Actuary warns of gap in pensions market

The market for pensions advice for small to medium sized enterprises is not being adequately filled, according to study by a firm who offer actuary services.

The actuarial experts have claimed that pensions advisers are not filling the market.

Traditional pensions consultancies are concentrating on big clients, ignoring the small to medium size enterprise market, who badly need advice.

Companies which have final salary schemes managed by insurance companies are finding that very often the insured service is simply about compliance and there is very little in the way of pro-activity at a time when small to medium size enterprises are facing escalating costs and liabilities within their pension schemes and need concentrated advice.

A spokesman fdor one pensions company said dealing with SME’s is often not a profitable exercise and that it can be difficult to make money from smaller businesses’ schemes if you do not get the charging structure right.

If you are looking for Actuarial Jobs and Insurance Careers get in touch with Acumen Resources, specialist Actuarial Recruitment Specialists.

 

Actuarial Jobs – What is an Actuary

The career or job of an actuary is a business professional who deals with the financial impact of risk and uncertainty.

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Actuaries have a deep understanding of financial security systems, their reasons for being, their complexity, their mathematics, and the way they work. They evaluate the likelihood of events and quantify the contingent outcomes in order to minimize losses, both emotional and financial, associated with uncertain undesirable events. Since many events, such as death, cannot be totally avoided, it is helpful to take measures to minimize their financial impact when they occur. These risks can affect both sides of the balance sheet, and require asset management, liability management, and valuation skills. Analytical skills, business knowledge and understanding of human behavior and the vagaries of information systems are required to design and manage programs that control risk.

Actuaries’ insurance disciplines may be classified as life; health; pensions, annuities, and asset management; social welfare programs; property; casualty; general insurance; and reinsurance. Life, health, and pension actuaries deal with mortality risk, morbidity, and consumer choice regarding the ongoing utilization of drugs and medical services risk, and investment risk. Products prominent in their work include life insurance, annuities, pensions, mortgage and credit insurance, short and long term disability, and medical, dental, health savings accounts and long term care insurance. In addition to these risks, social insurance programs are greatly influenced by public opinion, politics, budget constraints, changing demographics and other factors such as medical technology, inflation and cost of living considerations (Bureau of Labor Statistics 2006).

Casualty actuaries, also known as non-life or general insurance actuaries, deal with catastrophic, unnatural risks that can occur to people or property. Products prominent in their work include auto insurance, homeowners insurance, commercial property insurance, workers’ compensation, title insurance, malpractice insurance, products liability insurance, directors and officers liability insurance, environmental and marine insurance, terrorism insurance and other types of liability insurance. Reinsurance products have to accommodate all of the previously mentioned products, and in addition have to properly reflect the increasing long term risks associated with climate change, cultural litigiousness, acts of war, terrorism and politics (Bureau of Labor Statistics 2006).

In 2002, a Wall Street Journal survey on the best jobs in the United States listed actuary as the second best job, while in previous editions of the list, actuaries had been the top rated job (Lee 2002). The survey used six key criteria to rank jobs: environment, income, employment outlook, physical demands, security and stress. A similar survey by U.S. News & World Report in 2006 included actuaries among the 25 Best Professions that it expects will be in great demand in the future.