ACTUARIAL EDUCATION in the universities by Prof.dr. Erzsebet Kovacs Corvinus University of Budapest TAIEX Assistance - Moldova 28/03/2008

History and Membership Hungarian Actuarial Society (HAS) was established in 1991 by 36 founding members 153 Ordinary members in 2008 71 fully and 82 partly qualified actuaries 102 male and 51 female actuaries HAS is full member of the IAA and theGC 10 million people, 22 insurance companies, 1-10 actuaries/company 7-9 new members per year We are voluntary association with code of conduct. TAIEX Assistance - Moldova 28/03/2008

HOW ONE BECOMES AN ACTUARY IN HUNGARY Practice at a market player Actuarial education or research Apply for the HAS’s membership No actuarial qualification required Admittance by recommendation of two members New member has to be involved in actuarial activity TAIEX Assistance - Moldova 28/03/2008

Roots of the Hungarian actuarial education 1904: Hungarian Actuary Table was founded 1920-1936: some lectures at Faculty of Economics Insurance mathematics, insurance law, accounting TAIEX Assistance - Moldova 28/03/2008

Restarted actuarial education Postgraduate Diploma Courses Organized jointly by the Institute and Faculty of Actuaries and Budapest University of Economics Two basic level courses in 1991/1992 and in 1993/1994 One advanced level course in 1994/1995 Diploma issued by the Budapest University of Economics in 1999 for 21 Hungarian and 2 Croatian examinees TAIEX Assistance - Moldova 28/03/2008

Actuarial Education in Hungary Present situation University-based education Postgraduate Diploma Courses at Corvinus University of Budapest (CUB) Graduate programs at CUB and at the Eötvös Lorand University (ELTE) After completing country-specific subjects and defending thesis work diploma was issued by BUESPA. TAIEX Assistance - Moldova 28/03/2008

Postgraduate program at CUB 4 semesters, correspondence cources, tuition fee is paid Lectures are given in Hungarian or in English for foreign participants Actuarial education received whilst working as an actuary : about 90 Hungarians and 14 Romanian actuaries TAIEX Assistance - Moldova 28/03/2008

Summary of graduate programs ELTE Budapest 1986- Special courses, 1990- Specialization 2004: Actuarial and Financial Matematics major University of Szeged 1994- Social insurance 1997- Introduction to insurance mathematics Technical University Budapest 1999- Introduction to Life insurance University of Debrecen 1999- Introduction to Insurance Mathematics ELTE :Specialization for 4th and 5th year students in Mathematics, max 10 students per year Szeged: 30 students/year 2 semester (social ins.). 100 students/year Mathematics, Risk processes,General ins. Math. TUB: 15 students/year Life ins. TAIEX Assistance - Moldova 28/03/2008

Graduate program at CUB: Actuarial major and minor from 1994 4 semesters Major 8 actuarial courses, higher no. of classes 17-25 students/year Minor 6 actuarial courses 45-55 studenst /year BUESPA: 5 year university program, Specialization in Actuarial Studies for the 4th and 5th year students in Economics, 20-25 students/year – major, 20-25 – minor There is high demand for educated actuaries, the quality of the education has to be maintained or if possible - improved in spite of the lack of qualification requirements. All activities related to the education are left to the highr education institutions. TAIEX Assistance - Moldova 28/03/2008

Favourable Assessment 1) IAA Education Assessment „HAS fulfilled the requirements of IAA.” 2) Labour Market Actuaries are successfully employed in: Insurance companies, Pension funds, Supervisory Authority, Ministry of Finance, consulting firms: Deloitte, Hewitt, Mercer, WatsonWyatt This is a marketable profession in Hungary. TAIEX Assistance - Moldova 28/03/2008

Actuarial Education in Hungary Future: Bologna type MSc Introducing the Bologna system allows us to maintain the good quality of actuarial education MSc in Actuarial and Financial Mathematics initiated by 5 Hungarian universities in 2006 MSc has been accepted by the Accreditation Committe of the Hungarian Academy of Science TAIEX Assistance - Moldova 28/03/2008

Hungarian Master program starts in 2009 2 competitive and complementary majors Actuarial Quantitative Finance TAIEX Assistance - Moldova 28/03/2008

Structure of the Actuarial master program Fully harmonized with the IAA requirements Professors from 2 universities Combined lectures at CUB&ELTE Students apply for one university but will receive a joint diploma TAIEX Assistance - Moldova 28/03/2008

Basic courses – Semester 1 Microeconomics Macroeconomics Finance Probability Theory and Statistics Functional Analysis Differential equations TAIEX Assistance - Moldova 28/03/2008

Core courses – Semester 2 Time series analysis Investment analysis Financial Econometrics Stochastic processes Multivariate statistical methods and modelling (SPSS) Insurance and Insurance law Life insurance TAIEX Assistance - Moldova 28/03/2008

Special courses – Semester 3-4 Life contingencies Health Insurance Non-life insurance Statistical methods in general insurance Pension schemes Accounting Reserving and solvency Profit testing (VIP) Thesis TAIEX Assistance - Moldova 28/03/2008

Structure of MSc in Quantitative Finance Common studies in Semester 1-2 Different courses from Semester 3 Financial Risk Credit Risk Option Pricing Financial Mathematics Interest rate modelling TAIEX Assistance - Moldova 28/03/2008

Why do we think it is highly important? General development of the profession Make widely and easily accessable for talented, ambitious Hungarian students Continuing research, publishing books and articles in Hungarian language Attracting non-Hungarian students from the neighbouring countries (lower costs, similar education system, strong background in Mathematics) TAIEX Assistance - Moldova 28/03/2008

TAIEX Assistance - Moldova More information? Mail: erzsebet.kovacs@uni-corvinus.hu Thank you for your attention! TAIEX Assistance - Moldova 28/03/2008