Auto Rating Game - Southern Connecticut State University
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Transcript Auto Rating Game - Southern Connecticut State University
What is an Actuary?
An Actuary’s job is to calculate expected
Insurance Losses.
An Actuary also applies mathematical,
analytical, and business skills to help solve
a variety of financial problems.
Most Common Areas
Where Actuaries Work
Insurance Industry
Casualty Actuaries
-Property (home) and casualty
(car)
Insurance and Reinsurance
Life Actuaries
- Life and annuities
Employee Benefit Industry
– Defined Pension Plans
Health Actuaries – Health Insurance
Social Security
Pension Actuaries
Financial Industry
Banks,
investing, risk management
Where do Actuaries Work?
Insurance and Reinsurance companies
Consulting firms
Government insurance departments
Colleges and universities
Banks and investment firms
Large corporations
Public accounting firms
Anywhere else
What do the different Actuarial
specialties do
Casualty – Project expected claims for auto,
homeowners, medical malpractice,
Directors & Offices, General Liability
Life – Predict Death Rates, use “force of
Mortality” and interest to price products
Pensions – Make sure pension plans are
properly funded. Interpret Tax Laws to
make sure plans are in compliance.
Typical Casualty
Actuarial Projects
RATEMAKING - Conducting studies of insurance rates,
such as for autos or homes.
RESERVING - Estimating the amount of money to be set
aside for insurance claims that have not been paid.
NEW PRODUCT DEVELOPMENT - Calculating a fair
price for a new insurance product.
Participating in various aspects of corporate planning, such
as mergers and acquisitions.
Forecasting the impact of catastrophes like hurricanes and
earthquakes.
Implementing and monitoring investment programs.
Jobs Rated Almanac
Actuaries have one of the top jobs in America, according to
the 1999 Jobs Rated Almanac.
Best Jobs
1. Web Site Manager
2. Actuary
2002 Almanac
Best Jobs
1. Biologist
2. Actuary
Ranking is based on six criteria: Income, Outlook,
Security, Stress, Environment, and Physical Demands.
Jobs Rated Almanac
Income - Starting salaries range from $41,000 to $53,000
Outlook - Low unemployment rate, high rate of growth,
salary increase, and promotion.
Stress - While the exam process is a source of stress, the
overall job satisfaction is high.
Environment - Although actuaries frequently choose to
work longer, the normal work week is about 40 hours.
Offices are generally comfortable and pleasant.
Physical Demands - There may be some travel, but
actuaries spend most of their time working in their home
office.
$$ Salary Information $$
Employers give merit increases to actuaries
as they gain experience.
Employers frequently give increases to
actuaries as they pass examinations. This
can be in form of bonus or percentage raise.
Some companies also offer cash bonuses,
salary increases and/or promotions for each
professional designation achieved.
$$ Earning Potential
No. of Exams
$$
Range
1
$41,000 - $53,000
7 - ACAS
$65,000 - $215,000
FCAS
$95,000 – $360,000+
Compensation may vary significantly according to years
of experience, geographic region, and responsibilities.
Career Outlook for Actuaries
Employment growth for consulting actuaries is expected to
be faster than employment growth of actuaries in insurance
carriers.
The development of new financial tools like Dynamic
Financial Analysis has increased the demand for actuaries.
The growing ability to model catastrophic risks such as
hurricanes and earthquakes will increase the demand for
actuaries.
The expected growth in new programs in the health
services industry should provide better prospects for
actuaries.
What Skills are Needed
to be an Actuary?
Specialized math knowledge
Calculus,
Keen analytical, project management and problem
solving skills
Good business sense
Finance,
statistics, probability
accounting, economics
Solid communication skills (oral & written)
Strong computer skills
Common Sense
2 Types of Actuaries
Business Actuary – Works with
underwriters, brokers, management
Back Room Actuary – Develops models and
programming for use by the business
actuaries and other management
Computer Skills Needed
Typing and Data Entry
Excel and Lotus Spreadsheets
Visual Basic programming for Excel
Word Processing
Database – SQL
Mainframe programming – not as much but good
to know the logic of computer programming
SAS – at large companies with large databases.
Courses to Take
Calculus
Statistics and Probability
Typing
Accounting
Management Science – Operations Research
Economics
Stochastic Simulation
Visual Basic Programming
Business Law
How to Become an Actuary
Casualty actuaries in the U.S. and Canada achieve
professional status by passing a set of examinations
administered by the Casualty Actuarial Society
Examinations are held twice yearly in the Spring and Fall
at various cities in the United States, Canada, and other
countries around the world.
Completion of Exam Parts 1-7, and attendance of the CAS
Course on Professionalism satisfy requirements as an
Associate of the CAS (ACAS).
Completion of all 9 Exam Parts is required to become a
Fellow of the CAS (FCAS), the highest mark of distinction
a CAS member can achieve.
How to get an Interview
On-Campus Recruiting
Send Resume to Personnel Departments at
target companies
Recruiters – Not usual for entry level
Do internship
Networking – get to know some actuaries
Advice to Students
Who Want to be Actuaries
Develop disciplined study habits.
Take a well-rounded curriculum.
Sharpen your communication skills.
Take actuarial exams while in school - the
sooner you start, the sooner you will finish.
Exams
Currently 9 exams for FCAS designation
Only 30% of students taking an exam will pass
Graded on curve.
Requires 500 to 600 hours of studying to pass
Courses are available but are really just a review
of what you already should have studied.
Average time to pass all exams – 10 years
Where to find more information
www.BeAnActuary.org
www.casact.org – Casualty Actuarial Society
www.soa.org – Society of Actuaries (life &
health)
www.actuary.org – American Academy of
Actuaries