Actuaries solve complex problems, but success depends on more than just technical skills—it requires teamwork! Dave Kester shares why collaboration is essential and how it shaped Coaching Actuaries during a major industry shift.
Actuaries must solve some of life’s most difficult problems. I mean really difficult.
Most actuaries work for companies, such as insurance companies, where customers entrust large investments to manage future risks. These risks can be long-term, such as the risk of dying too early or living too long. Or, they can be unpredictable risks, like hurricanes, tornadoes, or terrorist attacks.
Because actuaries tackle such complex problems—again, really complex problems—most solutions require a team of experts. This team usually includes actuaries but often involves professionals from other departments, such as finance, technology, operations, and distribution.
The Shift from Individual to Team-Based Work
Most actuaries are trained based on individual performance: how well they pass actuarial exams, how well they perform in college, etc. However, what separates a good actuary from one I would want to hire is their ability to work well in teams.
I've seen the importance of collaboration in large corporate settings. But even in our relatively small company, Coaching Actuaries, teamwork is absolutely critical. Not only do actuaries solve difficult problems, but these problems often don’t have a single right answer. That’s why it’s important to approach them from multiple perspectives, requiring different people, opinions, and skill sets.
Actuaries must set aside their pride and truly listen to others’ viewpoints.
A Real-World Example of Teamwork in Action
I could share dozens of stories where teamwork was the key to success or failure. One example stands out: Years ago, the Society of Actuaries (SOA) announced changes to the lower-level exams. This coincided with our decision to write our own manuals and create our own teaching videos.
This meant we had the exciting yet daunting task of developing teaching materials for all the lower-level exams. The most crucial factor in achieving this was our staff’s ability to work well together. It was a "learn as you go" process for all of us, including me. When you're doing something new for the first time, collaboration becomes even more essential.
Each day felt like crossing new bridges and building new roads. Clear communication ensured we not only arrived at our destination on time but also at the right destination!
What It Means To Work Well Together
The list of teamwork skills is long and deep, but above all, you must communicate well. This means not only sharing your answers but also explaining your thought process.
You must also listen well—really listen. Listening to other actuaries can be difficult. Let’s face it—we’re not always the best communicators, and we dive deep into details quickly. Listening to non-actuaries can also be challenging because they bring different perspectives.
Working well together also requires understanding the big picture of the problem you’re solving, not just the details. You need to see how all the team members fit together at a high level.
The Transition From Training to Teamwork
If you’re an actuary with at least 3 years of experience, you can probably relate to this, even if your story is different.
It can be difficult for new actuaries to transition from college and exams—where the focus is on finding the one right answer alone—to a team environment where there is no single right answer—but plenty of wrong ones.