The Future Actuary Volume 12, Number 3, Fall 2003

COVER story
   Actuarial employment: professionals share their insight on the job market
A CANDIDATES perspective
  Finding satisfaction in your current job
CAREER focus
  Ten rules for giving a great speech
  The art of writing an effective cover letter
STUDENT matters
  Career fairs to be held in Chicago and Normal, Ill.
  GARP'S career night—New York City
GLOBAL view
  Have you got what it takes?
Be An Actuary web site
  Other Issues of the Future Actuary

Actuarial employment: professionals share their insight on the job market
by Glenda Greenberg

In the few years since you made the decision to become an actuary—or at least muddle your way through the marshland of exams—things have changed quite a bit. The Terminator (okay, Arnold Schwarzenegger) is on the super-size ballot for the California governor's race, Saddam Hussein is no longer the president of Iraq and the overall employment picture just isn't as encouraging as it used to be.

With nationwide unemployment figures rising one month, holding steady another, but not really decreasing, what are the implications for an actuarial career?

Now and then
It seems that only recently we were hearing about a glut of jobs and not enough qualified people to fill the positions. Candidates were lured by sky-high signing bonuses and decadent office space—and they often had several offers from which to choose.

While the perks may not be as plentiful as they once were, actuarial jobs are still out there. Sally Ezra, partner at D.W. Simpson Co., an actuarial recruiting firm based in Chicago, Ill., says that the market is not as strong as it was three or four years ago, but it's not weak. "I think anybody that wants to make a move or anybody that wants to get into the field is going to be able to do so." One of the barriers, however, could be geography. "If someone wants to be in part of the country or part of the world that does not have a large actuarial population, that could be a stumbling block. But if someone is open geographically, there are a lot of opportunities out there," she says.

Three years ago, we were still seeing the effects of an 'up' economy, says Stephen Abels, first vice president and actuary at Mutual of Omaha Insurance Co. in Omaha, Neb. "What I've noticed the most in our campus-level recruiting is that we are looking at actuarial science or math students who, three or four years ago, may have been drawn to the dot-coms and the technology sector." And seeing students who earned degrees in the technical fields return to school for a second major in actuarial science is not unheard of.

Another factor that seemed less important only a few years ago than it does now is job stability. Candidates are looking for secure positions with companies that can offer long-term career growth. And the job acceptances are coming much more quickly, says Mary Moreland, manager of the Midwest retirement and financial management practice for Hewitt Associates in Lincolnshire, Ill.

Where are the jobs?
If you’re a new associate or an entry-level candidate, the job prospects are looking good. But if you’re at your first job for a year and think you may want to leave, weigh your options seriously. Ezra says, “The market for people with only one or two years of experience is a little bit tight right now. However, the market for people with three to five years of experience and beyond is very good.”

Consolidation has had an effect on the number of jobs available for top-level actuaries, says Morris Fishman, a consultant at Insurance Strategies Consulting in Tarpon springs, Fla. However, there hasn't been much of an effect on less-experienced actuaries.

“If companies need to downsize, they'll start looking at who's drawing the larger salaries," says Abels. "The students, to some extent, are a little bit immune.”

And the better supply of candidates has increased competition for jobs. “A few years ago, companies would gladly take someone with one exam. Now, they'll look at you with one exam, but frequently the one that's selected from a large pool of candidates will typically have two exams,” adds Abels.

Pay and benefits
Salaries for pre-ASA positions appear to be holding steady. Abels reports that last year Mutual of Omaha did not make any changes to its salary structure, which is based on benchmarking their compensation levels compared to those of their peers. One factor that has been affected in many cases is the signing bonus. "It's either low or nonexistent now," says Abels.

"Inflation is low right now," adds Max Rudolph, vice president and actuary at Mutual of Omaha Insurance Co. in Omaha, Neb. "It's interesting to ask an actuary what he or she made as a one-exammer and look at that over time, because it does go up pretty regularly. When I started 20 years ago, I was a one-exammer making about $20,000 a year. Today we start a person who has passed one exam in the low- to mid-$40,000 range. Essentially, the starting salary has more than doubled over 20 years, while inflation has been fairly low."

Marketing yourself
So, what are some things you can do to increase the odds of getting that congratulations-you've-been-hired phone call? Fishman advises volunteering for anything and everything you can. The benefits cascade into a variety of areas—aside from broadening your basic skill set and allowing you to become an even more well rounded actuary, volunteering provides an opportunity to get your name out there and make some crucial contacts. It's networking!

Rudolph concurs regarding the importance of outside activities, giving an edge to candidates that have been involved in extracurricular activities. "If you have somebody who really had to go to the extreme to get through college because it was so hard, that person isn't going to make it as an actuary. You really need somebody who didn't necessarily coast through college, but somebody who does have another gear to turn it up."

Internships are another plus in getting the job you want. If you have had one internship, or even better, a couple—for example, one with a life company and another with a P&C company, "that shows you're thinking about what you want to do in the future and that you want to get some of those experiences before you take a full-time job," says Rudolph.

Spread yourself out and avoid becoming a specialist in one area too early in your career—you can really limit your options that way. "It's hard to get someone at the pre-ASA and pre-FSA levels who has a real appreciation for the big picture and who understands valuation and pricing topics and is aware of industry movements," says Abels.

Working on your communication skills should also be an ongoing goal. Mature and articulate candidates always have an advantage over those who are not. Moreland says that during an interview she'll ask herself, "Can I imagine taking this person to a client meeting?"

A solid career field
In spite of an economy that's been in a bit of a slump, the profession seems to be holding its own. “This is a bit of a generalization, but it seems as if when the market's good, the budgets are strong, and there is money budgeted to hire actuaries. When times are bad, I think companies see actuaries as being the solution, so it's kind of a win/win situation,” says Ezra. In general, actuaries have an expertise that is valued and can't be found anywhere else.

The crystal ball
Having digested all of this information, what is the crystal ball saying? Fishman envisions the employment picture getting better very soon, with avenues opening up in investment/risk management, financial engineering, insurance, consulting and pensions.

"The actuarial field has experienced some consolidation in the last few years; however, I think that consolidation and the cost cutting associated with consolidation was overdone. My experience is that you typically don't cut expenses 20 percent across the board. I don't know that actuaries had room to cut back that much, and companies are starting to recognize that. The long-term growth will always be there," says Fishman.

Another round of consolidation may be en route, says Rudolph, creating a decrease in the number of traditional jobs, "But as actuaries make inroads into other fields, such as risk management or stock analysis, the nontraditional jobs will offset that decrease."

Abels predicts that as the economy recovers, companies will have the extra funds to pursue projects that have been on hold and that the number of jobs will remain stable. He also predicts a shift in the nature of actuarial jobs. "The days of being good with a calculator and sitting at your desk calculating things are over. Tomorrow's actuaries are going to need broader skills and they're going to have to understand some of the cutting-edge issues that are coming up."

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Finding satisfaction in your current job

If every Sunday night for you is about dreading work on Monday, you are not alone.

Job dissatisfaction is not by any means a new theme. According to a 2002 Conference Board survey, only 51 percent of 5,000 people surveyed said they were satisfied with their current job.

Job dissatisfaction always results in lost productivity. Employees will have little desire to meet the needs of the company when the company fails to meet the needs of the employees. Not only are there huge economic implications, there are social implications as well. As individuals struggle to cope with problems resulting from the fear of losing their jobs and the way they are treated in their current jobs, it is no surprise that the use of employee assistance programs has skyrocketed.

Diane Tracy’s "Take This Job and Love It: A Personal Guide to Career Empowerment," is an excellent book that deals with these very issues. It is designed to help people change themselves in the context of work. In the following paragraphs, I will describe some of the steps she outlines—with my interpretations. I definitely encourage you to read the book.

Career dissatisfaction? Not an option. There is so much chaos and upheaval in the workplace today that most people don’t even recognize the problem, let alone do something to improve things. You need to step back and examine the situation. Make a list of things that bother you about work, then identify the role you play in each of the instances you have identified. The easiest thing to do is to blame others—your manager, your peers, the system. In the long run, this only causes more distress because you are focusing on things that you may not be able to change. If you make an attempt to understand why things are the way they are and take responsibility for the role you play, you will then be in a position to do something about it.

You don’t have to lose yourself! To be truly successful at your job, you need to make compromises. You need to understand though, that if you compromise your values and beliefs, you will never find satisfaction in your job. Achieving success while maintaining a sense of who you are may be one of the most difficult challenges.

Most of you have probably experienced situations like the one I'm about to describe. Your manager gives you an urgent and time-consuming task that needs to be completed right away. If the expectation is for you to drop everything else on your plate, then make the consequences clear to your manager. Current deadlines may need to be pushed back. Don’t just accept the task and work crazy hours to complete everything, only to be miserable after the fact.

One of the primary ways we lose ourselves at work is by concealing our feelings. It’s like there is an unspoken rule that the expression of strong feelings and emotions is unacceptable. This can cause a lot of distress. Most people spend a minimum of 40 hours a week at work, and many spend even more. That’s a lot of time to spend concealing how you really feel! While I wouldn’t encourage you to completely forget that you are in a professional setting, here are some ways to express yourself freely:

Laugh. It will do you a lot of good—and everyone else, too.

If you are truly excited about something, don’t be afraid to let it show.

If you are really having a tough day, as we all do from time to time, don’t fake cheerfulness, you will only feel worse. You don’t have to be happy all the time—just don’t lash out at others.

Use humor. When you're under a lot of stress, humor will ease the tension.

Office politics? Yes, it can be a positive thing! It takes more than just job skills to achieve success. Having people skills and a willingness to be a team player are imperative. You need to spend time building relationships at work, and you don’t have to be manipulative to do this. Here are some lessons that will help you be a team player:

Be competitive. It’s healthy and natural. It will keep you on your toes and help you perform at your best.

Learn how to win and how to lose.

Learn how to take criticism. If you can’t take it, you will never develop and realize your true potential. Nobody is perfect—we should all strive to improve.

Cooperate with others. Without cooperation, everyone loses.

Build a strong network. The importance of networking cannot be overestimated. Through networking, you are able to increase your visibility within the company and community and can create new options and opportunities for yourself. Networking also allows you to connect to people in a meaningful way by giving you a sense of belonging, which is very important to being satisfied at work.

Diane Tracy’s book provides much insight into examining your career and finding satisfaction in your job. I hope these few paragraphs have got you thinking hard enough to step back and re-evaluate your work situation. Don’t let yourself become one of the many individuals that only lives for the weekends, missing all the great things that can come from working at a job you love. Step back. Re-evaluate. Do something about it!

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Ten rules for giving a great speech
by James Gray

As a young business reporter in the early 1980s, I covered a lot of bad speeches—mumbled,disorganized, meandering, interminable, ultimately incomprehensible discourses that sorely tested the inconceivably polite Canadian audiences to whom they were addressed.

It was left to me, as a journalist, to make sense of the just-completed assault on
common understanding. Because speakers weren’t always available for interviews following their “remarks”—and because I had to produce a story, regardless of whether or not a speech warranted coverage (usually not)—I was left to grapple with a perplexing question: just what was their point?

Out of this trauma came a determination to devote my existence to helping executives give better speeches and ensure they have a point. Today, I’m a communication skills trainer, which means I help clients speak effectively to the people they need to reach, whether it’s through a speech or a media interview. Here are my top ten rules for giving a great speech.

Be yourself: There’s remarkable power in being “you.” "You" are the person everyone is expecting—don’t let someone else show up in your place. If you do try and take on another persona, a puffed-up or too-humble version of yourself, listeners will sense your insincerity and tune you out. Audiences for the most part are tremendously supportive, especially when they perceive that speakers are being true to themselves.

The world already has more than enough phonies; don’t add to the running total. Be “you,” imperfections and all. Chances are that no one listening will be perfect, either.

Do your homework: The members of an audience can tell within seconds whether you’ve taken the time to learn about them, or if you’re simply delivering a ‘canned’ presentation. At the very minimum, take time to learn the basics about the people you’ll be addressing. Talk to speech organizers about them. Who are they? What are their issues, challenges and concerns? These are the kinds of questions asked by speakers who respect those they’re about to address, because in the end it’s all about serving your audience. Do that well, and benefits will naturally accrue to you.

Hook them early: At this very moment, throughout the world, scores of executives are giving speeches to folks who’ve mentally checked out. Why do so many presenters lose their crowd? It’s invariably because a speaker will fail to tell audience members early on why the information that’s about to be disseminated is important to them. If you don’t tell people, they’ll spend a few minutes trying to make a connection between your exciting new Web site and their own lives. After that, they’ll get frustrated and bored and their minds will go someplace else. Once that happens, it's almost impossible to get them back. You need to state early on that your Web site can improve their lives—and then tell them how. If you don’t hook them early, you won’t hook them at all.

Have a point: In high school English, it was called a “theme.” Whatever. Be able to express the core of your presentation in a single, clear, concise statement that a 16-year-old can understand. If you can’t produce that, you won’t have a speech, you’ll just have verbiage. We’re all craving the lean, direct, well-organized information and perspectives that a great speech can provide. It all starts with your point.

Keep it simple: How do you organize a speech? Think in threes. I have nine nieces and nephews aged eight to 15, and when I visit them, I listen carefully to how they tell me their stories. They organize their stories in “threes.” Children are often better communicators than us because they’re not encumbered by our minutiae; they tend to have a point and get to it with dispatch. So think like a kid. Organize your speech in three sections: Introduction, Body and Conclusion. In the introduction, tell the audience what you’re going to talk about—your point —and what’s in it for them. In the body, expand upon your point in three distinct but integrated parts. In the conclusion, summarize your point and state what you want the audience to do with the information you’ve laid out. It’s your “call to action” and it’s essential.

Be brief: If you’re asked to speak for 20 minutes, speak for 15 and leave five minutes for questions. If no one has any questions, ask and answer your own questions until you hit the 20-minute mark. It’s easy to lengthen a speech on the fly and much harder to cut it. There’s nothing more irritating than to have a speaker go way over his or her time limit. It’s absolutely rude—it shows contempt for the audience and displays an inflated ego that’s far too prevalent in business today. It also indicates a lack of credibility. If you can’t speak for 20 minutes, as promised, why should I ever trust you with any other commitment?

I love a speaker who’ll get up and say: "I’ve been given 30 minutes for my presentation. I’m going to speak for 20 minutes. I’ll answer questions for another 10 and we’ll be done by 12 sharp so we can all pile out of here and enjoy the delicious lunch that’s being prepared down the hall." With a speaker like that the audience knows it’s in good hands, so everyone relaxes, free of concerns about time and listens.

Easy on the PowerPoint: It’s the most misused technological
innovation since the handgun. PowerPoint was developed to enhance speeches, not replace them. When PowerPoint is overdone, as it usually is, speakers are reduced to tech support for their own presentations, which diminishes them in the eyes of their audience. PowerPoint has its place, but you need to run it; it shouldn’t run you. After all, people have assembled to hear you speak—not to watch you read out loud slides that they can process faster with their eyes. If you do use PowerPoint, the rule of thumb is a maximum of one slide per every minute of speech time. That’s 20 slides in a 20-minute address. And please, no more than three points on a slide.

Rehearse: There’s no substitute for it. The better you know
your speech, the more comfortable you’ll be with it and the
better you’ll deliver it in front of an audience. When you know
your story, you’re free to be “you”(rule No. 1!) Okay, you’ve
rehearsed in front of the family dog for two weeks now and
you’re still nervous. That’s natural. Take the pressure off yourself by speaking slowly (the audience won’t mind; they're still getting to know you). You’ll gain confidence as you go along—and so will they.

Make eye contact: More than 70 percent of communication
relies on the visual component. People won’t buy what you’re saying if you don’t look them in the eye. But when you’re facing an audience of several hundred, how can you possibly look everyone in the eye? Pick out three or four supportive faces in different areas of the room and speak to them. Speak to those people as if they were your friends—warm, caring individuals whom you like and respect. By speaking to a few, you’ll be speaking to the many.

Again, be yourself: It can’t be emphasized enough. Recently I
had the pleasure of conducting a communications workshop with a small group of intellectually challenged adults. They were terrific presenters—they were themselves. One animated young woman, upon receiving the video tape of her speech at the end of the session, hugged the tape with both arms and exclaimed: "I love me!"

Beautiful. She’ll need no coaching on being herself.

James Gray is a communication skills coach with National Public Relations in Toronto. He can be reached at jgray@national.ca.

The art of writing an effective cover letter
by Laura Ellis

Whether you're thinking about getting that coveted actuarial job, or thinking about grasping the next rung on the ladder of actuarial success, you need to know where to start. What are you going to do to make sure you stand out among other candidates competing for the same positions? A good resume is always important, but the first step in introducing yourself to a potential employer should be through a well-crafted cover letter. If your cover letter evokes an immediate interest in you as a potential employee, you've conquered half of the battle—the employer will have no choice but to look at your resume! However, a poorly written cover letter will only lead to one place—employment-candidacy doom. Whether you are a first-time job seeker, or have a few years of experience under your belt, read on for tips you can use to perfect your cover–letter-writing skills.

According to Jeannette Bertsch, actuarial recruiter and president of The Birch Corporation, a cover letter should be about two to three paragraphs, never more than one page. Just as important, three areas of a cover letter need to be perfect, says Bertsch, "grammar, spelling and punctuation." Because a cover letter immediately demonstrates your ability to communicate and organize your thoughts effectively, there is no room for error. An unorganized and inexpressive cover letter will only imply that you lack basic communication skills, but an articulate and concise cover letter will convey the message that you are a strong and analytical thinker.

In today's competitive job market, Bertsch says that showing your enthusiasm for the actuarial field with a cover letter specifically geared toward your area of interest, such as life, health, pension or property & casualty, will help you stand out. In addition, entry-level students should emphasize education, exams and achievements. Students with one to three years of experience should emphasize experience and exams.

Ken Westover, former chair of Sun Life’s Student Committee (2000-2002) also notes that it is expected that entry-level candidates are inexperienced in knowing about the nature of the work flow that occurs in different parts of a company. A general statement in the cover letter to the effect that the applicant is looking for interesting, challenging opportunities that will allow him or her to use the skills gained in his or her actuarial studies is probably sufficient. Westover also explains that candidates who do some basic research about the company’s products and the markets it serves can differentiate themselves from candidates who don’t. "It doesn’t take long to do this research," Westover says. "A visit to the company’s Web site and a review of its annual report is often sufficient."

Last but not least, there are a few common mistakes that can be easily avoided when writing your cover letter. First, the applicant should never ask any questions or include any information regarding salary in a cover letter. That is better left until a later time, Bertsch says. Secondly, as Westover explains, "Don’t over embellish your credentials. Your cover letter (and resume) shouldn’t create expectations that could lead to the discovery of weaknesses during the interview."

Introducing yourself to any potential employer through a winning cover letter really can be painless if you follow these simple, yet effective tips. After all, this will be your only opportunity to give a first impression, so make it count by proving you ARE the person they have been looking for!

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Career fairs to be held in Chicago and Normal, Ill.
The Actuarial Career Information Fairs will be held on September 26, 2003 at the Bone Student Center at Illinois State University in Normal, Illinois and on October 3, 2003 at Blue Cross Blue Shield of Illinois at 300 East Randolph Street in Chicago, Illinois from 1:00 pm- 5:00 pm. These career fairs are designed for high school students, college underclassmen and educators seeking to learn more about the actuarial profession and are offered at no cost for attendance.

GARP’S career night—New York City
As part of its service to the global financial risk management community, Global Association of Risk Professionals, (GARP) will be holding its Career Night in New York on Wednesday, September 17, 2003. This is the first of a series of Career Nights scheduled for later this year and early next year in various locations around the world. All members of the financial risk management community are welcome to attend.

Career Nights are not job fairs, so there is no need to bring a resume. The event is geared to both graduate students looking to pursue a career in financial risk management and practitioners looking to advance their career in the risk management profession or another discipline within risk management.

GARP's Career Night will consist of a panel of experienced professionals representing a variety of risk management related areas. They will share their experiences and insights as risk management professionals in their chosen areas of expertise.

Aaron Brown, vice president of risk architecture for Citigroup will be conducting a mock interview for students to provide them with an idea of what to expect when going on that first-all important interview. (A student volunteer will be required, so be prepared to gain some experience!).

For free registration, please e-mail Kim DiBlasi at kimberly.diblasi@garp.com with your contact information and company affiliation or school name. For more information, visit http://www.garp.com/events/download/CareerNightNY.pdf

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Have you got what it takes?
by Kim Locke

Editor's Note: Reprinted with the permission of The Actuary, www.the-actuary.org.uk.

For many people, the prospect of working abroad triggers a flush of adrenaline and the keen anticipation of change. For others, the same thought raises little more than the expectation of stomach cramps, as digestive systems get to grips with foreign cuisine.

On the whole, actuaries appear to live by the ‘have bag, will travel’ philosophy. Perhaps this is a natural antidote to years of dedicated study, or perhaps actuarial skills simply travel well. Either way, there seems to be large numbers of actuaries, or actuaries in the making, looking to further their careers on foreign soil.

Unfortunately, the doors of welcome are not thrown quite as wide today as was customary a year or two ago. According to Susan Robertson, director at Quantum Selection: "The job market is currently very tight in many countries around the world. Unless you have something special to offer an employer, the first choice is going to be for a local candidate, one who has experience of the local market and is perceived to be more likely to stick around."

Actuarial passports
With job markets clamping down, it is no longer wise to walk in unprepared. The three main factors influencing your marketability are:

area of work experience;

level of qualification;

skill set.

It is vital you take a good, hard look at your profile to determine where you fit, and what you need to do to maximize the prospect of securing work in your chosen destination. Pockets of opportunity do exist, and, in order to succeed, you need to identify these and position yourself accordingly. This smacks of foresight and planning, but then, you’re an actuary, right?

Says Robertson: "Employers are looking for actuaries who can be far more than just an actuary. Dynamic, commercially orientated business actuaries with consulting experience or ability are sought time and again in every location around the world. To find these actuaries, employers will look overseas."

Shortages occur predominantly in the newly qualified to 10 years, post-qualification range, so it is at this point in your career that you are most likely to find overseas opportunities. Prospects do exist for senior students, but relevant work experience is a vital factor in securing these positions.

As a rule, the chances of securing work abroad at a junior level are relatively slim, since local skills are usually in plentiful supply. Rules were made to be broken, however, and the innovation and determination of many junior-level actuarial students deserves to be recognized. Many of these young go-getters are prepared to move abroad with less security than that backing a personal loan. Where visas permit, they work in restaurants, work on construction sites, or find other casual labor while waiting patiently for actuarial opportunity to knock. "And," says Debbie Burbridge, who provides support and advice to junior students, "sooner or later it probably will, but be prepared for a lengthy wait."

For those who prefer not to live by the seat of their pants, the advice given by the team at Quantum Selection would be to establish your career at home before contemplating a move abroad. This way you will have more to offer a potential employer and are more likely to raise some interest. Exam success goes hand in hand with work experience and it is vital to keep a healthy balance between the two.

Where to fly to
Different skills and experience will be marketable in different regions,
and it is important to know who wants what before you book your plane ticket. John Bateup, an experienced actuary and senior recruitment consultant, works extensively with companies in the Asia-Pacific region. "The Australian market is very quiet," he advises, "and there seems little activity among the companies. The consultancies are always on the lookout for strong candidates with consulting backgrounds, although just recently the focus has tightened to those candidates with some local experience. Discussions with both companies and consultancies, though, have indicated that they are unable to fill property/casualty posts locally due to insufficient expertise and there is clear demand for overseas candidates with experience in the general insurance market."

Much of southeast Asia is currently struggling with the effects of the SARS virus. While this has put recruitment on hold in some areas, Bateup shares his broader view of recruitment in this region over recent months: "In the more established markets of Hong Kong and Singapore, activity has been very slow. Any requirements have been centered on the life side, with particular emphasis on local experience and local language skills embracing Cantonese or Mandarin. There has been some interest from Japan but only for those with Japanese language skills and local experience.

"In the less established markets, the situation is slightly different. Overseas candidates are welcome in places like Indonesia and Korea, although local language skills seem to be prerequisite. However, in mainland China and India there is a tendency to train up local actuaries. Appointments from overseas tend to be at senior levels to bring in expertise and experience for shorter periods of time."

Planning for a successful trip
So what pearls of wisdom can be offered to those aspiring to broaden their horizons? Robertson feels it is imperative you do your research carefully before selecting the recruitment agency that will represent you. "They should have good access to the market in which you are interested, and must agree a marketing strategy with you before sending your CV anywhere. Select an agency that will provide you with honest advice, even if it is not what you want to hear. You may want to use more than one agency, and indeed, beware the agency that insists you only use them! If you do feel that you need to use more than one agency, select another agency that can provide a different angle or area of opportunity from your first choice. If using more than one agency, it is important to be above board with both, otherwise you could end up with multiple applications to potential employers, which does not reflect well on all parties involved, yourself included."

Well, that’s a start. You must also be committed to the concept of working abroad and all that this brings. This ranges from very practical aspects, such as ensuring that you can finance the costs of attending interviews overseas, to the less definable such as adapting to a new culture and way of life.

For most people contemplating a move overseas, salary is not a driving factor, "but," cautions Caroline Hong, who has herself experienced an international actuarial career move, "overseas salaries are usually lower than US or UK salaries." In spite of this, lower living costs and different taxation regimes may still leave you better off at the end of the day. Also, once you have gained region-specific experience and possibly local language skills, you may well command a higher salary.

In most countries, work permits are usually fairly easy to arrange. However in some countries, like South Africa, it is relatively difficult for employers to secure work permits for international recruits, and candidates from other countries will usually only be considered at the qualified level.

"Prepare for a time commitment," says Bateup. "In a tight market, employers aren’t interested in candidates seeking a 'short-term' overseas experience. They invest heavily in relocation and work permits and expect a medium- to long-term commitment. I do not feel a period of less than three years should be considered and most relocation packages confirm this in their structure. Shorter-term contract roles do arise occasionally but tend to be more common in a buoyant market."

The return journey
Assuming that your foray into foreign territories is successful and your time abroad filled with new and exciting experiences, how do you find yourself positioned when the familiarity of home beckons again? "The US and UK markets are the most sophisticated of all," says Bateup, "and there is nothing to beat experience in these markets. Do not expect working overseas to be a passport to success upon returning to your home country. I feel candidates should seek overseas posts that will provide natural progression to their chosen actuarial career path, both in terms of expertise within their chosen discipline or even gaining management or strategic development skills in that chosen discipline."

Hong feels that there will be benefits on returning to your home country. "Exposure to other cultures, improved communication skills, and greater self-confidence will always stand you in good stead," she encourages. "Your knowledge of international products and markets will result in a broader outlook, and the international business contacts developed might prove to be useful at some future stage."

Whether or not the international exposure boosts your career back home, it seems the personal benefits of such a venture may tip the scales in favor of change. My own experience is that becoming part of everyday life within a different culture provides an experiential peak that little can match. I suspect that most people who have adapted themselves to the norms of other cultures, even for a short period in their lives, find they have created a memory that can always draw a satisfied sigh. And isn’t that what life is about?

Kim Locke is a member of the recruitment team at Quantum Selection in London.

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From The Future Actuary, Vol. 12, No. 3, Fall 2003
Copyright 2003 Society of Actuaries
and Casualty Actuarial Society

Actuarial employment: professionals share their insight on the job market by Glenda Greenberg In the few years since you made the decision to become an actuary—or at least muddle your way through the marshland of exams—things have changed quite a bit. The Terminator (okay, Arnold Schwarzenegger) is on the super-size ballot for the California governor's race, Saddam Hussein is no longer the president of Iraq and the overall employment picture just isn't as encouraging as it used to be. With nationwide unemployment figures rising one month, holding steady another, but not really decreasing, what are the implications for an actuarial career? Now and then It seems that only recently we were hearing about a glut of jobs and not enough qualified people to fill the positions. Candidates were lured by sky-high signing bonuses and decadent office space—and they often had several offers from which to choose. While the perks may not be as plentiful as they once were, actuarial jobs are still out there. Sally Ezra, partner at D.W. Simpson Co., an actuarial recruiting firm based in Chicago, Ill., says that the market is not as strong as it was three or four years ago, but it's not weak. "I think anybody that wants to make a move or anybody that wants to get into the field is going to be able to do so." One of the barriers, however, could be geography. "If someone wants to be in part of the country or part of the world that does not have a large actuarial population, that could be a stumbling block. But if someone is open geographically, there are a lot of opportunities out there," she says. Three years ago, we were still seeing the effects of an 'up' economy, says Stephen Abels, first vice president and actuary at Mutual of Omaha Insurance Co. in Omaha, Neb. "What I've noticed the most in our campus-level recruiting is that we are looking at actuarial science or math students who, three or four years ago, may have been drawn to the dot-coms and the technology sector." And seeing students who earned degrees in the technical fields return to school for a second major in actuarial science is not unheard of. Another factor that seemed less important only a few years ago than it does now is job stability. Candidates are looking for secure positions with companies that can offer long-term career growth. And the job acceptances are coming much more quickly, says Mary Moreland, manager of the Midwest retirement and financial management practice for Hewitt Associates in Lincolnshire, Ill. Where are the jobs? If you’re a new associate or an entry-level candidate, the job prospects are looking good. But if you’re at your first job for a year and think you may want to leave, weigh your options seriously. Ezra says, “The market for people with only one or two years of experience is a little bit tight right now. However, the market for people with three to five years of experience and beyond is very good.” Consolidation has had an effect on the number of jobs available for top-level actuaries, says Morris Fishman, a consultant at Insurance Strategies Consulting in Tarpon springs, Fla. However, there hasn't been much of an effect on less-experienced actuaries. “If companies need to downsize, they'll start looking at who's drawing the larger salaries," says Abels. "The students, to some extent, are a little bit immune.” And the better supply of candidates has increased competition for jobs. “A few years ago, companies would gladly take someone with one exam. Now, they'll look at you with one exam, but frequently the one that's selected from a large pool of candidates will typically have two exams,” adds Abels. Pay and benefits Salaries for pre-ASA positions appear to be holding steady. Abels reports that last year Mutual of Omaha did not make any changes to its salary structure, which is based on benchmarking their compensation levels compared to those of their peers. One factor that has been affected in many cases is the signing bonus. "It's either low or nonexistent now," says Abels. "Inflation is low right now," adds Max Rudolph, vice president and actuary at Mutual of Omaha Insurance Co. in Omaha, Neb. "It's interesting to ask an actuary what he or she made as a one-exammer and look at that over time, because it does go up pretty regularly. When I started 20 years ago, I was a one-exammer making about $20,000 a year. Today we start a person who has passed one exam in the low- to mid-$40,000 range. Essentially, the starting salary has more than doubled over 20 years, while inflation has been fairly low." Marketing yourself So, what are some things you can do to increase the odds of getting that congratulations-you've-been-hired phone call? Fishman advises volunteering for anything and everything you can. The benefits cascade into a variety of areas—aside from broadening your basic skill set and allowing you to become an even more well rounded actuary, volunteering provides an opportunity to get your name out there and make some crucial contacts. It's networking! Rudolph concurs regarding the importance of outside activities, giving an edge to candidates that have been involved in extracurricular activities. "If you have somebody who really had to go to the extreme to get through college because it was so hard, that person isn't going to make it as an actuary. You really need somebody who didn't necessarily coast through college, but somebody who does have another gear to turn it up." Internships are another plus in getting the job you want. If you have had one internship, or even better, a couple—for example, one with a life company and another with a P&C company, "that shows you're thinking about what you want to do in the future and that you want to get some of those experiences before you take a full-time job," says Rudolph. Spread yourself out and avoid becoming a specialist in one area too early in your career—you can really limit your options that way. "It's hard to get someone at the pre-ASA and pre-FSA levels who has a real appreciation for the big picture and who understands valuation and pricing topics and is aware of industry movements," says Abels. Working on your communication skills should also be an ongoing goal. Mature and articulate candidates always have an advantage over those who are not. Moreland says that during an interview she'll ask herself, "Can I imagine taking this person to a client meeting?" A solid career field In spite of an economy that's been in a bit of a slump, the profession seems to be holding its own. “This is a bit of a generalization, but it seems as if when the market's good, the budgets are strong, and there is money budgeted to hire actuaries. When times are bad, I think companies see actuaries as being the solution, so it's kind of a win/win situation,” says Ezra. In general, actuaries have an expertise that is valued and can't be found anywhere else. The crystal ball Having digested all of this information, what is the crystal ball saying? Fishman envisions the employment picture getting better very soon, with avenues opening up in investment/risk management, financial engineering, insurance, consulting and pensions. "The actuarial field has experienced some consolidation in the last few years; however, I think that consolidation and the cost cutting associated with consolidation was overdone. My experience is that you typically don't cut expenses 20 percent across the board. I don't know that actuaries had room to cut back that much, and companies are starting to recognize that. The long-term growth will always be there," says Fishman. Another round of consolidation may be en route, says Rudolph, creating a decrease in the number of traditional jobs, "But as actuaries make inroads into other fields, such as risk management or stock analysis, the nontraditional jobs will offset that decrease." Abels predicts that as the economy recovers, companies will have the extra funds to pursue projects that have been on hold and that the number of jobs will remain stable. He also predicts a shift in the nature of actuarial jobs. "The days of being good with a calculator and sitting at your desk calculating things are over. Tomorrow's actuaries are going to need broader skills and they're going to have to understand some of the cutting-edge issues that are coming up."

Ten rules for giving a great speech by James Gray As a young business reporter in the early 1980s, I covered a lot of bad speeches—mumbled,disorganized, meandering, interminable, ultimately incomprehensible discourses that sorely tested the inconceivably polite Canadian audiences to whom they were addressed. It was left to me, as a journalist, to make sense of the just-completed assault on common understanding. Because speakers weren’t always available for interviews following their “remarks”—and because I had to produce a story, regardless of whether or not a speech warranted coverage (usually not)—I was left to grapple with a perplexing question: just what was their point? Out of this trauma came a determination to devote my existence to helping executives give better speeches and ensure they have a point. Today, I’m a communication skills trainer, which means I help clients speak effectively to the people they need to reach, whether it’s through a speech or a media interview. Here are my top ten rules for giving a great speech. Be yourself: There’s remarkable power in being “you.” "You" are the person everyone is expecting—don’t let someone else show up in your place. If you do try and take on another persona, a puffed-up or too-humble version of yourself, listeners will sense your insincerity and tune you out. Audiences for the most part are tremendously supportive, especially when they perceive that speakers are being true to themselves. The world already has more than enough phonies; don’t add to the running total. Be “you,” imperfections and all. Chances are that no one listening will be perfect, either. Do your homework: The members of an audience can tell within seconds whether you’ve taken the time to learn about them, or if you’re simply delivering a ‘canned’ presentation. At the very minimum, take time to learn the basics about the people you’ll be addressing. Talk to speech organizers about them. Who are they? What are their issues, challenges and concerns? These are the kinds of questions asked by speakers who respect those they’re about to address, because in the end it’s all about serving your audience. Do that well, and benefits will naturally accrue to you. Hook them early: At this very moment, throughout the world, scores of executives are giving speeches to folks who’ve mentally checked out. Why do so many presenters lose their crowd? It’s invariably because a speaker will fail to tell audience members early on why the information that’s about to be disseminated is important to them. If you don’t tell people, they’ll spend a few minutes trying to make a connection between your exciting new Web site and their own lives. After that, they’ll get frustrated and bored and their minds will go someplace else. Once that happens, it's almost impossible to get them back. You need to state early on that your Web site can improve their lives—and then tell them how. If you don’t hook them early, you won’t hook them at all. Have a point: In high school English, it was called a “theme.” Whatever. Be able to express the core of your presentation in a single, clear, concise statement that a 16-year-old can understand. If you can’t produce that, you won’t have a speech, you’ll just have verbiage. We’re all craving the lean, direct, well-organized information and perspectives that a great speech can provide. It all starts with your point. Keep it simple: How do you organize a speech? Think in threes. I have nine nieces and nephews aged eight to 15, and when I visit them, I listen carefully to how they tell me their stories. They organize their stories in “threes.” Children are often better communicators than us because they’re not encumbered by our minutiae; they tend to have a point and get to it with dispatch. So think like a kid. Organize your speech in three sections: Introduction, Body and Conclusion. In the introduction, tell the audience what you’re going to talk about—your point —and what’s in it for them. In the body, expand upon your point in three distinct but integrated parts. In the conclusion, summarize your point and state what you want the audience to do with the information you’ve laid out. It’s your “call to action” and it’s essential. Be brief: If you’re asked to speak for 20 minutes, speak for 15 and leave five minutes for questions. If no one has any questions, ask and answer your own questions until you hit the 20-minute mark. It’s easy to lengthen a speech on the fly and much harder to cut it. There’s nothing more irritating than to have a speaker go way over his or her time limit. It’s absolutely rude—it shows contempt for the audience and displays an inflated ego that’s far too prevalent in business today. It also indicates a lack of credibility. If you can’t speak for 20 minutes, as promised, why should I ever trust you with any other commitment? I love a speaker who’ll get up and say: "I’ve been given 30 minutes for my presentation. I’m going to speak for 20 minutes. I’ll answer questions for another 10 and we’ll be done by 12 sharp so we can all pile out of here and enjoy the delicious lunch that’s being prepared down the hall." With a speaker like that the audience knows it’s in good hands, so everyone relaxes, free of concerns about time and listens. Easy on the PowerPoint: It’s the most misused technological innovation since the handgun. PowerPoint was developed to enhance speeches, not replace them. When PowerPoint is overdone, as it usually is, speakers are reduced to tech support for their own presentations, which diminishes them in the eyes of their audience. PowerPoint has its place, but you need to run it; it shouldn’t run you. After all, people have assembled to hear you speak—not to watch you read out loud slides that they can process faster with their eyes. If you do use PowerPoint, the rule of thumb is a maximum of one slide per every minute of speech time. That’s 20 slides in a 20-minute address. And please, no more than three points on a slide. Rehearse: There’s no substitute for it. The better you know your speech, the more comfortable you’ll be with it and the better you’ll deliver it in front of an audience. When you know your story, you’re free to be “you”(rule No. 1!) Okay, you’ve rehearsed in front of the family dog for two weeks now and you’re still nervous. That’s natural. Take the pressure off yourself by speaking slowly (the audience won’t mind; they're still getting to know you). You’ll gain confidence as you go along—and so will they. Make eye contact: More than 70 percent of communication relies on the visual component. People won’t buy what you’re saying if you don’t look them in the eye. But when you’re facing an audience of several hundred, how can you possibly look everyone in the eye? Pick out three or four supportive faces in different areas of the room and speak to them. Speak to those people as if they were your friends—warm, caring individuals whom you like and respect. By speaking to a few, you’ll be speaking to the many. Again, be yourself: It can’t be emphasized enough. Recently I had the pleasure of conducting a communications workshop with a small group of intellectually challenged adults. They were terrific presenters—they were themselves. One animated young woman, upon receiving the video tape of her speech at the end of the session, hugged the tape with both arms and exclaimed: "I love me!" Beautiful. She’ll need no coaching on being herself. James Gray is a communication skills coach with National Public Relations in Toronto. He can be reached at jgray@national.ca. The art of writing an effective cover letter by Laura Ellis Whether you're thinking about getting that coveted actuarial job, or thinking about grasping the next rung on the ladder of actuarial success, you need to know where to start. What are you going to do to make sure you stand out among other candidates competing for the same positions? A good resume is always important, but the first step in introducing yourself to a potential employer should be through a well-crafted cover letter. If your cover letter evokes an immediate interest in you as a potential employee, you've conquered half of the battle—the employer will have no choice but to look at your resume! However, a poorly written cover letter will only lead to one place—employment-candidacy doom. Whether you are a first-time job seeker, or have a few years of experience under your belt, read on for tips you can use to perfect your cover–letter-writing skills. According to Jeannette Bertsch, actuarial recruiter and president of The Birch Corporation, a cover letter should be about two to three paragraphs, never more than one page. Just as important, three areas of a cover letter need to be perfect, says Bertsch, "grammar, spelling and punctuation." Because a cover letter immediately demonstrates your ability to communicate and organize your thoughts effectively, there is no room for error. An unorganized and inexpressive cover letter will only imply that you lack basic communication skills, but an articulate and concise cover letter will convey the message that you are a strong and analytical thinker. In today's competitive job market, Bertsch says that showing your enthusiasm for the actuarial field with a cover letter specifically geared toward your area of interest, such as life, health, pension or property & casualty, will help you stand out. In addition, entry-level students should emphasize education, exams and achievements. Students with one to three years of experience should emphasize experience and exams. Ken Westover, former chair of Sun Life’s Student Committee (2000-2002) also notes that it is expected that entry-level candidates are inexperienced in knowing about the nature of the work flow that occurs in different parts of a company. A general statement in the cover letter to the effect that the applicant is looking for interesting, challenging opportunities that will allow him or her to use the skills gained in his or her actuarial studies is probably sufficient. Westover also explains that candidates who do some basic research about the company’s products and the markets it serves can differentiate themselves from candidates who don’t. "It doesn’t take long to do this research," Westover says. "A visit to the company’s Web site and a review of its annual report is often sufficient." Last but not least, there are a few common mistakes that can be easily avoided when writing your cover letter. First, the applicant should never ask any questions or include any information regarding salary in a cover letter. That is better left until a later time, Bertsch says. Secondly, as Westover explains, "Don’t over embellish your credentials. Your cover letter (and resume) shouldn’t create expectations that could lead to the discovery of weaknesses during the interview." Introducing yourself to any potential employer through a winning cover letter really can be painless if you follow these simple, yet effective tips. After all, this will be your only opportunity to give a first impression, so make it count by proving you ARE the person they have been looking for!