Tips for Working Overseas

Dying to work in Paris, London or Madrid? The West Indies? Asia? Take heart, that grinding sound you hear is the globe shrinking. That's right. As Canadian and U.S. businesses expand outside their borders, more actuaries are being asked to pack up and move to offices in other countries.

For now, North American actuaries sent abroad to work are fairly senior, according to recruiters. But entry-level actuaries can target plum foreign assignments and plan to make a career that includes time spent working in places other than their countries of origin.

The Future Actuary went to Chicago actuarial recruiter, Sally Ezra, D.W. Simpson, who is active in this area, to find out how you can get there.

What is the market like right now for entry-level actuaries who want to work abroad?

Many Canadian and U.S. firms are sending people abroad and the salaries are attractive in many places. But typically, the people going are established employees, not entry-level employees. There is a definite globalization movement and it will continue. I've seen an increase of 80% more jobs overseas than there were five years ago. It's the reinsurance industry that has caused the boom in offshore locations including Bermuda. And, the European insurance market has recently discovered the value an acutary can add.

While recent graduates or entry-level actuaries can position themselves to take advantage of globalization in their careers, at this point, a market for entry-level people going abroad to work is virtually non-existent. There's too much red tape and expense an employer would have to go through for an entry-level person.

What are the advantages to working abroad?

This isn't going to sound like an advantage right away but it is. A lot of companies outside Canada and the U.S. don't have sufficient data. That means a lot of creativity, business sense and judgment is required of an actuary. And when your resume shows that you have worked overseas, it demonstrates to an employer that you have flexibility, a world view and wider exposure.

What are the disadvantages?

In some countries, the actuarial work is less sophisticated. An actuary may find he or she is doing work an analyst would do here. Also, an actuary who's worked overseas will have less U.S. experience to put on his or her resume. Usually, that drawback can be offset because people willing to go to other countries to work are perceived as outstanding candidates.

Must a candidate speak the language of the country he/she is going to?

Yes. You should be at least conversational. Your co-workers want to speak their own language and they won't be happy if they can't understand you.

Can you compare, in general, salaries for overseas jobs to those for same level jobs at home?

It depends on the country. In England, actuaries make considerably less than they do here. Somebody making $90,000 here will probably make $65,000 there. The cost of living is higher in England. And, the tax consequences are not favorable. In Australia and New Zealand, actuaries also make less than here. In Bermuda, Continental Europe and Asia, however, salaries are higher.

Some companies pay in U.S. dollars and then adjust. Others pay in their own currency. In a lot of countries, there are very large housing allowances. And, often there are favorable tax advantages.

United Arab Emirates pay North Americans very well to go there.

What is the comparison of job opportunities based on practice area? Life vs. P/C, for example?

Property/casualty actuaries have the most opportunities, taking about 70% of the foreign jobs. About 25% of the jobs are in life and pension jobs are quite rare. Non-traditional actuarial jobs really don't exist and health actuaries are not in demand. This is the result of the medical establishments being government entities in most other countries.

Do companies take care of the bureaucratic red tape and the moving details for the actuary?

Typically, the company takes care of all of this for the employee. At the entry-level, they just won't do it.

Are there companies you are aware of who are seeking employees to move abroad?

Insurance carriers such as AIG, CIGNA, consulting firms such as Ernst &Young, KPMG Peat Marwick, Milliman & Robertson and others.

How can a Canadian or U.S. actuary working in a foreign country keep up with exams?

England has what is called an E&E program which is very much like our own student program. In fact, it's older and more established. An English firm might ask that you pursue the Fellow of the Institute of Actuaries (FIA) instead of the Fellow of the Society of Actuaries or the Fellow of the Canadian Institute of Actuaries (FCIA) but that is transferable. The big disadvantage would be that in other countries you'd find fewer peers to study with and less support.

What's your best advice for people who want international positions?

First, get into a company with an international department; an insurer, consultant or reinsurer. Even if you don't get an international position right away, the potential is there. You have to balance persistence with patience. If there is a rotation program, that's good because you see the whole company. You should also make an effort to meet the people in the international area.

Put yourself in a position that's going to lead to international work. Map out your career. Ask, 'what's in the greatest demand? What can I learn now that's going to put me in position to work on an international basis in a few years?'

What kind of personality is best for this type of job?

You might think it would be just outgoing people, but it depends on culture. I've known a number of very reserved people who've done very well in Asian countries where an outgoing personality isn't necessarily an advantage. On the other hand, in Switzerland, a more assertive or aggressive person does very well.

It's also important that an actuary's family situation be right. Get your spouse on board first. If the client sees any hesitation to the move, they'll look for someone else.