Program - Department of Mathematics, Purdue University

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      

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? 

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 companies  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 study? Math

(lots!) Stat (lots!) CS Accounting Econ Finance Communications

Types 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 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) 

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. 

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 

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! 

More Info www.math.purdue.edu/actuary