Candidate Experience: Consulting Firm vs. Insurance Carrier
A common question asked by candidates searching for their first actuarial job is, “Should I work for a consulting firm or a traditional insurance carrier?” In Future Fellows December 2008 & March 2009, we addressed several myths about the similarities and differences of consulting firms vs. insurance carriers from the points of view of long-term actuaries. For this article, we decided to interview people at an earlier point in their careers: candidates. Dan DiMugno, ACAS, has worked for insurance carrier Travelers for five years in a variety of roles. Ken Steinhauser has been a consultant in life and annuities for Oliver Wyman for two years. In his five-year actuarial career, Manpreet Mann has worked at both a carrier and a consulting firm, first at The Hanover and now at Aon. All have reached or are very close to achieving Associateship in their respective actuarial societies and are active in their companies’ student programs. All three of our candidates sat down together to talk about their personal experiences.
How is the work different?
The work can vary drastically. It is less about consulting vs. carrier and more about the exact position you are assigned. DiMugno has been in a rotational program at Travelers, with jobs ranging from auto reserving to profitability analysis for international markets. Steinhauser builds models for life- and annuities-related products for Oliver Wyman’s clients. At The Hanover, Mann worked in workers’ compensation ratemaking, including state filings; while at Aon, he spends most of his time in reserving for various casualty lines. As you can see, Mann’s consulting position at Aon is more similar to DiMugno’s reserving position at carrier Travelers than what Steinhauser does at consulting firm Oliver Wyman. On the other hand, there are some common themes to the consulting vs. carrier work environment. Two examples are personal interaction and travel. As a consultant, Steinhauser spends about half his week away from his office working on-site at client offices. Mann, also in consulting, travels only occasionally but spends much of his time interacting with clients, both external and internal (such as brokers). As an analyst for a carrier, DiMugno spends a similar amount of time interacting with people, but they are all on internal company teams (claims, advanced analytics, etc.). There are some general differences between working for a consulting firm or an insurance carrier, but it seems that where it matters most, conditions are comparable. Much more important is job description. Therefore, it is a good idea to keep options open and refrain from narrowing the job search too early by eliminating either consulting firms or insurance carriers from the pool of potential employers. Instead, a candidate needs to carefully evaluate each job on its individual merits.
Adapted with permission from an article by Agatha Caleo. Read the original article here.
Phil Natoli, a Fellow of the CAS and member of the American Academy of Actuaries, manager in insurance and actuarial advisory services at Ernst & Young, went over the importance of networking. Natoli focused on how to establish your professional network by taking advantage of networking events offered by your school, local employers, and Student Central. He mentioned to always keep in mind that any conversation could lead to an opportunity, if not in the immediate term, then possibly in the long term.
CAS staff actuary Rick Gorvett, Fellow of the CAS and Former Chair of the Actuarial Science Department at the University of Illinois at Urbana-Champaign explained how to effectively research companies. Some of Gorvett’s tips included tapping into other’s personal experiences, navigating through the company website and where the most pertinent information can be found, and researching recent news articles on the company. He also went into more detail on how A.M. Best’s Insurance reports and SEC 10-K report can help guide your search.
Lauren Fitzgibbon, senior campus recruiter at Liberty Mutual Insurance shared tips on getting the most out of career fairs and how to prepare your resume. Fitzgibbon’s advice covered how to stand out at a career fair by creating an “Employers I Want to Work For List”, having a 60 second elevator pitch ready, and she provided a Do’s and Don’ts to keep in mind while at the fair. She also shed light on what recruiters want to see on your resume, what things to highlight, what words to avoid and how to use your career services office if your university has one.
Helen Simonett, personal lines pricing actuary at Travelers, and a Fellow of the CAS went into detail on how to hone your interview skills. Simonett started with helpful tips on researching the company, being able to speak to everything on your resume, and preparing questions for the interviews. She went into further detail on what interviewers are looking for in your responses, what questions you might be asked and how to respond, and what questions to avoid asking.
Communication – Interpersonal and intrapersonal communication are essential in this field. Once someone understands a complex actuarial concept, it is then their duty to be able to communicate these results and conjectures to their coworkers, managers, and other departments. To develop this skill, I recommend just getting out there and talking to people. If an opportunity to teach a class or give a presentation arises, jump on it- practice makes perfect!
Do Your Research – What is an actuary, and why do you want to be one? Do you know the differences and similarities between consulting and industry? Investigating this information through speaking to professors and people currently in the industry is a great way to figure things like this out. Additionally, there are online resources like CAS Student Central, Actuarial Outpost, BeAnActuary and other forums dedicated just to educating you.
Study Smart – By collaborating with peers, studying becomes a lot more beneficial. Locking yourself away in a silent cubicle can lead to a lot of frustration and misunderstandings. Working through problems with peers and discussing difficult concepts often leads to a better understanding for all parties. Additionally, check out online study tools like Coaching Actuaries and The Infinite Actuary to optimize your exam preparation techniques.
Network – If you’re in school, and your school has an Actuarial Science Club, join it. Your peers are going through similar triumphs and struggles, and this comradery can offer a great support system. Additionally, attending recruitment or informational conferences, company presentations, and even meeting digitally (i.e. LinkedIn or forums) can lead to interpersonal connections in which you can leave a lasting impression on a recruiter and learn about what they do. Sometimes, who you know becomes more important than what you know.
Programming – If there is an opportunity to learn more information about programming or data, take advantage of it. For example, this semester, I heard about a business class at my school teaching information about data analytics, IT, and a brief introduction to   Super interesting! Often, similar opportunities exist in our lives but may not be mandatory or well-known—find them, and try them. There are also many online resources for programming; just hop on your favorite search engine.
Time Management – Think critically about the best way for you to manage your time. Some people may utilize an online calendar and scheduling tool, but keeping a physical planner or calendar might work best for you. When studying for exams, know when the next sitting is and be sure to sign up far in advance to get your ideal time slot and location. Studying for an exam takes a lot of dedication and time management, especially when done in conjunction with work and/or school.
Diversity – Our world is a very diverse place, and you will work with people of different races, genders, sexual orientations, ability statuses, religions, nationalities, and ethnicities than you. Knowledge about inclusion and social identity goes a long way, especially when you’re able to integrate your knowledge into your everyday interactions. Working with a diverse group of people brings forth a mélange of new ideas and can propel your work to a new level.
Know How to Use Prometric-Permitted Exam Calculators – Having to calculate a bond yield or the present value of an annuity on a TI-30 can be emotionally and physically exhausting. When you have access to a BA-II Plus, calculating these values becomes a lot easier. However, you have to know the right sequence of buttons to press and more. I suggest using only Prometric-permitted exam calculators when studying for actuarial exams. If you find that financial calculators are difficult to navigate, YouTube has great tutorials for the BA-II Plus!
Have Fun! – While we have a long road ahead of us, it is important to take some time to be a human. Spending a night with friends after a long week can be a great way to recharge and take care of yourself. Joining a fun club, community organization, or volunteering can give you some time to relax, reflect, and do good.
