MSActuarial + MBA Finance

[Anonymous]

Hello,
I have finance undergraduate degree and currently doing my MS in Actuarial Sceince at Temple. Question is would a MBA in finance be an advantage for me in the actuarial consulting industry.
I just have to take a 4 extra courses for that MBA. If so would the investment finance track or financial management track be a better choice.

Hoping to get some feedback from those who are currently in the actuarial industry.

Thanks you all

<font size=-1>[ This Message was edited by: Buck Rogers on 2002-01-15 15:57 ]</font>

[Minerva]

From someone who knows almost nothing about MBA programs -

If it's only 4 courses and doable, I'd go ahead and get the MBA. It might not be helpful in "traditional actuarial" work, or add to your credibility with actuaries BUT it might be very helpful to you in obtaining a job, or in enhancing your image with clients or within an organization. Anything you can do to add lustre to your political star is a good thing, and could eventually improve your overall effectiveness.

That said, I don't know enough about that MBA stuff to have any comments on which track would be best.

[Anonymous]

Even if you are not motivatd by $s, take a look at salaries for MBAs and actuaries, at all levels. Also think about that:
As an MBA you are considered an accomplished person, this respect you won't gain in the actuarial field before you are a fellow.
Also, contrary to a relatively recent past, there are so many fellows out there reporting to MBAs! Finally even in insurance company investment departments they hire MBA and CFAs and beleive me at a much more respected position than "actuarial stiudents". Why leave out all these options for 4 "little" courses (compared to actuarial exams, where there purpose is not to train but to weed out, with the side effect that you learn examanship rather than proprer understanding of the material).
Finally, I would go with the investment track, helps with C6 and if you want 8V. Now if you do need to get a job ASAP, try to leave that option open, you never know.
I will avoid covering my a**, by saying this is my humble opinion or this is only my own idea, of course it is and as biaised as someone can be.

[Anonymous]

I think money is not the impetus for everybody, some might prefer earning much less in a job that interests them more or that is more tuned to their values. For instance some actuaries beleive they are contributing to the well being of the nation by providing the basis for health care systems etc (more for the wealthy ones, I personally think, but this is a vast subject and should be discussed on other threads).

Back to the subject, any ideas on salary comparisons and job outlooks?! Many stats like the ones in various handbooks or put out by financial magazines seem to be bogus. Oops this is again another thread.

Finally, is it true as stated above that MBAs have higher profile than actuaries?
Thanks for the answer

[Anonymous]

Finally, is it true as stated above that MBAs have higher profile than actuaries?
Thanks for the answer


Basically all FSA certifications are more less created equal - very little variance in professional prestige (after all, we all are in the same union).

Much greater variance in prestige of MBA programs - first tier (Harvard, MIT, U of Chicago, Stanford, Wharton, etc.); second tier - major public universities; third tier - smaller schools; fourth tier - correspondence course in the back of a comic book).

Also MBA has much broader applications, while FSA has narrower applications.

[Need_A_New_Career]

Let me put it this way -- I have 7+ years of experience as an actuary in life product development, product management, and finance (CFT, GAAP, annual statement, etc.). For the past two years, I have been trying to become a "non-traditional" actuary. I've applied for jobs in energy trading, derivative portfolio management, asset securitization, ... pretty much anything in quantitative finance that wouldn't involve working for an insurance company. So far, I haven't even been invited for an interview. At times, I have had to follow up with (non-actuarial) recruiters just to talk to them. Companies outside of insurance have little or no understanding and/or respect for an actuarial background. All I've ever heard is "we traditionally hire MBAs." So my new plan is to get a part-time MBA, hoping that, in three or four years, I can at least get a company like Morgan Stanley or Merrill Lynch to take a look at me.

I realize that it's a sunk cost; however, I still can't help but curse my decision to invest all that time studying for actuarial exams when I could have just gone to business school and been finished in 1/3 the time.

[Anonymous]

I decided to put the exams on break to do an MBA and it has definetely paid off. I'm in a consulting pension environment and I'm taking exams again, so for now I'm being treated as a regular actuarial student. However, as soon as I become an FSA,my business knowledge will give me the edge with clients that go after the MBA types. Also, as noted by other writers, the MBA will give you more opportunities if you wish to switch to a non-actuarial field in later years.

Good Luck!!

[Anonymous]

Thanks for your feedback. It has helped a lot in getting a perspective of the actuarial career. However I am curious though if a MS in Actuarial Sc is actually worth anything. I mean it seems actuarial employers are more interested in # of exams passed rather than what kind of degree one has. Am I right?

[Axsuetarian]

you are absolutely right

As for the banks hiring actuaries, it is quite rare. They'll tell you something like:

"Oh, we don't hire actuarial students, we're looking for people with quantitative risk backrounds!"

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[Anonymous]

I am an actuarial student with 3 years experience in Individual Life and Health consulting. Extra degrees never hurt. I'm sure you are learning valuable skills. As a student an MS or MBA might mean that your employer could bill you at a rate that was a little higher. Still, it is my impression, neither designation is worth a whole lot professionally speaking. However, some of the consultants that I know in different areas, like the above pension actuary, would completely disagree with this, especially with the MBA, which indicates a breadth of knowledge that is different than the knowledge indicated by an ASA or FSA. So, it depends some on what field you enter. And yes, exams are more important. Pass as many exams as you can as soon as you can. It does not get easier when you enter the workforce.