We recently had the pleasure of interviewing Charles Zhu, a Fellow of the Casualty Actuarial Society and the current VP of Underwriting and Actuarial at Roamly, about his actuarial career path. Roamly is a tech-enabled Managing General Agency (MGA) and software platform serving the insurance and risk management industries. At Roamly, Charles oversees all actuarial and underwriting functions, including rate and reserve reviews, new product development, underwriting, portfolio management, reinsurance renewals, and more.
Before joining Roamly, Charles led the analytics and actuarial team at Capital Insurance Group, where he was responsible for enterprise data analytics and catastrophe risk management.
Outside of work, Charles enjoys fishing, hiking, reading, cooking, mixology, escape rooms, and playing board games. He is also a passionate advocate for the actuarial profession and actively contributes to the industry. He serves on the board of Abacus Actuaries and is an advisory board member of Marketplace Risk.
As an actuary turned startup enthusiast, Charles has navigated the challenging yet rewarding landscape of early-stage companies, leveraging his expertise to drive growth and innovation. We were excited to get the perspective of a professional with a unique blend of analytical rigor and innovative thinking. In this exclusive interview, we delve into Charles’s actuarial career journey from traditional actuarial roles to the fast-paced startup environment. We explore his insights on the transition, the unique selling points for actuaries considering this path, and the critical considerations for making a successful shift.
Keep reading to get a glimpse of what was discussed in our interview with Charles, but you’ll need to listen to the recording to catch all the details. Join us as we uncover the experiences and advice of Charles Zhu, offering a valuable perspective for actuaries and professionals alike who are curious about the vibrant world of startups.
How did you start your Actuarial Career working at a startup?
My actuarial career journey working at a startup was driven by a long-term vision of founding my own company. I emphasize the importance of career planning and skill development for startup success. A few years ago, I joined Roamly as the first actuary after being recruited via LinkedIn to help build an RV insurance product. Despite doing well in my previous job, I chose Roamly to gain relevant experience. The journey has been exciting and fulfilling, contributing to building the company from the ground up.
You were in a bit of a nontraditional position at Capital Insurance Group. How do you think that benefited you?
My career planning has always been aligned with my long-term vision, which includes being cross-functional and learning from other leaders. At CIG, I led the analytics team and managed catastrophe risk, gaining experience from various departments like claims, underwriting, sales, and marketing. These diverse experiences made me a good fit for Roamly, where I now apply my broad skill set as their first actuary. This alignment between my past experiences and Roamly’s needs was a key reason for my successful transition.
If someone is in a more traditional role within an actuarial department, what would you recommend they do to prepare for a startup environment?
If you’re in a traditional role and aspire to join a startup, it’s essential to seek out nontraditional opportunities within your current firm. Look for projects where you can proactively volunteer, even if they fall outside the typical scope of actuarial work. For instance, if the marketing or sales team needs assistance with a cross-selling project to existing customers and requires someone with technical or analytical skills, step up and offer your help. Embracing these opportunities, even if they don’t perfectly align with your job description, can be incredibly beneficial in the long run and prepare you for the dynamic environment of a startup.
What are some of the selling points for actuaries in joining a startup?
Working and building Roamly as a startup has been a fun journey for me. I enjoy the high-velocity environment typical of startups, where finding product-market fit quickly is crucial for survival. Unlike traditional companies that grow at a fixed rate, startups must grow rapidly to succeed.
This high-pressure environment fosters passion and collaboration. I’ve learned many aspects of the business that would take years in a traditional role. I work deeply with leaders in various departments like claims, marketing, compliance, product engineering, and sales, which is both challenging and exciting.
My role as VP of Underwriting Actuarial goes beyond my job title. I manage reinsurer relationships, present to the board, launch new products, and identify business opportunities. I also engage in sales and business development, especially as Roamly ventures into tech and SaaS platforms.
The ambiguity and variety in my responsibilities are appealing. At a startup, I feel a strong sense of control over my destiny and the company’s success. The compensation, often including equity and stock options, aligns my financial success with the company’s growth. For those seeking financial rewards and significant impact, startups offer a unique opportunity.
What should you consider about compensation when working at a startup?
When considering compensation at a startup, there are a few key points to keep in mind:
- Total Compensation Package: This typically includes three main components: base salary, bonus, and equity.
- Cash Compensation: This consists of the base salary and any bonuses. At startups, it’s common for the base salary to be slightly lower, and sometimes there may not be a defined bonus structure.
- Equity: This is often a significant part of the compensation package at startups. The value of equity can grow substantially if the company performs well, potentially doubling your total compensation within a year.
- Evaluating Equity: Assessing the value of equity can be challenging and depends on the stage of the startup. It’s important to understand how much equity you’re receiving and its potential growth.
Overall, while the base salary might be lower, the potential upside from equity can make startup compensation very attractive.
What do you find the most challenging thing about working at a start-up? And, what is the most rewarding thing at the same time?
- Ambiguity: Transitioning from a traditional company with well-defined projects to a startup can be challenging due to the inherent ambiguity and constant change.
- Project Uncertainty: Startups often test various products and approaches to find market fit, which means projects can sometimes result in little value or be discontinued before they take off.
- Adaptability: Navigating and embracing frequent changes and uncertainties is crucial.
Rewards:
- Growth and Innovation: The opportunity to build and grow something from scratch with passionate, creative, and hardworking colleagues.
- Dynamic Environment: The fast-paced, ever-changing nature of startups ensures there is never a dull moment, offering a variety of tasks and challenges.
- Energizing Atmosphere: Working with a team of dedicated individuals can be highly motivating and enjoyable.
Overall, while the startup environment may not suit everyone, those who thrive on change and innovation often find it extremely rewarding.
Have you seen a rule of thumb for estimating a startup’s runway based on its funding?
From my observation, startups typically raise capital every 1.5 to 2.5 years, aiming to secure enough funding to last at least 2 to 3 years. This approach ensures they aren’t raising funds too frequently and have sufficient time to demonstrate growth from the previous funding round. The runway can vary depending on the stage of the startup, such as seed, Series A, or later stages like mezzanine rounds or IPOs. Each stage has different purposes and timelines, but generally, the goal is to have a funding runway that allows for significant progress before needing to raise additional capital.
What is the greatest adjustment you think people need to make when they join a start-up?
The greatest adjustment when joining a startup is transitioning from a well-defined role to an environment where you must define your own responsibilities. This requires a proactive approach, as everyone often wears multiple hats. It’s crucial to balance core job duties with new initiatives that can drive the company forward. Being proactive and taking on additional responsibilities, even outside your defined role, is essential for success in a startup. This adaptability and willingness to embrace change are key to thriving in such a dynamic environment.
How does the fast-paced and dynamic nature of startup projects impact expectations, individual success measurement, and work-life balance, and how do these factors change in a late-stage, post-IPO startup?
Working at a startup can be both challenging and rewarding. The fast-paced environment often requires long hours and a high level of commitment, especially in the early stages. This can impact work-life balance, but the passion and energy for building something new can make the experience exhilarating. As startups mature, work-life balance may improve, but the initial excitement might diminish. Success in a startup involves being proactive, taking on additional responsibilities, and continuously growing with the company. Different stages of a startup require different skills, from building the foundation to scaling and achieving profitability.
How should an actuary learn data science and programming, and what is the demand for these skills in the market?
To thrive in the evolving actuarial field, it’s crucial to develop technical skills in programming and data science. These skills, once considered optional, are now often required for analyst roles. Early-career actuaries should focus on learning languages like SQL, Python, and R, as well as tools like Tableau and Power BI. While these technical skills are essential early on, they become less critical as one moves into strategic leadership roles. However, for those pursuing senior technical positions, maintaining and advancing these skills remains important. The demand for actuaries with programming and data science expertise is high, and acquiring these skills can significantly enhance career prospects. Additionally, developing strong storytelling abilities to communicate complex technical concepts effectively is vital for career advancement.
If you would like to discuss the future of your actuarial career and any potential job openings, then please fill out a contact form and one of our actuarial recruiters will be in touch with you shortly.
And for a copy of the full Lunch and Learn audio, please reach out to bailey@ezrapenland.com.