ACTUARIAL SCIENCE ACTUARIAL SCIENCE MA 108MA 108

November 7, 2012November 7, 2012

Me!Me!

Prof. Richard PenneyCo-Director Actuarial

Science

Jeff Beckley, FSAJeff Beckley, FSA Co-Director, Actuarial Science Program

Join The Club!Join The Club!

Mentor Program Job Interviews

– Internships– fulltime

Company presentations Exam study groups FUN! See Julie Morris,

MATH 820

Actuaries tell insurance companies how much to charge for the policies and ....

What is an actuary?What is an actuary?

What is an actuary?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?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?Is it a good job?

You bet! Consistently ranked among the top two

or three jobs by Jobs Rated Almanac Starting salaries around 50-60K Can easily double in 5 years as exams

are passed

Is it for me?Is it for me?

Are you good at math?Do you want a career in business?Can you communicate well?

What do actuarial students What do actuarial students study?study?

Math (lots!)Stat (lots!)CSAccountingEconFinanceCommunications

Types of ActuariesTypes 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 actuaryBecoming 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)

VEEVEEValidation 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!

ExamsExams Exam FM (Mathematical Finance) 3 hr. CBT

MA 373 (Mathematical Finance) Exam P (Probability) 3 hr. CBT

MA/STAT 416+MA/STAT 250 Exam M FE Financial Economics 2.5 hr, CBT STAT 473 Exam MLC (Life Contingencies) 3 hr.

STAT 490 (Formerly STAT 472) Exam C (Construction of Models) 3.5 hr, CBT

STAT 479Note: The CAS has its own third exam. They will accept the

SOA Exams MFE+MLC, but NOT vice versa.

Exam ScheduleExam 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.

Departmental HonorsDepartmental Honors

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 479.

5. Get A’s and B’s in all required Math/Stat classes.*

InternshipsInternships 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!

MoreMore InfoInfo

www.math.purdue.edu/actuary

www.beanactuary.org

www.soa.org

www.casact.org