Overview n Preliminary Definitions n What is an Actuary? n What do Actuaries do? n What skills are needed to be an Actuary? n Where do Actuaries work? n Advantages of an actuarial career n How do I become an Actuary? n Questions/Other Resources

Preliminary Definitions Insurance – A means of transferring the risk or possibility of a financial loss from an individual to all the members of a group by having each member share in the losses. Actuarial Science – Methods used to quantify the financial impact of dependent events.

What is an Actuary? What is an Actuary? An Actuary is a person who: n applies mathematical, analytical, and business skills to help solve a variety of financial and social problems. n develops models to estimate the financial impact of future events. n analyzes, manages and measures the financial implications of future risk.

Actuarial Societies Society of Actuaries n About 18,000 members n Life and Health Insurance n Pension Consulting

Actuarial Societies Casualty Actuarial Society n About 4,000 members n Property and Casualty Insurance

Typical Casualty Actuarial Projects n Conducting studies of insurance rates. n Estimating the amount of money to be set aside for insurance claims that have not been paid. n Participating in various aspects of corporate planning. n Forecasting the impact of catastrophes.

What Skills are Needed to be an Actuary? n Proficiency in math and statistics n Strong analytical and problem solving skills n Good business sense n Solid communication skills u Both Oral and Written n Strong computer skills n Discipline to take and pass actuarial exams

Where Do Actuaries Work? n Insurance Industry u Property and casualty u Life, health and annuities u Reinsurance n Consulting Firms u Property and casualty u Pensions u Social Security n Financial Industry u Banks, investing, risk management n Also govt. insurance departments, universities, public accounting firms, and large corporations

Advantages of an Actuarial Career n Diverse, challenging work n Working conditions are favorable n Great employment prospects n Earn while you learn n It’s a well-compensated career

How to Become a Casualty Actuary n 4 yr college degree. n Casualty actuaries achieve professional status by passing exams administered by the Casualty Actuarial Society (CAS). n Associate of the CAS (ACAS) - Completion of Exam Parts 1-7 and Course on Professionalism. n Fellow of the CAS (FCAS) - Completion of all 9 Exam Parts. n Can take exams while in school or while working

How to Become a Life and Health Actuary n 4 yr college degree. n Life and Health actuaries achieve professional status by passing examinations administered by the Society of Actuaries (SOA). n Associate of the SOA (ASA) - Completion of Exam Parts 1-6 and Associateship Professionalism Course (APC). n Fellow of the SOA (FSA) - Completion of exams 7 and 8 and Professional Development Course and Fellowship Admissions Course n Exams 1, 2 and 4 are jointly administered by the CAS and SOA.

Casualty Actuarial Areas of Study Calculus Calculus Statistics Statistics Finance Finance Economics Economics Insurance Ratemaking Insurance Ratemaking Insurance Reserving Insurance Reserving Insurance Law and Regulation Insurance Law and Regulation Insurance Accounting and Annual Statements Insurance Accounting and Annual Statements

Typical CAS Exam n Four hours in length. n Administered twice a year. n Typically requires 300 to 500 hours of studying to pass. n Only 30 to 40% of the takers pass.

Advice to Interested Students n Develop disciplined study habits. u When looking at employment possibilities look at the support given by the company F Do they offer study time? How much study time do they give? F Do they help supply the materials for studying? n Join activities that develop communication skills. n Plan your education – Take a well-rounded curriculum u Plan when you want to take the actuarial exams u In addition to math and computer courses, take finance and economics n Start researching companies that hire actuaries u Inquire about internship possibilities u Set up a time to interview or visit the company, ask for information on the company

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