1. Proficiency in statistical analysis software, such as SAS, R, or Python.

2. Advanced knowledge of mathematics, probability theory, and calculus.

3. Strong understanding of financial concepts and investment principles.

4. Experience in developing and working with complex actuarial models.

5. Expertise in data analysis and manipulation using SQL.

6. Familiarity with actuarial reserving methods and techniques.

7. Knowledge of insurance products and the principles of risk management.

8. Ability to interpret and apply regulatory guidelines and reporting standards.

9. Proficiency in spreadsheet software, such as Microsoft Excel.

10. Understanding of financial accounting principles and practices.

11. Experience in econometric modeling and forecasting.

12. Knowledge of stochastic modeling and simulation techniques.

13. Understanding of asset-liability modeling and management.

14. Familiarity with pricing methodologies and rate-making techniques.

15. Proficiency in actuarial software, such as Prophet, MG-ALFA, or AXIS.

16. Expertise in actuarial valuation methods and techniques.

17. Knowledge of risk assessment and management frameworks.

18. Proficiency in data visualization tools, such as Tableau or Power BI.

19. Understanding of insurance and financial regulations.

20. Strong analytical and problem-solving skills.

Most In-demand Soft Skills

The following list describes the most required soft skills of an Actuary:

1. Excellent analytical thinking and problem-solving abilities.

2. Strong attention to detail and accuracy.

3. Effective communication skills, both written and verbal.

4. Ability to translate complex concepts into understandable terms for non-technical stakeholders.

5. Strong time management and organizational skills.

6. Adaptability and flexibility to work in a dynamic and changing environment.

7. Collaborative mindset and ability to work effectively in teams.

8. Ethical decision-making and integrity.

9. Strong interpersonal skills and ability to build relationships with clients and colleagues.

10. Continuous learning mindset and willingness to stay updated with industry developments.

Conclusion

Actuaries play a critical role in assessing and managing risks in the insurance and finance sectors. Their responsibilities encompass data analysis, risk assessment, financial modeling, and strategic decision-making. To excel in this field, actuaries need a combination of technical skills in mathematics, statistics, and finance, as well as essential soft skills such as communication, analytical thinking, and adaptability. By developing these skills, aspiring actuaries can thrive in their careers and contribute to the success of organizations in managing risk effectively.