ACTUARIAL SCIENCE MA/STAT 170 SEPTEMBER 14, 2006

Me! Prof. Richard Penney Director Actuarial Science

Join The Club! Mentor Program Job Interviews –Internships –fulltime Company presentations Exam study groups FUN! See Julie Morris, MATH 827

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 former 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 50K 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 Finance: MGMT 310, 411 Applied Statistics: STAT 512, 490T Warning: STAT 490T will change to STAT 420. Warning: You need at least a B for the VEE to count!

Exams  Exam FM (Mathematical Finance) (2.5 hours) MA 490A (was MA 370) (Interest Theory)  Exam P (Probability) ( 3 hours) MA/STAT 416+MA/STAT 290A  Exam M FE Financial Economics (2 hours)  Exam MLC Life Contingencies (3 hours) STAT  Exam C (Construction of Models) (4 hours) STAT 417, 490C, STAT Note: The CAS has its own third exam. They will accept the SOA Exams MFE+MLC, but NOT vice versa.

Exam Schedule Exam P is computer based and is offered four times a year. Other exams are offered Nov. and May. 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 490A this spring followed by Exam FM!

Exam Awards  Every non-graduating student who passes an exam receives $150 (?) per exam passed.  You must apply in advance of taking the exam. The application is on our web page

FLASH! FLASH! FLASH! We now have an Honors Program! 1.Pass at least two exams. 2.Obtain a 3.3 overall GPA. 3. Achieve 3 VEE’s. 4. Obtain a 3.5 average in STAT 417,472, 473, and 490C. 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!

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