An Actuary .Ahem . of His Time A Conversation with C onsultant Thomas Bowles veteran of 65 years in the insurance industry, Thomas P. Bowles,Jr. is one of the most respected members of the actuarial profession . In the 1940s, at a time when most actuaries spent lifelong careers in insurance-company employment, Bowles struck out on his own to build the actuarial consulting firm that is now T illingha t. n addition to his business success, Bowles maintained an active role in the profession's organizations, including service as president of the Society of Actuaries and the Academy . In recent years, he has devoted much of his time to strengthening the academic base of the profession . The Thomas P. Bowles, Jr . Chair ofActuarial Science at Georgia State University is one of the most prestigious academic posts in the field, and Bowles himself is active in organizing the annual symposium that bears his name at the Atlanta campus . Last March, Bowles took time away from the 1998 symposium on genetic testing to discuss his career with the managing editor of the Actuarial Update. Why did you go into the insurance industry?
by the tail . But we've awakened to find that is not the case . Economic forces are forcing insur-
Insurance runs in the family. My uncle, George A . Bowles, was insurance commissioner ofVirginia and also president of the National
ers to become more competitive in the marketplace, and this has led to company consolidation and staff
Association of Insurance Commissioners . In fact, as president of the NAIC he wa~ responsible for the project headed by Al Gerten that changed the whole
downsizing .
and could change the way the insurance business functions .
What is the purpose of the Bowles Symposium?
What is planned for next year`s symposium?
The symposium is an opportunity
We will be meeting soon to evaluate this year's session and to start planning for 0 year. As to the topic of discussion, we welcome
concept ofnonforfeiture values and that underlIation even today -
for actuaries to participate in the
I started at Life of Virginia in
We would like to increase the par-
.1933 and went into the actuarial department. Charlie Taylor, who later became resident and CEO
discussion of issues that go beyond the traditional actuarial concerns .
In this 1997 photo, Thomas P Bowles (center) greets two Academy members who are key participants in the Bowles Sympasiarrc Sam Cox (left) Georgia State University professor and chief symposimn organizer, and Jim Hickman, former holder of the Bowles Chair of Actuarial Science .
of Life of V, was my mentor and encouraged me in my career. He made sure that his actuarial trainees were familiar with the entire business-underwriting, investment, accounting, etc . Thanks to him, I knew life insurance companies from A to Z .
How was the business different in those days? Personal relationships were very important. For instance, Charlie Taylor encouraged us to get to know the agents and to attend their conventions . I learned a lot late at night over drinks with the agents . Sometimes improvements in our business practices would result . A classic example involved the death benefit in juvenile insurance, which materially depended on the policy year in which death occurred. Late one night at a meeting down in Dayton Beach, an agent told me how hard it was to explain to parents why the payout was different for two kids who died at the same time but in different policy years . I
Did you employ casualty actuaries? We brought three casualty actuar-
had been with Life ofVirginia for 15 years and needed a challenge. The actuary of Life ofVirginia, Bob Towne, and I decided to explore the market and mailed a marketing survey to companies through-
ies on board early, but it didn't work out from a business standpoint . We were ahead of our time . By the 1970s, things were different, and Jim MacGinnitie joined us. Starting from scratch,Jim built
out the South under the name of the Actuarial Consulting Bureau . The response was overwhelming,
one of the two largest casualty-insurance consulting services in the country
so we left the company in 1948 and began our own business under the name of Bowles, Andrews, and Towne. We set up shop in Richmond, but by the early 1950s it was clear to us that Atlanta was going to be the commercial, economic, transportation, and cultural center of the South , so we opened an office in Atlanta. My family and I moved here in 1954 .
What was the care of your business in those early days? Our first clients were life insurance companies that were seeking good
How did your invulvmant with Georgia State begin? Did you teach here? No. I got involved back in the 1950s as president of the Southeastern Actuaries Club . The club supported the establishment of the actuarial science program at the institution that is now Georgia State . It was the first such program in this part of the country. Sixty percent of the actuaries practicing in the U.S . have had an academic relationship with the program at Georgia State . The program has been quite successful .
took the problem back to Charlie and we got approval to change the
professional advice . Then we got into pensions, and I even got involved in casualty work . I repre-
death benefit basis from policy year to attained age .
sented the Virginia Manufacturers Association in rate filings for work-
How did you start out in the consulting business?
ers compensation insurance. That couldn't be done now because of the qualification requirements . I studied the subject, knew it pretty
I think that actuaries have been slow in the exploration of fields outside the strictly actuarial discipline . But that is changing . The actuarial profession was once a
well for a life actuary, and helped the VMA win several rate cases .
rather smug group of professionals who thought they had the world
When I finished my military service at the end ofWorld War II, there was not a single consulting
not enough of them actuaries. It
suggestions from people in the profession . Sam Cox, who is director of Georgia State's actuarial science program and editor of the North Arnericuarial Review, is doing an exce t job as leader of
seems that actuaries have not suffi-
planning activities .
ticipation of actuaries in the symposium. For instance, this year's symposium is a success with more than 90 people in attendance, but
actuary south of Washington, D.C. When I received my fellowship, I
Is the profession missing out on opportunities because of limited contact with academic life?
ciently opened their eyes to the challenge of genetic testing . Most think that it is merely another risk classification problem, but it obviously has broad social implications
Top Federal official at Academy Luncheon Nancy-Ann Min DeParle, administrator of the Health Care Financing Administration (HCFA), will be the featured speaker at the Academy's Washington Luncheon on June 30 . As HCFA chief, DeParle has responsibility for the federal government's Medicare program and is expected to discuss prospects for long-term solvency and the Clinton administration's proposal to extend coverage to Americans as young as 55 . Also at the luncheon, the 1998 Robert J . Myers Public Service Award will be presented to an actuary who has made a significant contribution to the public welfare. All Academy members are invited to attend; reserve your place by fax to the attention of Doreen Evans at 202-872-1948 or by e-mail to evam@actuary.org.
Bruce Holmes, a member of the Academy Task Farce on Genetic Testing , addresses the 1998 Bowles Symposium an Genetic Technology and Underwriting at Georgia State University. Holmess presentation focused on the Academy task force's most recent issue brief, 'Genetic Information and Voluntary life Insurance," which examines widespread public fears about the use of genetic test results by insurers. The Academy report will make its official debut at a Washington briefing for Capitol Hill staff and the media, to be hold later this spring. Task fore member Gene Held and Academy Federal Life Committee Chairperson Arnold Dicke also participated in the Georgia State symposium.