Your first job out of college can set the tone for your entire actuarial career! Charles Johnson, CEO of the Actuarial Development Institute, highlights three key factors to consider when selecting your first position.
Is your first job out of college a critical career determinant as an actuary? Absolutely. Your initial career move significantly shapes your future opportunities in this profession.
While actuaries have a diverse range of career paths, I'll delve into three pivotal factors that deserve your attention: the practice area, the company type, and early career support.
1. Practice Area
Actuaries operate in a multifaceted landscape primarily centered on insurance. A crucial distinction lies between property and casualty (P&C) and other areas such as life, health, and finance. This distinction historically stems from separate credentials and exams offered by the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA).
Although the lines have blurred with the introduction of the SOA's General Insurance track and other factors, this divide still plays a role in hiring decisions. P&C actuaries may enjoy fewer job opportunities but often receive higher salaries with faster growth rates. It's essential to choose your career path with careful consideration, since transitioning between these areas can be challenging.
2. Company Type
Actuaries find employment in diverse settings, including academia, government, and the private sector, with a focus on insurance companies and consulting firms. Company cultures vary significantly, particularly between private sector roles in insurance and consulting. Consulting firms typically operate on a billable hour basis, offering greater variable compensation and more fluctuating work hours.
Within the insurance industry, differences can arise based on factors such as whether the company is publicly traded. Publicly traded companies report financial and business progress quarterly, often resulting in quarterly deadlines. Additionally, the culture of a company can be influenced by its product distribution methods.
For example, reinsurance companies sell directly to other insurance companies, allowing actuaries to focus on networking and client relations. In contrast, direct-to-consumer companies that sell through brokers often face stiff competition and must cater to brokers' needs. Understanding these distinctions can guide your job search and inform your interview questions.
3. Early Career Support
Early years in an actuarial career often revolve around passing exams. Exam success has a profound impact on your income, time commitments, and career trajectory. Companies typically provide some level of exam support, including study materials and paid study hours.
However, company cultures regarding exam support can vary significantly. Some prioritize work output over study hours, while others strike a balance. Gaining exposure to a wide range of projects, work areas, and technology can significantly influence your early career development and job prospects.
Companies with robust rotation programs and a history of entrusting young professionals with exciting projects can be particularly supportive.
In conclusion, your first job as an actuary holds immense significance. By choosing your practice area, company type, and early career support wisely, you can set the stage for a rewarding and prosperous actuarial career. The decisions you make early on can shape your future opportunities and lay the foundation for long-term success in this dynamic profession.