How did you choose an actuarial career?

I studied mathematics at Cornell University because of its flexibility. Many people told me that as a math major, I could either teach or pursue a PhD, but I knew there were other options. A classmate encouraged me to consider becoming an actuary, which led me to research the field. Although my university didn’t offer an actuarial science major, I joined a club related to it. There, I learned about the exam process, the differences between consulting and insurance tracks, and the distinctions between CAS and SOA. Passing my first exam confirmed my path and I decided to continue in actuarial science.

How would you describe what an actuary does in the simplest terms?

I’ll use life insurance as an example. When you buy a life insurance policy, you’re essentially purchasing a promise. It’s not a tangible product; it’s the assurance that when a specific event occurs (like a passing), a payout will be made to the beneficiaries. However, we can’t make promises without a plan. Each policy we sell represents a liability—a future payment we’ll need to make. But we can’t just wait until that future date to pay up. Instead, we calculate how much money we need today to fulfill that promise in the future.

Here’s where the time value of money comes into play. A dollar today isn’t the same as a dollar 30 years from now due to inflation and interest rates. We also can’t predict what will happen between now and the next 30 years, thus we must rely on assumptions and probabilities to make our best estimate. That’s why actuaries are crucial.

Anytime there's uncertainty, that's when you need an actuary. We analyze economic scenarios, interest rate fluctuations, and unexpected events (like COVID) through various “shocks.” These help us understand not only our baseline expectations but also worst-case scenarios.

What do you do as an actuarial analyst?

I’m part of the valuation team but my valuation role isn’t typical. I focus on projections, specifically projecting liability cash flows into the future and discounting them back to present value. This helps calculate reserves. I collaborate with another team that handles assets, ensuring alignment between our assets and liabilities. The products I specialize in are spread lending products.

You’re in the Student Actuarial Rotation Program. Why did you apply to this program at Pacific Life?

At Pacific Life, there are various functions, including modeling, pricing, and product design. My college experience left me uncertain about my career path. That’s why I appreciate Pacific Life’s Student Actuarial Rotation (StAR) Program, which allows me to explore different roles without being tied to one function for life. The flexibility to find my niche is what attracted me to Pacific Life.

At Pacific Life, many actuaries achieve their Fellow of the Society of Actuaries (FSA) designation, which is a big accomplishment and one I plan to pursue. Pacific Life covers study materials and exam costs, provides company time off for studying, and offers strong support throughout. We even have an actuary student channel in Teams, where people coordinate study efforts. The student program is flexible, allowing me to set my own hours.