ACTUARIAL SCIENCE
MA/STAT 170
AUGUST 20, 2013
Me!
Prof. Richard Penney
Co-Director Actuarial Science
Jeff Beckley, FSA
Co-Director, Actuarial Science Program
Join The Club!
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Mentor Program
Job Interviews
– Internships
– fulltime
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Company presentations
Exam study groups
FUN!
See Julie Morris,
MATH 820
MA/STAT 170
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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!
What is an actuary?
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Actuaries tell insurance companies how
much to charge for the policies and ....
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.
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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
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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
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Is it for me?
 Are
you good at math?
 Do you want a career in business?
 Can you communicate well?
What do actuarial students
study?
Math
(lots!)
Stat (lots!)
CS
Accounting
Econ
Finance
Communications
Types of Actuaries
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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
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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)
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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!
Exams
Exam FM (Mathematical Finance) 3 hr. CBT
MA 37300 (Mathematical Finance)
 Exam P (Probability) 3 hr. CBT
MA/STAT 41600+MA/STAT 25000
 Exam M FE Financial Economics 3 hr, CBT
STAT 47300
 Exam MLC (Life Contingencies) 3 hr.
STAT 47201
 Exam C (Construction of Models) 3.5 hr, CBT
STAT 47900
Note: The CAS has its own third exam. They will accept the
SOA Exams MFE+MLC, but NOT vice versa.
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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
If at all possible you should
pass at least Exam FM and
Exam P before senior year
You should take MA 373
this fall or spring followed
by Exam FM!
Exam Awards
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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
www.math.purdue.edu/actuary
Departmental Honors
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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.*
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!
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More Info
www.math.purdue.edu/actuary