1. ACTUARIAL SCIENCE MA/STAT 170 AUGUST 23, 2016

2. Co-Director Actuarial Science
Me!
Prof. Richard Penney
Co-Director Actuarial Science

3. Jeff Beckley, FSA
Co-Director, Actuarial Science Program

4. Join The Club! Mentor Program Job Interviews Company presentations
Internships
fulltime
Company presentations
Exam study groups
FUN!
See Julie Morris, MATH 820

5. MA/STAT 170 Class web page: www.math.purdue/~rcp
The text is on the web as are the assignments
Homework is collected at the beginning of the hour. Put it on the table as you come in.
Attendance at the presentations is MANDITORY
You will need a TI-30xx series calculator for the tests. NO OTHER CALCULATOR WILL BE ALLOWED!
On Thursdays, Class will either be in the lab or in WTHR 160. Check the syllabus!

6. What is an actuary?
Actuaries tell insurance companies how much to charge for the policies and ....

7. 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 actuaries.

8. 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

9. Is it a good job?
You bet!
Consistently ranked among the top two or three jobs by Jobs Rated Almanac
Starting salaries around 55-65K
Can easily double in 5 years as exams are passed

10. Is it for me? Are you good at math? Do you want a career in business?
Can you communicate well?

11. What do actuarial students study?
Math (lots!)
Stat (lots!) CS
Accounting
Econ
Finance
Communications

12. 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

13. 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)

14. VEE Validation by Educational Experience Economics: ECON 251-252
Finance: MGMT 310, 411
Applied Statistics: STAT 512, 420
Warning: You need at least a B- for the VEE to count!

15. Exams Exam FM (Mathematical Finance) MA 37300 (Mathematical Finance)
Exam P (Probability)
MA/STAT MA/STAT 25000
Exam M FE Financial Economics
STAT 47300
Exam MLC (Life Contingencies).
STAT 47201
Exam C (Construction of Models),
STAT 47900
Note: In place of the MLC Exam, the CAS uses its own exams called MC and ST.

16. Exam Schedule
Exam P, FM, MFE and C are computer based and offered 4-6 times a year.
MLC is not computer based and is offered fall and spring.
Register online at SOA web site. (Be careful about early deadlines!)
You can retake them as many times as you can afford.

17. If at all possible you should pass at least Exam FM and Exam P before senior year

18. You should take MA 373 this fall or spring followed by Exam FM!

19. Exam Awards
Every non-graduating student who passes an exam receives an exam award. The amount depends on available funds. The past year it was 100% of the exam fee.
You must apply in advance of taking the exam. The application is on our web page

20. Departmental Honors Honors Program! Pass at least two exams.
Obtain a 3.3 overall GPA.
3. Achieve 3 VEE’s.
4. Obtain a 3.5 average in STAT 417,472, 473, and 479.
5. Get A’s and B’s in all required Math/Stat classes.*

21. 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!

22. More Info