Skill sets of actuaries

Associates’ skill set

Associates of the Institute and Faculty of Actuaries use financial and statistical techniques to solve real business problems, particularly those involving risk management. These business problems typically involve analysing future financial events, especially when the amount of a future payment, or the timing of when it is paid, is uncertain.

Associates will have sufficient technical understanding to solve all but the most demanding financial and risk management problems in the following areas: pensions, life and general insurance, investment, corporate finance, enterprise risk management, healthcare. They will also be able to communicate fundamental actuarial ideas and arguments to others outside the profession in a way that takes account of the needs of the audience.

Associates will have sufficient knowledge of the broad commercial and financial environment to understand the immediate implications of their work for their client or employer, and will work to the highest professional and ethical standards. However, the qualification, of itself, does not imply that they have the depth of knowledge in a specialist subject possessed by a Fellow; nor that they are able to identify a particular technical solution as optimal in the context of the wider business environment.

An Associate cannot undertake UK reserved actuarial roles but may be recognised as a fully qualified actuary in some other jurisdictions (subject to local experience requirements).

Fellows’ skill set

Fellows of the Institute and Faculty of Actuaries uses financial and statistical techniques to solve real business problems, particularly those involving risk management. These business problems typically involve analysing future financial events, especially when the amount of a future payment, or the timing of when it is paid, is uncertain.

Fellows will have a wide technical understanding of the following areas: pensions, life and general insurance, investment, corporate finance, enterprise risk management, healthcare; and a deep technical understanding of at least one of them. They will also be able to communicate fundamental actuarial ideas and arguments to others outside the profession in a way that takes account of the needs of the audience.

In a broad range of business and financial contexts they can analyse the needs of a client or employer and identify an optimal solution. If the solution is within their own area of expertise they can provide comprehensive professional advice. Where they have identified the need for additional expertise, they can interpret the advice of other experts and synthesize an appropriate solution.

Fellows will work to the highest professional and ethical standards and can fulfil all the UK statutory responsibilities of an actuary and undertake actuarial reserved roles (subject to professional practising certificate requirements) and will be recognised as a fully qualified actuary in most other jurisdictions (subject to local experience requirements).

Actuarial Quality Framework

The Actuarial Quality Framework published by the Financial Reporting Council aims to assist:

• Actuaries - in seeking to provide high quality actuarial work for the benefit of users.
• Actuaries' direct clients and employers, as well as their representatives and advisers - in evaluating the quality of actuarial information and advice and making appropriate decisions based on it.
• All stakeholders including end-users and their representatives - in evaluating the effectiveness with which actuarial quality is being promoted and achieved on their behalf.
• Regulators, including professional bodies - in undertaking and reporting on the regulation of actuaries and the entities they inform and advise.