Actuarial Contract Work 201: How the Market Has Changed Since 2024

In June 2024, I wrote Actuarial Contract Work 101 to answer some of the questions I was regularly getting from actuaries about contract work: how to get started, the pros and cons, what types of projects were available, and why insurance companies use contractors.

A little over two years later, the fundamentals haven’t changed much, but the market has.

Demand for experienced actuarial contractors remains strong, particularly within the life and annuity space. What has changed is the type of work companies need help with, the level of specialization they are looking for, and the expectations they have for contractors coming into an engagement.

Here are a few of the biggest changes I’ve seen.

The Work Is Becoming More Specialized

A few years ago, regulatory change was one of the biggest drivers of actuarial contract work. Regulatory projects are certainly still part of the market, and I expect VM-22 to create additional demand, but more of the requests we see today are tied to specific business needs and specialized skill sets.

Some of the areas where we are seeing demand include:

• ALM, asset and capital work: We’ve seen more demand in these areas than at any point in recent years, particularly from life and annuity companies looking for actuaries who can work across the asset and liability sides of the business.
• Annuity expertise: New and growing entities are looking for experienced resources who understand annuity products, pricing, modeling and risk.
• PRT: Pension risk transfer continues to create opportunities around pricing, deal evaluation and related modeling work.
• Reinsurance transactions: We’re seeing contractors support deal structuring and evaluation, including work involving offshore reinsurance structures and captives.
• Model development and modernization: Ground-up model builds remain common, while modernization efforts and conversions to platforms such as PathWise or internally developed systems are creating additional project work.
• AI and automation: This is beginning to create opportunities for actuaries who can help companies think through potential applications as well as those who can actually help implement them.

Traditional needs haven’t disappeared either. Companies still use contractors for leaves of absence, unexpected attrition, open roles and peak workload periods. The difference is that some of the most difficult searches today are for expertise a company may only need for a specific project or period of time.

Clients Are More Selective

Clients generally aren’t bringing in a contractor with the expectation that they will spend several months learning the role. They’re paying for experience that can solve an immediate problem.

That means the most successful contractors tend to have recent, directly relevant experience and can become productive quickly.

Preparation matters as well. Before interviewing for a project, contractors should understand the problem the client is trying to solve and do enough research to identify and address any obvious knowledge gaps. Self-learning is an important part of being successful in contract work.

The interview itself is also different from interviewing for many permanent positions. Clients want concise examples of what you personally did, the problems you’ve solved and how you approached them. In many cases, you should also be prepared to give an initial perspective on the best path forward.

Specialized Skills Still Command a Premium

We’ve seen more scrutiny around rates for traditional or BAU actuarial support. At the same time, clients tend to be much less rate-sensitive when they need a difficult-to-find skill set in areas such as ALM, investments, capital or annuity pricing.

For contractors, that means it’s important to look at market value realistically. Rates aren’t driven solely by years of experience or actuarial credentials. They’re also driven by how closely your experience matches the problem the client needs solved.

Someone who checks nearly every box on a highly specialized project is in a different position than someone who has several areas they will need to learn on the job.

Remote Contracting Isn’t Going Away

The vast majority of the actuarial contract opportunities we work on continue to be 100% remote. Unlike the permanent actuarial market, where companies have increasingly pushed for hybrid or in-office arrangements, we haven’t seen the same shift with contractors.

That opens opportunities nationally and gives companies access to specialized actuarial talent regardless of where that individual happens to live.

Engagements Are Getting Longer

While short-term projects certainly still exist, many of the engagements we’re seeing are trending longer. Most remain around 40 hours per week, although there are opportunities for experienced contractors who prefer part-time schedules.

Extensions are also very common. Often the initial project simply evolves. A contractor comes in to solve one problem, does a good job, and discovers other areas where they can help.

That leads to one of the biggest things I’ve learned from watching successful contractors over the years.

The Best Contractors Don’t Just Complete the Assignment

The contractors who tend to be most successful aren’t necessarily the people who know everything on day one.

They’re entrepreneurial. They’re problem solvers. They work independently, learn quickly and figure things out without needing every step laid out for them.

They also look beyond their original scope. If they see another workstream where they can help, they raise their hand. If another team could benefit from their expertise, they find a way to support them. If the project changes, they adapt.

That’s often how an initial engagement turns into an extension, another project or a client asking for the same contractor back in the future.

Why Companies Are Using Contractors Today

There will always be straightforward reasons for using contractors: maternity or medical leaves, unexpected turnover, busy reporting periods and vacancies that need temporary coverage. But the business case has expanded.

Some companies have limited permanent headcount but can secure budget for an important project. Others need highly specialized expertise for six or twelve months but don’t have a long-term need that justifies making a permanent hire.

We’re also seeing contractors used for process improvement, modernization initiatives, new business opportunities and projects where companies want experienced outside expertise without engaging a large consulting firm.

For the right project, an experienced individual contractor can provide a compelling middle ground: specialized expertise, flexibility and the ability to get to work quickly.

Contracting Isn’t for Everyone

I said this in 2024, and I probably believe it even more today.

Contracting can provide interesting work, strong earning potential and exposure to projects someone might never encounter in a traditional role. But succeeding as a contractor requires a different mindset.

You have to be comfortable with uncertainty. You have to continuously develop your own skills. You need to interview well, adapt quickly and be willing to enter an organization where you’re expected to contribute almost immediately.

For actuaries who enjoy solving problems, learning new things and moving between different challenges, it can be a great career path.

And for companies, the value of contract talent increasingly goes beyond simply filling a temporary seat.

The best contractors aren’t there just to cover a gap. They’re there to solve a problem.

Two years after writing Actuarial Contract Work 101, that’s probably the biggest change I’ve seen.