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Old 04-08-2008, 12:02 PM
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Default Consulting billing rates

For actuarial consulting firms that bill hourly, does anyone know how the bill rates of FCAS/ACAS/Actuarial student/CPA/Regular undergraduate degree compare?

I am interested because the firm I am working at does not normally employ actuaries, but we do some work for insurance companies, so we would like to know what an appropriate billing rate would be.
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Old 04-08-2008, 02:12 PM
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link here: http://www.actuarialoutpost.com/actu...d.php?t=106741
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Old 04-08-2008, 02:26 PM
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Quote:
Originally Posted by chatthis View Post
For actuarial consulting firms that bill hourly, does anyone know how the bill rates of FCAS/ACAS/Actuarial student/CPA/Regular undergraduate degree compare?

I am interested because the firm I am working at does not normally employ actuaries, but we do some work for insurance companies, so we would like to know what an appropriate billing rate would be.
My rule of thumb is usually to charge the highest amount the client is amicably willing to pay.
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Old 04-08-2008, 02:40 PM
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Thanks, but I'm more interested in what consulting firms bill their people out vs. an individual consultant. I'm just not sure how much more an ACAS is billed out over an actuarial student, or how much more an actuarial student is billed out over someone not pursuing exams, and how all these compare to a different certification (CPA, PHD, etc.)
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Old 04-08-2008, 03:06 PM
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I think that the billing rate is set as a multiple of the (average) salary at the various levels, the multiple being intended to cover overhead and profit.

I suggest looking at DWS salary survey data to get an idea of the comparative salary levels. . .
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Old 04-08-2008, 04:09 PM
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Quote:
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I think that the billing rate is set as a multiple of the (average) salary at the various levels, the multiple being intended to cover overhead and profit.

I suggest looking at DWS salary survey data to get an idea of the comparative salary levels. . .
I think the rule of thumb is bill rate x 1200 or 1300 / 4 = salary.

So conversly bill rate = salary x 4 / (1200 or 1300)

I'm not clear what the OP wants to use this information for. If you are trying to set charge rates for piece work you're doing for an insurer the above is probably a good starting point, maybe set it a little higher then negotiate with the insurance company you are doing the work for to get somewhere amicable to both of you. You should set everything out clearly in a signed engagement letter if you have not already.
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Old 04-08-2008, 04:45 PM
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The reason I am looking for the information is that I work for a consulting company which has many different employees in terms of level of education and accreditations, with many different bill rates. I think using the salary surveys is a good suggestion, I can just set a regular undergraduate as 1 exam.
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