Are you looking for a job in the field of Actuarial science, or are you looking to work with the company of your dream? If so, below is a list of actuary interview questions and answers to help you prepare adequately.
1. Why Are You Interested In This Role?
This question allows the interviewer to know the values you can add to their team. While answering this question, focus more on the values you can bring to the team.
“My passion for numbers and strong analytical skills drive me to work as an actuary. My six years of experience in this field has equipped me with more statistical skills which make me enjoy working as an actuary. I have the right attitude to work in this role”
2. What Are The Roles Of An Actuary?
The interviewer wants to find out whether you know the duties of an actuary. The best strategy to answer this question is to explain the main roles of an actuary as you relate your response to the duties in the job description.
“An actuary analyses the financial costs of uncertainty and risk. They use statistics, mathematics, and financial theory to evaluate the risk of potential events. Through their assessment, they assist businesses and clients to form policies that aim at minimizing the cost of the risks identified.”
3. What Are The Qualities That An Actuary Needs To Be Successful?
This question gives your interviewer an opportunity to know whether you understand the qualities of a good actuary. State some of the qualities you think make a good actuary.
“To be successful, an actuary needs to have solid communication, analytical and computer skills as well as a good sense of business and finance. He/ she must have specialized math knowledge, statistics, calculus, and probability. “
4. What Major Challenges Did You Face During Your Last Role? How Did You Manage Them?
The interviewer wants to assess your problem-solving skills. To answer this question efficiently, think of any work-related issue that presented challenges in your current or previous role. Demonstrates how you solved it.
“While working as an actuary, a customer visited our company and started insulting us due to the insurance policy we had designed. You could tell that she was irritated because of how loud she was shouting. I decided to talk to her and took the time to listen to her concerns. When she calmed down, I explained to her about the new insurance policies. She had thought that we had withdrawn her cover at first. I offered her various options to help her make an informed decision. She took the option that best suited her and thanked me for understanding her and she apologized for hurling insults to us.”
5. Describe Your Daily Routine As An Actuary
The interviewer wants to see how you prioritize your work. Convey your answer in a way that demonstrates that you do make good use of your time.
“My day is always a busy one with a heavy workload to handle. I tackle mathematics, financial and statistical theories to evaluate the risk and events when they occur. This help business and clients to come up with policies that reduce the cost of that event or risk. I enjoy working with numbers, sitting at the computer, and also performing a lot of tedious tasks. In short, my duties include:
- Analyzing statistical data such as accident rates
- Computer modeling of data to determine potential risks
- Preparing reports and presentations
- Communicating findings to managers, stakeholders, and other clients
- Keeping up-to-date information of financial developments in the business world”
6. Describe Briefly About Your Experience
Knowing your experience can help your interviewer gauge how prepared you are for a role., your ability to summarize your work history and relate it to the position can show that you’ve reflected on your potential employer’s expectations.
“In the course of my 4 years working in this field, I have gained a lot of experience on how to compile statistical data and other information for analysis. I am well familiar with estimating the probability and economic cost of events including sickness, an accident, natural disaster, or death. Recently, I was tasked with designing, testing, and administering insurance investments, policies, and pension plans that are geared towards maximizing profitability.
I have very solid presentations skills when delivering findings and proposals to clients where I use simple language including charts and tables that can be well understood.”
7. What Kind Of Strategies And Mindset Are Required For This Role?
The hiring team wants to determine whether you the ability to think strategically. Demonstrate that you are not just focused on solving today’s problems but you are looking to the future.
“Even if I am trained to think fast and take quick action, I find myself stepping back to reflect on the events that occur, analyze it and finally find a solution. I have learned to consult from my colleagues, stay informed, and also tapping into valuable sources of information as I make the assessments to minimize risks.”
8. What Is The Biggest Challenge That You Foresee In This Job?
This question helps the hiring manager evaluate your ability to deal with challenging situations. Describe one of the difficult tasks from the job description and demonstrate how you can use your abilities to handle it.
“The biggest challenge I foresee in this job is the pace by which the technology is changing. Keeping this pace might be quite challenging in the future. However, this is going to be the most rewarding aspect of this industry for me.”
9. How Do You Stay Motivated In Your Work?
The interviewer wants to understand your sense of personality, resiliency, and determination. Talk about your interest as you align them with the requirements for the job.
“I have always liked solving mathematics and working with computers. I am excited about solving complex and technical challenges that reduce specific risks. Being able to accomplish big things independently and as a team motivates me to do the best every day.”
10. Describe A Time When You Failed In This Role And The Lesson You Learnt?
Here the interviewer is determining your ability to own mistakes and if you learn from them. Describe a situation and explain how you handled it including the lessons you picked from that.
“One time I noticed that that the actuarial spreadsheets I had sent to a client had some mistakes. When I realized that, I quickly fixed the problem in the initial spreadsheet. I then reported the matter to my supervisor where I offered an apology. I immediately sent the rectified spreadsheet to the client and again I apologized for the mistake to him.”
11. Why Do You Feel You Are The Most Suited For This Role?
The interview wants to know what makes you a good fit for the position. Demonstrate that you have the expertise and experience needed for the job.
“I possess all the experience and skills you are looking for. Besides being an analytical thinker, I’m passionate about numbers
and I can confidently use my knowledge to help you reduce risks in your company if you give me a chance”
12. Share With Us Your Greatest Achievement.
The recruiting manager asks this question to gain insight into your proven work and what achievements you consider important. Share what you are truly proud of professionally.
“I really enjoyed the recent research I conducted in my current company to establish a new statistical model. I am a result-oriented person and it is satisfying to know that the information I presented was used to create a new and better insurance line”
13 Provide Some Of The Topics And Skills In Which An Actuary Should Be Proficient
While asking this question, the interviewer seeks to determine your specific skills as an actuary. The best way to answer this technical question is to align what you can do with the position you are seeking for.
“Some of the main skills an actuary needs to be proficient in linear algebra, probability, differential equations, statistics, calculus, and regression analysis. An actuary should have a strong understanding of other business-related topics including finance, accounting, management, computer science, and economics.”
14. Can You Explain What Actuarial Tables Are And How They Are Used?
The recruiting manager is interested in your knowledge in this field. Apply your knowledge and skills to answer the question.
“Actuarial tables are basically statistical charts that indicate details about a particular risk or event. For instance, the life expectancy of a specific population can help an insurance company to determine their rates depending on the age insured.”
15. Can You Explain How Lognormal Distribution Is Used In The Context Of Actuarial Practices?
The interviewer is digging deeper to find out how broad your knowledge and skills are. Apply technical knowledge to answer the question.
“A lognormal distribution can be explained as a continuous probability distribution of a given random variable whose logarithm is normally circulated. It is mainly used as a model to govern the size of the distribution. It is positively skewed and has a range from zero to infinity.”
16. Mention A Few Pros And Cons Of Any Of The Actuarial Software You May Have Previously Worked With
This question helps your interviewer to know the types of software tools you are familiar with. Talk about the soft wares you may have worked with in a positive attitude especially if you are referring to the ones your potential company uses.
“I like how flexible Moses actuarial software is, but it can be a little challenging for new users. Prophet actuarial software is simple to use and easy to install.”
17. What Do You Consider When Analyzing Risk And What Software Do You Find Most Useful In Your Day-To-Day Work?
The interviewer wants to determine your level of experience in this field. While answering this question, showcase your knowledge of actuary tools and software and how essential they are to job success.
“I begin by looking at the already available information to evaluate if there is any more data that I need to gather. After ensuring that I have all the data I need, I apply a combination of math, statistics, and financial theory to make the best determination. I prefer using prophet and Moses’s actuarial soft wares. This is because I find the two software user-friendly and easy to install.”
18. What Is Your Greatest Strength?
The interviewer wants to identify whether your strengths match the company’s needs and the job’s responsibilities. Describe the experience and skills you possess that directly correlate with the post of an actuary.
“I have strong interpersonal and communication skills that enable me to deliver my assessment finding with ease to my clients. In addition, my ability to organize enables me to meet deadlines ahead of the scheduled time.”
19. What Is Your Greatest Weakness?
The interviewer asks this question to find out your level of self-awareness. As you answer this question, pick a weakness that will not affect your chances of getting the job.
“My passion for this work pushes me to take too much workload that makes me work extra hours to ensure that I complete all the tasks in due time. I have realized that this is a weakness and I am learning how to delegate tasks. As a result, I am enjoying working independently and as a team.”
20. What Is Your Salary Expectation?
The recruiting manager what to examine whether your salary expectation is within their range. The best way to answer this question is by providing a salary range.
“An actuary who possesses the skills and experience similar to mine earn a salary of $80000 – $ 100000. I would be happy to receive a salary similar to this range for this given role”
Familiarize yourself with these questions and answers as much as you can before attending the interview. Also, during your interview, be eloquent and bold to impress your interviewers and maximize the chances of getting hired.