Tell me about yourself

Start by summarizing your current role and the actuarial work you do, focusing on the last five to ten years and the experience most relevant to the position. Mention specific responsibilities such as pricing, reserving, or predictive modeling, and note the exams you have passed and the tools you use. Give a concise narrative: "I am an actuary at X where I price personal lines products using GLMs and Monte Carlo simulations, and I passed ASA exams 1 through 5." Tie one achievement to the role, for example improving a model that reduced loss ratio variability by a measurable amount. Keep your answer under two minutes and avoid reciting your full resume or unrelated early career details. Practice transitions so you can end by saying why this role is the right next step for you and what you hope to contribute.

How do you explain expected value and variance to a non-technical stakeholder?

Start with an intuitive definition: expected value is the long-run average you expect from a risk, and variance measures how much outcomes spread around that average. Use a simple, relatable example such as coin tosses or average claim cost per policy to ground the idea. Example: say a policy has a 1% chance of a $10,000 claim and a 99% chance of zero; the expected cost is $100. Explain variance by comparing two products with the same expected cost but different claim sizes, showing which one causes more financial uncertainty. When speaking with executives, avoid equations and focus on business impact, such as capital needs or pricing margins. Avoid technical jargon unless they ask for it, and offer to show visuals or simulations if they want deeper detail.

Walk me through how you would price a new insurance product

Outline your approach in clear phases: define the exposure and data needs, perform exploratory data analysis, select a modeling framework such as GLM or machine learning, and validate the model with backtesting and stress tests. Emphasize regulatory, reinsurance, and business considerations early so your price meets company constraints as well as statistical fit. Give a concrete technique: start with frequency-severity decomposition, fit a Poisson or negative binomial model for frequency and a gamma or log-normal model for severity, then combine via simulation to get expected loss and variance. Include adjustments for expenses, profit margin, and any experience rating or credibility weighting. Common pitfalls include overfitting, ignoring selection effects, and using insufficient exposure measures, so check model stability and holdout performance. Document assumptions clearly and prepare to explain how pricing moves under alternative scenarios.

Explain a stop-loss or reinsurance concept and when you would recommend it

Describe stop-loss as a reinsurance form where the cedant pays losses up to a retention and the reinsurer covers excess amounts above that retention. Explain common uses such as protecting capital, stabilizing earnings, or enabling underwriting of large or volatile risks. Give an example: for a book with high severity outliers, recommend an excess-of-loss treaty with a retention equal to a multiple of expected loss to cap the insurer's tail exposure. Use modeled loss distributions to show how retention choices change capital at risk and expected reinsurance cost. When advising, consider cost-benefit tradeoffs, counterparty credit risk, and the impact on underwriting incentives. Recommend testing several retention levels and reviewing how reinsurance affects regulatory capital and pricing.

How do you validate an actuarial model?

Start with a validation plan that covers data quality checks, holdout testing, backtesting against actual outcomes, and sensitivity analysis for key assumptions. Use statistical diagnostics like residual plots, calibration tests, and out-of-time performance to judge predictive accuracy and robustness. Provide a concrete step: split data into training, validation, and holdout sets, fit the model on training data, tune on validation data, and report metrics on the holdout set such as Gini, RMSE, or Brier score depending on the task. Supplement numeric checks with business-oriented tests, for example comparing predicted versus actual premium adequacy by segment. Watch for common pitfalls like data leakage, selection bias, and overfitting to specific time periods. Document all checks and set thresholds for acceptable performance, plus a plan to monitor the model in production.

Describe how you would handle incomplete or dirty data

Explain a systematic approach: assess the scope of missingness, understand why data are missing, and choose an appropriate treatment such as imputation, exclusion, or modeling the missingness. Emphasize that the choice depends on the missingness mechanism and the downstream impact on model bias and variance. Give a practical technique: for missing age or exposure fields, use multiple imputation or build a predictive model using correlated features, and then test model sensitivity by comparing results with and without imputed records. For obvious data errors, create validation rules and automated cleaning steps to flag outliers for manual review. Avoid ad hoc fixes that hide systemic issues, and record assumptions and the proportion of imputed or corrected records. Communicate limitations to stakeholders and include uncertainty from imputation in your final analysis where possible.

How do you communicate complex model results to non-actuarial stakeholders?

Begin by stating the key business question and the single takeaway you want them to remember, then present supporting evidence at progressively deeper levels. Use visuals such as charts, scenario tables, or simple diagrams to show impact on profit, capital, or customer pricing. For example, present a slide with the headline "Model predicts a 3% lift in renewal retention if we adjust rates by segment" and follow with a chart showing predicted versus observed retention by segment and a short bullet list of assumptions. Offer one or two alternative scenarios and the practical actions you recommend based on the results. Avoid heavy technical detail up front and be ready to answer technical questions for those who request more depth. Provide an appendix with model diagnostics and code snippets so reviewers can validate your work without cluttering the main presentation.

What statistical distributions do you commonly use in actuarial work and why?

List common distributions and when to use them, such as Poisson or negative binomial for claim counts, gamma or log-normal for claim severity, and exponential or Weibull for time-to-event models. Explain the reasoning briefly, for example Poisson fits rare independent events while negative binomial handles overdispersion. Offer a concrete example: use a negative binomial when observed variance in claim counts exceeds the mean, and choose a gamma severity model when costs are positive and right-skewed, checking fit with QQ plots and AIC. For reserve modeling you might use chain-ladder methods or bootstrapped distributions to capture uncertainty. Mention common pitfalls like blindly using normal assumptions for skewed costs and not checking tail behavior for catastrophe exposure. Always validate distributional choices against holdout data and stress scenarios.

How would you approach reserving for a long-tail line of business?

Start by assessing data granularity and reporting delays, then choose an appropriate reserving method such as chain-ladder, Bornhuetter-Ferguson, or stochastic reserving depending on data quality and credibility. Include adjustments for changes in legislation, inflation, or mix of business, and quantify uncertainty with bootstrapping or confidence intervals. Give a workflow example: perform incremental triangle analysis, test for calendar year effects, compare chain-ladder and Bornhuetter-Ferguson estimates, and use bootstrapping to produce a distribution of reserves for capital planning. Document assumptions about development patterns and trends so stakeholders can weigh the results. Be careful about over-reliance on a single method when data are sparse, and consider external benchmarks or expert judgment when internal data are weak. Plan periodic reserve reviews and set triggers for recalculation when key indicators change.

Tell me about a technical problem you solved using programming or data analysis tools

Describe the problem and your role, name the tools you used such as R, Python, SQL, or Excel, and state the analytic objective clearly. Focus on the steps you took: data extraction, cleaning, exploratory analysis, modeling, and deployment or reporting. Example: "We had inconsistent exposure reporting across systems that skewed loss ratios. I wrote an ETL script in Python to join sources, implemented validation checks, and rebuilt the exposure table, which corrected premium-to-exposure ratios and improved pricing accuracy." Quantify the impact when possible, for example reducing manual reconciliation time by X hours per month or improving model accuracy by a measurable amount. When discussing code, highlight reproducibility, testing, and version control practices you used. Describe any tradeoffs you made, for example choosing a pragmatic cleaning rule to meet a deadline and scheduling a follow-up to refine the approach.

Describe a time you disagreed with a team member about a model assumption (STAR)

Situation: In a pricing project, a colleague assumed constant claim severity across regions while I observed regional differences in the exploratory data. The assumption affected rate fairness and potential competition in some segments. Task: I needed to present evidence and propose a revised approach without creating conflict or delaying the project. My goal was to keep the timeline but improve model integrity. Action: I prepared a concise analysis showing region-specific severity percentiles and a simple model comparison, then scheduled a short meeting to walk through the evidence and suggested alternatives such as region-level offsets or pooling with credibility weighting. I framed the change as a testable improvement and proposed rolling implementation with monitoring. Result: The team adopted a credibility-weighted regional adjustment, which improved holdout performance and was accepted by underwriting after one review. The change led to a clearer discussion with distribution about competitive positioning and required no significant timeline delay.

Tell me about a time you missed a deadline or faced a significant setback (STAR)

Situation: During a quarter-end reporting cycle, an unexpected data schema change from a vendor caused missing fields in our loss triangles, threatening our reserve reconciliation deadline. This risked delaying reporting to finance. Task: I had to recover usable numbers for management while preserving data integrity and documenting limitations. The objective was to meet the deadline with transparent caveats. Action: I quickly identified impacted fields and built fallback imputations based on historical patterns, while parallelizing tasks by delegating verification to a colleague. I communicated openly with stakeholders about the issue, the interim approach, and the plan for a corrected update once full data arrived. Result: We delivered preliminary reserves on time with documented assumptions and followed with corrected figures within two weeks after the vendor fix. Stakeholders appreciated the transparency and the contingency plan reduced downstream rework.

Describe a time you improved a process to save time or reduce errors (STAR)

Situation: The monthly premium reconciliation process required manual matching across three systems and took the team many hours, which increased risk of human error. The firm needed a repeatable approach to reduce time and improve auditability. Task: I was asked to streamline the process and reduce manual effort without losing accuracy. The goal was to create an automated solution that could be audited. Action: I created a SQL-based reconciliation pipeline that standardized keys, applied matching rules, and produced discrepancy reports, then wrapped the workflow in a scheduled script and documented it for the team. I included unit checks and logging so exceptions were easy to review. Result: The new process cut reconciliation time by about 70 percent and reduced manual corrections significantly, while improving team capacity to focus on root-cause analysis. The automation also made audits simpler because discrepancy history was preserved.

actuary Interview Questions: Complete Guide

Actuary interview questions often combine technical problems, statistical thinking, and communication checks, so expect a mix of modeling tasks, probability questions, and behavioral prompts. Interviews can include phone screens, case problems, and in-person or virtual technical rounds with whiteboarding or coding, so prepare across formats and practice explaining your reasoning clearly. You can succeed by practicing core concepts, rehearsing concise examples, and preparing questions that show your interest in the team.

Common Interview Questions

Behavioral Questions (STAR Method)

STAR Method: Structure your answers using Situation, Task, Action, and Result to tell compelling stories about your experience.

Questions to Ask the Interviewer

Show your interest by asking thoughtful questions

•What does success look like in this role after the first six months, and what specific deliverables would you expect?
•Can you describe the team structure and how this role partners with underwriting, finance, and data engineering?
•What are the biggest technical or data challenges the actuarial team faces right now?
•How does the company balance model governance and speed to market when launching new products or pricing changes?
•What opportunities exist for exam support, mentoring, or professional development within the team?

Interview Preparation Tips

Practice explaining one or two technical models end-to-end in plain language so you can switch between high-level and deep technical detail during interviews.

Bring a portfolio of concise examples with quantifiable outcomes, such as model lift, time saved, or reserve improvement, and rehearse the stories.

During technical questions, narrate your thought process and assumptions clearly, and if you make a simplifying assumption, state it and explain why.

Ask clarifying questions before starting a whiteboard problem and timebox your approach, showing how you would validate and communicate results if you had more time.

Overview

What to expect in an actuary interview

Actuary interviews combine technical testing, case problems, and behavioral questions. Expect 2–4 rounds: a screening phone call (15–30 minutes), a technical round (45–60 minutes), a case or modelling exercise (45–90 minutes), and a final behavioral/business-round (30–60 minutes).

Employers test probability, statistics, financial math, reserving/pricing methods, and coding (R, Python, SQL). For entry-level roles, interviewers often score candidates on five buckets: technical correctness (40%), clarity of explanation (20%), coding/data handling (15%), business judgment (15%), and cultural fit (10%).

Common formats and timing

•Live coding: 20–40 minutes to write a short script (e.g., calculate loss triangle reserves or compute survival probabilities). - Whiteboard math: 10–15 minutes to derive a formula (e.g., present value of a continuous payment). - Case study: 30–60 minutes to analyze a dataset or model output and recommend changes with numbers (e.g., reduce reserve variability by 10% using a credibility blend).

Pitfalls to avoid

•Skipping assumptions: always state assumptions numerically (sample size, distributional form). - Overcomplicating: propose a simple baseline model first and then improve it. - Poor time management: allocate 5–8 minutes to outline answers before solving.

Actionable takeaway: prepare a 30-minute technical script and a 45-minute case walkthrough you can present in interviews.

Key subtopics to master

Probability & statistics

•Core ideas: conditional probability, Bayes’ theorem, expectation, variance, CLT. Example interview task: compute P(A|B) given joint probabilities; justify approximation using CLT for n ≥ 30. - Tip: practice 10 probability puzzles you can solve in under 8 minutes.

Generalized Linear Models (GLMs) and predictive modeling

•Topics: Poisson and negative binomial for claim counts, log link, offset terms, interpretation of coefficients as multiplicative effects. - Example deliverable: show how a 10% premium change affects expected claims frequency.

Reserving and pricing techniques

•Methods: chain-ladder, Bornhuetter-Ferguson, Mack’s model, bootstrap for prediction intervals. - Interview question: compute IBNR using chain-ladder on a 10x10 triangle and report 95% CI.

Financial mathematics & risk measures

•Concepts: discount factors, bond pricing, duration/convexity, VaR, TVaR. - Example: calculate present value of a level annuity with annual payments for 20 years at 3.5%.

Stochastic modeling & simulation

•Monte Carlo, variance reduction, Markov chains, survival models. - Ask: simulate 10,000 portfolio scenarios and report mean loss and 99th percentile.

Data & coding skills

•SQL joins, pivot tables, vectorized R/Python, ChainLadder R package, lifelines (Python). - Measure model quality with RMSE, AUC, and calibration plots.

Actionable takeaway: create a study list of 12 specific problems—one per subtopic—and time yourself solving each.

Recommended resources

Books and exam texts

•Loss Models: From Data to Decisions (Klugman, Panjer, Willmot) — use for heavy exposure to severity/distribution fitting. - Actuarial Mathematics (Bowers et al.) — strong foundation for life contingencies and financial math. - SOA/CAS syllabi and past exam guides — download official sample questions and marking schemes.

Online courses and tools

•Coaching Actuaries and ActexLearning — timed question banks and video explanations for exam-style practice. - Coursera/edX: courses on probability, statistics, and machine learning (pick modules with hands-on assignments). - R packages: chainLadder (reserving), actuar (loss models). Python: scikit-learn (modeling), lifelines (survival analysis).

Datasets and practice problems

•NAIC Schedule P (public) for reserving triangles. - Kaggle: Allstate Claims Severity and other insurance-related datasets for pricing practice. - GitHub: search “actuarial-reserving” and clone 2–3 repos to study real scripts and notebooks.

Communities and mock interviews

•Reddit r/actuary, LinkedIn Actuarial groups, SOA student sections. - Arrange 6–8 mock interviews: 4 technical (45 min) and 4 behavioral (30 min). Aim for 50–100 hours of focused prep before campus or early-career interviews.

Actionable takeaway: start with one book chapter per week, two coding notebooks per month, and schedule 6 timed mock interviews over 8 weeks.

actuary Interview Questions: Complete Guide

Emily Thompson

Common Interview Questions

Behavioral Questions (STAR Method)

Questions to Ask the Interviewer

Interview Preparation Tips

Overview

Key subtopics to master

Recommended resources

Interview Prep Checklist

Build your job search toolkit

actuary Interview Questions: Complete Guide

Emily Thompson

Common Interview Questions

Q1Tell me about yourself

Q2How do you explain expected value and variance to a non-technical stakeholder?

Q3Walk me through how you would price a new insurance product

Q4Explain a stop-loss or reinsurance concept and when you would recommend it

Q5How do you validate an actuarial model?

Q6Describe how you would handle incomplete or dirty data

Q7How do you communicate complex model results to non-actuarial stakeholders?

Q8What statistical distributions do you commonly use in actuarial work and why?

Q9How would you approach reserving for a long-tail line of business?

Q10Tell me about a technical problem you solved using programming or data analysis tools

Behavioral Questions (STAR Method)

B1Describe a time you disagreed with a team member about a model assumption (STAR)

B2Tell me about a time you missed a deadline or faced a significant setback (STAR)

B3Describe a time you improved a process to save time or reduce errors (STAR)

Questions to Ask the Interviewer

Interview Preparation Tips

Overview

Key subtopics to master

Recommended resources

Interview Prep Checklist

Build your job search toolkit