Actuaries in InsurTech: What’s it really like?

Intrigued by the InsurTech world? Many start-ups offer exciting perks like unlimited vacation and free lunch while claiming to revolutionize the archaic insurance industry. What’s it really like to work for these companies? Does it live up to the hype? Initially, I was skeptical.

I started my career at a large and well-established US insurance carrier. When InsurTech’s started bursting onto the scene, I was the first to doubt their potential. However, in 2019 I made the leap and joined an InsurTech leveraging mobile telematics for private passenger auto.

After 5 years at a traditional carrier and almost 3 years at an InsurTech, I can honestly say that my experience has been equally positive, but different in nearly every way. Both environments provide distinct benefits and challenges as well as opportunities and limitations. As the options for actuarial employment increase, it can be tough to know which path to pursue without having worked in a variety of settings. I hope that by sharing my experience, you gain valuable insight as you navigate your next career move.

These statements are based on my personal experience and conversations with others working in both traditional insurance and InsurTech environments. They do not necessarily reflect every company nor do they reflect the opinions of my current or previous employers.

Culture

First, let’s talk about culture. There are many ways to define company culture. To start, I’ll focus on the way in which work is done.

When I joined an insurance carrier, I participated in a formal training program that lasted about 3-4 months. In addition to my direct supervisor, I was assigned a trainer who provided hands-on guidance to learn my job. This individual set up time for me to meet the team and company leadership. He provided documentation for all of the processes so I could get up to speed on the expectations for my role. Whenever I had questions, he was there to help.

When I joined InsurTech, I had a very different experience. On my first day, I attended one onboarding session and then was shown to my desk. I was handed a laptop and told to “slack” if I had any questions. There I was left to wonder:

• What do I do now?
• How do I get my computer set up with the applications I’ll need?
• And what in the world is Slack?!

This initial experience highlights one of the biggest differences between the start-up and traditional insurance worlds: Structure vs. Autonomy.

At an established carrier, there is often a well-defined and documented process for everything. However, at newer companies, it’s possible that these do not exist yet. Every tool and procedure must be built from scratch. Because of this, I was given the opportunity to influence and establish these processes over time. While there are benefits to both approaches, I believe the latter was more effective for my own growth. While a bit daunting, it forced me to think critically about why we do what we do and come up with creative ways for achieving our objectives.

The next major difference is the pace of work. When I speak with others at traditional insurance companies, the most common complaint I hear is not being able to move quickly enough due to bureaucracy and legacy systems. Because of this, the pace of work tends to be slower and potentially more predictable. On the other hand, InsurTechs tend to be high velocity environments. Decisions are made quickly and technology enables rapid execution and iteration.

In addition, the rate of change is incredible. In the time I’ve been in InsurTech, my team hasn’t done the same process twice. As the company grows and we learn more, the data, processes and work are constantly evolving. There’s no precedent to go off of and priorities shift almost daily. Setting realistic timelines and expectations can become one of the most challenging aspects of operating in this space. If you thrive in uncertainty, this environment can be really exciting and rewarding. However, for some the dynamic pace can be overwhelming.

At a large corporation, job responsibilities are often clearly defined. Specific roles are established to align business needs with skillsets and to enable efficient completion of work. However, at a start-up, there tends to be more of an “all hands-on deck” mentality. Everyone does what it takes to get the job done. Often the work spans multiple disciplines and allows for the opportunity to learn new skills while collaborating with individuals across the organization.

These dynamics lead to the next difference I’ve observed: siloed vs. broad reaching engagement. In a traditional insurance environment, it’s common to have a very clear set of stakeholders. Collaboration outside of this core group of customers tends to be limited. In contrast, those in InsurTech may engage with various individuals or departments across the company depending on the scope and needs of a particular project. Because the work is constantly evolving, one must consult experts from various functional areas to get the job done.

Work/Life Balance

Next, let’s shift into work/life balance. I’ll focus on this in terms of pace of work and flexibility. The first piece we’ve already covered pretty extensively. If you work for a start-up, you will likely be expected to produce results more quickly than at a more stable, established firm. When a company is starting off, it’s necessary to try new things, learn, adapt and then iterate quickly.

In light of this, there tends to be more focus on the actual work product and impact as opposed to the way in which the work is done. Especially pre-pandemic, InsurTech’s were much more informal and relaxed compared to traditional insurance companies. As an example, many corporate campuses had dress codes which required wearing professional attire into the office. When I first joined InsurTech, I was told I could wear anything I was comfortable in, even pajamas.

Beyond dress, start-ups also tend to be more flexible in terms of when and where people work. Post COVID, flexibility has definitely increased for all companies. However, it seems more traditional corporations are requiring some return to office while most InsurTech’s remain entirely remote or allow for employee choice in terms of where one prefers to work. Additionally, there tends to be less formal work hours and more freedom to flex time if needed in an InsurTech environment, especially when unlimited vacation policies are provided.

Opportunities

Finally, I want to conclude with the opportunities that exist at traditional insurance companies and InsurTech’s. For those interested in climbing the corporate ladder, paths for career progression tend to be more clearly defined at large companies. As an example, many have robust rotation programs which automatically expose actuaries to a variety of areas at a regular cadence which can provide constant growth and potential for upward mobility. In addition, the number of positions available at any given level are greater given the size of the company.

At an InsurTech, it may be less obvious what steps to take to move from one position to another. However, you’re more likely to develop a variety of skills and hone them more quickly, which can open doors to new opportunities within and outside of the company. One benefit of the smaller environment is seeing the impact you’ve made more clearly. There are more opportunities to interact with leadership and influence company direction in the InsurTech space.

The article “Actuaries in InsurTech: What’s it really like?” was first published in The Actuary, September 2022 by the Institute and Faculty of Actuaries (IFOA), London, UK. It is reprinted here with permission by the IFOA.

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