Non–Traditional Opportunities for Actuaries

Submitted to the Society of Actuaries Board of Governors
by The Actuary of the Future Task Force

September 1991

• The AOF Task Force:
• Robert D. Shapiro (Chairman)
• Howard Bolnick
• Gary Corbett
• Selig Ehrlich
• Linda Kahn
• Fred Kilbourne
• Barbara Lautzenheiser
• James J. Murphy
• Robert M. Musen
• Joseph Paesani
• Anna Maria Rappaport
• Alan Routhenstein

Section I : An Urgent Message

The Actuary of the Future Task Force has concentrated on the following mission for the 1990-1991 Society year:

"To identify and prioritize non-traditional opportunities and roles for Society members and to develop a plan for (1) informing and educating non-traditional employers about the value of actuarial expertise, (2) motivating actuaries to consider non-traditional roles (3) motivating those employers to use actuaries in the identified roles, and (4) assisting Society members in preparing for the new roles."

This report describes both the plan and the work of the Task Force.

The implementation of the plans described in this report require total SOA commitment and support at all levels. Because we are dealing with the future in a way that is not developed linearly from the past, the effort to develop non-traditional opportunities for actuaries does not fit neatly into Society management processes. In particular, the Society needs to nurture non-traditional approaches in its programs, papers and research and change current standards that often only accept viewpoints and analysis consistent with historic actuarial practice.

While this effort does not fit neatly into the SOA management process, it does fit into the philosophy and framework established in the 1991 SOA Strategic Planning project. Developing non-traditional actuarial opportunities is consistent with the mission articulated in the Strategic Plan. Several directives cited in that document were addressed, such as expanding actuarial research to new areas and developing potential new areas for application of actuarial science.

In addition to Society support, the substantial marketing and public relations aspects of this effort require close coordination with the Academy of Actuaries, the Canadian Institute of Actuaries and other actuarial organizations.

Section II: Summary of Recommendations

This Section summarizes the Task Force's specific recommendations.

1. Recommendation #1: The Society should develop career planning prototypes to enable individual actuaries to develop paths that lead from where they are today to the new opportunities. These prototypes should differentiate between the needs of "old FSA pathfinders," "new FSA entrepreneurs" and "student searchers."
2. Recommendation #2: The Society's basic and CE education processes should be reviewed and modified, if necessary, to provide the direction and support this plan requires. For example, the Society should use more "symposia" as a way to (1) "ride" emerging issues and (2) get our story out to the targeted non-traditional employers. Such symposia should be extensively marketed.
3. Recommendation #3: The Society's examination content, recruiting objectives and other supporting brochures and education and career recruiting material should be reviewed and revised, if necessary, to properly spotlight the potential for actuaries beyond the historic insurance, employee benefit and consulting environments.
4. Recommendation #4: The Society should refine and implement the suggestions herein for expanding the role of actuaries within traditional employers. This effort must be sensitive to the actions taken in Recommendations #5.
5. Recommendation #5: The Society should establish a crisis task force to both examine and respond to criticisms that actuaries often ar not performing traditional functions with sufficient business perspective.
• Lack of immediate Society action on this front will impede the development of non-traditional opportunities for actuaries.
• Successful Society action will not only enhance the perceived (and real) value of the actuary, but also make expanding roles and responsibilities more natural.
6. Recommendation #6: The Society should charge an implementation task force to develop the desired relationships with targeted non-traditional employers and to prepare Society members for their new roles. The initial efforts should include, but not be limited to:
1. Designing and implementing marketing strategies to inform and educate non-traditional employers.
2. Designing and marketing seminars, programs and other Society efforts to support broadening our horizons.
3. Networking with other professional and business organizations.
4. Initiating actuarial research on identified key issues areas.
7. Recommendation #7: Seminars, programs, section agendas and other Society efforts should be carefully crafted and marketed, particularly in 1991-1993, to send messages consistent with the objectives related to expanding actuarial roles and opportunities.
8. Recommendation #8: The Society should work with universities, search firms and other centers of influence, both to (a) improve our understanding of how they see the needs of those employers and (b) communicate our capabilities and objectives to them.
9. Recommendation #9: The Society should implement a public relations effort, aimed at:
1. Educating SOA members about this broader potentials, providing an individual career planning perspective to guide them.
2. Dialoguing with current employers to obtain a clearer, first hand understanding regarding their negative perceptions about actuaries.
3. Educating targeted non-traditional employers about the value of actuarial skills in their business.
10. Recommendation #10: The Society should initiate and support white papers and research, targeted at establishing the actuarial profession as generalists in shaping and managing critical emerging issues. Examples of such emerging issues include the aging of society (long term care), reshaping medical care, and managing private and governmental financial guarantees.
11. Recommendation #11: The Society should establish a Financial Track in the examination system (including asset, liability and general financial management) to solidify and emphasize the broader financial principles essential to the future of the actuarial profession.
12. Recommendation #12: The Society needs to review ongoing efforts to develop principles of actuarial science to properly reflect and support the work in this document.