What is An Actuary?
http://www.careercast.com/jobs-rated/best-worst-jobs-2013
#1: The Actuarial Profession!
Based primarily on: Work Environment, Income, Future Outlook and Stress
47 – Accountant
51 – Surgeon
55 – Nurse
58 – Psychologist
61 – Architect
79 – Judge
98 – Electrical Engineer
104 – Stockbroker
120 – Economist
125 – Chemist
150 – Bartender
152 – Real Estate Agent
162 – Bank Teller
196 – Oil Rig Worker
Is Actuarial for You?
If you’re considering pursuing a career as an actuary,
you should possess many of the following qualities:
● Be a strong math student.
● Have the ability to problem solve and think logically.
● Enjoy both individual work as well as team work.
● Be tech savvy.
● Be committed in order to study for exams.
What does an Actuary do?
● Actuaries are experts in quantifying and reducing risk
● They apply probability, statistics and risk theory to financial
problems involving future uncertainty
● They are often found in:
● Life & Health Insurance (pricing, reserving, asset
management, investments)
● Property & Casualty Insurance (natural disasters, home,
auto, agricultural, pet)
● Pension & Wealth Modeling
● Academic & Government Organizations
Overview
Actuaries in the Workforce
Salary Information
Winning the Lottery! - A Tricky Problem
Actuaries at School
Perks at the University of Manitoba
5
Actuaries in the workforce
The Actuarial Profession
Three professional bodies look after qualification to become
an actuary:
● Fellowship: 8 -10 professional exams (outside of school)
● Graduating students pass 3-5 exams
● Pass remaining exams while working
Society of Actuaries
Actuaries in the workforce
Employer Location
Major Business Centres
Vancouver
Toronto
Montreal
Calgary
Winnipeg
New York
Chicago
Los
Angeles
Actuaries in the workforce
Career Paths
Insurance:
● Hierarchical organizations
● Ambitious and talented individuals are promoted
● Progress from technical to managerial to business leader
● Actuaries are commonly executives of major insurance
companies such as Manulife, Great-West Life, Sun Life
and many others
Actuaries in the workforce
Career Paths
Consulting:
Flatter organizations:
● Technical support
● Consultants
Consultants must be:
● Technically strong
● Good relationship managers
● Strong communicators
Actuaries in the workforce
Career Paths
Non-traditional:
● Academics
● Government regulators
● Demographers
● Profession expanding into other industries
(especially finance, agriculture, and even marketing!).
Actuaries in the workforce
What will this career do for you ?
● Dynamic and challenging work
● Exceptional chances for personal growth
● Highly respected profession
● Work where you want
● Very strong compensation throughout your career
Salary Information
This data is from 2011/2012 Asper School graduates
Annual average starting salary by major:
$
Accounting - All
38,042
Accounting - CA Only
35,735
Accounting - CA Excluded
41,200
Actuarial Mathematics
60,833
Finance
42,864
●It is common for Actuaries to double their
starting salary within five years!
Salary Information
Life & Health
October
2012
0-0.5 yrs
(excl.
sign-on)
0.52.5 yrs
2.54.5 yrs
1 exam
50-58
54-69
55-72
2 exams
54-64
55-75
60-80
66-86
3 exams
(MLC+MFE=1)
56-69
58-81
64-87
70-93
4 exams
60-74
62-89
65-93
72-101
75-110
4 exams
FAP 1
66-92
68-101
76-111
82-122
ASA
72-101
77-114
84-128
95-144
96-160
110-234
121-244+
97-146
104-158
118-198
131-245
148-348
163-403+
FSA
4.56.5 yrs
•D.W Simpson Actuarial Survey 2012 (U.S Dollars)
•The top and bottom 10% are excluded from this study
http://www.actuaryjobs.com/salary.html
6.59.5 yrs
9.514.5-19.5
14.5 yrs*
yrs*
19.5+
yrs*
Winning the Lottery! – A Tricky Problem
Set for Life
Question:
On your 18th birthday, you bought a Set for Life ticket, scratched
it and won! You have two options for the grand prize:
• Option A: $1 million today, or
•Option B: $1000 per week for 25 years
($1000 x 52 weeks x 25 years = $1.3 Million)
Which would you choose?
14
Winning the Lottery! – A Tricky Problem
It depends…
If interest rate = 0%
• No opportunity cost
• Option A = $1 million < Option B = $1.3 million
• Choose option B: $1000 per week for 25 years
If interest rate = 4%
• Opportunity to invest winning into a bank account that grows at the
interest rate
• Option A: AV = $1million(1.04)25 = $2.67 million
• Option B: AV = $1000(1+ .04
)1300 + $1000(1+ .04
)1299 … + 1000(1+ .04
)
52
52
52
1300 – 1]/( .04 )
= $1000[ (1+ .04
52 )
52
= $2.23 million
• Choose option A: $1 million today
15
Actuaries at School
Actuarial Studies at U of Manitoba
● Offered through Warren Centre
● Students can choose to do their Actuarial degree through either
the Asper School of Business or the Faculty of Science
● Actuarial Program background:
● Began in 1912 (last year was our 100th anniversary!)
● Hundreds of grads have become actuaries
● One of the only Canadian schools to offer actuarial studies
with a business degree
Actuaries at School
Actuarial Studies at U of Manitoba
Undergraduate Degrees (3 choices)
B. Comm. (Hons)
Actuarial Maths
B. Sc. (Hons)
Actuarial Maths
B. Sc. (Hons)
Actuarial Maths &
Statistics (Joint)
Actuaries at School
Internships & Co-Op Program
● Actuarial students are offered high paying summer positions.
● Gives students an opportunity to experience actuarial work
before they graduate.
● Students can relocate for the summer or stay local in Winnipeg.
● American companies provide a unique summer internship
experience as students get to live with other interns and
experience life in New York, Boston, Chicago and Hartford.
Actuaries at School
Recruiting at U of Manitoba
● Companies that actively recruit on campus:
● Great West Life, Wawanesa, Mercer, Aon – Winnipeg
● Manulife, Sun Life, Mercer – Toronto / Waterloo
● PBI, Mercer –Vancouver
● Towers Watson – Calgary, Chicago
● Allianz – Minneapolis
● Cigna – Hartford and Philadelphia
● Irregular recruiters:
● Deloitte, New York Life, MetLife – New York
● Co-Operators – Regina
● MPI - Winnipeg
● SGI – Saskatchewan
● You can apply anywhere!
Actuaries at School
Science Route
What to take in Year 1
● Required Courses (24 credit hours)
● MATH 1500 & 1700 – Calculus
● MATH 1300 (or MATH 1310) – Linear Algebra
● ECON 1010 & 1020 – Economics
● STAT 1000 – Statistics
● Written English requirement
● Recommended Electives (6 credit hours)
● COMP 1010 – Computer Science and
● GMGT 1010 – Business & Society
Actuaries at School
Business Route
Bachelor of Commerce In Actuarial Math
Enroll in the Asper School of Business
Three routes:
● Through University 1
● Three - year program after University 1
● Direct Admission from High School
● Four – year program
● Transfer from another institution
Actuaries at School
Business Route
Bachelor of Commerce In Actuarial Math
Direct admission criteria:
● High school graduation
● Five full grade 12 credits in courses designated S, G or U
● Over three courses (Pre-calculus 40S or Applied Math
40S, plus English 40S, plus one other 40S course)
● Minimum 60% grade in each, and
● Minimum 85% average over the three courses
Actuaries at School
Business Route
What to take in Year 1
● Key Courses
●
●
●
●
●
(6) MATH 1500 & MATH 1700 - Calculus
(3) MATH 1300 – Linear Algebra
(6) ECON 1010 & ECON 1020 – Economics
(3) STAT 1000 – Statistics
(3) Written English requirement
● Recommended Electives
● (3) GMGT 1010 – Business & Society & two of
● (3) GMGT 2060 – Management & Organizational Theory
● (3) GMGT 2070 – Intro to Organizational Behaviour
● (3) MKT 2210 – Introduction to Marketing
Perks at the University of Manitoba
● State-of-the-art computer lab (new Bloomberg Terminals)
● Recently renovated Albert D. Cohen Management Library
● Beautiful modern building (with tables instead of desks!)
● Small classes
● Accessible professors
● A diverse and well run set of Student organizations
24
Perks at the University of Manitoba
● University of Manitoba Actuarial Club
● 160+ Members spanning two faculties
● Many social events throughout the year
● Provide academic and professional resources
● Interview workshops, Excel workshops, networking
events, textbook/manual exchange, study sessions,
mentor/tutor programs
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Is Actuarial for You?
You should:
● Be a strong math student.
● Have the ability to problem solve and think logically.
● Enjoy individual work as well as team work.
● Be tech savvy.
● Be committed in order to study for exams.
Questions ?
27
Contact Us
● Contact U of M Actuarial Club (UMAC)
● Umac_exec@lists.umanitoba.ca or the website
● http://www.umanitoba.ca/actuary_club/
● Contact Warren Centre for Actuarial Studies
● Jeffrey.Pai@ad.umanitoba.ca Jeffrey Pai 474-6412
● http://www.umanitoba.ca/asper/academic_depts_centr
es/dept/actuarial
click on Student Resources & Programs
& then Requirements
● Useful Website for more information
● http://www.beanactuary.org/