Focus on the Magic of “Why” to Expand Your Reinsurance Career Opportunities
By Lisa Bull
Reinsurance News, October 2023
In today’s market of post-pandemic consolidation and org chart streamlining, we’ve observed significant changes to actuarial career development and advancement opportunities. But, those changes aren’t occurring in equal measures across the arc of the actuarial career.
Even with the pace of new entrants setting up shop in the reinsurance/capital management space, the quantity of available positions is still far below the quantity of experienced talent out there looking for career growth opportunities. For the purposes of this article, our focus is on the impact felt by experienced reinsurance actuaries. Actuaries at the more senior levels of organizations, in particular, are seeing reduced career opportunity.
This is not surprising in some ways because that’s where the higher dollar salaries tend to be. And when revenue/profitability shrinks, or risks across operations/asset classes increase, why have one person earning $500K of all-in compensation when that role could be carved up to give stretch opportunities to two or three current, high performing staff members—each of whom typically receives only a modest salary increase—thereby saving a large percentage of that previous salary?
As a result, we’ve been fielding this question pretty frequently: “How can I continue to grow my career in reinsurance as an experienced actuary (15+ years of experience) when it seems like there are very few positions out there at the AVP, VP, SVP/Sr. director, managing director level?”
“Don’t Bury the Lead (Lede)”
The upshot is we have observed a significant reduction of open positions geared toward seasoned actuaries. Which means there’s a crowded field of strong, experienced talent chasing too few actuarial positions. Which means you’ve got to bring your “A game”—and LEAD with it—to stand out. Here are three tips to help you do just that.
Tip 1: Career growth begins today, in your current position, when you focus on the “why.”
The why of what you do matters infinitely more than the “what” of what you do. Focusing on the why zeroes in on the strategic business impact of your work.
Are you truly aware of the business impact that you and your work produce? Can you describe why your employer needs you to do what you do, in strategic terms? Yes, the quarterly financial reporting you produce must be completed for regulatory compliance, but when you think of how your results connect to the strategic business levers that are likely keeping the executive team up at night, why does your work matter? You must know, or least sense, that it is more than to simply check a box!
Maybe, for example, you price annuity reinsurance deals, have terrific product knowledge, market understanding, and modeling know-how. But can you describe how what you do:
- Serves to create or increase revenue, perhaps by expanding into an, as yet, untapped or underserved market?
- Enhances the profitability of a business segment that had previously been dragged down by hidden or poorly understood experience?
- Reduces/mitigates risk and optimizes capital management, helping to improve access to and reduce the cost of capital and thus position the business for growth?
When you begin describing your work in the why’s, others perceive that you are contributing more. Even if your position/job description hasn’t changed one iota. You step beyond the “technician” box. You effectively expand the perceived business impact, the business results, of your work. Continue in this vein and over time, others may begin to think of you as a business partner, someone who understands the bigger picture and why you fit into that picture, rather than viewing you as (“just”) a technician producing reams of data/numbers.
And when you’re perceived as a business partner, someone who can help unearth problems, structure solutions, identify opportunities, create buy-in, and drive execution in ways that connect with a company’s core strategic goals; you will be top of mind for career-expanding opportunities.
Tip 2: Differentiate yourself from the (often darn talented) competition.
Pretend for a moment you’re a senior hiring manger now tasked with improving a company’s strategic risk management capabilities. You have the luxury of being able to hire one additional seasoned actuary into your newly assembled team. You’re presented with two candidates:
Candidate #1:
- FSA/CFA with 20 years of experience across reinsurance and insurance company settings;
- 10 years of risk management and 10 years of corporate/financial reporting experience, including model risk management, model governance, modeling, financial reporting, reserving, US GAAP, Statutory, MCEV, EV, M&A, actuarial transformation/modernization;
- depth in a variety of life and annuity lines (traditional, fixed, variable);
- rich modeling experience (PROPHET, AXIS, ALFA, among others);
- strong communication skills;
- supervisory experience; and
- comp expectation of $350K all-in.
Candidate #2:
- FSA/actuarial and risk management leader with a proven record of reducing operational, financial and reputational risks, enhancing profitability, strengthening controls environment, and decreasing future expenses while protecting company reputation within rapidly changing, dynamic environments.
- For example, established a brand-new corporate model risk management function from scratch, reducing capital reserve requirements and providing the release of capital to more profitable areas of company operations. In the process, identified and corrected a previous error repeated for four years that required company to repeatedly hold higher than necessary levels of capital reserves in Bermuda Capital reporting. Not surprisingly, restored confidence with Bermuda regulator, strengthening this key regulatory relationship.
- Adept at creating and establishing processes from scratch to address gaps in senior management’s ability to make sound, strategic business decisions.
- Recognized as an empowering manager able to successfully develop staff to increasing levels of responsibility, impact, and management.
- Comp expectation of $350K all-in.
Now, which candidate do you want to speak with first? Why?
Perhaps surprisingly, Candidate #1 and Candidate #2 are actually the same person (yes, a real actuary).
I’m going to guess you said Candidate #2 because you were able to get a sense of the big-picture business impact this candidate helped produce, which, in turn, increased your interest in talking with her/him to learn more.
Here’s why. Hiring managers are not really hiring a set of skills or experiences (yes, even though the job description details “required skills and experience”). What they’re actually hiring is a set of desired business results that they cannot currently generate. Often, headcount only becomes available when a team is recognized as genuinely struggling to deliver the business results and impact that others depend upon or desperately need. Consider for a moment—if as a hiring manager you could produce the business results you need and want, with the resources you have, why would you hire?
So, to differentiate yourself from other candidates, focus on the why’s driving your work so your business impact and results can elevate you to the top of the stack of resumes.
Tip 3: Don’t look for an open position, create an opportunity.
When you are focused on the why of your work and can articulate the big picture business impact and business results you help create, you “have the cookie.” You hold the cards. You can move from a passive position of, “gosh, I hope the right growth opportunity comes along for me, internally or externally” to an active position of, “I’ll work to find someone who needs or values at least some of the results I have delivered.”
As you go through your day to day, lead with your impact, your business results, in interactions with internal stakeholders, external stakeholders, consultants, clients, SOA industry contacts, and your personal network of fellow industry professionals. In doing so, not only will you develop this “muscle,” but you will find that you’ll frequently encounter colleagues/bosses/executives/professionals who want to learn more: “Really, you helped drive that strategic result? Wow! How did you accomplish that?” Which means they want to talk with you, and you will have the chance to explore what caught their attention.
This is your chance to have a conversation to find out what results they are looking for … and why. Sometimes a single or series of exploratory conversations—with no position posted or defined—can walk you into a pretty cool opportunity tailored to your strengths and interests. I’ve seen this over and over, and, honestly, it is some of the most satisfying work I’m fortunate enough to do! And the actuary involved is quite satisfied, too, with the future growth trajectory progressively expanding from that point forward.
In short, dear seasoned reinsurance actuaries, you may be better equipped to navigate today’s challenging market conditions for career opportunities than you realize. Begin with focusing on the why, and opportunity will indeed follow.
Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the newsletter editors, or the respective authors’ employers.
Lisa Bull is president, Lechner & Associates, Inc. Lisa can be contacted at lbull@lechner.net.