ACTUARIAL SCIENCE MA/STAT 170 SEPTEMBER 14, 2006.

ACTUARIAL SCIENCE ACTUARIAL SCIENCE MA/STAT 170MA/STAT 170

SEPTEMBER 14, 2006SEPTEMBER 14, 2006

Me!Me!

Prof. Richard PenneyDirector Actuarial Science

Join The Club!Join The Club!

Mentor Program Job Interviews

– Internships– fulltime

Company presentations Exam study groups FUN! See Julie Morris,

MATH 827

Actuaries tell insurance companies how much to charge for the policies and ....

What is an actuary?What is an actuary?

What is an actuary?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?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?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

Is it for me?Is it for me?

Are you good at math?Do you want a career in business?Can you communicate well?

What do actuarial students What do actuarial students study?study?

Math (lots!)Stat (lots!)CSAccountingEconFinanceCommunications

Types of ActuariesTypes 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 actuaryBecoming 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)

VEEVEEValidation 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!

ExamsExams 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 472-473Note: The CAS has its own third exam. They will accept the

SOA Exams MFE+MLC, but NOT vice versa.

Exam ScheduleExam 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 shouldIf at all possible you shouldpass at least Exam FM and pass at least Exam FM and Exam P Exam P beforebefore senior year senior year

You should take MA 490A You should take MA 490A this spring followed by this spring followed by

Exam FM! Exam FM!

Exam AwardsExam Awards

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!FLASH! FLASH! FLASH!

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.*

InternshipsInternships 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!

MoreMore InfoInfo

www.math.purdue.edu/actuary