Congratulations! There are
few who actually discover that actuarial science exists, let alone actually
decide to pursue a career as an actuary. You and those who typically find this
field either know someone who is an actuary or hear about it in an accounting,
finance, or economics course. Most likely you possess a true love of
mathematics and problem solving which has driven you to pursue a professional
career as an actuary. Perhaps one of the reason’s you have chosen to pursue
actuarial science is because you shy away from certain interactions with other people.
This however is one of the biggest dangers you can make as a newcomer to the actuarial
field. Having strong analytical skills is obviously essential to being an
actuary, but few who are new to the field realize the necessity and daily uses
of communication that actuaries are required to master. There are certain
skills which are completely non-analytical in nature that are needed in order
to land a first job or internship, be successful in that job, and continue to
progress toward a successful actuarial career.
Depending on how familiar
you are with the history of actuarial science may be a factor as to how
prepared you are for the communication requirements of the field. Actuarial
science can only honestly be traced back to the 1700’s where a London man named
James Dodson made the first steps in the direction of modern day actuarial analysis.
His work for the society Equitable Life is the corner stone of the current
actuarial industry. Dodson was among the very first to use this science (math
and statistics) to determine premium rates and long-term policies for
insurance. This was not only the start of the actuarial field but also the
predominant stereotype of actuaries as being nonsocial, number crunching,
introverted, and math-obsessed individuals. If you haven’t already heard or
learned about this stereotype you will. The problem isn’t knowing about it, the
problem is found in how you feel about it. Finding any kind of comfort in this
stereotype in helping you to decide whether to be an actuary or not is a
mistake, and will start to instill the dangerous lack of emphasis on the
non-mathematical skills required to become successful as an actuary. Although this
stereotype may have some backing from the history of actuaries from the past, over
the last few decades and especially looking ahead into the future, this
preconceived notion about actuaries could not be further from the truth. More
and more actuaries not only need to communicate internally and externally in
their places of work, but must do it effectively or risk losing their companies
clients and even their job positions.
Importance for Student & Entry Level Actuaries
For obtaining internship
or entry-level work, which is becoming extremely competitive, communication and
persuasion are essential in helping companies to choose to hire you. If any
student entering into the actuarial science world conforms to the stereotype of
the actuaries from the past, no matter how good at math or statistics they are,
they may never even get their foot in the door of the modern actuarial businesses
of the world. There are currently many actuarial students all over the U.S.
applying for internships that have analytical experience, some actuarial exams
passed, and a high GPA (which are the top three things to have on an actuarial
resume), yet still struggle to obtain an internship or job. The reasons for
their struggles are not because of a lack of analytical ability, but rather an
inability to “sell” themselves in the interview process and help recruiters see
the value that they can bring to a company. The actuarial interview experience
is unique and isn't something that you will likely be able to take a class on. It
is absolutely necessary for an actuarial student to ask mentors, teachers, and
recruiters as early as possible about ways to grow their persuasive interview
type communication skills.
Importance for Aspiring Actuaries
The need to be persuasive and communicate at a high level
goes far passed your first interview and securing that first job. Consulting
actuaries’ most common circumstance for communication will be with clients.
Many of these interactions will be through email, phone, or even video calls
for the lower level associate actuaries. For the partners or fellowship
actuaries, a lot of travel and actual face to face contact with clients is
necessary. These face to face interactions is where the persuasion takes place.
It is here that the client really needs to feel like they can trust the firm
that is analyzing their risk. It is the actuary’s job to persuade them that
their company needs their risk minimized by the actuary’s specific consulting
firm and why they aren't better off going to another actuarial consulting firm.
This interaction between the head actuaries and the clients is at the heart of
the business of consulting actuarial work. It is also important that not only
skills of persuasion can be applied in these situations, but that clear
communication, with respect to the clients understanding of analytical terms,
is achieved. Without strong communication and persuasion skills it is harder to
accomplish the goals of these personal interactions.
Actuarial clients need to feel like the work they are
having done for them is valuable and being done at a competitive level. They
need to have no reason to feel like they should doubt the actuaries’ abilities.
When they do, conflict arises and it is the actuaries’ job to persuade the
client to believe that the services they are receiving from the actuaries’
respective firm are the best option for them. An example of such a situation is
given below in a made up dialogue:
- Client: “I have seen that there are other actuarial firms offering similar analysis for less pay, and I am thinking about switching to them because I have heard that their quality of work is quite comparable and even better than yours…”
Here you might pause and ask yourself “How would I
respond to these concerns?” to evaluate how prepared you currently are to take
on some of these future challenges that require persuasive communication
skills. Below is an example of what may be an appropriate response by an
experienced actuary:
- Actuary: “I see. If I had heard that same thing and was in your shoes, I too would be questioning who I was paying to analyze my risk. However, I can assure you that ____ services are not only more efficient, but that the quality of work that is done throughout the whole company at ____ is far superior to ____. Not only would it be a mistake to switch, but because of how sought after our services are it might be too hard for you to come back to ___ if you do decide to leave. It would be wise to stay with ___ where your work is done at a higher standard and where you are able to interact personally with the people working with your company’s risk.”
Once conversation is flowing and the bulk of the
conversation is in the actuaries court that is the time he has to pounce,
making sure to do all he can to please and retain the business of the customer.
Providing and stating evidence clearly, with a pleasing style, helps his
argument to put the client at ease, minimizing the amount of questions of doubt
that may arise in the clients mind as the conversation goes on. Tone and
delivery must be friendly, timely, and confident. As the actuary focuses on
these aspects of his style he will undoubtedly leave this last meeting with a
firm handshake and an assurance for continued business with the client through
the upcoming year. This is only one example of how essential communication and
persuasion skills are to the actuarial profession.
Conclusion
Although
most of the focus for the next few years of your life, if you continue to
pursue actuarial science, will be on passing multiple national actuarial exams
and learning new ways to analyze risk you must not forget how important the
interpersonal skills of persuasion and clear communication are to becoming a
successful actuary. From obtaining your first job to being effective at the
work place, your need for effective communication and persuasion skills starts
now. Don’t put off working on your interview skills, or facing your current
boss, coworkers, and clients at your current place of work. These moments are
the best opportunities to grow these skills which, with no exception, are
absolutely necessary for this field no matter where you are at on the path to
obtaining your credentials and licenses as an actuary.
Works Cited
Interview with Justin Owens - Asset Allocation Strategist at Russell Investments –
12/3/2014
Choike, J. (1980). The Pentagram and the Discovery of an Irrational
Number. Two-Year College Mathematics Journal, 11(5),
110-315. Retrieved December 2, 2014.
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