General Session Address, SOA 2011 Annual Meeting

View video of the general session address.

Donald J. Segal, FSA, FCA, MAAA, EA

President, Society of Actuaries

The 12 months from last October until now have been some of the most memorable in my life and in my career as an actuary. Serving as president provides a unique vantage point, one that I am privileged to share.

Traditionally, the SOA president stands up here and reviews the accomplishments of the past year. Instead, I'd like to do something a little different. I am going to talk about three things I've learned as president.

The first is for each of us to develop professionally. Throughout the year I've spoken to many employers of actuaries. And they've told me that they are not looking for actuaries who know something about business. They are looking for business people who are actuaries.

Take advantage of every opportunity to develop yourself professionally, both inside and outside your area of expertise. And make sure to work on your soft skills in addition to your technical skills.

Take this meeting, for example. If you're attending a session on Solvency II or ERM, you might also want to consider a session on Social Media or a session on Expanding Actuarial Roles.

At a meeting I attended recently, the speaker said something that stuck with me. He said: "Hard skills are associated with authority. Soft skills are associated with leadership." Balance your hard skills with the soft skills.

As you grow, ask yourself–Do you want to be a manager or a leader? Do people follow you because they have to or because they want to? Look for opportunities to complement the valuable skills that you already have.

At another meeting a speaker shared the difference between knowledge and wisdom. He said: "Knowledge is knowing that eggplant is a fruit. Wisdom is not putting it in fruit salad."

Second, I've learned that employers want actuaries to take responsibility for their own careers.

Think about your career path. For many of you it probably went something like this: You go to college. In college you get a summer job. You start taking exams. You get hired by a company with an actuarial training program. You get your ASA. You get your FSA. And maybe even your CERA.

This is a great path toward a rewarding career, but now what? Don't rely solely on your employer to determine your next steps. Take a hard look at where you want to go. Seek out and take advantage of opportunities. Identify new areas where your skills can be put to use.

Is there an opportunity to use your skills in the clean energy field? Would your skills in ALM be beneficial in China? Every industry needs an expert in risk management. If you see an opportunity, go for it. This advice applies to everyone, whether you're fresh out of college or you've spent 30 years in the profession.

A noted contemporary American philosopher once said that you need to find your calling, take responsibility for your life, and use your life to serve the world. Great words of wisdom, right? Former Chicagoan Oprah Winfrey said this on her final show.

Let me give you an example of an actuary who used his life to serve others.

I'm sure many of you are familiar with Jim Hickman. He was dean of the University of Wisconsin-Madison School of Business. Over his 40-year career, he made many contributions to our profession through teaching, research, and scholarship.

Last year the SOA created the Hickman Scholars program to honor his contributions to our profession.

Jim's wife, Margaret, wrote me a letter to emphasize the importance of actuaries giving back. In it she says of Jim:

He did not neglect involvement in community, national politics or our Presbyterian church. (He served on the national pension committee for them for many years.)

He was adamant about what privileged citizens owed to those who came before him or were in need around him.

He felt all of us needed to return the help we had received from our parents, our teachers, mentors and all others who had helped us along the way to achieve success.

She concluded by saying that actuaries are very intelligent and able people. The road to that end is a hard one, but when it is achieved, it is necessary to give back.

So, to sum it up, I encourage you to take charge of your career. Take advantage of every opportunity. Volunteer for your profession. Give back to your community. You'll only benefit from the experience.

The third and final thing I've learned is that our profession is not just about the numbers.

There are many professions that claim expertise with numbers–accountants, statisticians, financial analysts–there's a whole list of them.

How are actuaries different? For us, it's more than just about the numbers. The auditor wants "the number". The financial officer wants "the number". Actuaries don't just provide "the number". We give an explanation. We provide the context–the story behind the numbers. We forecast. We understand future risks. We provide risk parameters–a range of numbers. There's one thing we know for sure about "the number". It's wrong! It's based on a set of assumptions.

Those are the three things I wanted to share.
Develop professionally.
Seek out opportunities.
And remember, it's not just about the numbers.

Serving as president has also confirmed something I have already known–that our credentials are world-class, and that our members are truly the best of the best.

The part of the job I that have enjoyed most this year has been presenting new fellows with their hard-earned certificates at the Fellowship Admissions Course. The enthusiasm of our new FSAs is energizing, and I hope that spirit carries through for years to come.

I've traveled throughout the United States and Canada and across the world. I've met with actuarial clubs, universities and employers. It's been a pleasure to spend time with, learn from, and listen to our members and candidates!

Thanks to each and every one of you for your commitment to our profession. Your energy and dedication are truly admirable and help us accomplish important work every day.

I would also like to thank the SOA staff for everything you do to support our members and candidates. You do an awesome job!

It has been an honor to serve you as president of the Society of Actuaries.

Thank you.