MBA or MS at this stage??

[msingh1985]

Hi guys,

need your advice regarding the program choice I have to make.

I completed my 4 yrs undergraduate degree in mechanical engineering in 2006. Now I have 4 years of work experience in P&C insurance in US and London markets as a business analyst. During this period I have worked in different IT projects for two large US insurers and one UK insurer and have gathered considerable business knowledge about these markets in various insurance products. Off late I have started gaining lot of interest in actuarial side of it owing to my liking for mathematics since childhood. I have always been an outstanding student in the mathematics courses during school and college. My undergraduate program was not concentrated in maths though. To further my interest I have cleared following exams from SOA :

Exam 1/P and Exam 2/FM and VEE Corporate finance (through CPCU 540)
In addition to above exams I also have a certificate in general insurance INS from AICPCU.

I am wondering at this stage whether an MBA (major in actuarial science) or a specialized Masters program in actuarial science would be suitable for me. And do I stand eligible for these courses? I had three semesters of undergraduate calculus in my college but didn’t have any probability or statistics related coursework. Do first two SOA exams fulfill this criteria?

Your inputs will be highly appreciated!

[Anonymouse]

Not certain if an MBA (major in act sci) exists. Given your work experience, exam progress, and cert from AICPCU, you might consider applying for entry-level actuarial student roles.

The typical MS program will provide you with exam prep and some recruiting opportunities. I question whether that outweighs the opportunity cost of taking time off work and paying tuition, especially since you've passed a couple of exams. Passing the exams by self study is worth more than passing them by taking preparatory education.

I suggest you head over to the careers section, read the entry-level thread through, and search for threads related to cold emailing the SOA directory.

If you do plan on doing an MS, the most benefit you'll get from it is the recruiting opportunities. Therefore you should consider the largest schools that attract the most employers.

[Anonymouse]

I'll add that given your (assumed) proven technical background, your highest marginal return will probably come from developing more general business skills (speaking with confidence, relationship building, etc). I have no idea where you stand in that respect, but that's generally true for most candidates.

[msingh1985]

thanks anonymouse for your valuable inputs!
Currently I work in India and the entry level actuarial job market is not so great here both in terms of number of opportunities and salary. And to get a job in North America, first requirement is to get the work visa which is easier if you complete your masters from there. And it (masters) provides recruiting opportunities too.

As per your advise on building business skills, don't you think an MBA would be more beneficial for me in that respect? Following are the universities which offer MBA with a major in either actuarial science or insurance and risk management:
Georgia State University
University of Wisconsin Madison
University of Pennsylvania, Wharton

[Anonymouse]

In your case the master's definitely would be better, and probably the MBA. I didn't research the MBA programs, but the typical MS probably isn't suited for you. The MS would be better for you if all of your work experience had been in mechanical engineering and you hadn't passed any SoA exams. Wharton would be the best bet from those three. Just make sure that you have access to all recruiting activities that the actuarial students have.

Be aware that the entry-level market is a bit saturated right now and international students are having an especially difficult time due to the visa issue. I don't know where the market will be in 18-24 months, which I assume is your time frame.