The introduction of the Solvency II Directive in 2012 means that there has never been a more exciting time to consider becoming an Actuarial Contractor. This is the most comprehensive regulatory regime in the history of the insurance industry, and Actuaries will play a vital role in helping the industry to respond to these fresh challenges.
Solvency II is intended to create a supervisory framework that protects insurance policyholders and ensures general financial stability. It adopts a risk-based approach and is built on three pillars:
Sets out valuation standards for liabilities and assets and identifies a capital requirement that needs to be met.
Deals with the qualitative aspects of internal controls, risk management processes and the approach to supervisory review.
Ensures there is appropriate disclosure to increase market transparency.
It seems that insurance companies are already reacting to the upcoming legislation changes, by starting to bring contractors on board. At SJD we’re already seeing a huge increase in Actuary Contractors on our books, and one of our industry experts estimates that each insurance company will require 15 to 20 contractors.
Essentially this means if you’re thinking of taking the plunge and setting up as an Actuarial Contractor, there has never been a better time than now.
The thought of leaving full-time employment and setting up on your own as a contractor can appear daunting at first, but it needn’t be, especially in an industry where there is such an opportunity presenting itself.
The first decision you need to make is whether to set up your own limited company, or whether to operate through an umbrella company. There are pros and cons to each (click the link for our guide on limited or umbrella)- but if you’re looking for the greatest amount of take-home pay, then any accountant will tell you that contracting through your own limited company is the most tax efficient option.
Yes we would agree it does require a little more administration on your part, but the 15,000 contractor clients which we already support – all of whom trade through their own limited companies – are a testament to the fact that the extra 15 or 20 minutes a month of administration that’s needed is well worth the effort.
You may also find our contractor careers section helpful, especially if you have been out of the job-hunting market for some time. There are some great hints and tips on CV writing and interview techniques, as well as ways to get an edge over your competitors.