The Actuarial Path Thank you for the invitation to speak to you today about the actuarial profession and the SOA education system. <Introduce yourself and give a short summary of your background. There will be a section later for you to tell your story more completely.> Before we get started, I would like to start with a question…

What is an Actuary? Most of you are actuarial students, so for me to start with this question may seem a bit puzzling. I’m interested in hearing your answers. ASK THE QUESTION – SO WHAT IS AN ACTUARY? After you get a few answers, give them your elevator speech on what an actuary is/does. Today’s actuaries are involved in more industries than ever before- expanding beyond insurance to new fields like broader financial services.

Actually, Actuaries… Analyze, measure, convert and manage risk into opportunity Use mathematical and statistical analytical skills, financial theory, business knowledge and an understanding of human behavior Develop and validate financial models to guide decision making Are creative problem solvers who see the “whole picture” So what do actuaries do? Well, you know that actuaries are business professionals who analyze and convert financial risk into opportunity using mathematics, statistics and financial theory. As a profession we are well known for our strong analytical skills, business knowledge and an understanding of human behavior that help us to provide solutions that turn risk into opportunity. This definition is a good overview of what actuaries “Do”– however, like I said before, the profession is being redefined and today’s actuaries are using these skills in new ways.

Traditional Opportunities Health Insurance Life Insurance Property/Casualty Insurance Pension/Retirement Many actuaries work in the area of traditional insurance risks. This includes work in the area of: Health Design Health Savings Accounts Design and manage Reimbursement vs. Indemnity Life Design and price life insurance products Design and manage investment strategies Develop mortality tables Property/Casualty Estimate funds needed for unpaid insurance claims Design catastrophe insurance coverage Model retention changes Pension/Retirement Design Social Security funding Design 401k (US) or group RRSP (Canada) vs. employer-sponsored pension plan Design pension and benefits plans In fact, actuaries were the first professionals to manage risk and model financial implications based on the likelihood of future scenarios. Traditionally, actuaries have and continue to hold positions in the insurance industry in a number of specialties including: health, life, property and casualty. In the insurance industry, an actuary might calculate how much a company would charge for a new type of car, homeowners or health insurance. Or an actuary might calculate how much damage an earthquake, hurricane or a terrorist attack could cause.

New Opportunities Financial services Enterprise Risk Management Link risk across business units Develop a comprehensive framework Other Opportunities Design landfill post-closure cost management strategies Design environmental trade and cap strategies Design catastrophe bonds But the role of Actuaries in today’s society is expanding. Since risk is everywhere in our businesses and society actuaries can play a key role in a variety of industries – beyond the traditional insurance role. Actuaries are expanding beyond traditional insurance jobs to non-traditional jobs of broader financial services and other industries. This includes work in the following areas: Financial services Design trading strategies: Actuaries are employed on Wall Street where they might determine how a company should invest its money based on risk and potential return. Design hedging strategies: They are also involved in hedging investment risks and annuity strategies Manage securitization risks: And they are tapping into their deep understanding of insurance and reinsurance to help corporations navigate issues surrounding securitization Other Opportunities Design landfill post-closure cost management strategies Design environmental trade and cap strategies Design catastrophe bonds

/living Why Become an Actuary? U.S. Department of Labor Employment of actuaries expected to increase by 18% by 2024. Less sensitive to economic cycles Financial Rewards $50,000 – 70,000– Entry-level actuaries $140,000 – recent FSA credentialed actuaries Education Benefits Learn while you earn – Most employers provide full educational financial support while you pursue your credentials Salaries are strong in the profession. While there are no absolutes, a fair estimate is that an entry-level actuary who has completed two exams will earn between $50,000-$70,000. (D. W. Simpson & Company 2015 Salary: http://www.dwsimpson.com/salary.html) Again, on average, an actuary who has just earned his/her fellowship can earn a salary of about $140,000 per year Learn while you earn – Most employers provide full educational financial support while you pursue your credentials And the sky is the limit from there– it all depends on how and where you apply your skills.

My story With this slide (and any other slides you may wish to add) share with the students your story. How did you decide to become an actuary? What was your exam path like? How did you get your first job? What has been your experience as an actuary since then? Etc…

Actuarial credentials Critical business skills What Employers Value Actuarial credentials Critical business skills Employer research shows us that employers value actuaries’ rigorous training and credentials, but are also looking for someone who has critical business skills, this includes: Thinking outside the box Research Communication Presentation skills Leadership Flexibility Project management Vision Result-driven Team players Integrity Reliability Depends on the level: For some skills, it takes time to practice For entry-level, possess two of these skill sets will be valuable in addition to the basic skills

Advice for Students Make learning a lifelong habit Develop disciplined study habits Acquire a well-rounded curriculum, including classes approved for VEE credit Sharpen your communication and general business skills Take actuarial exams while in school - the sooner you start, the sooner you will finish Obtain an actuarial internship Find mentors <Feel free to add your own advice.>

Society of Actuaries: The Organization

36,000+ Candidates 3,800+ Volunteers Around 28,000 Members worldwide 36,000+ Candidates Three-fold commitment: Education, Research and the Profession Here are some numbers of significance to the Society of Actuaries --We have right around 28,000 members worldwide. --Over 36,000 candidates in the Education system (2014 total was 36,167) --The organization has a three-fold commitment to Education, Research and the Profession --Of great importance is the dedication of our volunteers. We currently have over 3,800 member volunteers doing the work of the Society of Actuaries. 3,800+ Volunteers

Three Designations/Credentials Associate of the SOA (ASA) Chartered Enterprise Risk Analyst (CERA) Fellow of the SOA (FSA) The Society of Actuaries offers three designations/credentials

Associate of the SOA (ASA) Your focus as you begin to take exams should be on the ASA pathway. Start with either exam P (Probability) or FM (Financial Mathematics) depending on the coursework you have taken at school. Aim to pass two exams before graduation. Mastered fundamental concepts Is a member of the SOA, but not with full privileges

The SIX specialty tracks to FSA Corporate Finance & Enterprise Risk Management Quantitative Finance & Investment Individual Life & Annuities Retirement Benefits Group & Health General Insurance (Property/Casualty) After you complete your ASA you’ll choose a specialty track for your Fellowship level exams. The SOA offers six tracks to choose from. Your choice will likely be driven by your employer or the type of work you are doing when you reach this point. So while it’s good to learn about the different tracks, this is not a decision you need to make now.

Syllabus Updates

Associate of the SOA (ASA) Effective July 1, 2018 Effective July 1, 2018 the pathway will be changing to include new components. Key reasons for the changes: Provide a greater balance between long- and short-term actuarial mathematics Increased knowledge of statistics New Predictive Analytics component

KEY VEE Exam TBD E-Learning Module Seminar Here is a look at credit will transfer after the July 1, 2018 transition date. You’ll notice that no credit will be lost during the transition, and some components will earn credit for two items under the new system. TBD E-Learning Module Seminar

SOA Syllabus Updates ASA Curriculum Changes Addition of Predictive Analytics Effective July 1, 2018 Dedicated website The recently announced changes to the ASA curriculum are a bit more extensive, but don’t take effect until July of 2018. You can read more at the dedicated website, but for now it is best to continue to make progress through the exams as you will be given transition credit for anything you complete. soa.org/curriculumchanges

Resources In closing I would like to share with you some additional resources the SOA has available.

UCAP - Universities and Colleges with Actuarial Programs New UCAP Recognition Tiers UCAP-Advanced Curriculum (UCAP-AC) UCAP-Introductory Curriculum (UCAP-IC) New UCAP Benefits for all UCAP-AC and CAE Reimbursement of exam fees for 3 students Choose one of these ($500 USD limit): Reimbursement for study materials SOA sponsorship for an on-campus event Reimbursement of travel costs/registration fees for student travel to an actuarial conference The SOA listing of Universities and Colleges with Actuarial Programs (UCAP) serves as a resource for students looking for a university/college actuarial program. The information provided for the schools on the UCAP list has undergone some review by the SOA, but should be verified by the student considering the program. UCAP–Advanced Curriculum (UCAP-AC): Coverage for at least 4 SOA exams with one being MLC or C1 Approved courses for all VEE topic areas UCAP–Introductory Curriculum (UCAP-IC): Coverage for at least 2 SOA preliminary exams Approved courses for at least one VEE topic area 1Effective 7/1/2018 exams covered must include the Long-Term Actuarial Mathematics Exam or the Short-Term Actuarial Mathematics Exam. As a UCAP school, your university has been notified of the new student benefits for all UCAP-AC and CAE. Each UCAP-AC and CAE may apply for the reimbursement of 3 student exam fees and one other benefit to be chosen from the list per Academic year.

SOA Candidate Connect Events E-newsletter Stand-alone and at larger SOA meetings E-newsletter Subscribe: http://soa.org/candidateconnect/ Sponsorship of other student events Midwest Actuarial Student Conference Actuarial Student National Association (ASNA) convention and case competition Gamma Iota Sigma conference Candidate Connect is an important way the SOA connects with candidates and students. The candidate connect program does the following: Holds regular regional events and events at larger SOA meetings Publishes an e-newsletter twice a month. Anyone can subscribe. Sponsors other student meetings

Candidate Connect Community The recently launched Candidate Connect Community is an online forum to connect with other candidates, get announcements and learn more about SOA resources etc.

Learn more… Here are some web resources for more information… SOA.org and Beanactuary.org Learn more…

And like every other organization the SOA has a Facebook page and Twitter account you can follow.

Thank you. <If you have time, offer to answer any questions the student may have. If there are questions specific to SOA exams or activities that you can’t answer, that’s fine. Just send them to Tiffany at ttatsumi@soa.org and she will help you track down the answers. Thank you for your time!>