Solvency II, the European Union directive that codifies and harmonizes insurance regulation within the Union is set to come into effect on January 1, 2013. The directive aims to unify a single EU insurance market, ensure the financial soundness of insurance undertakings and enhance consumer protection. An “EU Passport” – a single license – will allow insurers to operate in all member states if they have fulfilled EU conditions.
Part of the Solvency II proposal says that all insurers must have an actuarial function and a risk management function. The EU says this does not necessarily mean that insurers must have a full-time actuary or risk manager on staff, they must ensure they have access to the necessary actuarial or risk management expertise.
Star Actuarial Futures, a UK-based specialty recruitment firm for the actuarial market, says a Skills Shortage report from The Migration Advisory Committee (MAC), the Institute and Faculty of Actuaries, PwC and a major insurance company indicates that there is a shortfall of experienced candidates for actuarial jobs.
The insurance company consulted by the MAC reported a 30 to 40 percent rise in demand for talent and confirmed that openings for experienced actuaries are the most difficult to fill, suggesting a favourable market for candidates. The high salaries on offer for certain roles also reflect this – annual packages in excess of £200,000 and daily rates in excess of £1,000.
Louis Manson, Managing Director of Star Actuarial Futures said: ”Solvency II has created huge demand for actuarial and risk management skill-sets. We do not envisage any let-up in this demand during 2012. Our advice to companies: Be decisive and positive in your Solvency II appointments. Our advice to candidates: Find a role that will give you the maximum opportunity to learn and influence during this key period for the insurance industry.”