Why this path matters for actuaries
When one thinks of actuaries, an initial instinct is often to link them to pension funds, life and group insurance, or property and casualty insurance. However, actuarial training also opens the door to non-traditional fields such as banking and capital markets.
Understanding and promoting these non-traditional areas of practice will allow future CIA members to recognize the wide range of career possibilities available to actuaries interested in alternative paths. Inspiring examples are more common than one might think, and they provide aspiring actuaries with reference points for such journeys. My own path, presented below, is one of them.
Academic foundations: Building actuarial skills
When I began my academic journey, my path followed a fairly traditional route: I made decisions that felt like the logical next step. When selecting my university program, my passion for mathematics stood out, which led me to enroll in the actuarial science bachelor’s program at Université Laval. Since I was also interested in other areas such as risk management, programming, economics and finance, actuarial science proved to be an excellent choice. After completing two summer internships during my undergraduate studies, it became clear that I could see myself building a career in the field.
My final year of actuarial studies was pivotal because students were given the opportunity to select elective courses. My interest in finance had been present throughout my degree, so I decided to deepen it by choosing courses related to financial theory and capital markets. These electives confirmed my strong interest in finance.
Choosing capital markets: A career pivot
Having confirmed my interest in finance through several electives during my undergraduate studies, I decided to pursue a master’s degree in it to further develop my financial expertise, with the goal of making it my long-term career choice. This decision formalized my transition from traditional actuarial sectors to a non-traditional field.
I always had some doubt about whether I was making the right choice, but since I was already studying full time, it felt better to take the leap then rather than risk having regrets years later. My thinking was clear: I preferred making the transition during my studies rather than in the middle of a growing career. In other words, it was time to take the risk.
Like any good actuary, however, this risk was calculated. I knew that the skills I had developed during my undergraduate degree – particularly my analytical and structured thinking – would help me succeed in this transition.
Entering the banking sector: Actuarial skills in capital markets
During my master’s program, I secured a summer internship in capital markets on a foreign-exchange derivatives desk. This experience enabled me into the banking sector and demonstrate the added value of my actuarial background. In many situations, my profile proved complementary, helping me stand out and ultimately secure a full-time position upon completing my degree.
The full-time role was more diversified. I continued working in derivatives but across all asset classes: foreign exchange, interest rates, commodities and equities. Broadly speaking, the role was to support and advise clients, primarily large corporations, on analyzing and managing the financial risks arising from their business activities. More specifically, the mandate was to provide risk management solutions and strategies using derivative products.
In capital markets, professionals analyze and quantify different types of risk faced by companies to determine their net exposure to market fluctuations. Using derivatives, we develop tailored strategies to reduce this exposure while ensuring they align with the client’s needs. To do so, we frequently rely on scenario analysis and analytical models to assess the expected performance of a proposed strategy over time, while navigating the various constraints clients may face.
Advantages of an actuarial background in banking
Coming from an actuarial background and working in a purely financial sector allows me to complement the analytical framework offered to clients with a different perspective from that of my colleagues. Actuarial training fosters strong technical skills and a deep understanding of complex models (financial, predictive, etc.).
For example, in one case we built a scenario-analysis model to assess the impact of currency and interest-rate fluctuations in the United States and Canada on the performance of a strategy combining multiple derivatives, with a goal of identifying the optimal timing for its implementation.
Furthermore, the rigor developed throughout actuarial training – academically and through professional exams – helps actuaries build autonomy, resourcefulness, curiosity and strong priority management skills. These abilities are highly valuable in banking when handling complex mandates (files with multiple constraints) or meeting tight client deadlines (delivering a model or analysis within a short time frame).
Naturally, actuaries’ ability to build models and analyze data enables them to stand out in various professional contexts. When combined with strong interpersonal skills, these capabilities are highly valued in non-traditional actuarial sectors. For example:
Actuarial analytical reasoning differs from that of many other professions and complements the approaches typically used in non-traditional fields, allowing us to think outside the box.
Challenges and adaptation in a non-traditional role
Although actuaries have strong intellectual skills to contribute to non-traditional sectors, successfully transitioning beyond traditional paths requires a high degree of adaptability.
In my case, the work dynamic between traditional actuarial roles and capital markets is very different. My daily routine is fast-paced and calls for heightened responsiveness in urgent transactional situations, requiring me to think quickly and accurately under tight deadlines. In such situations, the key for me has been to remain calm and attempt to slow things down mentally in order to respond effectively. More broadly, mentoring sessions with more experienced colleagues have helped me better manage these situations. Over time and with experience, certain reflexes develop, enabling more effective responses in high-pressure environments.
Additionally, working alongside professionals from different backgrounds often requires rethinking communication habits. Clearly and effectively explaining actuarial concepts to colleagues is essential to ensure proper knowledge transfer. Taking time to clarify concepts and adapting how I present them has been a winning approach for me, and has improved my communication skills over time.
Conversely, as actuaries, we must also adapt to the language and terminology specific to the field in which we operate to ensure smooth processes and interactions. This learning curve can be even steeper when the transition occurs later in one’s career. In my case, my master’s degree provided a solid foundation in financial language. Once I was in the job, it was important to act like a sponge – absorbing as much information and terminology as possible. Over time, these elements become second nature.
Lessons learned and advice for aspiring actuaries
Overall, several aspects of this transition surprised me – elements I had not necessarily anticipated when embarking on this journey. For example, it is crucial to invest time outside of regular working hours to learn new concepts specific to the field, whether through self-study, continuing education or reviewing materials prepared by colleagues. In finance in particular, the learning curve is steep and can sometimes affect morale. Fortunately, being aware of this in advance helps one prepare mentally.
Key factors that enabled me to succeed in this transition included my genuine desire to learn new finance-related concepts and my organizational skills, which proved essential when managing more complex mandates. Each person will rely on different strengths during such a transition, but maintaining an open mind in the face of challenges is essential.
The process of transitioning into a non-traditional actuarial field can be long and demanding, as it requires significant adaptability. Actuaries or future actuaries embarking on this path must be patient and give themselves time to learn and integrate into their new environment.
One of the most important pieces of advice is not to wait for the “perfect moment” to make or consider such a transition. Perfect circumstances rarely exist. What matters most is the desire and willingness to begin the process, along with the recognition that actuarial training equips us with the tools to succeed in non-traditional fields through the competencies developed during our academic journey.
Seeing beyond traditional paths
Without a doubt, the skills developed through actuarial training are applicable to non-traditional fields. The development and education of actuaries foster both critical thinking on broader issues and the ability to apply analytical skills to a wide range of mandates. The competencies acquired as an actuary allow us to stand out professionally, and actuarial expertise is valued across many non-traditional sectors, offering opportunities to explore these fields and showcase our strengths.
In moments of doubt, it is worth reflecting on the rigor of actuarial education and the strong foundation it offers to those willing to step off the beaten path.
Cédrick Gosselin, FCIA, FSA, CFA, is an actuary at National Bank of Canada, where he works in a banking environment at the intersection of actuarial analysis and financial decision making. Based in Montreal, his experience includes applying actuarial thinking within a large Canadian financial institution, with a focus on issues relevant to the banking sector.
This article reflects the opinion of the author and does not represent an official statement of the CIA.