Ask an Actuary

“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 Jeff Kucera, FCAS, a Senior Consultant at EMB America LLC. Send your questions to Webmaster@BeAnActuary.org. We will post your questions and his responses as they are submitted. You will receive an e-mail notification after your contribution has been added.

Q: When did you decide you wanted to be an actuary?

A: I was a Senior in high school, and attended Senior Information Day at the University of Nebraska. For the last session my guidance counselor recommended that I attend the Actuarial Science session. Knowing nothing about Actuarial Science, and being informed that I must attend a session, I decided to give it a try. After listening to Steve Kellison, who was in charge of the program at that time, I came away impressed with the program and what I could look forward to in the future with respect to potential job offerings. It was at that time that I decided I wanted to be an actuary.

Q: What influenced this decision?

A: A number of things helped influence this decision. It started with a love for math, and hoping to be able to do something with it in college, but not wanting to go into teaching. Obviously Professor Kellison’s talk about what it involved, job opportunities that were likely to exist upon graduation, potential salaries, etc. also played a major role. Finally, I wanted to enter college with a clear focus, and the ability to put a math degree together with the business world seemed like an obvious choice for me.

Q: Where did you go to college, and what is your educational background?

A: I attended the University of Nebraska in Lincoln. At that time they offered several Actuarial Science courses, but did not have a program where you could major in it. I received a Bachelor of Science Degree, with a major in mathematics and a minor in economics. I attended one semester of grad school, with the intent of getting an MBA along the Actuarial Exams. However, the lure of a real job proved too strong, and consequently entered the work force before completing that program.

Q: What did you do before you were an actuary?

A: I was a full time college student, working summers and part-time during the school year. Unlike many of the students of today I did not have the opportunity to work as an intern as there simply were not near as many company’s offering intern jobs at that time. Jobs in college including unloading boxcars in a warehouse, stocker in a grocery story, and I even spent about two years as a night student in a mortuary. All of these jobs reinforced one thing—I didn’t want to do them the rest of my life, and helped give me some added incentive to begin passing the exams while still in college.

Q: What classes did you take in college that helped prepare you for your career? What class was most helpful?

A: The obvious answer to the question was the Actuarial Science and Math classes. Both helped tremendously in preparing for the first few exams and getting those out of the way while still in college. The other helpful courses were the Computer Science classes where I learned to do some basic programming.

Q: What classes outside of mathematics and statistics (such as communications) were helpful?

A: I already mentioned Computer Science, and I think that was very beneficial. I also was able to take several courses on insurance itself, everything from Property and Casualty Insurance to Live Insurance to Social Security. All of these helped me to better understand the product and how it works. It was also critical in getting a fast start when I started work, because it prepared me for much of the terminology and concepts outside of those learned strictly in the Actuarial Science Courses. Finally, the business classes were very helpful, particularly in later exams when we get into things like Accounting, Marketing, Law, etc.

Q: How many hours per week do actuaries typically work when they are just starting out?

A:Obviously this will depend on the company that you start with. Typically a beginning actuarial student should expect to work 40-45 hours. Some of this will be study time provided by the company. However, you need to recognize that you will spend considerable time on your own studying as well.

Q: My undergraduate degree is in MIS (Management Information Systems) and I have recently been interested in pursuing a career as an actuary. Would it be recommended to pursue another bachelors degree focused on mathematics before attempting entry into the Actuary profession?

A:The answer to this question will depend heavily on how much math and statistics you may have taken in the original pursuit of your undergraduate degree. I would suggest that you get copies of some of the earlier CAS practice exams, and see how comfortable you are with the materials. In addition you might try actually sitting for the first one or two exams to see how you do. If you can pass these without further formal study you may save yourself a significant amount of time in getting your career started. I think most potential employers would look favorably on someone with two exams passed on their own, even if their undergraduate degree was not in Actuarial Science or math.

If you do decide that you need more of a mathematical background than you currently have, I would suggest that you look into attending a school with actual Actuarial Science options. This will allow a more concentrated focus on your selected field, rather than a broader mathematical degree.

Good luck in your endeavors.

Q: How much modeling and simulation do actuaries carry out in their line of work?

A: The amount of modeling and simulation will vary directly with where you work, and your particular position within that company. However, it is accurate to say that, at least for the property and casualty world, these areas are currently growing, at a very significant pace.

I work for a consulting firm, and for many of our people I would estimate that at least 25-50 percent of their time is with modeling and simulation. Certainly if you include all the time necessary in preparing the data and reviewing the results, it would be even higher.

I recommend that, as you talk with potential employers, you ask specifically what amount of your time would be spent in such areas.

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