Is dedicating multiple years, thousands of study hours, to learn many ever-evolving, extremely difficult actuarial concepts and equations enough to become credentialed? Absolutely! The exams do an outstanding job preparing candidates with the necessary tools to become effective actuaries. Actuaries need to know the numbers, and passing exams are the means to ensuring that. Passing numerous challenging exams is a significant accomplishment, worthy of praise and marks the end of a long, arduous journey. 

However, becoming a credentialed actuary is just the beginning. Going beyond the equations to uncover the story behind the numbers is key. Actuaries have historically been relied upon for their quantitative expertise and more recently are increasingly asked to build tools for core insurance functions, such as pricing, reserving and capital modeling. This is why exams now include aspects of coding; knowing the math behind the model ensures the accuracy of the code, a crucial step that takes years to master.  

Knowing the math and coding is an advantageous foundation for becoming an influential storyteller. The key here is to become a storyteller. Our minds are wired to enjoy, comprehend and remember stories. Crafting a compelling story involves prioritizing information and knowing which words work best to address the various needs of different audiences. Answering potentially ambiguous questions clearly and confidently for executives becomes even more paramount as a credentialed actuary; the audience shifts from exam graders to a mix of actuarial and non-actuarial business partners.  

So, what’s the answer? How do we become effective storytellers? Analogies. Selecting analogies that resonate with your audience can help connect the familiar to the unfamiliar. Cakes are likely more familiar (and more enjoyable) to most audiences than unfamiliar and complex math. The analogy of a cake, for example, can be used to explain a GLM: more precise ingredients, such as higher-quality flour, contribute to higher-quality cakes; more precise techniques, such as GLMs, contribute to higher-quality, more accurate predictions. Analogies can help make concepts more concrete, emphasizing the relationships involved versus the complex math involved.  

The exciting news is that higher-level exams increasingly recognize the importance of storytelling. Actuaries need to know not just what to do, the math or the mechanics behind a model or product, but why it’s being done. They must also explain and advocate for certain actions to non-technical or non-actuarial audiences. Actuaries are becoming more responsible for not only predicting the future but also explaining it effectively. This sounds easy but is hard to do. The importance cannot be overstated. This requires humility, acknowledging that mastering technical skills is a means to an end and not the end itself. Conceptually, a story is simpler and easier to understand than complex actuarial jargon. The key to futureproofing as an actuarial professional is to embrace continuous improvement in communication skills, even after becoming credentialed. 

The investment in continuously developing communication skills is worth it, as it ensures that others understand actuarial insights. This not only enhances individual careers but also strengthens the profession collectively. The actuarial profession’s future lies in this blend of technical excellence and compelling storytelling — two sides of the same coin that together will keep the profession thriving and respected. 

Editor’s note: To learn more about storytelling, see the Actuarial Review article, “Tell a Story; Get Results,” by Laurie McClellan.