1. ACTUARIAL EDUCATION in the universities
by Prof.dr. Erzsebet Kovacs
Corvinus University of Budapest
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2. History and Membership
Hungarian Actuarial Society (HAS) was established
in 1991 by 36 founding members
153 Ordinary members in 2008
71 fully and 82 partly qualified actuaries
102 male and 51 female actuaries
HAS is full member of the IAA and theGC
10 million people, 22 insurance companies, 1-10 actuaries/company
7-9 new members per year
We are voluntary association with code of conduct.
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3. HOW ONE BECOMES AN ACTUARY IN HUNGARY
Practice at a market player
Actuarial education or research
Apply for the HAS’s membership
No actuarial qualification required
Admittance by recommendation of two members
New member has to be involved in
actuarial activity
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4. Roots of the Hungarian actuarial education
1904: Hungarian Actuary Table was founded
: some lectures at Faculty of Economics
Insurance mathematics, insurance law, accounting
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5. Restarted actuarial education
Postgraduate Diploma Courses
Organized jointly by the Institute and Faculty of Actuaries and Budapest University of Economics
Two basic level courses in 1991/1992 and in 1993/1994
One advanced level course in 1994/1995
Diploma issued by the Budapest University of Economics in 1999 for 21 Hungarian and 2 Croatian examinees
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6. Actuarial Education in Hungary Present situation
University-based education
Postgraduate Diploma Courses at Corvinus University of Budapest (CUB)
Graduate programs
at CUB and
at the Eötvös Lorand University (ELTE)
After completing country-specific subjects and defending thesis work diploma was issued by BUESPA.
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7. Postgraduate program at CUB
4 semesters, correspondence cources, tuition fee is paid
Lectures are given in Hungarian
or in English for foreign participants
Actuarial education received whilst working as an actuary :
about 90 Hungarians and
14 Romanian actuaries
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8. Summary of graduate programs
ELTE Budapest
Special courses, Specialization
2004: Actuarial and Financial Matematics major
University of Szeged
Social insurance
Introduction to insurance mathematics
Technical University Budapest
1999- Introduction to Life insurance
University of Debrecen
1999- Introduction to Insurance Mathematics
ELTE :Specialization for 4th and 5th year students in Mathematics, max 10 students per year
Szeged: 30 students/year 2 semester (social ins.). 100 students/year Mathematics, Risk processes,General ins. Math.
TUB: 15 students/year Life ins.
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9. Graduate program at CUB: Actuarial major and minor
from 1994
4 semesters
Major
8 actuarial courses, higher no. of classes
17-25 students/year
Minor
6 actuarial courses
45-55 studenst /year
BUESPA: 5 year university program, Specialization in Actuarial Studies for the 4th and 5th year students in Economics, students/year – major, – minor
There is high demand for educated actuaries, the quality of the education has to be maintained or if possible - improved in spite of the lack of qualification requirements.
All activities related to the education are left to the highr education institutions.
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10. Favourable Assessment
1) IAA Education Assessment
„HAS fulfilled the requirements of IAA.”
2) Labour Market
Actuaries are successfully employed in:
Insurance companies, Pension funds, Supervisory Authority, Ministry of Finance, consulting firms: Deloitte, Hewitt, Mercer, WatsonWyatt
This is a marketable profession in Hungary.
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11. Actuarial Education in Hungary Future: Bologna type MSc
Introducing the Bologna system allows us to maintain the good quality of actuarial education
MSc in Actuarial and Financial Mathematics initiated by 5 Hungarian universities in 2006
MSc has been accepted by the Accreditation Committe of the Hungarian Academy of Science
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12. Hungarian Master program starts in 2009
2 competitive and complementary majors
Actuarial
Quantitative Finance
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13. Structure of the Actuarial master program
Fully harmonized with the IAA requirements
Professors from 2 universities
Combined lectures at CUB&ELTE
Students apply for one university but will receive a joint diploma
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14. Basic courses – Semester 1
Microeconomics
Macroeconomics
Finance
Probability Theory and Statistics
Functional Analysis
Differential equations
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15. Core courses – Semester 2
Time series analysis
Investment analysis
Financial Econometrics
Stochastic processes
Multivariate statistical methods and modelling (SPSS)
Insurance and Insurance law
Life insurance
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16. Special courses – Semester 3-4
Life contingencies
Health Insurance
Non-life insurance
Statistical methods in general insurance
Pension schemes
Accounting
Reserving and solvency
Profit testing (VIP)
Thesis
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17. Structure of MSc in Quantitative Finance
Common studies in Semester 1-2
Different courses from Semester 3
Financial Risk
Credit Risk
Option Pricing
Financial Mathematics
Interest rate modelling
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18. Why do we think it is highly important?
General development of the profession
Make widely and easily accessable for talented, ambitious Hungarian students
Continuing research, publishing books and articles in Hungarian language
Attracting non-Hungarian students from the neighbouring countries (lower costs, similar education system, strong background in Mathematics)
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