Actuarial analysis and the science of underwriting success

Every high school is home to a star athlete, artist or actor who seems destined for a standout career. Among those would-be celebrities are students who may never walk a red carpet but who embrace a take on “cool” that’s the essence of business success.

When Alyssa Nardi was in high school, a math teacher saw her potential to make her mark in actuarial science. Intrigued by the opportunity to do analytical work all day, she enrolled in the actuarial science degree program at North Carolina’s Appalachian State University and landed a student internship with AXA XL’s enterprise risk management team in Hartford. Now a specialist in miscellaneous professional liability underwriting, Alyssa supports AXA XL’s development of comprehensive risk management solutions that reflect and are customized to each client’s business priorities and goals.

What was your initial impression of the way actuarial science is applied in a real-world setting?
AN: My internship was amazing. We handled the coolest assignments: analyzing emerging risks in the world and their impact on business. The team was so much fun, it didn’t even feel like work, even though we were evaluating areas of serious risk such as climate change or emerging technologies. The internship made such an impression on me that I decided I would do whatever I could to work here.

Did you have a specific area of focus in mind at the start of your career?
Once I completed my degree, I joined the two-year graduate training program, which afforded me the opportunity to rotate through many lines of business in the company and familiarize myself with diverse business functions. That prepared me to follow my passions, first as an underwriting assistant on the political risk credit and bond team in Washington, DC. After a couple of years, I decided to shift gears and work with the fine art and specie team, which gave me another perspective on our business and the challenges we’re called on to address.

The specialty lines at AXA XL are so cool, because so many of the underwriters are true experts at what they’re doing. They’re able to help the businesses address political risk exposure, credit risk exposure, and very early in my career, I was working alongside those experts. It’s tremendous fun to be working with people who know so much.

You left AXA XL briefly to experience work life at another company. What brought you back?
I missed the people and culture, and things fell into place when I discovered that the commercial errors and omissions team was looking for some talent. I had always been interested in professional liability, because it offers exposure to such a wide variety of business concerns and industry-specific challenges. I knew the team in that area was very experienced and would provide excellent learning opportunities, because that’s an aspect of work life here in which AXA XL has always excelled. The breadth of exposure keeps things fresh and interesting, too. When you consider what’s crossed my desk in just my first year, it’s everything from insurance agents to real estate professionals to consultants. It’s really the entire E&O universe, which keeps me engaged because there’s always something new to analyze and learn from.

Which emerging issues do you think will take center stage in E&O underwriting?
One area that’s the focus of a lot of conversation is how computers and technology are improving. How are devices changing? How is the way we use those devices changing? We talk about that every day. Another point of focus is the economy: the impact of inflation, what economic pressures our clients are facing and what competitive pricing pressures are coming into play in our own industry. There’s a tightrope walk to be done between staying competitive and staying profitable. But as a team, we have the collective experience of having gone through many market cycles, and that expertise is invaluable in dealing with these fluctuations.

As a team, we have the collective experience of having gone through many market cycles, and that expertise is invaluable in dealing with these fluctuations.

Which aspects of your career are you finding most rewarding?
As I learned during my internships, the insurance industry allows you to use math and engage in in-depth analysis without being an actuary. Becoming an actuary involves years of testing. It’s heavily math-based and analytics-based, which is great — but as I got older, I realized how cool the underwriting area is because it also includes a people focus. You get to build relationships with brokers all around the country. You get to work with clients. That appeals to be more, ultimately, than being on an actuarial career track. I’m still using the actuarial training I gained at the university, of course, and I am more math- and analytics-oriented than perhaps other underwriters who don’t have that background.

What advice or encouragement can you offer to young women who want to know what to expect in your field of study and/or career?
It’s a fact that there are more men in our industry, and I can understand if young women are hesitant, because I remember being worried about the scarcity of women in the role I was considering. But the culture at AXA XL is incredibly accepting and inclusive. I’ve had female mentors at work who have really inspired me with their example and their generosity in sharing what they know, and I’ve also benefited from participation in our women’s network groups. The job market is promising for professionals entering our field, and there’s no shortage of female role models who are eager to support colleagues who are joining our ranks.

My experience in other workplaces is limited, but I have found a career at AXA XL to be very rewarding. And you don’t have to worry about the male to female ratio here, because the company truly supports diversity and inclusion — especially, in my experience, with regard to women. This is a company where, if you become an expert, stay true to yourself and work hard, you will succeed.



Learn more about the Miscellaneous Professional Liability insurance that Alyssa and her team provide.