Maybe the grass is greener ...

International work experience has distinct advantages, veteran actuaries say

By Lincoln Brunner

Risk, shmisk.

In an industry full of people averse to risk—but in which every major employer is looking to expand its global reach—the heightened sense of danger a young actuary might feel right now about moving overseas pales in comparison to the potential benefits, some industry veterans say.

In fact, there are more international than domestic channels available to people who want to grow personally, especially since the North American Free Trade Agreement began opening the doors in the mid-1990s, according to Jim Toole, an actuary for Milliman in Mexico City. But what about the economic risks of working in, say, Latin America? Well, they present opportunities to people, such as actuaries, who are involved with movement of capital, he said.

"Working internationally is a much greater risk than doing XXX calculations at a desk in Des Moines, Iowa," Toole said. "But in my opinion, the rewards are so much greater."

Those rewards come on the professional and personal levels, Toole said. For instance, his success in promoting SOA exams at Mexican universities has given him a purpose outside his everyday work with M&A, purchase GAAP, and asset and macroeconomic analysis.

"People are so grateful I take the time to talk to them about the Society and what we have to offer," said Toole, who noted that the actuarial profession offers a lot of mobility. "I can’t decide if I’m a big fish in a small pond or just a guy who likes being in Mexico."

Either way, people such as Toole and longtime Tillinghast-Towers Perrin actuary Herbert Mueller prize the chance to work in foreign markets, not just for the ego boost it might offer, but also for the opportunity to learn—really learn.

"I consider the opportunity of working on international assignments a very rewarding experience for an actuary, as you are forced to learn many different markets, cultures, social security, regulatory and political systems, and, last but not least, getting to know the people at the companies [you are] dealing with and elsewhere," said Mueller, a principle with Tillinghast who has worked nearly everywhere in Western Europe in addition to Poland and Bulgaria. "Having worked internationally for an extended period has helped me tremendously in working with local companies in various markets, helping them solve local and global business issues."

Jorge Noronja, who works for Singapore-based NMG, agrees. Noronja’s list of workplaces since his 1994 graduation from the University of Waterloo (Ont.) reads like a Ricky Martin world tour T-shirt: Mexico, Argentina, Chile, Brazil, Colombia, and the Dominican Republic—in addition to two years in Canada as a full-time actuarial student.

He said his time in Mexico (working for Tillinghast) was marked by a lot of merger activity and gave him the chance to attend numerous high-level meetings in lavish settings—a luxury he never could have enjoyed in the U.S. with his level of experience.

"I have found international work extremely satisfying," Noronja said. "In some ways, you have to get back to basics, because in some of these countries, [the] actuarial practice is not too advanced," added Noronja, who recently transferred to South Africa. "International experience is valuable because one can see different regulatory regimes at work. It is possible, in some instances, to guide or advise regulatory direction."

"And even for people such as myself who get only a smattering of international exposure (he’s spent a total of five days overseas in his 23-year career), the experience still has benefits," said Tom Edwalds, assistant vice president for mortality research for Munich American Reassurance Co.

"It has been very stimulating to be able to sit around a table with English-speaking experts from around the globe and discuss a variety of approaches to managing risk," said Edwalds, who sits on two Global Topic Network teams that discuss longevity risk and critical illness insurance. "It was also exciting to get a chance to see a little bit of Europe, even though I didn’t have much time for sightseeing."

Mueller, with extensive overseas acumen, suggests that young people working for international employers should put in for assignments abroad, even short-term stints.

"Otherwise find out about other countries by visiting them for vacations, attending international sessions and seminars, and by joining the international section of the SOA, where the newsletter is full of information about insurance practices in other parts of the world. Above all, try to meet with actuaries who have an international background at your company and at industry gatherings."

And who knows? You may not ever want to go back.

"It’s wonderful," Toole said. "I don’t see myself going back to a U.S.-based organization. I’ve got more relationships down here than I do in the U.S. at this point."

From The Future Actuary, Vol. 10, No. 3,  December 2001
Copyright 2001 Society of Actuaries
and Casualty Actuarial Society