overview of the actuarial profession and career opportunities n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Overview of the Actuarial Profession and Career Opportunities PowerPoint Presentation
Download Presentation
Overview of the Actuarial Profession and Career Opportunities

Loading in 2 Seconds...

play fullscreen
1 / 35

Overview of the Actuarial Profession and Career Opportunities - PowerPoint PPT Presentation


  • 118 Views
  • Uploaded on

Overview of the Actuarial Profession and Career Opportunities. St. John’s University November 2, 2011 Michael L. Frank, Aquarius Capital. Biography of Michael L. Frank. Actuary: Life & Health Actuary (ASA, FCA, MAAA, MIAA) Experience: Insurance/Reinsurance/Employee Benefits

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Overview of the Actuarial Profession and Career Opportunities' - lisette


Download Now An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
overview of the actuarial profession and career opportunities

Overview of theActuarial Profession and Career Opportunities

St. John’s University

November 2, 2011

Michael L. Frank, Aquarius Capital

biography of michael l frank
Biography of Michael L. Frank
  • Actuary: Life & Health Actuary (ASA, FCA, MAAA, MIAA)
  • Experience: Insurance/Reinsurance/Employee Benefits
    • Appointed Actuary: Insurance Companies, HMOs, & Reinsurers
    • Consulted more than 500 municipalities and 80 private equity/hedge funds
    • Managed $4 billion block of reinsurance
    • Mergers & Acquisition Experience
  • Actuarial Society of Greater NY, President (2011)
  • SOA Section Councils: Actuary of the Future, Entrepreneurial, Reinsurance
  • Various NAIC/AAA/CCA Committees & Task Forces (e.g., Healthcare Reform)
  • SOA LEARN Program – Instructor for Reinsurance for Insurance Regulators
  • Speak/Recruit at Industry Meetings, Publish Articles, Industry Committees
  • Other Credentials & Designations
    • Licensed life, accident and health broker (25+ states)
    • Licensed reinsurance intermediary & managing general underwriter
    • BS, University of Michigan, Mathematics & Statistics (1987)
slide3
What portion of the GNP in this country is tied to the insurance industry? How about worldwide?
insurance products
Insurance Products
  • Life Insurance
  • Health Insurance (e.g., medical, dental, disability)
  • Annuities
  • Property (e.g., Personal Items – Home, Earthquakes)
  • Casualty (e.g., Auto Liability, Professional Liability, Workers Comp)
  • Variety of Specialty Coverages & Hybrids (e.g., Contingencies)
  • Reinsurance/Retrocession
  • Catastrophe Covers
insurance is part of our day to day lives
Insurance is part of our day-to-day lives!
  • Business Interruption
  • Entertainment (TV, Movies, Sports)
  • Travel Coverage
  • Weather
  • Terrorism
  • Mail/Shipping
  • Transportation – Auto, Motorcycle, Boat
  • Home Owners/Renters Insurance
  • Many others – traditional and non-traditional
a strong career outlook
A Strong Career Outlook

Actuary Ranked Best Job of 2009

Ten Jobs That Pay $80,000 a Year

Ten Jobs For Math Whizzes

One of the Best Careers in 2007

Doing the Math to

Find the Good Jobs

Best Jobs for New

College Graduates Now

Ranked Top Four Careers in the Past Six Editions

6

definition of an actuary
Definition of an Actuary
  • An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms
  • Actuaries mathematically evaluate the likelihood of events and quantify the contingent outcomes in order to minimize losses, both emotional and financial, associated with uncertain undesirable events.

Source: Wikipedia, 1/2011

types of actuaries
Types of Actuaries
  • Life Insurance
  • Health Insurance
  • Pensions/Retirement
  • Investments
  • ERM
  • Property Casualty
actuaries involved in public issues
Actuaries Involved in Public Issues
  • National Budget Deficit – What about OPEB
  • Employee Benefits – 20% to 25% of Salary
  • OPEB Largest Number in Municipal Financials
  • Medicare & Social Security Crisis
  • Financial Market Crisis

What portion of the cost of this

car is needed to fund retiree

benefits?

actually actuaries
Actually, Actuaries…
  • Analyze, measure, convert and manage risk into opportunity
  • Use mathematical and statistical analytical skills, financial theory, business knowledge and an understanding of human behavior
  • Develop and validate financial models to guide decision making
  • Are creative problem solvers who see the “whole picture”

11

11

high standards and ethics
High Standards and Ethics
  • Candidate Code of Conduct - Emphasizes importance of ethical behavior on the part of those pursuing an actuarial credential
  • Historically, actuaries many times wear the “black hat” and delivery bad news, but not always (they also deliver solutions).
  • It is a profession that takes the honor system very serious (Precepts and Actuarial Standards of Practice)

12

who traditionally employs actuaries
Who Traditionally Employs Actuaries?
  • Insurance Carriers (e.g., AXA, MetLife, NY Life, Prudential, etc.)
  • Health Maintenance Organizations (HMOs)
    • Aetna, Blue Cross, Cigna, Coventry, Humana, United, and many others
  • Consulting Firms (e.g., Aon, Mercer, Milliman, Towers, etc.)
  • Reinsurers (e.g., Gen Re, Munich, RGA, Scor Re, Swiss Re, etc.)
  • Regulators – Insurance Departments, CMS, HHS
  • Rating Agencies – AMBest, S&P, others
  • Financial Institutions - Investment Bankers, Banks, Asset Managers
  • Large Employers or Welfare Funds
  • Other Organizations Serving the Insurance Industry

13

roles of actuary
Roles of Actuary
  • Actuarial - Pricing, Reserving, Product Development
  • Financial Reporting, Valuation & Analysis
  • Underwriting
  • Risk Management
  • Investment Managers
  • Claims Management
  • Reinsurance/Retrocession Purchasing
  • Broker/Intermediary Issues
  • Product Development
  • Audits (e.g., Forensic Audits)
  • Expert Witness

14

common terminology
Common Terminology
  • Reserves
  • Valuations
  • Loss Ratios
  • ROIs
  • Risk
  • Embedded Value
  • Experience Rating & Credibility
  • Underwriting
  • Risk Management/Reinsurance
  • Enterprise Risk Management (ERM)

15

life contingency functions life annuity pension actuaries
Life Contingency Functions (Life, Annuity, & Pension Actuaries)
  • Ax:n
  • ax:n
  • px
  • qx
  • Vx
  • Commutation Functions: Cx, Dx, Mx, Nx, etc.
  • Cash Values

16

health insurance terms
Health Insurance Terms
  • Medical Loss Ratio
  • Completion Factors & Claims Triangles
  • Healthcare Inflation (Trend)
  • PPO/POS/HMO/EPO
  • Capitation
  • Days per 1,000; Visits per 1,000
  • Per Member Per Month
  • Provider Fee Schedules – DRGs, RBRVS
  • Publicly Traded HMOs – Earnings per Share (EPS)
  • PPACA (e.g., Accountable Care Organizations)

17

sample actuarial assumptions
Sample Actuarial Assumptions
  • Starting Claim Costs or Benefits
  • Inflationary Assumptions (e.g., healthcare inflation/trend)
  • Completion Factors
  • Interest discount rate
  • Retirement rates
  • Turnover rates
  • Disability rates
  • Mortality rates
  • Aging Assumptions (Age/Sex Factors)
  • Asset return on investments (if funded)
  • Salary increases
  • Plan Participation %
  • Actuarial cost methods (e.g., projected unit credit)
actuaries in consulting firms
Actuaries in Consulting Firms
  • Actuarial Valuations
    • Development of Pricing Models & Underwriting Box
    • Valuations – Reserves & Portfolio Valuations
    • Financial Modeling/Forecasting
  • Brokering & Consulting – Sourcing Policies
    • Employee Benefits and Other Insurance Products
    • Reinsurance
  • Product Development Consulting
  • Legal & Compliance Consulting
  • Financing
  • Fiduciary Services
emerging trends
Emerging Trends
  • Changes in accounting rules
    • Increase in demand for financial reporting actuaries
  • Enterprise risk management (ERM)
    • Expanding traditional and non-insurance opportunities
    • CERA credential; SOA funding
    • Development of Insurance/Reinsurance Pricing Committees
  • Globalization
    • Opportunities for those understanding cultures, language, etc.
    • Unifying approaches, actuarial organizations, credentialing, etc.
  • Expanded underwriting/risk management roles
  • Health care - PPACA
    • Changes in regulation may drive new opportunities for actuaries

20

actuarial organizations us
Actuarial Organizations (US)
  • Society of Actuaries (www.soa.org)
  • American Academy of Actuaries (www.actuary.org)
  • Conference of Consulting Actuaries (www.ccactuaries.org)
  • Casualty Actuarial Society (www.casact.org)
  • Joint Board for Enrollment of Actuaries (www.irs.gov)
  • Actuarial Society of Greater New York (www.goasny.org)
  • Chartered Enterprise Risk Analyst (www.CERAnalyst.org)
  • Other Actuarial Organizations & Clubs Worldwide

21

resources for students
Resources for Students
  • www.Soa.org
  • www.Beanactuary.org
  • www.Riskisopportunity.net
  • www.Casact.org

22

the society of actuaries soa
The Society of Actuaries (SOA)

23

  • Is the largest professional, actuarial organization in the world (www.soa.org)
  • Serves over 21,000 members, 30,000 candidates and the public
  • Works for actuaries to be the leading professionals in the measurement and management of risk
  • Committed to:
    • Education
    • Research
    • The Profession

23

three society of actuaries soa designations credentials
Three Society of Actuaries (SOA) Designations/Credentials

Associate of the Society of Actuaries (ASA)

Chartered Enterprise Risk Analyst (CERA)

Fellow of the Society of Actuaries (FSA)

24

soa examinations
SOA Examinations

350 exam centers worldwide

49,500 Exams administered in 2009

More than 9,000 candidateswere new

25

enterprise risk management erm
Enterprise Risk Management (ERM)

26

There is a growing need for organizations to link their risks across their business units and adopt a more comprehensive framework

ERM is the process of risk analysis and management across an entire organization

Evolution & growth of senior management pricing committees

26

actuarial society of greater new york asny
Actuarial Society of Greater New York(ASNY)
  • Largest actuarial club in the world
  • Serves actuaries in the NY, NJ, CT plus other states
  • Supports actuarial exams (e.g., venues & proctors)
  • Provides continuing education seminars to actuaries
    • 15 to 20 continuing education events a year plus annual meeting
  • Actuarial exam study classes (e.g., St. John’s University)

27

asny continued
ASNY (Continued)
  • Offers networking opportunities for new & future actuaries
  • ASNY has many volunteers plus new members joining
  • ASNY has a LinkedIn Group
  • Actuarial Career Day
    • “Bridge from University to Work World”
  • Website www.goasny.org

28

asny career day
ASNY Career Day
  • Learn about profession from actuaries in different disciplines
    • Life, health, pensions, P&C
    • Learn about traditional, emerging and non-traditional opportunities
  • Opportunity to interview with different employers (e.g., last year 14 employers participated)
  • 400+ students attended in 2011 event
  • Network with other actuaries and future actuaries
  • Annually: Typically 2nd Sunday in January (tentatively 1/8/12)
  • Traditionally hosted by Columbia University
  • Website www.goasny.org

29

advice for actuarial students
Advice for Actuarial Students
  • Make learning a lifelong habit
  • Develop disciplined study habits
  • Acquire a well-rounded curriculum
  • Sharpen your communication and business skills
  • Take SOA/CAS actuarial exams while in school
  • Obtain an actuarial internship or relevant employment
  • Find mentors
  • “Networking” is important (e.g., volunteering, industry events)

31

academic studies
Academic Studies
  • Actuaries come from a range of disciplines including actuarial science, math, finance, statistics and engineering
  • Students should complete courses in probability, calculus and business communications
  • Other foundational coursework includes economics, applied statistics and corporate finance
  • Growing need for developing business skills & communications

32

32

things to knows
Things to Knows
  • Actuarial Exams
  • Need a Resume
  • Job Market
  • Actuarial Recruiters
  • Networking
  • Volunteering
  • “Never stop learning”

Note: There are resources to help in your employment search

33

top 10 reasons
Top 10 reasons…

10. Looking for a career that’s dynamic and challenging

9. You don’t want to go to graduate school

8. Superior job security through economic cycles

7. You want a professional title other than MD, Esq., or CPA

6. Opportunities to develop skills transferrable across multiple industries

5. “Earn while you learn”

4. Control over your own career: advancement is merit-based

3. Ability to choose among outstanding job offers

2. Highly competitive salary and benefits

  • You’re self-motivated and goal-oriented, with superior math & communication skills!

http://www.beanactuary.org/college/topten.cfm & ASNY 2011 Career Day

34

open discussion questions
Open Discussion & Questions

Michael L. Frank, ASA, MAAA, FCA, MIAA

President & Actuary

Aquarius Capital

Phone: (914) 933-0063

E-Mail: michael.frank@aquariuscapital.com

Website: www.aquariuscapital.com

(Visit “Aquarius in the News” on Website)

35