Life assurance and pension administration

Life assurance companies provide their customers with financial protection and wealth management solutions. Life assurance is all about:

• catering for the long-term aspects of an individual’s life
• ensuring that they are set up according to their personal needs
• taking account of their personal circumstances and using this information to plan as accurately as possible for the future

As the average life expectancy increases, there is an increasing demand for life assurance products. These products are designed to protect dependants and beneficiaries from adverse financial consequences should something happen to an individual, ensuring that their family members are not left with huge mortgages or other liabilities to pay off.

What skills does the subsector need?

In order to work in the life assurance area as an actuary, employers look for a strong numerical and statistical background. This is a technical and precise area of work that requires regular use of numbers and with a real emphasis on attention to detail.

Other roles demand good communication and interpersonal skills along with the ability to motivate yourself to study for further exams. New entrants are expected to train for professional qualifications, which are necessary in order to become fully qualified. These courses can take between three to seven years to complete.

Pension administration

Pension administrators ensure that group and personal pension schemes operate effectively on a day-to-day basis and over the long term.

Pension administration is a service offered by large insurance companies and public sector pension providers. It may also be the primary function of third party pension administration firms or consultancies.

Pensions administration firms or departments deal with a variety of contacts and enquiries from a range of customers, including:

• independent financial advisers (IFAs) acting as brokers between the life assurance company and individuals who have taken out a pension plan
• pension managers from client companies
• individual pension scheme members

What skills does the subsector need?

The changing nature of the industry means that pension professionals are likely to need an increasingly broad set of personal and technical skills in order to develop their careers. Keeping up to date with changes in pension legislation, regulations and financial products is essential as well as a knowledge of the industry.

Success in pension administration requires more than just technical knowledge. It is very important to have communication and interpersonal skills to work effectively with colleagues and clients. It is also crucial to have a keen eye for detail and to be meticulous in checking data to ensure accuracy.