August 25th Lecture

AUGUST 25, 2015
Prof. Richard Penney
Co-Director Actuarial Science
Jeff Beckley, FSA
Co-Director, Actuarial Science Program
Join The Club!
Mentor Program
Job Interviews
– Internships
– fulltime
Company presentations
Exam study groups
See Julie Morris,
MATH 820
Class web page:
The text is on the web as are the
Homework is collected at the beginning of the
hour. Put it on the table as you come in.
Attendance at the presentations is
You will need a TI-30xx series calculator for
What is an actuary?
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.
Where do they work?
Insurance companies
 Actuarial consulting firms
 Pension departments for large
 Government
 A few work in non-traditional roles such
as managing risk for financial firms
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?
 Are
you good at math?
 Do you want a career in business?
 Can you communicate well?
What do actuarial students
Stat (lots!)
Types of Actuaries
Health, Life, and Pension Actuaries
– Belong to the Society of Actuaries (SOA)
Casualty Actuaries
Belong to the Casualty Actuarial Society
 Consulting Actuaries
Belong to either CAS or SOA
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)
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
Exam FM (Mathematical Finance)
MA 37300 (Mathematical Finance)
 Exam P (Probability)
MA/STAT 41600+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.
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
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
Departmental Honors
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
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!
More Info