We’re Allstate Actuaries! Explore the possibilities. Proprietary of Allstate Insurance Company. Copyright © 2003

2 Something you may have never expected C7a_SMT We are here to provide you with: H Casualty Actuarial Information H Opportunities at Allstate

3 Something you may have never expected C7a_SMT CASUALTY ACTUARIAL INFORMATION H What do Actuaries do? H How do you become an Actuary? H Where do Actuaries work?  What are the career opportunities ?  Casualty Actuarial Information Opportunities at Allstate

4 Something you may have never expected C7a_SMT WHAT DO ACTUARIES DO?  Casualty Actuarial Information Opportunities at Allstate H Analyze past events to predict future events H Evaluate costs and risks H Determine adequate, equitable prices for contingent events H Assist in developing new products H Evaluate a company’s overall financial condition H Provide expert advice or testimony on financial issues and ratemaking techniques H Participate in decisions that shape company direction and philosophy

5 Something you may have never expected C7a_SMT WHAT DO ACTUARIES DO? Knowledge/Skills H Specialized math knowledge H Keen analytical and problem solving skills H Good business sense (i.e. economics, finance, etc.) H Solid communication skills H Solid computer skills (i.e spreadsheets, databases, some programming) H Broad understanding of insurance industry  Casualty Actuarial Information Opportunities at Allstate

6 Something you may have never expected C7a_SMT HOW DO YOU BECOME AN ACTUARY? H Undergraduate/graduate degree, typically in H actuarial science, H mathematics, H statistics, H economics, H finance, H business administration H Obtain Associate and Fellow designations by passing a series of actuarial exams offered by the Casualty Actuarial Society  Casualty Actuarial Information Opportunities at Allstate

7 Something you may have never expected C7a_SMT HOW DO YOU BECOME AN ACTUARY? The Casualty Actuarial Society (CAS) H Formed in 1914 H Administers actuarial exams nationwide each May and November H 7 Exams for Associateship (ACAS) H 9 Exams for Fellowship (FCAS) H over 3,589 CAS members H Professionalism Course for Associateship  Casualty Actuarial Information Opportunities at Allstate

8 Something you may have never expected C7a_SMT HOW DO YOU BECOME AN ACTUARY? Why obtain Associateship and Fellowship? H Professional Designations H Sign Financial Statements H Provide Expert Testimony H Professional Development…excellent continuing education H Personal Satisfaction H Career Opportunities H Attractive Compensation  Casualty Actuarial Information Opportunities at Allstate

9 Something you may have never expected C7a_SMT HOW DO YOU BECOME AN ACTUARY? CAS Associateship Requirements ExamTopic 1 Probability 2 Financial Mathematics 3 Statistics and Actuarial Models 4 Construction and Evaluation of Actuarial Models 5 Introduction to Property and Casualty Insurance and Ratemaking 6 Reserving, Insurance Accounting Principles and Reinsurance 7 Annual Statement, Taxation, Regulation (Nation Specific)  Casualty Actuarial Information Opportunities at Allstate

10 Something you may have never expected C7a_SMT HOW DO YOU BECOME AN ACTUARY? CAS Associateship Requirements Validation by Educational Experience VEE – Applied Statistical Methods VEE – Corporate Finance VEE – Economics

11 Something you may have never expected C7a_SMT HOW DO YOU BECOME AN ACTUARY? CAS Fellowship Exams ExamTopic 8 Investments and Financial Analysis 9 Advanced Ratemaking, Rate of Return, and Individual Risk Rating Plans  Casualty Actuarial Information Opportunities at Allstate

12 Something you may have never expected C7a_SMT WHERE DO ACTUARIES WORK? Insurance Companies 60.7% Consulting Firms 18.9% Brokers & Agents 2.6% Government 2.2% Academic & Others 6.4% Bureaus 2.9% CAS Fellows and Associates  Casualty Actuarial Information Opportunities at Allstate Retirees 6.3%

13 Something you may have never expected C7a_SMT WHAT ARE THE CAREER OPPORTUNITIES? H Rated #2 in the Jobs Rated Almanac* based on: H environment, income, outlook, physical demands, security, and stress H Job satisfaction H Very high job security H Upward mobility H Highly valued employees that achieve senior leadership positions in various disciplines H Attractive salaries ExperienceSalary New Analysts with 1 examFrom $44,500 FCAS with years$91,000-$158,600  Casualty Actuarial Information Opportunities at Allstate * Jobs Almanac Sixth Edition, 2002

14 Something you may have never expected C7a_SMT UNIQUE ASPECTS OF CASUALTY INSURANCE H Universal H Nearly everyone purchases some form of casualty insurance H Unpredictable / Dynamic H weather H political H Regulated and Legislated H new laws H Department of Insurance requirements  Casualty Actuarial Information Opportunities at Allstate

15 Something you may have never expected C7a_SMT ACTUARIAL FUNCTIONS State Pricing H Analysis H Trends H Profitability H Rate Adequacy H Competitive Position & Marketplace Considerations H Other Considerations (i.e. customer impacts, regulatory climate, etc.) H Recommendations to Management H Evaluation of Rate & Rating Plan Changes H Impact to Customers H Implementation (Process owner) H State Filings & Insurance Departments H Integration with Product Operations, Regional Offices, Risk Management, Claims, Marketing, Sales, etc. H Automated System  Casualty Actuarial Information Opportunities at Allstate

16 Something you may have never expected C7a_SMT ACTUARIAL FUNCTIONS Research & Development H Analyze Effectiveness of Rating Plans H Discounts and Surcharges H Classification Plans H Develop New Products H Develop Research Innovations H New Actuarial and Statistical Techniques H New Information Management Technologies H Consult For State Pricing on Legislative Issues H Cost Implication of New or Proposed Laws  Consumer Issues (i.e. equity, discrimination, etc.)  Casualty Actuarial Information Opportunities at Allstate

17 Something you may have never expected C7a_SMT ALLSTATE’S ACTUARIAL EXPERTISE Types of Positions Held by Actuaries Outside of Traditional Career Path H Field Management H Strategic Planning/Corporate Planning H Research and Planning Center H Finance H Marketing H Risk Management H Product Administration H Special Assignments H Commercial  Casualty Actuarial Information Opportunities at Allstate

18 Something you may have never expected C7a_SMT WEBSITES OF INTEREST H H (Casualty Actuarial Society) H H (Society of Actuaries) H H

19 Something you may have never expected C7a_SMT Actuarial Club Presentation H FREE PIZZA!!!!!! H Tuesday (11/16) at Pizza Hut, starting at 6:30 p.m. H Feel free to attend to learn more about the career and Allstate