Risk management

Question

Does anyone know anything about careers in catastrophy modeling for insurance companies or similar?

MoonShine · Answer

There are generally departments within insurance companies who run and analyze catastrophe data and decide how much risk/exposure a company/business unit can take. A common position is Catastrophe Analyst, where you'd work as part of a team and be responsible for a specific segment or territory. Many of these people have taken a few actuarial exams, and also posiibly working on obtaining the ARM designation. If you want to eventually become a "bigwig" in the insurance industry, this type of position will help. An MBA is not required, but can definitley help if you want to move past the analyst title and become more than just a number cruncher.

rhyme · Answer

Yea I got one... Is it as tedious a job as it sounds like?

"hey moonshine!"
"Yea?"
"Monsanto is taking a break from being the world's most evil company and is shipping some pigs from Asia to the US. We need a total loss quote." 
"Ok, I'll crunch some numbers."
"Thanks"

later that day

"Yea, I crunched the numbers. The tanker and pigs should run em bout $14,250" 
"Thanks. Hey, Monsanto has also decided to buy a hotel property in the keys. They need full liability coverage. Get them on the horn and sort it."
"OK"

later ...

"How many stairs are there? How many elevators? How many floors? Is there a hospital within 5 miles? How about a fire station? Do you have emergency lighting?" 

later on that day

"Hey yea, it'll be about $650K per year to insure it."
"Thanks."

Repeat ad naseum?

EconGirl · Answer

Awesome! well anything you can share would be much appreciated. To me it actually sounds kinda cool but I never met anyone who did anything like that so I'm just interested in learning more about it. They emply similar models in healthcare industry as well, right?

MoonShine · Answer

Rhyme,

Yes, it is very tedious.

MoonShine · Answer

Yes, they do have similar models in healthcare.

rhyme · Answer

Yea, but Catastrophe Analyst has to be the coolest title yet.

agsfaltex · Answer

Agreed

MoonShine · Answer

You may also want to type in "Catastrophe Analyst" in monster. This should give you an idea about what it's all about. Lot of these positions prefer a statistics heavy concentration and actuarial exams.

rhyme · Answer

I just vomited.

gogetter · Answer

I will have echo rhyme's sentiment... I did an internship with AON and worked in my schools Risk Management and Decision Process Center during the year... thought I was going to do actuarial stuff after graduation.. and turned down the job because (at least the actuarial side) didn't offer enough variety. There are cool positions e.g. with Mercer/MOW that are more Risk Management consulting and are MBA route rather than actuarial. You will work for the same companies (AON/Marsh) but the work is much more interesting. Bottom line.. avoid exams at all costs :-D

johnnyx9 · Answer

I know some really smart people who have struggled to pass those actuarial tests. Some really incredibly tough quant stuff.

MoonShine · Answer

A friend of mine is on his 5th test. He has a set study schedule for each one; 34 hours/week (4hr per weekday, 7 hours on Sat & Sun) - for 3-4 months straight. I say definitley try avoid taking these tests at all costs.

kidderek · Answer

I thought of pursuing a career in actuarial science. I think the lifestyle (hours/stress/etc) is pretty good, but for what they do and all the testing they go through, they are vastly underpaid.

londonluddite · Answer

There is a guy at the IB i work at with the job title Chief Philanthropy Officer - my favorite! Giving away the banks money :-D

Risk management

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