It Is Easier To Become An Actuary

by LeRoy J. Simon

The following is LeRoy Simon's address to new members, which was given at the CAS Annual Meeting in San Francisco on November 15, 1999.

Steve Lehmann (left) greets LeRoy Simon.

Heartiest congratulations—first to those accompanying persons who sacrificed and put up with so much while this morning's new Fellows and Associates struggled to reach this great day. All those who have been through it before you know and understand how difficult it is and of the appreciation you deserve. And, of course, a very warm welcome to you new Fellows and Associates on this milestone day. I hate to be the one that has to tell you this but—it is easier to become an actuary than to be one. More on that in a moment, but, as a corollary, learn to be good at accepting criticism, you'll get a lot of practice. The basic nature of our work is such that we must at times deliver messages that others do not want to hear; one of their defensive reactions is to blast the messenger. That does not change the quality of the message, however, so just be right in the first place, learn to accept criticism, and have faith in yourself.

When you entered the room this morning you stepped into an environment that was created for you. I am speaking in a broad sense of the environment of traditions, spirit, morals, ethics, and the knowledge base...all that has been built to create this Casualty Actuarial Society. You now stand on the shoulders of those who preceded you; what will you do with this opportunity? Thirty or forty years from now when you retire from active business pursuits, whether you like it or not, you will leave a legacy to those who follow—make it the best legacy you possibly can. You owe that to the CAS, you owe it to those who supported you on this path, but even more so, you owe it to yourself. Yes, it is easier to become an actuary than to be one.

You will have many successes over your actuarial career, so you must remind yourself that the greatest enemy of future progress is past success. We are all comfortable with things that we know and understand. It's easy to apply a familiar tool to a new problem—much easier than analyzing the problem to see what tools would best apply and then designing a workable technique and carrying out the solution. Experience in a field makes you comfortable—you know the tool to use even before the problem is completely formulated. On the contrary, you must be willing to turn things on their head and look at them in a new light. You must strive to make change a partner, not an enemy; new input an accomplice, not a rival. And above all, you must force yourself to completely, carefully, thoroughly define the problem without jumping to the method of solution before you have a full grasp of the situation. The tools you have learned through the education process have brought you to today and will guide you through your early years as professionals. Be ready to discard them when improvements come along. Yes, it is far easier to become an actuary than to be one.

Forty-five years ago today I became a Fellow and the papers presented to the Annual Meeting of the CAS included two on Workmen's Compensation, two papers on health insurance, one on the boiler and machinery experience rating plan and an elementary one on fire insurance ratemaking. Now look at the program for this meeting: securitization of catastrophe exposures, computer technology, complex models, financial services, discounted cash flow.

There is no secret about how we got from the papers of 45 years ago to the presentations of today—CHANGE. And the only way to cope with such dramatic change over the course of your actuarial career is continuing education and continuous adjustment to the new environment. You have to go to a museum today to see a punched card which was the standard for data processing in 1954. When you get back to the office, look around and you'll see the museum pieces of the future and they'll be in those museums before you retire. Just make sure your actuarial expertise is not at a 1999 level because it is far easier to become an actuary than to be one….

But then, that's why we have actuaries like you in the CAS. Your median age is 31. You will be in the forefront at the 2014 celebration of the 100^th anniversary of the founding of the Casualty Actuarial Society. You're young, bright, responsible individuals, ready to challenge the world and proud to be a member of the Casualty Actuarial Society. Keep your pride of today throughout your entire career….

You are the last CAS graduating class of the 20^th century—but let's keep it in perspective—50 years and 50 days from today, you will still be actuaries but you will be closer to the start of the 22^nd century than you will be to the year 2000. Good luck. Now that you've done the easier part and become an actuary, get out there and do the rest of the job—be one. I'll be watching you because, in some small way, you're my class of '99.