Lights, Camera, Actuary

search & selection

LIGHTS, CAMERA, ACTUARY!

Bolton Associates’ focus is specifically in the non-life actuarial space; the largest dedicated GI actuarial specialist in the market.

Working throughout the insurance market, the consultants at Bolton Associates offer an exceptional service, managing the process with the utmost tact and respect for all parties.

We are passionate about our market, taking great interest in the insurance world as a whole, keeping up with trends and changes, and maintaining our everexpanding network.

The next focus for Bolton Associates’ Spotlight page, is an interview with a leading actuary within one of the market’s MGAs. As the Lloyd’s and London Market has evolved, more and more new entrants are turning to the Managing General Agent set-up option. Many of these new businesses are sitting under umbrella MGAs, who have a number of individual underwriting teams, and assist with providing capacity. These MGAs understand the value of analytics and actuarial input, and for the next few months Zoe Bolton will be talking to the senior actuaries in these firms, getting a brief insight into their career paths and visions for the future. This month Zoe talks to Mark West, Chief Actuary of Vigilis Underwriting.

What is your current role, and how did you end up in it?

I consult as an actuary with a Household/Commercial MGA providing a range of actuarial and analytical services. It’s my first foray outside of the traditional London Market but if you understand the different business needs and pressures you understand the role.

What is the defining moment of your career to date?

I think it was during my first GI role when I realised that I understood the client’s business and concerns. It increased the range of wins I could get from a situation.

Within a pricing context it sometimes seems the actuary only matters if you can get to the price. I was able to explain to both the brokers and clients what had changed within the business during the year to alter the price along with the pricing/risk changes we needed to be able to participate the next year.

In your opinion, what prepared you best to take on your current role?

I’ve benefitted massively from being able to work across pricing, risk, reserving and capital seeing the similarities and differences within a range of business models. I can fit the approach to the current business needs and I can accept when “my” solution needs to change. As an actuary you often build a model, a business structure or a process that is fit for purpose at that point in time, knowing when it’s no longer fit for purpose is vital.

What is the biggest challenge you face in your role within this market?

As the market hardens in some areas it may be tempting to let standards slip to support top line. Firms need to focus on their strengths and MGAs have a role within this, not least in helping brokers understand how to deal with rate hardening.

In many ways I see the insurance market getting tougher in the future. The insurance lifecycle comprises selection of risk, risk managing exposures and running down old business efficiently. Actuaries can help management understand both their sectors of excellence and the firm’s competencies within the lifecycle. The best firms of tomorrow will be those who understand their business model and focus on their areas of excellence whilst using external suppliers for noncore areas; top management time is precious.

How does your actuarial training and background assist in your day-to-day role now?

The actuarial education system gives high quality training across accounting, economics, statistics and data analytics. To add value you need to give actionable insight to management using these tools and business understanding. I’ve worked with a range of technical and non-technical mangers and having a compelling narrative backed by analysis helps you to influence effectively. Experience has also taught me that people won’t always follow your recommendations; you have to accept those decisions, support them, and move forwards.

When did you first join the Institute & Faculty of Actuaries, and what advice would you give to those students looking to emulate your career path?

I joined the Institute in 2002 and moved across to GI in 2006 in the wake of Katrina, Rita and Wilma. Whenever you start a new job, or change roles within a business, write down your initial thoughts. After 6-12 months look back with the knowledge you’ve gained and think what you understood straight away and things you missed. It’s too easy to think, with 20/20 hindsight, that you understood it all at the start which is a waste of a valuable learning opportunity.

If you had your time again, what would you do, career-wise?

If I wasn’t an actuary I’d like to be running a 2/3 Michelin starred restaurant on the beachfront somewhere warm.

Please share your favourite piece of trivia with our readers!

Thorium based nuclear power was investigated in the US during the 1940s. It produces around 99% less nuclear waste and also eliminates the risk of a core meltdown. It is much harder to create nuclear weapons from Thorium reactors so research was discontinued in the US in 1973.