Increasing demand for actuaries
Economic uncertainty, along with environmental and cybersecurity issues, are driving the global demand for actuarial professionals, with growth expected for the next several years. This has opened a range of opportunities for actuaries to work in different areas, including a deeper integration within finance, risk management and even business strategy.
Equally, according to WTW’s Talent Intelligence Reports, the insurance industry is navigating a dynamic landscape shaped by rapid technological advancements and evolving market needs. With new technologies on the rise, the role of actuaries is also expected to change. For example, artificial intelligence is making routine tasks easier, effectively giving professionals more time to focus on strategic input.Reward market practices for actuarial roles
As the competition for actuaries increases, it is critical for organizations to stay on top of current compensation and reward practices. Is your organization positioned to compete for actuarial talent?
Graduate starting salaries
The typical qualification for a starting actuary in the U.K., Ireland, Hong Kong, Singapore and Taiwan is a university degree without exemptions (e.g. B.Sc), according to WTW's Actuarial Exam Reward Reports. In China, however, nearly 60% of organizations indicated that a master’s degree is the usual qualification for a starting actuary.
Across the surveyed countries, the U.K. has the highest compensation for recent actuarial graduates across all qualification levels, followed by Singapore and Hong Kong. Organizations typically review salaries for in-training actuaries each year, in line with their main annual salary review. More than half of organizations surveyed (except Ireland) said they don’t have a separate salary structure for actuarial roles, compared to the rest of their roles.
Reward and benefit provisions at various job levels
All participating organizations said they typically provide a compensation premium (e.g. salary increase, allowance or bonus) after an employee passes actuarial exams. The prevalence is slightly lower in China and Hong Kong, with 94% and 91% of organizations providing a premium, respectively. It also is common for companies to have performance ratings as a condition for obtaining actuarial premiums. In China, Ireland and the U.K., around 30% of organizations consider job level or seniority as a determining factor.
Table 1: Provision of premiums by actuarial papers
| Country | Yes | No |
|---|---|---|
| China | 94% | 6% |
| Hong Kong | 91% | 9% |
| Singapore | 100% | 0% |
| Taiwan | 100% | 0% |
| Ireland | 100% | 0% |
| United Kingdom | 100% | 0% |
Source: WTW 2024 Actuarial Exam Reward Survey
Organizations in Taiwan and Ireland commonly apply a change or increase in benefit provisions once an employee qualifies as an Associate. In China, Singapore and the U.K., the prevalence decreases to 38%, 17% and 25% of organizations, respectively, and is uncommon in Hong Kong. A cash allowance is the most prevalent type of benefit provision provided across all countries. Salary increases, bonuses and promotions are examples of other benefit provisions employed by nearly half of organizations.
Upon achieving Fellowship status, Taiwan has the highest prevalence for the provision of further awards across the regions. In China and the U.K., the prevalence decreases slightly to 59% and 58% of organizations, respectively. The provision is less common in Hong Kong, Singapore and Ireland.
Study support and internship programs
Becoming an actuary requires a great deal of commitment. Therefore, it is common for organizations in all countries to provide support for exam fees, course materials and professional membership fee reimbursements. Most companies that provide an exam (first take) fee reimbursement, cover 100% of the cost.Most organizations also provide employees with study leave days to prepare for and sit examinations. In China, one-third of organizations don’t provide any study leave days and two-fifths don’t provide any exam leave days.
Across China, Hong Kong, Singapore and Tawain, actuarial internship programs are most prevalent in Singapore, with the typical length ranging from three to six months. Actuarial internship programs also are prevalent in Ireland, with the median program duration being 12 months. In the U.K., about one in four organizations offer an actuarial internship program with a median program length of 10 months.
Talent pipeline and retention strategies
Attracting and retaining actuarial talent has remained a strong focus for employers, particularly in the U.K. and Ireland, where attrition rates among actuarial employees are highest, at 11.8% and 11.9%, respectively. In both countries, attrition rates surpass the overall company rates. Singapore has the lowest attrition rate among actuarial staff, at 1.2%. Hong Kong and Taiwan have the highest overall attrition rates, at 15.6% and 16.0%, respectively. Singapore, again, has the lowest overall attrition rate at 7.8%.
Why are actuarial employees resigning?
Better career development, pay, flexible work arrangements and work-life balance are the top reasons actuarial professionals are leaving their jobs. To hire the best candidates, employers need to be sensitive to the preference for remote work. It is common for organizations in the U.K., Ireland, Singapore and Hong Kong to have a formal policy on flexible working arrangements. China and Taiwan are more reserved with these offerings.
The importance of retention strategies
Employee retention strategies are not only critical to retaining talent, but also in reducing recruiting and training costs as well as improving overall business performance. Retention strategies for actuarial staff are common in Taiwan and Hong Kong. Less than 40% of organizations in the remaining countries have a retention strategy. For those organizations with a retention strategy, the focus is on offering better career advancement.
Balancing global and local perspectives
What does pay look like for in-training actuaries? How can your organization support actuarial trainees? Taking a comparative look at trends in rewards and support for actuarial talent is the first step to answering these questions. It’s important to reference individual country trends when designing actuarial support programs to ensure they meet the local needs of actuarial employees, especially for organizations that operate on a global scale.
Authors
2024 Actuarial Exam Reward Survey Report
Stand out as an employer of choice for actuarial professionals with an in-depth overview of compensation and rewards market practices.
