View Full Version : Any advice on Life Consulting

12-05-2001, 04:08 PM
Can anyone give any advice on Life insurance consulting, I don't really know what it entails. What type of duties and projects do they do, what are the hours like, what are the most important skills needed, what are the future prospects? As I know nothing on the subject anything would be appreciated.

12-05-2001, 04:17 PM
I work for a life company and we have used consultants in the past to do pricing work and set up projection models for various lines of business. I've considered a move to this field myself. You get to do all the interesting project work without the mundane everyday tasks.

12-05-2001, 04:25 PM
A friend once told me that as a life consultant, your primary job is to sign a piece of paper claiming that you have honestly derived whatever mortality rates or profitability rates the company hiring you requires. Of course, it is helpful for you to find out what numbers the customer expects.

But seriously, I think life consulting would be like working at a life company but more interesting. You would work on a variety of projects and get to use communication skills.

As possible negatives - travel is likely, and there might be stretches of very long workweeks.

Pub Guy
12-05-2001, 04:50 PM
Most of your questions (eg., work hours) depend on the specific office of the specific consulting company you plan to work for. Some offices have experts in a given area and tend to get a lot of that type of work. The skillset required is that contained by most actuaries (strong analytical abilities and efficient use of spreadsheets and other computer apps).

Generally speaking, however, the following work in life consulting is typical:

Appraisals - projections of inforce and new business cashflows to come up with a value for the sale of a block of business (or entire company); this line of work should be steady for quite a while since the industry is still saturated (IMHO).

Demutualizations - calculation of asset shares to determine payoffs to mutual company policyholders; this market is quickly dwindling however.

Product Development

Asset Adequacy Opinions - generally for smaller clients; this involves projections of liability cashflows and the ability of asset cashflows to meet them.

Litigation Support - insurance companies tend to get sued (eg. vanishing premium, race-based underwriting); you would evaluate the alleged financial damage and value various settlement options.

The tasks above are what I call "traditional" actuarial consulting projects. I'm sure there are plenty of other types of projects which I've missed. Anyhow, I hope this helps.