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What it's Like to Work as a Consulting Actuary
by Paula N. Miller, CAS Staff EditorFlexibility and variety seem to be the two most attractive aspects of working as a consulting actuary.
In today's world of e-mail messages, telecommuting, and flexible schedules, consulting actuaries have it better than ever. They have more choices about the type of work they do, how much work they do, how they will get the work done, and where they will work.
Consulting actuaries are employed by a myriad of organizations. They can be dedicated to one large consulting firm, or several firms of various sizes at one time. They may even have the choice to work alone from their homes. The number of differences in the work of consulting actuaries is as high as the number of consulting actuaries.
In some large consulting organizations, "The Firm" gets the clients, distributes the work, sets the guidelines, and sometimes the deadlines. In smaller firms or solo-shops, consulting actuaries may have more control of their schedules and workload. Also, they may be responsible for finding their own clients.
Flexibility
J. Parker Boone, a consulting actuary for Tillinghast - Towers Perrin in Philadelphia, agreed that flexibility is the biggest difference in the work of a consulting actuary than that of any other type of casualty actuary.
"A consultant is generally free to pursue the type of work he likes, accept the projects he likes, work with the people he enjoys, and generally plot his own course," Boone explained. However, he also mentioned that "with such flexibility comes considerable responsibility for one's own welfare.
"Structure is almost entirely missing in my current position," Boone said. He explained that questions of hierarchy, reporting relationships, and pecking order have little impact on day-to-day operations. "I set many of my own priorities and live with the resulting outcomes." Still, performance is routinely measured in terms of billable hours and revenue generated, and these figures are "widely distributed." Boone explained that quality of work is reflected in a "co-worker's desire to work with you on additional assignments." In other words, "if you disappoint another co-worker on a project, it is likely that you will not be invited to work with that consultant again," Boone explained.
Kay Kufera, a CAS Fellow near Baltimore, Maryland, works as a consulting actuary from her home. For her, the most difficult part about her job was building a client base. Though she considers herself "fortunate" to continue to have steady work from her former employer, USF&G, she continued to search for additional clients. "It is impossible to schedule projects ahead of time, as the needs of client companies are unpredictable." Another stumbling block for Kufera when she was setting up her shop was that she had to become "more knowledgeable about computer hardware, office systems, and other areas that had been taken care of before by 'the company'," she explained.
Variety
"Consulting actuaries have the advantage of gaining broad experience," said William J. VonSeggern, a consulting actuary with Milliman & Robertson, Inc., in Brookfield, Wisconsin.
VonSeggern previously worked for an insurer and a regulator, and made the switch a couple of years ago to the consulting firm. "Personally, I enjoy the challenge of helping clients with actuarial issues and the independence that consulting offers me," he said, calling his current work environment "fast-paced" and "challenging."
Kufera also enjoys the variety of projects that her work allows her experience. "I've been constantly challenged and have learned and relearned actuarial techniques and software applications necessary to perform the various jobs I have been assigned," she explained.
For Boone, "administrative chores are minimal, and most projects have a definitive end requiring no ongoing maintenance." Boone explained further that a consulting actuary may be able to see the results of a long-term project if the actuary has a strong continuing relationship with the client.
Summary
Though it may be difficult for candidates to work in a consulting environment and study for exams, especially during the busy times for the firm, VonSeggern advises that candidates spend the course of their careers working for each type of employer. "This will give you the broadest perspective on the industry and your profession," he explained.
"When things go well, the freedom and variety far outweigh the workload that success brings," Boone explained. "However," he added, "When things are slow, there is more pressure than exists within other organizations."