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					Be An Actuary       A Career Without Boundaries




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       What is an actuary?

   An actuary uses math, statistics and
finance to project uncertain future events.
Some Actuarial Organizations




                American Society of Pension
                 Professionals & Actuaries
  Salaries for Actuaries Based on Exams Passed
              and Years of Experience
                A Comparison of Salaries from Actuarial Recruiters
                                (Salaries in $K)
                                                         Years of Experience
    Aggregate Exams                                         1 to 5                           10 years or
                                    0 to 1 years                          5-10 years
                                                            years                               more

             1 to 2                      44-65               50-85               *                   *
             3 to 4                      50-80               55-90           70-125                  *
  Near Associates (5 to 6)                 *                 65-95           75-140                  *
          Associates                       *                80-105           90-165             100-305
         New Fellows                       *                   *            100-215                  *
    Experienced Fellows                    *                   *            100-240             140-500+


Note: Compensation may vary significantly according to years of experience, geographic region and responsibilities.
Source: Survey of Actuarial Recruiters, August 2010 issue of The Actuarial Review
Sample Median Salaries
             Median Salary in 2006 by Occupation
                  Bureau of Labor Statistics

   100,000

    80,000

    60,000

    40,000

    20,000

        -
Benefits of Becoming an Actuary
• High earnings potential
• Graduate school is not required
• Professional advancement through
  examinations
• Earn while you learn
• Variety of avenues to choose - P&C,
  Life, Investment, Risk Management
Where do actuaries work?
Most actuaries work within the insurance industry,
  although a growing number of actuaries work for:

•   Consulting Firms
•   Government
•   Banks and Investment Firms
•   Large Corporations (employee benefits & risk management)
•   Colleges and Universities
•   Courts (expert witness testimony)



             Anywhere risk is present!
Benefits of Becoming an Actuary
• Newsworthy projects, expert witness
  testimony
• Demand for services protected to an
  extent from economic downturns – “Risk
  is Opportunity”
• High Job security – a highly specialized
  occupation
What is the career outlook?
Employment of actuaries is expected to grow
 faster than average for all occupations
 through 2014 [ U.S. Department of Labor ]

• The Consulting sector is growing
• Expansion of retirement savings products
• Risk of terrorism and growing level of catastrophes has
  increased the demand in property insurance
• Continued growth in the health services industry
• Current push within actuarial profession to view actuaries
  as experts in risk management field
 Among Top Ranked Jobs
• In 2010, WSJ.com ranked actuaries at the number one
  position on its list of “200 Best and Worst Jobs.”

• In 2008, CNN.com ranked the job of Associate Actuary
  at the number one position on it's list of "Ten Jobs that
  Pay $80,000 a Year."

• Forbes.com recently reported on the top 200 best jobs
  for new college grads. Actuary was listed in the top 10
  jobs, coming in at number eight.

• The job actuary has also been rated the second-best job
  in the United States by the Jobs Rated Almanac (Sixth
  Edition, 2002). The popular reference book lists the
  actuarial profession above other highly regarded
  careers, such as accountant or attorney. Only "biologist"
  rated higher.
CAS Membership
   SOA Membership


UNIVERSITY,
    228

                             INSURANCE
                              ORG, 8,963




        CONSULTING,
           7,023
                                           GOVERNMENT,
                            OTHER, 3,207       470




                      BANK, 504
  CAS & SOA Membership By State
CAS Top States         SOA Top States

Illinois         433   New York         1,403
Connecticut      421   Illinois         1,222
New York         390   Connecticut      1,079
New Jersey       328   California        908
California       285   New Jersey        849
Pennsylvania     241   Pennsylvania      841
Massachusetts    190   Massachusetts     801
Ohio             160   Texas             743
Wisconsin        127   Minnesota         605
Texas            124   Georgia           559
 Actuaries in Other Countries
Total CAS and SOA Employment Outside U.S.

Canada          3,936    Bermuda            150

Hong Kong         545    Singapore           83

China             399    Australia           77

Taiwan            236    Switzerland         65
United                   Other
Kingdom           234    Countries          605
What do Actuaries do?
 Typical Actuarial Projects
• Property and Casualty Insurance: estimate reserves
  for unpaid homeowner’s or auto insurance claims
• Life Insurance: design and price life insurance
  coverage
• Health Benefits: set levels of medical insurance
  premiums
• Retirement Benefits: estimate the annual amount
  needed to provide for future pension benefits
• Finance and Investments: asset/liability matching
Sample Actuarial Problem –
“Auto Pricing 101” #1
Background:
• ABC Insurance Company insures 1,000 eighteen
  year old drivers.
• Assume 300 of the 1,000 have accidents within a
  year.
• Assume the average repair cost for each accident
  is $500.

  Question: What is the minimum premium that ABC
  should charge an 18-year old for a 1-year car
  insurance policy?
Sample Actuarial Problem –
“Auto Pricing 101” #1
Solution:
• At a minimum, the total premiums collected must
  equal the total cost of the accidents.
• Estimated cost of the accidents:
       300 × $500 = $150,000
• Minimum premium for each driver:
       $150,000 ÷ 1,000 = $150

  Challenge: Should ABC charge more than this
  premium? If so, why?
Sample Actuarial Problem –
“Auto Pricing 101” #2
Background
• Assume 400 of the drivers are males and 600 are
  females.
• Assume 200 out of 300 of accidents will involve
  males, and the remaining 100 accidents will involve
  females.


  Question: What premium should be charged for the
  males and the females? Should it be the same?
Sample Actuarial Problem –
“Auto Pricing 101” #2
• Total males’ premium:
      200 accidents × $500 per accident = $100,000
• Each male’s premium:
      $100,000 ÷ 400 males = $250
• Total females’ premium:
      100 accidents × $500 per accident = $50,000
• Each female’s premium:
      $50,000 ÷ 600 females = $83.33

  The male’s premium should be THREE TIMES the
  female’s premiums!
How do I become an actuary?
What can help in High School?
• Follow a college preparatory curriculum
• Take math classes every year
• Take advanced courses like calculus
  and statistics
• Enroll in computer science courses to
  develop your computer skills
• Take business classes
        High School Summer
         Actuarial Programs
 Illinois State University (Bloomington, Illinois)
   July 11- July 16
   Application deadline: April 30th

 Howard University (Washington D.C.)
   June 20- July 10
   Application deadline: April 16th

 Temple University (Philidelphia, PA)
   Typically a 6 week program
   Contact kaiser@temple.edu for more information
Resources for Minority Students
Programs:
• Mentoring
• College Scholarships
  • Individual awards of $1,000 - $5,000, annually
  • Demonstrated performance and commitment
• Exam fee reimbursement
  • Reimbursed for successfully passing exam P/1
    and/or FM/2
• Internship opportunities
• Visit www.BeAnActuary.org for more information
What to do in College?
• Plan a course load in mathematics,
  statistics, and actuarial science
• Include business courses to broaden
  your options
• Take courses in business writing and
  public speaking
• Look for internship opportunities
• Pass actuarial exams! Most entry level
  candidates now have 1-2 exams.
  College Advice (cont.)

• Apply for an Actuarial Scholarship!
• Check www.BeAnActuary.org for
 scholarship forms and additional
 information.
Ways to Get Ahead
• Develop disciplined study habits
• Seek out an actuarial mentor or work
  with your advisor
• Begin to explore resources available to
  you through professional organizations
• Participate in a summer actuarial
  program
• Think about your areas of interest
There is growing diversity
within the profession.




 In 2003, these three women held the presidency
 in three of the five professional organizations
 governing the field of actuarial science.
The International Association
of Black Actuaries is growing.




        IABA’s 2009 Annual Meeting
Web Resources
More about the actuarial profession:
     www.BeAnActuary.org

The Casualty Actuarial Society:
     www.casact.org

The Society of Actuaries:
      www.soa.org
International Association of Black Actuaries
      www.blackactuaries.org
Any questions?

				
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