ACTUARIAL SCIENCE MA/STAT 170 SEPTEMBER 14, 2006 Me!

ACTUARIAL SCIENCE MA/STAT 170 SEPTEMBER 14, 2006 Me! Prof. Richard Penney Director Actuarial Science Join The Club!

Mentor Program Job Interviews Internships fulltime

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 CEOs and CFOs 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 50K 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, 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. 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 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! We now have an Honors Program! 1. Pass at least two exams. 2. Obtain a 3.3 overall GPA. 3. Achieve 3 VEEs. 4. Obtain a 3.5 average in STAT 417,472, 473, and 490C. 5. Get As and Bs 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