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  #1  
Old 09-21-2017, 11:04 AM
CowboyGuy CowboyGuy is offline
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Default Head of Valuation/Inforce has the toughest job?

Responsible for monthly/quarterly/annual reserving for ALL products in-force. Mostly all frameworks such as Stat, GAAP, Tax, IFRS etc. Pricing works on one or few products at one time, Valuation works on ALL the products/plan codes that have ever been sold by the company, mostly in hundreds or even thousands. Gotta implement new, upcoming reserving frameworks. Deals with financial reinsurance arrangements such as Captives. Responsible for experience studies. Implementing newly priced products/models for valuation. Has to be very technical even at that senior level, together with managing a department at the same time. Has to learn, understand and deal with current and upcoming valuation software. Model conversions. Communicating and explaining the results to the senior management.

Can we all agree that it is one of the toughest jobs in actuarial and perhaps the least dollar amount return for the work done?
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Old 09-21-2017, 11:56 AM
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ElPatron ElPatron is offline
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Originally Posted by CowboyGuy View Post
Responsible for monthly/quarterly/annual reserving for ALL products in-force. Mostly all frameworks such as Stat, GAAP, Tax, IFRS etc. Pricing works on one or few products at one time, Valuation works on ALL the products/plan codes that have ever been sold by the company, mostly in hundreds or even thousands. Gotta implement new, upcoming reserving frameworks. Deals with financial reinsurance arrangements such as Captives. Responsible for experience studies. Implementing newly priced products/models for valuation. Has to be very technical even at that senior level, together with managing a department at the same time. Has to learn, understand and deal with current and upcoming valuation software. Model conversions. Communicating and explaining the results to the senior management.

Can we all agree that it is one of the toughest jobs in actuarial and perhaps the least dollar amount return for the work done?
I definitely agree for small/mid-size insurers. My observations make me believe it's one of the most stressful positions to have as an actuary. Not sure about the monetary trade-off, but the intangible amount of stress is enough to where I would avoid it.

Less so for large insurers because they will typically separate LOBs and a lot of the tangential work like experience studies, reinsurance, and maybe even some reporting regimes into completely separate departments. My prior employer had 5 "valuation/appointed actuaries"... one at the top of each major LOB and an experience studies team with 10+ people. The boss-boss head of valuation was more of a people manager who made strategic decisions about organizational structure and operations.
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Last edited by ElPatron; 09-21-2017 at 11:59 AM..
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Old 09-21-2017, 01:43 PM
monkeyunited monkeyunited is offline
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Originally Posted by ElPatron View Post
Less so for large insurers because they will typically separate LOBs and a lot of the tangential work like experience studies, reinsurance, and maybe even some reporting regimes into completely separate departments. My prior employer had 5 "valuation/appointed actuaries"... one at the top of each major LOB and an experience studies team with 10+ people. The boss-boss head of valuation was more of a people manager who made strategic decisions about organizational structure and operations.
This is what we had at the place I interned (albeit not in US). We had multiple teams handling different LOBs with a big actuary boss managing these teams.

Last edited by monkeyunited; 09-21-2017 at 01:46 PM..
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Old 09-21-2017, 05:25 PM
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Agree with what others have said and will add one thing:

Your assertion about low pay is misguided. These are probably the highest paid actuaries.
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Old 09-21-2017, 05:36 PM
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These are probably the highest paid actuaries.
+1
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  #6  
Old 09-21-2017, 05:52 PM
Josia Josia is offline
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I have experience in most aspects of actuarial (health). Valuation is by far the easiest and least stressful. Where I am at, Valuation is primarily a reporting unit. Most of the reserve $s are actually determined by the forecasting/pricing teams, since it is common for the most recent month reserves to be set such that the reserve + paid-to-date hits the forecasted level of claims.

Other areas (pricing/forecasting) are tasked with explaining results and variances to execs, as well as predicting and pricing for the future. Much more interesting, but also more challenging and stressful.

Could just be the difference between small and large insurers, though, as ElPatron noted.
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Old 09-21-2017, 06:07 PM
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Valuation is only bad at the end of the year really.

I have done it for a few years and in between the usual monthly and quarterly valuations, there is not a massive amount of work to do.
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Old 09-21-2017, 07:55 PM
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Valuation is only bad at the end of the year really.

I have done it for a few years and in between the usual monthly and quarterly valuations, there is not a massive amount of work to do.
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Old 09-21-2017, 11:22 PM
30pcssilver 30pcssilver is offline
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The difficulty behind valuation is going to vary significantly when comparing short term products like group health to long term products like UL and VA.

When I've worked on the former it's easy peasy. When it's the latter it can be much much more complicated.
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Old 09-21-2017, 11:23 PM
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These are probably the highest paid actuaries.
r u hiring
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