A Primer on the Actuarial Profession Phillip Persley Senior Actuarial Analyst, Collective Health
Personal Background Originally from Los Angeles Graduated from UC Berkeley (Cal) in 2011 Applied Mathematics Major. Emphasis: Actuarial Science and Computational Methods Heavily involved in STEM outreach and development Focused on research most of my time in college Became a student parent halfway through college Career Path: Rael & Letson June 2011 through Feb 2012 Blue Shield of CA Feb 2012 through Jan 2016 Collective Health Jan 2016 through Present Interests: Sports Manchester United, LA Lakers Politics Domestic and International
What is An Actuary? An actuary is a professional dealing with the assessment and management of risk for financial investments, insurance policies, and any other ventures involving a measure of uncertainty (Source: Investopedia) An actuary is a business professional who deals with the financial impact of risk and uncertainty. (Source: Wikipedia) Actuaries evaluate risk and opportunity applying mathematical, statistical, economic and financial analyses to a wide range of business problems. (Source: IAA web site) Spreadsheet Monkey with a Math Fetish (Source: Unknown)
Fictional Actuaries Ben Stiller (Along Came Polly) Edward Norton (Fight Club)
Areas of Work Insurance Property and Casualty (P&C) Life Insurance Health Insurance Benefits Industry Health Benefits Retirement Benefits Social Security Financial Services Industry Banks, investments, risk management Mergers & Acquisitions
Where do Actuaries Work? Insurance Companies Reinsurance Companies Consulting Firms State Departments of Insurance (DOIs) Rating Bureaus Other (non-insurance companies) Tech Companies & Startups
U.S. Actuarial Organizations Society of Actuaries (SOA) Life insurance, Health insurance, Pension Casualty Actuarial Society (CAS) Property and Casualty American Academy of Actuaries (AAA) sets qualification, practice, and professionalism standards for actuaries in the United States
How Do I Become An Actuary? Typically major in a STEM field Math, Stats, and Economics are most common Complete Exams, VEEs, Professionalism Courses Path will vary between ASA/FSA and ACAS/FCAS Most employers expect college graduates to have completed at least 2 exams Develop and sustain a strong skill set Continuing education once credentialed Network Often overlooked by those new to the field Networking leads to potential This is how I ended up at CH, and how my reference ended up at CH
Why Did I Choose This Career? Financial Considerations High Starting Salary Strong growth in career earnings Exam passes = salary raise + bonus Very secure after becoming credentialed Relevance & Impact Work has a direct impact on peoples lives Application of STEM Cross-functional approach to problems Ability to apply soft skills more so in a consulting environment Exams seemed interesting Acquisition of useful knowledge Significant investment of personal time Mixed feelings about this
Exams See Exhibit
Actuarial Careers Typical Progression Start as an analyst, pass exams Progress to a more senior role More likely to progress further as a Fellow than as an Associate Generally, an emphasis on biding time. Progression through attrition or expansion In general, people tend not to spend 5+ years in a job before changing More ambitious individuals have chosen to move into traditionally non-actuarial functions/roles A lot of opportunities emerge after becoming credentialed Have to be willing to relocate Small world, especially outside of traditional Actuarial centers About 10% of all Actuarial jobs are in the Western Us across all sectors ~26k (credentialed) members in the SOA; 6k members of the CAS
Career Progression My Career Progression Started in the Retirement Sector, but made every effort to move to the Health Sector Strong performer at BSC Very good work, but less than stellar exam results Work was valued, but not influential Mid 2015 - Time to make a change Good working relationships and friendships, but opportunities weren t apparent Willing to consider non-actuarial and non-health related jobs Made sure not to sell myself short Quick progression desired Opportunity to be highly influential in my organization and externally Necessary to expand my knowledge base and step outside of my comfort zone Wanted to be involved in every phase of what I was working conception to execution
Collective Health Employer Based Health Insurance What is a TPA? What makes CH different from others? Why Do I Enjoy Working At Collective Health?
My Experience at CH Senior Actuarial Analyst Responsible for Monthly and Quarterly Reporting Built or significantly overhauled all of our reports Python, Excel, SQL Incorporate industry standards and client requirements Produce reports and field questions related to them Ad-Hoc Reporting: Field and respond to client requests More than triple clients in 2017 compared to 2016 Minimal, if any, additional staffing What more can we automate, particularly for standard reports? How do we manage expectations within the organization and externally? Understanding my own areas for growth