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									Academic and Career Essentials
       Actuarial Science
•   What is an Actuary?
•   Actuarial Areas of Expertise
•   Where do Actuaries Work?
•   Desirable Skills for Actuaries
•   Types of Actuarial Projects
•   Career Essentials in Actuarial Science
•   Academic Essentials in Actuarial Science
    –   Core, Additional, and Breadth Requirements
    –   Major Requirements/Course Sequence
    –   Studying Abroad
    –   Summer Courses
    –   Double Majors
• Action Steps for Success in Actuarial Science
    – Leadership and Involvement
    – WSoB and Actuarial Web Resources
• Student Perspective
• Let’s Play…..Do you Want to be an Actuary?????
• Q&A
         What is an Actuary?
• Business professional with strong quantitative skills
• Problem solver with expertise in understanding and
  managing financial risks
• Specialist who uses historical information and
  models to help predict the future
• Expert in an area of practice (like a lawyer or
Actuarial Areas of Expertise
• Life & Health
  – Expert in risks of illness, disability or
• Pension
  – Expert in developing and analyzing
    retirement programs
• Property & Casualty
  – Expert in personal property risks and
    risks associated with businesses
             Career Options in Actuarial

                                   Insurance                      Consulting
                                  Companies                         Firms

                                                               Other Areas where
                                 Government                 quantifying risk is needed
                                                           (management consultants,
                                                               investment firms)

Tip: To learn more about career options in a particular industry, be sure to
check out the Vault and Wet Feet Guides available on the home page of
    Desirable Skills for Actuaries

•   Good analytical and problem-solving skills
•   Strong computer skills
•   Good business acumen
•   Excellent communication and interpersonal skills
                  Actuarial Science
     Diverse Roles of an Actuary             Essential Skills
                                             • Good analytical and problem-
•   Accountant - Financial Reporting Actuary   solving skills
                                             • Ability to analyze data
•   Financial Analyst – Investment Actuary   • Strong computer skills
                                             • Good business acumen
•   Sales - Marketing Actuary
                                             • Excellent communication and
•   Management - CEO, CFO
                                               interpersonal skills
                                             • Leadership skills
•   Consultant - Consulting Actuary          • Decision-making skills
                                             • Ability to work in teams
•   Product Manager – Product
    Development Actuary

•   Non-traditional roles/functions

•   Academics
  Types of Actuarial Projects
• Pricing hurricane insurance
• Designing and pricing health insurance
• Evaluating price and risks of potential business
• Designing and pricing life insurance
 Early Career Path of an Actuary

• One or more paid summer internships while in
• Begin credentialing process while in college
• Find full-time job after four year actuarial degree
• Finish credentialing process while being paid to
            Actuaries: Fit a broad
             range of strengths

Working with computers     Working with people

Great mathematicians       Great business skills

Working individually        Working in teams
        Interesting Work
• Projects are diverse and the work is dynamic
• Use a broad range of your problem solving
  skills: analytical, technical, and creative
• High level of job satisfaction
• Work individually and in teams to accomplish
         Strong Job Market
• High demand profession
• Historically, more positions available than there
  are actuaries
• Myriad of job opportunities after college
• Many actuaries hold senior level executive
  positions (CEO, CFO, Consulting Partner)
   A Highly Rated Profession
  Top 5 Professions by (2009)

  1. Mathematician
  2. Actuary
  3. Statistician
  4. Biologist
  5. Software Engineer

• Ranking of 200 professions

• Factors of evaluation: Stress, Work Environment,
  Physical Demands, Income and Outlook
        Academic Essentials in
          Actuarial Science
NOTE: Course descriptions and pre-requisites can be found at COURSE GUIDE

 Core, Additional, and Breadth Requirements

 • Business core courses
     – Finance 300, Introduction to Finance, 3 cr.
     – Marketing 300, Marketing Management, 3 cr.
     – MHR 300, Organizational Behavior, 3 cr.
     – OTM 300, Management of Service and
       Manufacturing Operations, 3 cr.
             Additional Business
NOTE: Course descriptions and pre-requisites can be found at COURSE GUIDE
    – Acct IS 211, Principles of Managerial Accounting, 3 cr.

    – General Business 300, Professional Communication
      (3 cr.)

    – General Business 301, Business Law (3 cr.)

    – Statistics: Math 431, Stats 309, OR Stats 311
      (also a major requirement)
Business Breadth Requirements

– For single major:
  • Two courses in separate business school
    departments other than Actuarial Science
  • Each course must be 3 credits
  • No core courses or courses required by or cross-
    listed with the major

  For double major or single major with Supply
   Chain Management Specialization, only one 3-
   credit course in a department other than Actuarial
   Science (and other major department) is required.
     Actuarial Science Requirements:
             Course Sequence
NOTE: Course descriptions and pre-requisites can be found at COURSE GUIDE

- Math 431, Intro to Theory of Probability (3 cr.), OR
  Stat 309, Intro to Mathematical Stats (4 cr.), OR
  Stat 311, Intro to Mathematical Stats (4 cr.)
- Stat 310, Intro to Mathematical Stats (4 cr.), OR
  Stat 312, Intro to Mathematical Stats (4 cr.)
- Act Sci 300, Methods I (1 cr.)
- Act Sci 301, Methods II (1 cr.)
- Act Sci 303, Theory of Interest and Life Insurance
  (3 cr.)
    Actuarial Science Requirements:
            Course Sequence
NOTE: Course descriptions and pre-requisites can be found at COURSE GUIDE

- Junior Year (Recommended):
   - Act Sci 650, Actuarial Mathematics I (3 cr.)
   - Act Sci 651, Actuarial Mathematics II (3 cr.)

- Junior or Senior Year (Recommended):
   - Act Sci 654, Regression and Time Series for
     Actuaries (3 cr.) OR Econ 301, Intermediate
     Microeconomic Theory (4 cr.) OR Math 632,
     Intro to Stochastic Processes (3 cr.)
      Actuarial Science Requirements:
              Course Sequence
NOTE: Course descriptions and pre-requisites can be found at COURSE GUIDE

 - Senior Year (Recommended):
   - Act Sci 652, Loss Models I, 3 cr.
   - Act Sci 653, Loss Models II (3 cr.)
 - Other Recommended Elective Courses:
   - Finance 320, Investment Theory, (3 cr.)
   - Finance 330, Derivative Securities (3 cr.)
   - Risk Management and Insurance 300,
     Principles of Risk Management (3 cr.)
NOTE: Course descriptions and pre-requisites can be found at COURSE GUIDE

 Actuarial Science: Course Sequence

    For Actuarial Science major requirements,
     including equivalent course lists, see
             Studying Abroad
• Plan well ahead, working with advisor
• Studying abroad during last semester is strongly
• Meet Judy Symon Hanson (,
  3121 Grainger
• Begin researching programs/course offerings
• Core and breadth courses
• Actuarial Science requirements must be taken at
                Summer Courses
• WSoB prefers that you take business courses on
• For UW-system schools, including technical
  colleges, use Transfer Information System (TIS):
• For out-of-state institutions or private colleges in
  WI, use Summer Course Equivalency Service
  (SCES) through UW Admissions:
• Concurrent enrollment policy:
• For selected state community colleges in IL & MN,
  use the Transfer Equivalency Database (TED):
          Double Majors
• Business or College of Letters & Science
• No “recommended” second major
• Most often: 75-credit rule: Undergraduates
  may not take more than 75 credits of
  business courses (this includes courses
  cross-listed with other departments)
Double Majors with
 Actuarial Science
 Career Option
   Insurance                      Career Option
  Companies                           Firms

      Accounting, Finance, Investment & Banking,
      Risk Management and Insurance, Economics,
           Computer Science, Math, Statistics

 Career Option                   Career Option
                                 Other Areas where
  Government                  quantifying risk is needed
                             (management consultants,
                                 investment firms)
 Action Items: Involvement &
• Student Organizations
    • Take leadership roles in:
       – Actuarial Club
       – Risk Management and Insurance Society

• Accenture Leadership Center
• Co-curricular Learning Board Activities
        Action Items:
    Events and Workshops
• Mocks by Major – Actuarial Science

• Actuarial Awareness Night
    • February 23, 4:30-5:45pm

• DoIt Workshops
    • Excel, PowerPoint, Access, Visual Basic, C++,
        Action Items:
    Events and Workshops
• Sophomore Shadow Program
    •Up close look at company or industry by
     shadowing professionals; held for one day during
     winter break
    •Must be admitted into School of Business
    •Apply for up to 15 job shadow opportunities on
Wisconsin School of Business
• Actuarial Science Academic and Career Advising
        • Undergraduate Academic Services – 3150 Grainger
        • Business Career Center – 3290 Grainger

• Business Learning Center(BLC): Academic tutoring
  in key courses – 2240 Grainger, Judy Cary (
   –   Acct IS 100, 211, 300
   –   Econ 101, 102
   –   Finance 300
   –   General Business 303, 304

• Business Career Center (BCC)
• Grainger Library Resources
        • Study manuals
        • Actuarial Journals
            Actuarial Resources
Actuarial Science/Risk Management Department:

Actuarial Club:

Risk Management and Insurance Society:

Be an Actuary:

Society of Actuaries:

Casualty Actuarial Society:

Actuarial Foundation:
Find out which     When is the
                   School of Business          Figure out where
events I need to
                   application due????         to study abroad
attend this week

                                                Throw away
                       Can I still drop
Learn more about                                these Post-It
                       a class??? Email
the new student                                 notes! I found
org                                             everything on

  Let’s Play…

  Do You Want
to be an Actuary?
            Actuarial Exercise
Automobile insurance: What variables do you think are
  predictive of insurance claims for:

• Different drivers

• Different cars
             Actuarial Answer
Some of the predictive factors for auto insurance

• Driver: Age, Sex, Driving Record, Credit Report, Grades
  (students), Residence (area you drive)

• Vehicle: Age, Make/Model, Value

Actuaries identify these predictive factors from a wealth of
policy data and quantify the expected impact of each of
these factors.
           Actuarial Exercise
 Mr. Smith has two children. You already know that one of
  them is a girl; what's the probability that Mr. Smith has a

A.) 1/2
B.) 1/3
C.) 2/3
D.) 1/4
              Actuarial Answer

Answer: 2/3

  Options are: (G,B) (B,G) (G,G) or (B,B). Eliminate the
  final (B,B) as we know one is a girl. In 2 of the remaining
  3 instances there is a boy.
          Actuarial Exercise
How many people do you need to have in a room such that
  there is greater than a 50% probability of two people
  having the same birthdates?

A.) 12
B.) 23
C.) 87
D.) 182
           Actuarial Answer
If you have N people in a room, the probability of all having
    unique birthdates =
1 x (364/365) x (363/365) x … (365 – (n-1))/365

= 1/365n x [365! / (365-n)!]

So, probability that at least two are the same is the
  complement (1 minus this quantity)

Group size is 23, chance that two people have
the same birth date = 50.7%
               Thank You!
             Any Questions?
Nikki Gilbertson                  Lisa Collins
(Academic)                        (Career)

                   Margie Rosenberg
                    (Faculty Advisor)

Jed Frees                         Kirk Peter     
(Faculty Advisor)                 (Faculty Advisor)

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