ACTUARIAL SCIENCE
MA/STAT 170
SEPTEMBER 14, 2006
Me!
Prof. Richard Penney
Director Actuarial Science
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
827
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.
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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 50K
 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

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, 490T
Warning: STAT 490T will change to STAT 420.
Warning: You need at least a B for the VEE to
count!
Exams
Exam FM (Mathematical Finance) (2.5 hours)
MA 490A (was MA 370) (Interest Theory)
 Exam P (Probability) ( 3 hours)
MA/STAT 416+MA/STAT 290A
 Exam M FE Financial Economics (2 hours)
 Exam MLC Life Contingencies (3 hours)
STAT 472-473
 Exam C (Construction of Models) (4 hours)
STAT 417, 490C, STAT 472-473
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 is computer based and is
offered four times a year.
 Other exams are offered Nov. and
May.
 Register online at SOA web site.
(Be careful about early deadlines!)
 You can retake them as many times
as you can afford.
If at all possible you should
pass at least Exam FM and
Exam P before senior year
You should take MA 490A
this spring followed by
Exam FM!
Exam Awards
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Every non-graduating student who passes
an exam receives $150 (?) per exam passed.
You must apply in advance of taking the
exam. The application is on our web page
www.math.purdue.edu/actuary
FLASH! FLASH! FLASH!
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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 490C.
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