Actuaries typically major in actuarial science, mathematics, statistics or economics. The true distinction is the sacrifice, dedication, commitment and superior mathematical skill set to complete a series of rigorous examinations offered by the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). The typical "travel time" to attaining their respective designation(s) is roughly six to eight years. Typically, most employers will offer actuarial exam support, both financially and by providing paid study time. 

So, why the ever-growing demand for actuarial talent? 

It was once believed that actuaries are needed specifically in bad times or in good. Today, actuaries are needed to manage the rapidly changing risk landscape—the changes keep coming. From a regulatory perspective, there was Sarbanes-Oxley and Frank-Dodd; now the ACA/Healthcare Reform and Solvency II will keep actuaries gainfully employed long into the future here in the U.S.  

Another challenge the insurance world faces are the extreme shifts in demographics. We aren't just talking about the impact of mortality tables on the aging population of baby boomers. In converse, the profession's sustainability and growth will depend heavily on its ability to attract and retain Millennials, who are expected to comprise up to 75% of the workforce in 10 years.

Many will argue that there are other key drivers that will have a greater impact on the economy, employment and the insurance industry. No one can deny, however, the exponential impact of the advancement of technology on everything we touch and cannot touch. In the insurance world, one cannot ignore the insurmountable amount of data being captured and collected. This shift has led to the biggest disruption and explosion: big data and analytics, which also includes modeling (predictive, catastrophe and economic capital). Everyone is trying to make sense of the data, and the ability to do it more swiftly, comprehensively and accurately will provide an enormous competitive edge. Once there were two unavoidable things in life: death and taxes. Now you can add data to that list.

Actuaries serve as backbone of change

In summary, consultants love to talk about modernization, industrialization and transformational change while taking a holistic, enterprise and interdisciplinary approach to solving problems and challenges. Mostly, everyone is doing that already in some form, from GEICO to Google. Science without humanities lacks imagination, thus thwarting innovation. Diversity, including that of thought, is critical and necessary.  

So, as we look up from our smartphones and into the future through the windshield of our driverless car, which is insured by an insurance company that probably uses telematics, we ask ourselves: "What role will actuaries play in the rapidly changing world of risk in the next decade?" They may not necessarily be leading the charge or even doing the heavy lifting, but they serve as the backbone of change. After all, who better to serve as the connector of ideas, people and analytics? He or she will probably be a Millennial, and most likely a double major who knows that Leo is more than just a sign.  

KC Cho is a Partner at the largest Actuarial Search Firm in the world, DW Simpson Global Actuarial and Analytics Recruitment in Chicago, Illinois. He joined DW Simpson in October of 1995. Outside of his recruiting, client management, and business development responsibilities, K.C. is heavily involved with the firm's key initiatives of recruitment, training and development of staff. He also continues to play a critical role in the expansion and development of DW Simpson's strong presence in the Canadian market.