Rites of Passage
By John Blocher
The Stepping Stone, June 2025
Many actuarial career paths involve definable rites of passage in leadership and development. When defining these, an actuary is either in charge of the effort or in the top tier of those involved in the project. Generally pre-ASAs will be assisting, ASAs and newer FSAs may be doing most of the work, and the actuary in charge is leading the effort, reviewing and asking questions.
Not every actuarial career path involves equal opportunity for each rite of passage. Full development as an actuary involves all of them. Leadership capability increases with each one completed. If none of these happen or seem to be available, make more connections. It may require a transfer to another area for potential exposure to a desired rite of passage.
Documentation, Process Control and Redesign
This rite is quite likely the first one encountered. Any process performed the same for two consecutive years is due for review. The longest time I have seen a process continue unreviewed was 15 years and plenty are in the 5-year range. Unreviewed processes can result in work being performed inefficiently or that is no longer necessary.
Documentation is most often for your own use the next time. Review doesn’t automatically mean a change or redesign, just that the process should be thoroughly checked against original sources and best practices to understand whether it is working properly.
Seek opportunities to document and review processes, establish or strengthen process controls, and redesign processes when necessary.
Reorganization, Hiring and Firing
This rite is frequently the second one encountered. Some companies are addicted to reorganization, and this occurs quite frequently, while others almost never reorganize. I worked for one company long enough that the multiple rounds of consultants made the full circle from centralized to decentralized and back to centralized. The best reorganization efforts are performed completely inside the organization by those directly involved and stay relevant for a long time. Never reorganizing can indicate no one is thinking about optimizing the organization.
Everyone wants to hire and not fire. I’ve hired plenty and fired a few. Firing involves additional specialized human resources/company-required documentation effort that may not exist anywhere else. It can be one of the more difficult rites, but is important to manage well. Plus, it can be demotivational to other employees when they see you hanging on to poor performers and resistant to doing what may be necessary.
Seek opportunities to perform reorganizations, even smaller ones, and actively hire, and fire when necessary.
Acquisition, Sale, Reinsurance of Companies and Blocks or Lines of Business
This rite is frequently mid-career. Any company considers acquisition, sale or reinsurance of a block or line of business occasionally. Reinsurance could be ceding or assuming. The first deal will be especially educational, and some deal negotiations are of the same experience value as working regularly five times as long as negotiations last.
Reinsurance can involve a new deal, an amendment, or a partial or full recapture. I’ve done them all. The right amount of reinsurance is beneficial for a company in multiple ways. Acquisition and sale may involve managing consultants who specialize in M&A.
Seek opportunities to perform acquisition or sale of blocks of business or companies and suggest, implement and amend reinsurance transactions.
Strategy and Risk Involving Adding/Expanding or Exiting/Reducing a Line of Business
This rite is frequently mid-career. Companies always need good strategic thinking and enterprise risk management (ERM). These are in short supply because it is so difficult to see around the next corner of the economy in even the short-term. Many can’t see past whatever they are working on or how to add additional value to the company.
ERM in a vacuum is not particularly useful, but ERM applied directly to a line of business can work wonders for a company. Properly done, lines of business will increase or decrease as a result of strategic thinking and risk analysis. If nothing ever changes or the stress results are always green, the strategy, and possibly ERM, likely needs improvement.
Seek opportunities to design corporate strategy and work in risk.
Improve the Profession and Industry through Speaking, Writing, and Volunteering
This rite is not optional, though many avoid it. To be a top leader it is necessary to be speaking and writing at least occasionally. I tend to write and speak about something I think is important enough. Sometimes I know nothing will happen for a while, but I want the concept on the record for later.
Included here is commenting on, working on, and suggesting an Actuarial Standard of Practice (ASOP) from the Actuarial Standards Board. Many volunteer opportunities exist depending on interests and time available. Another way to help improve the profession beyond just volunteerism is to seek guidance from the ABCD when you encounter potentially unethical behavior, which happens more often than many like to believe.
Seek opportunities to speak, write, and volunteer in an aspect of insurance or the profession.
Mentor and Coach Within or Outside the Same Organization
This rite is important for continuity in the profession. Over a career of leadership and development, share knowledge and support for the next generation of actuaries. I’ve mentored officially and unofficially and have intervened at times for coaching when necessary. While historically most mentoring and coaching experience was with pre-ASAs and college students considered for internships and entry level hires, I have more recently mentored credentialed actuaries. Knowing more or working just a few years longer than the actuary being mentored is usually enough to be helpful. Sometimes just asking the right question can help highlight an issue.
Seek opportunities to coach and mentor, and don’t be afraid to intervene discretely when an acute situation occurs.
Conclusion
For each rite of passage, an action starts with “Seek opportunities...” There is a reason for this wording, as each is not always consistently available nor all from the same position. It may require moving from one position to another or from one company to another for access to one or more of them.
While completing each of the rites of passage is no guarantee that designation as a corporate officer or other desirable position will occur; completing each one well will work toward that goal. It may occur earlier for some actuaries and later for others depending on many other factors. The capability and confidence gained as a leader will happen progressively as these are completed and that is its own reward.
Assess the situation and start working to fill in any missing rites of passage!
Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the respective authors’ employers.
John Blocher, FSA, MAAA, is chief risk officer, vice-president, and actuary at Liberty Bankers Insurance Group, and participates on select SOA and Academy Committees. He can be reached at john.blocher@lbig.com or via LinkedIn.