Bernadette Hlavka

Name:: Bernadette Hlavka
Age:: 26
Company: Aspen Re
Role/Title:: Trainee Actuary
University/Degree:: City University/Actuarial Science

Describe your role.

I am a trainee Actuary working in one of the largest Actuarial departments in the London Market. I am mainly working in the reserving area but also get involved in asset-liability modelling.

What have you done in your career so far?

I joined Aspen Re in September 2004 through the Aspen Re Graduate Programme. For the first month all graduates underwent intensive training to equip us with the necessary IT skills and market knowledge to embark on a career in (re)insurance.

I then joined the reserving team which is mainly concerned with quarterly evaluations of our insurance liabilities and premiums. This requires me to work with claims handlers, underwriters from both the insurance and reinsurance sides and the finance team.

I am also involved with monitoring the change in premium rates from one year to the next and the projection of future cash flows to support our investment strategy.

Describe the training you have received.

Aspen Re really invests in the development of their graduates and offers very diverse and adequate training. Initially, we received training on the major software packages used, developed presentation skills and got ourselves up to speed with London Market products and terminology. During our formal two years of training we attended workshops held by the different underwriting departments and support functions. Aspen Re also offers monthly lunchtime lectures on current market topics which are open to everyone but especially pitched at graduate level. The most beneficial training though is on-the-job. We are given responsible jobs from day one where we can learn and develop through the supervision of experienced and qualified team members.

Have you pursued further qualifications?

I am studying to become a qualified Actuary with the Institute of Actuaries. This is a critical component of my career progression which will eventually enable me to move into senior actuarial positions. I was lucky to obtain a number of exemptions due to my degree.

Nevertheless, finishing the exams is a great challenge. Work, study and life balance has to be managed carefully and I receive a lot of encouragement and support from my colleagues here at Aspen Re. The study package Aspen Re offers is one of the best in the market.

What do you do in a typical working day?

As part of the reserving team I have to evaluate the ultimate liabilities for several books of business - let's take one of them: Aviation Liability insurance. Firstly, I need to gather claims and premiums data for this business. The total advised claims costs are grouped into accident years and shown by quarterly developments. From this I can then see how the total claims for our Aviation Liability book have increased or decreased over time. From this pattern, together with some crude estimates about the overall expected loss on this book, I can derive at an expected ultimate claims cost for a particular accident year. The results are discussed with underwriters and claims handlers who can give more information about latest claims developments e.g. a court settlement, a large hurricane event or an air crash. The premiums and claims statistics are then forwarded to the finance department who use the figures for setting up the accounts, after peer reviews by other colleagues in the actuarial department.

What do you most enjoy about your role?

I enjoy the continuous challenge an actuarial role offers together with the responsibility I am expected to take on. I like learning on the job and there are new things coming up every day. After three years in the reserving team I will be moving into the capital team which is a whole new area of actuarial work, building on the experience I have already acquired.

How does what you do fit into the overall insurance picture?

My work is essential for the company to decide how to most profitably use their financial resources. Some funds are set aside to pay for future claims and others will be used to support the business so that if very unfortunate events happen we can still continue to pay claims and to write business. All these funds need to be invested appropriately for which we provide supporting analyses. The actuarial team also offers assistance for policy pricing to determine appropriate premiums that need to be charged for individual risks.

What's the single most challenging aspect of you job and how do you overcome the challenge?

There are actually two things which I find equally challenging in my job.

Firstly: communication. Whenever I draft an e-mail or have a discussion with a non-actuary I have to take a step back and think whether I am talking sense to anyone without an actuarial background. It's not always the case that your numbers mean the same or anything at all to the person you are communicating with.

Secondly: to see the story behind the numbers in front of me. Let's take a portfolio of policies that had a very large claim development over the last month: I have to find answers to a number of questions such as where does the development come from? Could it impact other policies in the same or another portfolio? Was the development expected? Could this be a data error? I need to be able to explain the numbers I pass on to other colleagues.

What have been the highlights of your career so far?

Working with incredible knowledgeable and talented people and learning from them has been the best part of my time at Aspen Re. The other thing is exam passes and celebrations after putting in a lot of time and hard work.

How have you been able to add value to your clients?

My clients are the underwriting and claims teams, our finance department and the senior management. I add value to their work by providing them with analyses which are crucial for monitoring the past performance of our business as well as for making decisions about the future direction of Aspen Re.

An example would be monitoring the change in premium rates over the years. I act as a contact point to bring this information together, check the data provided upon reasonableness and compare it to previous results. This also involves discussions with underwriters to ensure that the final figures are an accurate picture of what is happening at Aspen Re.

Why did you decide to go into insurance?

Having worked in the construction industry before my degree I had seen many occasions where bad weather, poor design or mismanagement led to project delays and increases in costs. I had been curious about insurance before and was interested in applied maths. I have always liked big and complicated things and to go and work in the London Market followed naturally from my past work experience and education.

What would you say are the main benefits of working in the industry/for your company - financial and other?

Once qualified, an actuarial position offers a very good work-life balance with excellent pay. The demand for actuaries in the general insurance industry is high so positions are very secure with many opportunities around. Actuarial work brings a lot of variety with it and always requires flexibility and an open mind. I like the stimulating environment and I can see myself progressing every day.

What do you enjoy outside of work?

I enjoy going to the gym and I am an avid cricket fan. Going to the theatre or concerts are special treats for me. The most important thing for me, however, is to keep in touch with my friends and make sure that I see them at weekends, for evening drinks or to visit them if they live abroad.