Meet the actuaries
Prakash A. Shimpi
FSA, CERA, MAAA, CFA
Managing Principal, Towers Perrin
CEO, Towers Perrin Capital Markets Corp.
When Prakash Shimpi decided to become an actuary, it really wasn’t a career decision. It was more of a hobby. "My father was an actuary, and I started taking the actuarial exams as a hobby after high school," Prakash recalls. What started as an interesting activity has turned into a highly successful career.
Prakash went on to earn a first-class honors Bachelors of Science degree in Economics and Statistics and a distinction in the Masters of Science in Operational Research from the London School of Economics and Political Science. He has also obtained an MBA in Finance & International Business from the University of Chicago and is a Fellow and Chartered Enterprise Risk Analyst of the Society of Actuaries, as well as a CFA (Chartered Financial Analyst). With these accomplishments under his belt, Prakash is currently Managing Principal of Towers Perrin in New York, with global responsibility for Enterprise Risk Management (ERM). He is also CEO of Towers Perrin Capital Markets Corp., a broker-dealer that specializes in asset risk advisory services, insurance-linked securitization and retirement-related transactions.
Prior to joining Towers Perrin in 2004, Prakash was President and CEO of Swiss Re Financial Services Corp. and the founding President and CEO of Swiss Re Financial Products, Swiss Re Capital Markets and European Finance Re. During this time, Prakash had the opportunity to work on what he recalls as one of his most exciting projects, launching the California and Tokyo Earthquake securitizations. What made these projects, especially the California Earthquake project, so exciting is that they were really the first securitizations of their kind on the market
Beyond his professional experiences, Prakash has had many opportunities to share his knowledge and expertise to help shape the future of the profession. For example, he notes that publishing his book, "Integrating Corporate Risk Management," is one of his most rewarding achievements to date as it is currently being used as class text at several universities, helping aspiring actuaries to learn about the growing field of Risk Management. "The past has kept the profession and many of its professionals comfortable in traditional roles while the world has evolved. Actuaries are no longer the only specialists promoting their expertise in risk and capital management. However the skills, training and professionalism of actuaries make us a valuable resource to address a wider set of issues than we have allowed ourselves to tackle. We are now on a path to do that and aspiring actuaries have an important contribution to make in this evolution."
Prakash also invests his time with educational and professional organizations. This has included holding visiting Fellowships at Wharton, the London School of Economics and Peking University, serving on the Corporate Governance Task Force of the CFA Institute, representing the Society of Actuaries (SOA) in several ERM forums and serving as chair of the SOA’s Investment Section.
Calling on his experiences and opportunities, what advice would Prakash give to aspiring actuaries? "First, get a good foundation in the technical aspects. Then, transcend the math," he says. "Look at the broader business issues. Apply common sense. Your actuarial training should kick into gear when you need it, but the real skill is in how you apply it."