1. Brought to You By: About an Actuarial Career Be An Actuary A Career Without Boundaries Presented By: Laura McSweeney

2. Overview   What is an Actuary?   Where do Actuaries work?   What do Actuaries do?   Why become an Actuary?   What is the career outlook?   What skills and talents are needed?   How can you become an Actuary?

3. What is an Actuary? An Actuary is a person who: Analyzes, manages and measures the financial implications of future risk. Develops and validates financial models to guide decision making.

4. Where do Actuaries Work? Insurance companies Consulting firms Government insurance departments Banks and investment firms Large corporations Public accounting firms Colleges and universities Anywhere risk management is needed

5. Most Common Industries Where Actuaries Work Insurance Industry   Property (home) and casualty (auto)   Life and annuities Employee Benefit Industry   Retirement benefits   Health benefits   Social Security Financial Services Industry   Banks, investing, risk management   Mergers & Acquisitions

6. Typical Actuarial Projects Life Insurance: Designing and pricing life insurance products Life Insurance: Designing and pricing life insurance products Property & Casualty: Estimating the amount of money to be set aside for insurance claims that have not been paid Property & Casualty: Estimating the amount of money to be set aside for insurance claims that have not been paid Health Benefits: Setting HMO premium rates. Health Benefits: Setting HMO premium rates. Retirement Systems: Pricing the cost of increasing retirement benefits Retirement Systems: Pricing the cost of increasing retirement benefits Finance & Investments: Portfolio diversification studies Finance & Investments: Portfolio diversification studies

7. Interesting Actuarial Problems Property/Casualty Actuary Property/Casualty Actuary  Automobile Insurance and Credit Scores  Catastrophe Insurance Coverage – hurricanes, earthquakes, etc.  Modeling retention changes for large corporations

8. Interesting Actuarial Problems Health Actuary Health Actuary  $10 co-pay vs. $25 co-pay for prescription drugs  HMO vs. Large Deductibles (Health Savings Accounts)  National Prescription Drug Plan

9. Interesting Actuarial Problems Pension Actuary Pension Actuary  Social Security Funding  Employer-Sponsored Pension Plan vs. 401K  2% x years of service vs. 1.5% x years of Service – Pension Benefits

10. Why Become an Actuary? High earning potential High earning potential No cost of graduate school – “learn while you earn” No cost of graduate school – “learn while you earn” Advance by examinations – no “glass ceiling” Advance by examinations – no “glass ceiling” Skills are highly transferable to other industries and job responsibilities Skills are highly transferable to other industries and job responsibilities Newsworthy projects Newsworthy projects Potential for travel as a consultant or a 9-to-5 job with little or no travel as a non-consultant Potential for travel as a consultant or a 9-to-5 job with little or no travel as a non-consultant High demand – less sensitive to economic cycles High demand – less sensitive to economic cycles Job security; need expected to grow Job security; need expected to grow Overall, a highly ranked profession Overall, a highly ranked profession

11. Jobs Rated Almanac Actuary was rated the #1 job in America, according to the Wall Street Journal (2010), #2 in 2012, #4 in 2014 The Examiner (2009) and CNN Money (2012) claim that actuaries one of the top fields to be in during a recession. Ranking is based on 6 factors: Income, Outlook, Stress, Environment, Physical Demands and Security

12. Salary Information Starting salaries of $41,000 - $52,000 (with one exam and no experience) Merit increases Examination increases Increases for professional designations Source: D.W. Simpson & Company, Inc., 2006 Salary Survey

13. Earning Potential Note: Compensation may vary significantly according to years of experience, geographic region and responsibilities. Source: D.W. Simpson & Company, Inc., 2006 Salary Survey Average Actuarial Salaries Years of Experience

14. Disadvantages of the Career Difficulty of the examination process Difficulty of the examination process Frustrating, yet challenging problems Frustrating, yet challenging problems Narrow field with high degree of specialization Narrow field with high degree of specialization Confinement to an office (non-consultant) Confinement to an office (non-consultant) Travel and long hours (consultant) Travel and long hours (consultant)

15. What Skills are Needed to be an Actuary? Knowledge of math and finance Computer skills Keen analytical, project management and problem solving skills Solid communication skills (oral & written) Good business sense

16. What Talents are Needed to be an Actuary? Motivation Creativity Independence Ability to work with others

17. How to Become an Actuary Like a doctor or lawyer, an actuary achieves professional status by passing examinations to prove a certain level of knowledge. Actuarial examinations are administered by the Casualty Actuarial Society (CAS) and Society of Actuaries (SOA). Three of the first four exams are administered jointly. Examinations are held twice a year (1/P – four times/year) Two professional designations exist for each organization:   Associate (either ASA or ACAS)   Fellow (either FSA or FCAS) You can earn while you learn - employers support actuarial trainees taking exams by providing exam study time on the job.

18. Preliminary Education Structure Prerequisites Prerequisites  Calculus  Linear Algebra Validation by Educational Experience (VEE) Validation by Educational Experience (VEE) VEE credits are obtained through college courses, standardized exams, approved educational experiences, and transitional exams for:  Applied Statistical Methods: EC 380 (Econometrics) w/ prereq. EC 278 (Statistics) [or MA351/352 with permission of chair]  Corporate Finance: FI 101 (Intro. to Finance) w/ prereq. AC 11, EC 11, EC 12 and FI 215 (Financial Management)  Economics: EC11 (Micro) and EC12 (Macro)

19. Preliminary Education Structure Preliminary Examinations Preliminary Examinations  Joint Exam 1/P: Probability  Joint Exam 2/FM: Financial Mathematics In addition to the preliminary education, each society has additional requirements to achieve professional designations In addition to the preliminary education, each society has additional requirements to achieve professional designations

20. Advice for Students Who Want to be Actuaries Develop disciplined study habits. Acquire a well-rounded curriculum, including classes approved for VEE credit. Sharpen your communication and general business skills. Take actuarial exams while in school - the sooner you start, the sooner you will finish. Find an actuarial internship.

21. Advancing Diversity nMinority Students: uAfrican American, Latino, or Native American nScholarships for Minority Students uIndividual awards of $500 - $3,000, annually uDemonstrated performance and commitment nExam Fee Reimbursement for Minority Students uReimbursed for successfully passing Exam P/1 and/or FM/2 nVisit the website www.BeAnActuary.org Minority Programs: Scholarship applications, exam fee reimbursement forms, internships, and more. www.BeAnActuary.org

22. Questions and Answers To learn more about the actuarial profession, exams, and internships, visit BeAnActuary.org Casualty Actuarial Society - www.casact.org Society of Actuaries - www.soa.org

23. Advice Some past students recommended the online seminars offered through The Infinite Actuary (theinfiniteactuary.com) and/or study materials from Actex (actexmadriver.com) Video Info: Exam Process Actuary basics Info about being an Actuary