Reserving Actuary Interview Questions UK: 8 Real Questions and What Interviewers Want

Most Reserving Actuary interviews in the UK follow a pattern, and knowing it beats guessing. Below are eight questions from our bank of 12, each with a note on what the interviewer is really after.

Eight Reserving Actuary interview questions, and what the interviewer is thinking

1. Walk me through how you would carry out a quarterly reserving review for a casualty class, including the methods you would apply and how you select ultimates.

Why they ask: They want to see the practical mechanics of reserving, not just textbook method names.

2. How do large losses and periodic payment orders affect your reserving, and how do you treat them?

Why they ask: This tests your understanding of the long-tail bodily injury issues specific to UK reserving.

3. What is the difference between best estimate reserves, technical provisions under Solvency UK and the IFRS 17 liability, and how do you move between them?

Why they ask: They check that you can link reserving work to the different regulatory and accounting views.

4. How do you measure reserve uncertainty, and what would you tell the board about the range around your best estimate?

Why they ask: They want to see whether you can quantify and communicate uncertainty, not only produce a point estimate.

5. Why do you want to work as a reserving actuary and what does the role require day to day?

Why they ask: They want to see you understand the pressures and appeal of the role.

6. Claims management tells you that case reserves have been strengthened this quarter. How does that change your analysis?

Why they ask: They are checking whether you adjust methods when claims practice changes.

7. It is two days before quarter-end sign-off and the claims data extract arrives late with several oddities. What would you do?

Why they ask: They want to see how you manage data risk and deadlines without compromising quality.

8. Tell me about a time your reserving analysis highlighted a deterioration that others were reluctant to accept.

Why they ask: They want evidence of professional courage and clear communication of unwelcome results.

A sample answer to question 1

Walk me through how you would carry out a quarterly reserving review for a casualty class, including the methods you would apply and how you select ultimates.

I begin with data: reconciling paid and incurred triangles to the ledger, checking for large losses, changes in claims handling and any shifts in case reserving strength. Then I apply several methods, typically paid and incurred chain ladder, Bornhuetter-Ferguson and an expected loss ratio, and compare the results by accident year. For recent years I put more weight on BF or the loss ratio method because the development is immature, and for older years I lean on chain ladder. I test the diagnostics, looking at development factors, claim closure rates and average case reserve movements, and I speak to claims managers about anything that explains the numbers. I select ultimates using judgement informed by those methods, then calculate IBNR. Everything is documented with the rationale for each selection, including where I overrode the mechanical result, because a reviewer needs to follow my reasoning. The results go to the reserving committee with sensitivities.

Common mistake to avoid: Just naming methods without selection logic; Ignoring claims process changes

Want the rest?

Full model answers, key points and common mistakes for all 12 questions are on the Reserving Actuary interview questions page. The first five are free, no sign-up needed.