Share Your Story – Jack Kerbeshian

[Aisha Ali]

Name:  Jack Kerbeshian

Designation:  FSA, MAAA

Years in the field:  29

Current Company:  Product and Head Actuary at Catholic United Financial – a fraternal insurance company in Minnesota.

How/ When did you find out about Actuarial Science?

After graduating from Gustavus Adolphus College in St. Peter, MN, in 1992, the job market was very tough, and I was thankful to get a job at the brand-new Mall of America selling sports equipment. However, I knew that working in sales was not what I wanted to do long term. I don’t remember how I heard about the actuary profession, but heard it was a great career option and seemed like something I would enjoy. I decided to take a series of higher-level mathematics courses at the University of North Dakota in Grand Forks, ND, that would prepare me for the rigorous actuarial exam process. I got a 10 out of 10 on the first exam and knew then that this is something I could do.

Why did you want to be an actuary?

I heard that actuaries were irresistible social icons. No seriously, there are many reasons to be an actuary, but one that resonated with me was the contribution I could make to society.  By helping organizations manage financial risks and plan for the future, actuaries contribute to the stability and security of the economy. The work ensures that people and businesses can plan for uncertainties, protecting against financial loss. Also, each day is different. I am always learning new information.

I have always been analytical and math concepts came easily to me. When I was young, I would rank everything like the fastest animals, best rock bands and most talented athletes.

What was your first actuarial job or internship?

After passing my first exam, I mailed resumes (yes, mailed them!) throughout the country in search of my first job. My first job was an entry level position in the Pension practice at Mercer in Los Angeles and later in Minneapolis, MN.

My fiancée and I rented a truck, loaded it up and moved to Beverly, Hills that is (not really). Sight unseen and over the phone, we rented an apartment in Glendale, CA. This was interesting thing, without knowing, Glendale has one of the largest Armenian populations in the United States. So, I fit right in with my Armenian heritage. People would speak Armenian to me, not knowing the language as I grew up in North Dakota, I would just nod my head and smile. It was great living in a new city and starting my actuarial career in a different part of the country. I remember driving my little red stick shift truck, without air-conditioning, through heavy traffic to downtown Los Angeles. Back then there was no business casual dress code. Most days I wore a suit and tie attire. Those drives to and from work were warm!

While I learned a lot about pension consulting, I discovered I had a greater interest in the life insurance actuarial path.

What made you decide to join SOA vs CAS?

Both professional organizations can be highly beneficial for actuaries for several reasons, including professional recognition, credentialing and certification, continuing education, professional development, research and publications, advocacy and representation, and ethical standards.

I think that the main reason I went with the SOA was that my first job fell under that specialty.

Personal experience/journey with exam track? How long did it take you to get designated?

Things have changed a lot over the years. When I was taking exams there were many more exams that were smaller. You could take up to three exams in one exam period. I remember exams such as Calculus/Probability, Operations Research, Numerical Analysis, Actuarial Mathematics and so on. Now, the structure is different with fewer but larger exams, and modules that you work on over time.

I started on the Pension track and moved to the Life track after finding that more interesting. I would study almost every night, but enjoyed learning new material that would make “ah-ha” moments at work. It took me about seven years to get through the exams and attain my FSA.

How did you decide on the topic of the SOA Behavioral Science Report: How techniques and models are used to optimize various insurance decisions and processes?

The SOA produces and disseminates research on a wide range of actuarial topics. Access to these resources can help you stay informed about the latest developments and innovations in the field. I was always curious about the latest developments in the industry. I had done a few other published reports for the SOA on Delphi Studies, Accelerated Underwriting, and Yield Curve Extrapolation. It was something I wanted to learn and share with others.

What are some key findings you and your colleagues discover throughout the research?

Behavioral economics can be highly influential in the insurance industry by providing insights into how people make decisions, which can improve customer engagement, product design, and risk management.

Insurers can use behavioral insights to create products that customers find more attractive and understandable. Simplifying complex insurance products can also reduce cognitive overload, making it easier for customers to make informed choices.

Behavioral economics can refine marketing strategies by highlighting the most relevant benefits and addressing common concerns. Using social proof (showing that others are buying or benefiting from a product) or framing messages to emphasize gains rather than losses can be particularly effective.

In my work as an actuarial leader, I frequently use this methodology to share technical information to others at work.

Why do you think it’s beneficial for the actuarial community to know about your findings?

I believe it is best when we can learn from each other. Sharing the research helps spread the information more broadly, making a bigger impact.

Incorporating behavioral economics into the insurance industry can lead to more effective products, improved customer satisfaction, and better overall outcomes for both insurers and policyholders.

Behavioral economics can help improve customer engagement by using nudges to encourage desirable behaviors. For example, automatic enrollment in certain types of coverage or regular reminders about policy benefits can increase customer retention and satisfaction.

Educational initiatives can be designed using behavioral insights to help policyholders make better decisions. Simplifying information, using visual aids, and providing clear, actionable steps can help improve understanding and decision-making.

How do you think this will help actuaries in their careers?

Behavioral economics helps insurers understand the psychological factors that influence customer decisions. This includes biases such as loss aversion, overconfidence, and the status quo bias. By understanding these tendencies, insurers can design products and communication strategies that better align with how customers think and behave.

It can enhance risk assessment by accounting for irrational behaviors that traditional models might overlook. For instance, understanding how people perceive low-probability, high-impact events (like natural disasters) can lead to better pricing and risk mitigation strategies.

It can also help insurers comply with regulations that aim to protect consumers. By understanding and addressing behavioral biases, insurers can design fairer and more transparent practices that align with regulatory requirements.

Any other thoughts you’d like to share? Or advice for other actuaries?

The American Academy of Actuaries has a Behavioral Economics Work Group chaired by Randall Stevenson, Hause Actuarial Solutions. They are moving the topic forward.

Being an actuary is a very interesting ever-changing career. There are always new things to learn. Some might say you are better off focusing on one area or practice career wise. But for me, working in different areas and keeping an eye on the future is far more interesting and enjoyable.

In anything you do, it is good to give back where you can. One excellent way to do that is to use your curiosity to learn about ideas that will shape the future of the industry. With knowledge comes the opportunity to present at annual meetings, publish research, get to network with experts in certain fields, and use what you’ve learned to improve your profession.

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