Stephen Mildenhall is a director in the Statistical Research Area of the CNA Insurance Companies in Chicago, Illinois, where he provides statistical and actuarial consulting to other areas of the company. He works with a group of seven people, including one life actuary, five statisticians and one computer specialist. The group acts as internal consultants, providing help developing and testing statistical models, and interpreting the statistics provided by models used to determine risk. He is currently involved in a project to quantify and manage the catastrophe exposure caused by hurricanes and earthquakes using new software tools. Stephen has been with CNA for a little over three years.
The mathematics Stephen uses in his job is mostly statistics and elementary probability theory. Although many of the models he uses are already implemented, he occasionally uses his knowledge of numerical methods to test and develop new models. He also finds his mathematical training has prepared him to look logically at a problem, to ascertain the assumptions inherent in a model and to test the validity of the model.
Stephen has a Ph.D. and M.S. from the University of Chicago in mathematics and a B.Sc. in mathematics from the University of Warwick, England. His thesis was in number theory. As he neared the completion of his Ph.D. in 1991, a combination of the poor job market, his slacking interest in modern research mathematics, and the prospect of a series of one or two year post- doctoral academic positions led him to consider nonacademic job options. He had worked for a consulting actuarial firm for a summer as an undergraduate in England and decided to take his first actuarial exam in November 1991. After joining CNA he discovered that actuarial work was more interesting that he had expected, and he recently completed his actuarial exams. He is currently interested in mathematical finance and has been reading about how insurance might be bundled to look like securities, an area he sees opening up in the future.
Stephen has found his study of statistics and probability to be particularly useful in his job. He believes that his Ph.D. in mathematics has given him an edge in dealing with unstructured material. He also mentions that taking economics and business courses helps students to think about the business environment and the way a business operates. Even just reading the business section of a newspaper will familiarize students with the terminology and the trends in business. He recommends that students interested in actuarial work start planning early since it is best to take some of the exams before interviewing with firms. A summer position or co-op with a business firm also allows a student to see what it is like to work outside academia. Companies prefer interviewing candidates who have demonstrated their interest in an actuarial career by taking some exams and completing a summer internship. CNA interviews candidates for full time entry level actuarial positions and summer interns early in the year.
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