A fine job, actuary

Arthur Zegleman, one of the new breed of actuaries, be-lieves much of the blame for that stereotypical image lies with the profession itself. ''Historically, it has been seen as arcane; but the reputation is no longer deserved because the job of the actuary is so much more now,'' he says.

''Its 'dry' image is based on the fact that it is very focused and technical; but life is full of things that are focused and technical. The excitement and enjoyment in any profession comes from contact with other people, being out there, helping them solve their problems.

''So good communication skills are essential for this area of work - just as essential as the ability to do the work itself. It is about putting it in a commercial context, offering advice which is relevant to the business environment in which you are operating.''

Actuarial science is about financing risk - about how companies and organisations, insurance firms, and pension funds make advanced provision for risk benefits or risk projects they may introduce.

Traditionally, most of the work is based on life assurance and pension funds, assessing mortality risks and benefits that might eventually be paid.

Consultancy is one aspect of actuarial work which involves advising individual organisations about their risk. The other involves working for the life assurance industry.

In the past, there was extensive calculation and numerical work, a strong mathematical and technical input on the day- to-day work. Today, with computerisation, there is less need for that hands-on approach.

''However, it is critical for anyone coming into the actuarial profession that they realise there is a rigorous mathematical underpinning to the work,'' says Arthur Zegleman. ''It is still essential to know how to go about the calculations.''

The profession is regulated by two professional bodies in the UK - the Faculty of Actuaries in Scotland and the Institute of Actuaries based in London. The two bodies work closely together and now offer joint examination systems.

Apart from regulating the profession, they ensure proper training for recognised qualifications, maintain standards, and guide the profession in the technical and legislative areas. To be an actuary in the UK it is necessary to pass the Faculty/ Institute professional exams.

The classic route for actuaries is through gaining a first degree in a numerate discipline. Most actuaries have either a maths degree or a maths/economics degree, and while this is not essential, there has to be evidence of a high level of num-eracy, an understanding and liking for statistics and numerical work, as well as for the basic principles of mathematics.

Universities like Heriot-Watt in Edinburgh and City in London have instituted actuarial mathematics degrees designed to give actuarial mathematics training. Those degrees offer exemptions from the first half of the professional exams of the Faculty or Institute, which on average take four or five years to achieve, depending on how well the student has done.

Women are still a tiny minority in the profession but that is changing, as schools encourage more of them to consider maths-based subjects and as the profession itself becomes more flexible.

According to Arthur Zegleman, it is a challenging and exciting profession which carries a significant level of responsibility. ''You just have to look at the UK pension fund industry which currently has assets of #600 billion,'' he says. ''Behind each UK pension fund there is an actuary whose role is to advise the trustees, those responsible for administering the fund - or the employer, in some cases, on the financial position of these funds.

''Behind all that money there are a lot of people expecting an income on retirement, so there is much responsibility in both a financial and a social sense.''

Arthur Zegleman is a partner with Watson Wyatt Partners, a UK-based firm of benefits and remuneration consultants em-ploying around 1000 staff. The company has an international alliance with Watson Wyatt Worldwide, which employs around 4000 people throughout the rest of the world.

The company's main business in the UK covers employee benefits, in keeping with a market that is looking more and more at flexible benefits packages. It also provides all the ancillary services to pension funds, and has a large insurance practice which advises insurance companies on mergers and de-mutualisation.

The fourth strand of the business is an investment consultancy which does not advising on day-to-day investment in the stock market but focuses on strategy for investments and the organisation of funds.

There are also international opportunities within the partnership, Watson Wyatt being a world-wide concern. While it is necessary to know relevant legislation for areas in which the company operates, the work often involves establishing a consistent world-wide approach for multinational clients.

Arthur Zegleman's favourite aspect is the communications work, meeting clients. ''The real challenge is communicating to each of them, whatever their background whatever their knowledge of finance or other issues, getting over what the fund is about and what you are trying to do,'' he says. ''That's what I find most satisfying - building relationships with the clients, leading and helping them through relevant issues.''

Many actuaries today are working in the communications side, applying research to commercial, modern-day environments and offering good advice to clients.

Given the increasing de-mand for flexibility and the growing need to adapt to the ever-changing pension plan/ insurance market, the universities offering actuarial courses, and the Institute/Faculty of Actuaries, will continue to review the process regularly and ensure that examination structures are relevant.

Partly as a result of the Pensions Act (April 1997) creating a lot of compliance work, actuaries are currently in great demand. The long-term future looks positive, with no job shortages on the horizon.