THE starting salary for an actuary is around $5 million and there should be little wonder why, given the scope of their work.

The actuary is charged with the responsibility to, among other things, mitigate risk, safeguarding in the process the financial future of many individuals and that of the institution they serve.

For insight into the profession, Career & Education talks this week to Willard Brown — an actuary of more than five years and a man who has worked in the field for more than a decade.

He is currently vice-president of Actuarial, Risk Management Departments and Employee Benefits Administrator at Sagicor Life Jamaica. His position sees him entrusted with the responsibility for the pension, underwriting, product development, actuarial and risk management departments.

“My job also involves working with the corporate clients in valuing pension liabilities and also in developing pricing policies for various products which they may purchase from the company,” Brown noted. “In addition, I am involved in ensuring that the company maintains suitable and sufficient assets on its balance sheet to meet its future obligations.”

The 41-year-old married father of three holds a Bachelor of Science in mathematics and computing (double major) from the University of the West Indies and is a fellow of the Society of Actuaries.

Who is an actuary?

Some persons view an actuary as being clairvoyant. However, an actuary is someone who makes reasonable estimation and assumption about the future within a company based on models and probabilities. He or she specialises in identifying, managing and mitigating risks. Traditionally, this field was restricted to life insurance, but has now been expanded to include other things, such as pensions, health insurance, finance and investments.

What is the value of the work that you?

The value of my job can be better explained in an example. From the beginning of a new product, we assist with the design of the product. We assist in ensuring that the premium is accurately calculated so that we have satisfied customers while maintaining the company’s solvency. We look if there are any limitations and ensure that the objectives of the products are met. To sum it up, it is properly identifying a risk in any venture and then developing ways to decrease them, ensuring that there is a win-win for both parties involved.

What was it that prompted your entry into the field?

As a child I was always fascinated (by) figures; I was excited about calculating formulas and coming up with the correct answers. For me, formulas were easy to remember and it was not hard for me to excel at this subject. In fourth form, while attending Manchester High, I won an annual all-island mathematics competition. My teacher at the time introduced me to one of the sponsors, Vivian Rochester, who informed me that there was actually a career in maths. I was happy to learn this because I always felt I would end up being a statistician in order to pursue my favourite subject. After my discussion with Mr Rochester, I made a decision to pursue a career in a subject I was not only good at, but (also) very comfortable with.

What is a typical day like for you on the job?

A typical day for me starts at 7:30 am. The job requires long hours to meet deadlines and for me, I like to get an early start to deal with the plethora of e-mails I receive and need to respond to in an efficient turnaround time. Ensuring that my customers, whether internal or external, are satisfied is very important to me. (And) I have to mention that I have an excellent supportive team who assist me in executing my duties, which entail dealing with all issues that occur from the various departments (for which I have responsibility).

What do you most enjoy about your job?

I do not like being bored and in my chosen field, I am constantly challenged. My job brings variety because I am not the traditional actuary (thanks to) the different hats that I wear. What gives me joy is to reflect at the end of a productive day and realise that both my team and I have added value to Sagicor’s objectives. Making a positive contribution is of (critical) importance to me.

What are the challenges that you face on the job?

Each day brings new challenges and this is what makes the job interesting. I should mention that the changing financial environment adds to making my job a challenge. For example, the Jamaica Debt Exchange reduced Jamaica’s debt burden, but also reduced interest income for investors, including pension plans. So you can recognise the negative ripple effect of the fluctuating financial economy. I also find having to deal with varying personalities a challenge, in addition to meeting multiple deadlines.

What are the academic requirements for entry into the field?

To become an actuary, you need to satisfy the educational requirements of the internationally recognised actuarial societies, for example, the Society of Actuaries (USA) or the Institute of Actuaries (UK).

What other skills and/or competencies are required for the field?

A strong mathematical and computer background is necessary for this type of job. I would add that excellent communication skills and having a strong business mind would make a successful consultant or executive more rounded and polished.

How much can you make as an actuary on an annual basis?

An actuary can start earning from US$65,000 (upwards of J$5 million).

Why would you advise anyone to get into the field?

Although it is not the easiest field to get into, when you are fully qualified I find this profession extremely rewarding, both financially and otherwise. Therefore, if an individual has his strength in mathematics and is disciplined, determined and dedicated to studying, then I do believe it is a career to pursue.