Ask an Actuary

"My statistics courses were helpful, as well as the public speaking and writing courses. Never did I imagine that as an actuary I would be communicating with others as much as I do."

Every other month a different casualty actuary will be asked to describe the path that led him/her to an actuarial career. This month's actuary is Roosevelt Mosley, Senior Assistant Actuary for State Farm Mutual Automobile Insurance Company.

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

A: I first decided to become an actuary during the summer between my junior and senior years of high school. I enjoyed math, but I was not sure what I wanted to do with it. I did not want to be a teacher at the time, and being an engineer did not interest me because I was not crazy about science. I looked up Math in an encyclopedia, hoping that it would give me some ideas. That was the first time I heard about actuaries. The Society of Actuary's address was there, so I wrote and the SOA sent me more information.

Q: Who or what influenced your decision?

A: Reading through the description in the encyclopedia as well as through the information that the Society of Actuaries sent to me piqued my interest initially. I also was able to spend a day with an actuary during my senior year of high school, which let me see first hand some of the things that actuaries do. I was an intern with State Farm during my senior year of college and working with some of the people here influenced me to pursue the casualty side.

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

A: I attended college at the University of Michigan in Ann Arbor, Michigan. I received a Bachelor of Science degree in Actuarial Science and a Bachelor of Science Degree in Statistics in December, 1993.

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: I took a lot of math and statistics courses, as well as a couple of courses that helped prepare for the SOA exams 140 and 150 (although I ended up not needing to take these exams). My statistics courses were helpful, as well as the public speaking and writing courses. Never did I imagine that as an actuary I would be communicating with others as much as I do. I wish I would have taken more of these types of courses in college.

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: I began my professional career as an intern at State Farm in the summer of 1993. During my internship, I did some work on expenses and also did some competitive analysis for auto insurance. I came back to State Farm full time in January, 1994 after graduation. Since then I have been responsible for pricing auto insurance in different states in the country. Most of my pricing work has been concentrated in the southeast United States. Currently, I handle auto pricing for West Virginia, Florida, and Georgia.

Q: When did you take your first exam? How long did it take for you to get through the exam process?

A: I took my first exam (Part 1) in May of 1992. As of the last exam sitting (May, 1998), I have passed Parts 1-9. I received my Associateship designation in August, 1996.

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

A: I have been with State Farm since I started my career. Being the largest auto insurer in the United States, State Farm is a good company to work for and I have had the opportunity to work with some good people.

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

A: Day to day, I work on auto pricing issues for West Virginia, Florida, and West Virginia. Those issues could be anywhere from changing rates and preparing rate filings to reviewing legislation that relates to auto insurance.

Q: How long have you been in the profession?

A: I have been in the actuarial profession for nearly five years.

Q: What advice would you give to someone first starting out?

A: For someone just starting out in the actuarial profession, I would recommend taking other courses in college in addition to the math and statistics. Courses such as economics, communication, writing, and finance will be helpful to you because they will give you more of a business background, not just a math background. Computer Science courses are also good to take due to the technology explosion that has occurred over the past few years. Also, I would encourage those interested in the actuarial field to take an exam (or 2 or 3 or 4) before graduating from college. The material in the first few exams is covered in courses at a lot of colleges. This gives you an idea of what you will be in for for the next few years plus, and it also lets prospective employers know that you are serious about the profession. Finally, I would say that if you have the opportunity to intern in an actuarial department, take it. It gives you a real world experience from which you can best judge whether or not this is the right field for you.

Q: Did you find studying for exams to be very helpful for your work?

A: I actually have found that studying for exams is helpful in carrying out my day to day tasks. All of the material does not directly relate to what I do, but I think going through the exam process brings to light some broader concepts that will help you not only in actuarial work but in whatever you do.

First, they show you that there is more than one way to approach a problem. On the list of materials for the exams, there may be three or four papers that deal with the same issue, but in different ways. Working for a company starting out, you learn the way that company does things. But the exams show you that it isn't the only way, encouraging you to think about and evaluate methods for yourself.

Secondly, going through the exams heightens your understanding of the property/casualty actuarial field. I have concentrated primarily on private passenger auto in my career, but the exams have introduced me to other lines that I probably would not have given much thought to otherwise (homeowners, reinsurance, general liability, etc.). So not only do the exams show you more than one way to approach a problem, it raises your awareness regarding the number of different "problems" being handled by casualty actuaries.

Finally, and very importantly, the exam process teaches you perserverence. I would be untruthful if I said that the exams were easy, they take a lot of dedication and hard work. Along with that comes the feeling that "If I can make it through the exam process, there isn't an actuarial problem (or a problem in general) that can be thrown at me that I can't somehow work my way through. And if I don't get it right the first time, I'll try again and keep on trying until I do."

The exams alone will not adequately prepare you for your future as an actuary. However, the exam process along with experience gained by working in the field and learning from others provide a package that will help you immensely along the way.

Q: Hello, my name is Ashleigh. I am 16 years old and a junior in high school. Over the past few weeks I have been researching careers. I have been considering a career that deals with math, because that is my favorite and also my strongest subject. Through my research, I have learned a little about becoming an actuary. Through my research, I have decided that a career as an actuary sounds like something I would enjoy. My only concern is if I decide to pursue this career, is the job outlook good. The information I have collected, shows different results on this topic. I am also interested in learning about an actuary's earnings. If you could send me any information on this it would be greatly appreciated. Thank you for your time.

A: Ashleigh, I understand what you are going through right now in the choosing of a career. It was during my junior year in high school that I decided on an actuarial career.

The job prospects look very good in the actuarial field. A while back, an actuarial career was rated the top job in America, and once that happened a lot of people began flocking to the field. Since then, though, things have settled down and there seems to be high demand for actuaries. Just speaking from personal experience, both the company I started with and the company I am with now are looking to hire actuaries, and I believe this is true for a lot of firms that employ actuaries.

The starting salary for actuaries depends on several things. First, if you are able to complete an internship or two during college, the starting salary on average will be higher. Also, the more actuarial exams you are able to pass in college, the easier it will be for you to land the job that you want at a higher starting salary. Assuming you have not done an internship and have completed one exam (which is becoming the minimum these days), you can expect to start in the 30 - 35,000 range. This will vary based on where you plan to work as well. Where you can end up, however, is up to you. For someone who performs well at the job as well as on the exams, salaries can increase very quickly.

I hope this helps you. If you have any other questions, Please don't hesitate to e-mail me and let me know.