UCAI Presentation November 1, 2012

1. UCAI Presentation November 1, 2012 Consulting Actuarial Internship at Aon Hewitt

2. How I got my Internship • ½ - 1 hour time commitment per day • Networking • Linked In • Join Groups and connect to people from your email account • Write personalized connect invitations • Complete your profile with picture and recommendations • Profile = Online Resume • Events where you can meet actuaries • International Association of Black Actuaries (IABA) • Gamma Iota Sigma (GIS) • Society of Actuaries (SOA) • Chicago Actuarial Association (CAA) • Risk and Insurance Management Society (RIMS) • International Association of Insurance Professionals • Personalized letters of inquiry to Actuaries • soa.org advanced search to get contact information

3. How I got my Internship Contd. • Research before interviewing • Company • Recent Mergers or Acquisitions • CEO and other executives • Culture • Reviews see glassdoor.com • Typical Interview Questions see glassdoor.com • What the company looks for in their candidates • Interviewers • Name • From where • Hobbies • Actuary Career Type • Recent changes in the law • Which products are most important • Recent issues

4. How I got my Internship Contd. • Prepare Stories • Situation • Task • Action • Result • Google Search Yourself • Everything is positive • Something comes up • Let the Companies compete • Apply online • Always create a personalized cover letter

5. Consulting In a Nutshell • Companies helping Companies • Retirement and Health are the biggest segments • Work is done on client teams • Not as much travel as you would think • HR services companies hire the most actuaries • Aon Hewitt • Towers Watson • Mercer • Milliman • Buck • Advanced search on soa.org to find others

6. Retirement • Defined Benefit (DB) VS. Defined Contribution (DC) • Defined Benefit • Benefit is defined by a formula • Contribution is not defined • Investment risk is on the company • More actuary work • Your grandfather’s pension • Defined Contribution • Contribution is defined by an agreement • Benefit is not defined • Investment Risk is on the employee • Less actuary work • 401(k)

7. Retirement Issues • Low Interest Rates • Longevity Risk • Legislation • ERISA (1974) • Pension Protection Act (2006) • Pension Relief Act (2010) • Map 21 (2012) • Liability Settlements

8. Health and Benefits • Self Insured Vs. Fully Insured • Stop loss or Reinsurance • Leverage • Recent Legislation • Patient Protection and Affordable Care Act (PPACA) 2010

9. My Internship at Aon Hewitt • Client work on day 1 • Very collaborative • Plan Design Modeling • Incurred but not Reported (IBNR) analysis • Non-Discrimination Testing of Cafeteria Plans • Compiled Non-discrimination test data for last 3 years to create benchmarks by industry • Presentation on the relationship between premium credits and penalties in the PPACA

11. Consulting Vs. Insurance • Consulting • More seasonal • More hours • More people/client/team oriented • Less technical • More salary • Insurance • Less seasonal • Less hours • Less people/client/team oriented • More technical • Less salary

12. Questions?