ACTUARIAL SCIENCE MA/STAT 170 AUGUST 23, 2016

Co-Director Actuarial Science Me! Prof. Richard Penney Co-Director Actuarial Science

Jeff Beckley, FSA Co-Director, Actuarial Science Program

Join The Club! Mentor Program Job Interviews Company presentations Internships fulltime Company presentations Exam study groups FUN! See Julie Morris, MATH 820

MA/STAT 170 Class web page: www.math.purdue/~rcp The text is on the web as are the assignments Homework is collected at the beginning of the hour. Put it on the table as you come in. Attendance at the presentations is MANDITORY You will need a TI-30xx series calculator for the tests. NO OTHER CALCULATOR WILL BE ALLOWED! On Thursdays, Class will either be in the lab or in WTHR 160. Check the syllabus!

What is an actuary? Actuaries tell insurance companies how much to charge for the policies and ....

What is an actuary? Actuaries help tell the company how to invest its funds Actuaries determine how much money to hold in reserve to pay the claims Actuaries are responsible for making sure the company is fulfilling its legal obligations Actuaries design new “products” Actuaries design pension/retirement plans Actuaries run the company! Many CEO’s and CFO’s are actuaries.

Where do they work? Insurance companies Actuarial consulting firms Pension departments for large companies Government A few work in non-traditional roles such as managing risk for financial firms

Is it a good job? You bet! Consistently ranked among the top two or three jobs by Jobs Rated Almanac Starting salaries around 55-65K Can easily double in 5 years as exams are passed

Is it for me? Are you good at math? Do you want a career in business? Can you communicate well?

What do actuarial students study? Math (lots!) Stat (lots!) CS Accounting Econ Finance Communications

Types of Actuaries Health, Life, and Pension Actuaries Belong to the Society of Actuaries (SOA) Casualty Actuaries Belong to the Casualty Actuarial Society (CAS) Consulting Actuaries Belong to either CAS or SOA

Becoming an actuary Associate Actuary=Associate (ACAS or ASA) =7 Exams + VEE+ “Fundamentals of Actuarial Practice” (SOA) + “Associate Professionalism Course” Actuary=Fellow (FCAS or FSA) =9 Exams + “Professional Development” (SOA)+ “Fellowship Admission Course” (SOA)

VEE Validation by Educational Experience Economics: ECON 251-252 Finance: MGMT 310, 411 Applied Statistics: STAT 512, 420 Warning: You need at least a B- for the VEE to count!

Exams Exam FM (Mathematical Finance) MA 37300 (Mathematical Finance) Exam P (Probability) MA/STAT 41600+MA/STAT 25000 Exam M FE Financial Economics STAT 47300 Exam MLC (Life Contingencies). STAT 47201 Exam C (Construction of Models), STAT 47900 Note: In place of the MLC Exam, the CAS uses its own exams called MC and ST.

Exam Schedule Exam P, FM, MFE and C are computer based and offered 4-6 times a year. MLC is not computer based and is offered fall and spring. Register online at SOA web site. (Be careful about early deadlines!) You can retake them as many times as you can afford.

If at all possible you should pass at least Exam FM and Exam P before senior year

You should take MA 373 this fall or spring followed by Exam FM!

Exam Awards Every non-graduating student who passes an exam receives an exam award. The amount depends on available funds. The past year it was 100% of the exam fee. You must apply in advance of taking the exam. The application is on our web page www.math.purdue.edu/actuary

Departmental Honors Honors Program! Pass at least two exams. Obtain a 3.3 overall GPA. 3. Achieve 3 VEE’s. 4. Obtain a 3.5 average in STAT 417,472, 473, and 479. 5. Get A’s and B’s in all required Math/Stat classes.*

Internships Occur in the summer. Typically (but not always) after the junior year. Typically (but not always) require at least one exam. Obtained by signing up for interviews managed by the Actuary Club. Very important!

More Info www.math.purdue.edu/actuary