The actuarial contract market is extremely niche, especially within the life insurance industry. In a highly skilled market such as the actuarial profession, there is a high demand for their services which creates a skills shortage in the market. With this in mind, it often means that contractors and clients will have likely crossed paths at some point. Many contractors will join new clients and see familiar faces from across the industry.
A bit of background…
In our experience, historically, contractors would come in specifically to work on various projects which in the last few years has covered areas such as Systems Transformations/Integrations, Solvency II, Mergers and Acquisitions etc.
Having moved from project to project, actuarial contractors have generally been presumed to have more specialised skill sets and very specific knowledge of areas within the Life Insurance industry. Experience such as this has proven to be valuable to many of our clients’ over the years, particularly with short term project requirements and so has seen the actuarial contractor market become an increasingly popular option.
However, from speaking with many of our clients, in recent times we have begun to see a shift in the traditional method of recruiting contractors for short term projects; the demand from permanent actuaries for project work in order to broaden their skill set and advance their careers has notably increased.
So, what impact does this have?
The shift from our clients over the last 6 months has seen a change in how we, as recruiters, look to resource. Businesses are increasingly shifting their permanent actuaries into these projects, utilising their understanding of their business to ensure the success of the project as well as providing them with new opportunities and career progression. As a consequence, the actuarial contractor market is being utilised increasingly to backfill these short-term vacancies created by the internal movement.
Although they may not currently have skill sets as niche as their contracting counterparts, there are many benefits to giving employees the opportunity to work on these projects. Permanent employees will have company loyalty, the right cultural fit and an in-depth understanding of the company that has been developed through their employment. This also enables businesses to keep the project knowledge in-house.
Despite more permanent employees getting involved with project work, there will always be a demand for contractors. Especially those with more niche actuarial skills such as Prophet Modelling, Part VII Transfers, Longevity Risk and ALM.
Sanderson actuarial supports various life insurers with both contract and permanent recruitment. We’ve recently been working on several projects such as Solvency II, IFRS17, Brexit and various system transformations.
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