Ask an Actuary

"The consulting field is very rewarding and exciting, but it can be challenging at times as you try to balance the actuarial exams, a personal life, and client work, which can sometimes be unpredictable."

"Ask an Actuary" features an actuary that is asked to describe the path that led him/her to an actuarial career.  For this installment, our featured actuary is Pam Kulpins, Associate Actuary at Towers Perrin in Illinois.

Q: When did you first decide to become an actuary?

A: I decided to explore the actuarial field when I was a sophomore in High School. A friend of the family had just become an actuary, and everything I had heard about the profession at that point sounded appealing. I researched the field and decided that it would be a good fit for me.

Q: Who or what influenced your decision?

A: My parents definitely played a key role in helping me choose the actuarial profession. If it weren't for their friend, I probably would not have heard of the profession as early, and certainly wouldn't be as far along in the exams. They encouraged me to choose a rewarding and challenging profession, and most importantly, one that utilized my strengths.

Q: What is your educational background? Where did you attend college and what was your major?

A: I have a pretty traditional actuarial background. I knew when I entered the University of Illinois at Urbana-Champaign that I wanted to become an actuary, so every decision I made was based on that objective. I started taking actuarial classes as well as the exams Freshman year in college. I graduated with a Bachelor of Science degree with a concentration in Actuarial Science.

Q: What classes did you take in college that helped prepare you for the career? What class was most helpful? What classes outside of math and statistics (such as communications) were helpful?

A: As an actuary, you need to be able to understand technical topics as well as communicate them. Because of the technical skills required for the job, advanced math classes were essential in preparing for the field. I think the two most relevant classes I took in this area were the Theory of Interest and Life Contingencies, as these classes form the basis for actuarial work. Beyond mathematics, two very beneficial communications classes were an oral communications course and a business writing class. These courses helped give me the necessary confidence and skills to communicate ideas effectively.

Q: What was your first job in the profession? How did you get the job? Did you start as an intern or in an actuarial training program? What type of work did you perform in you first actuarial job?

A: My first official position in the profession was an internship with my current employer, Towers Perrin. I learned of the company as well as the internship at the U of I. The Actuarial Science Program has a very developed recruiting program, offering a 2-day conference where actuarial employers come to interview students on campus. I absolutely loved my internship and after completing my senior year in college, I started with Towers Perrin full-time in the Retirement line of business. I started out working on client projects such as actuarial valuations, benefit calculations, government filings and other special projects under the direction of other project managers.

Q: What was your career path from your first job to your current position?

A: I started out doing smaller pieces of larger projects for my project managers. Over the years, my role has evolved from "doing" to managing and reviewing projects. My direct contact with clients through meetings and conversations has also increased over the years, and I enjoy this aspect of my job very much. In addition to my client team responsibilities, I am also a Team Leader, which involves managing newer associates.

Q: What type of work do you do on a day-to-day basis in your current position?

A: My job involves a number of different roles, and this variety helps to keep me interested in the work that I do. I have project management responsibilities which involve managing other associates to meet timing and budget objectives. My people management responsibilities entail overseeing the development of five associates early in their career, ensuring that they develop in the areas of exams, client work, and training. In addition to these roles, I am also involved in training and recruiting.

Q: When did you take your first exam? Where are you currently in the exam process?

A: I took Course 100 (under the former system) when I was a freshman in college. I continued with the exams throughout college, taking exams as I finished the coursework for them. After taking exams for many years, I finally feel like my exam career is coming to a close. I am awaiting results for EA-2B and am preparing for EA-2A in the fall of 2002, and will have some Professional Development credits to finish up after that.

Q: What advice would you give to someone first starting out down the path of an actuarial career?

A: The earlier you master effective time management, the more successful you will be. The consulting field is very rewarding and exciting, but it can be challenging at times as you try to balance the actuarial exams, a personal life, and client work, which can sometimes be unpredictable. I think the key to being as successful as possible in all three areas is to be organized and efficient.

Additional Questions

Q: What advice would you have for someone considering a career change to the actuarial field with a background in programming and project management? I am 30 years old with my MBA, and finally realizing that the more I research this field the more I am know that I have found my passion. Help!

A: If you think you've truly found your passion in the field of actuarial science, I would say go for it. I personally find the (consulting side) the field to be very interesting and rewarding. The biggest consideration for you at this point in your career is the actuarial exam process. The journey through the exams will involve tremendous personal sacrifice and I've found this aspect to become more challenging each year, as work responsibilities and personal interests continue to pull you in many directions. The key to helping yourself make up for the later start in the field will be to pass the exams as quickly as possible. You may find that some of your programming and project management skills may translate, but the majority of knowledge you'll need to have for the field are acquired through on-the-job training as well as the exams. The other consideration you should make is that you likely won't be making a lateral move, in terms of compensation as well as responsibility. But, having said that, I think that over time you will find that the long-term benefits undoubtedly outweigh any short-term struggles. Best of luck to you as you contemplate your career choice.

Q: Beginning in September 2002, I will be enrolled in the Math/Chartered Accountancy program at the University of Waterloo in Canada. I have been debating whether I should do my CA (parallel to CPA in the US) or switch into actuarial science in second year. I find mathematics more interesting than accounting, and I am particularly interested in finance, mathematical modelling, and computer simulation. However, I have a few concerns. One of my goals is to be my own boss. Are there many opportunities for actuaries to start their own businesses? I am also very interested in finance. What roles do actuaries play in the fields of finance and investing? Are the mergers in the insurance industry having a significant (negative) impact on the actuarial profession? What are the future prospects for actuaries within the insurance industry and in other industries? Thanks in advance.

A: I have a pure consulting background, so I unfortunately will not be able to address your questions about actuaries' roles in the finance and investing arenas. As far as starting your own business goes, I suppose it's possible in any field with the proper dose of motivation and determination. I have never researched this because I value so highly the resources large consulting firms have to offer...technology, legislative resources, other actuaries, amongst other things. I would imagine that there are small consulting shops out there, but would guess that their client base is very different than the companies I work with - my company's target market is the Fortune 500 - very large companies with complex issues. I would imagine that the client base of small consulting firms include companies that are very small to mid-sized. It just depends on what you're looking for.

With regard to future job prospects, I continue to see an auspicious future ahead for the consulting industry. When I was considering the field, thoughts of apprehension crept in when I would hear that companies are shifting away from defined benefit (DB) plans, which is where actuaries are needed. There's no doubt that defined contribution (DC) have significantly gained in popularity since the mid-1980's and companies starting up these days are looking to start DC plans. There is, however, a significant number of very large, mature companies that have had defined benefit plans in operation for decades and plan to continue with them. The current day we live in presents many issues to deal with...a changing workforce, a challenging economy, an aging population, just to name a few. Companies are continually looking to align their benefit programs with the objectives of the employer and employee, and this will likely keep actuaries in business for a long time to come.