Actuarial internships: eligibility, exam preferences and an expected-loss case

Expected claim cost is not the same as an insurance premium

Original fictional insurance exercise: each policy covers one year. Assume a 5% chance of exactly one claim and otherwise no claim. When a claim occurs, its average cost is $4,000. Expected claim cost is 0.05 × $4,000 = $200 per policy-year.

For 1,000 such policy-years, the expected total is $200,000. That is an average under the assumptions, not a promise about the realized claim total. It also excludes expenses, reinsurance, capital costs and other pricing considerations. Calling $200 the final premium would answer a different question.

A 20% frequency increase and 15% severity increase produce 38% higher expected loss

Now change the claim probability from 5% to 6%, a 20% relative increase. Change the average cost per claim from $4,000 to $4,600, a 15% increase. Keep the one-claim assumption and policy exposure unchanged.

• New expected loss: 0.06 × $4,600 = $276 per policy-year.
• Increase: ($276 − $200) ÷ $200 = 38%, not 20% + 15% = 35%.
• The factors multiply: 1.20 × 1.15 = 1.38. For 1,000 policy-years, expected claims cost becomes $276,000.

Show what the model includes and what it leaves out

A short sample should name the exposure unit, source or fictional status of each input, expected value and changed assumption. Add one paragraph on the limits: multiple claims, differences between policyholders and changes in coverage could require a different model. The arithmetic above is an insurance exercise, not a description of WTW's retirement interview.

For retirement preparation, choose an example relevant to future benefit payments and the assumptions used to value them instead of sending an unrelated insurance-pricing file unchanged. Explain why a change in timing or an assumed rate affects the result.

On a résumé, distinguish an exam passed from one scheduled or being studied for. The WTW example shows why the exact language matters: an exam preference is not the same as a mandatory pass. Check the rest of the requirements before deciding that one missing preference rules you out.

Ask the team how interns' models are reviewed and whether any study support applies to interns or only to permanent employees. Do not count a full-time benefit as part of a summer offer until it is confirmed.

Before you apply

Eligibility

WTW's 2027 Northeast retirement posting specifies a quantitative bachelor's or master's route, graduation December 2027–August 2028, at least 3.0 GPA and indefinite U.S. work eligibility without sponsorship. It also requests relevant technical or client-service work experience; exam passes are strongly preferred, not stated as mandatory.

Timing

WTW's North America overview describes 8–10-week internships. The specific 2027 posting does not provide a fixed closing date.

Location

The cited WTW role lists New York, Boston, Short Hills and Philadelphia. Its conditions are not automatically those of every actuarial office.

Pay

That WTW Northeast retirement role lists $28–$35 per hour and overtime eligibility. It is a specific posting example, not a national actuarial-intern rate.

Sources: WTW North America internships · WTW 2027 Northeast retirement actuarial posting

Job titles to search

Actuarial pricing intern

Analyze how claim probabilities and costs affect an insurance pricing model.

Actuarial reserving intern

Study liabilities for claims or benefits that have not yet been fully paid.

Retirement actuarial intern

Support analysis of retirement benefits, assumptions and plan obligations.

Where to look

Search routes, not confirmed vacancies.

Compare the work and try an example

Use a role comparison or worked exercise to choose your preparation before tailoring an application.

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