Transcript PPT Presentation - Penn State Actuarial Science Club

Actuarial Science
Major Forum
MONDAY, AUGUST 31, 2015
110 BUSINESS
Last edited 8.29.15
Topics
 Introductions
 Career Opportunities
 Penn State Courses
 Actuarial Exams & VEE
 Actuarial Science Club
 Internships
 Questions
Penn State Actuarial Program
# 1 Job in US
(per WSJ )
# 1 School for Recruiters ( per BusinessWeek)
Largest actuarial program in US
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About 150 exam passers per year
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About ½ from Smeal and ½ from Eberly (Math & Stat)
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Center of Actuarial Excellence – only 15 in US
Very Difficult Degree
Students with A’s in Calculus and Probability: pass exams, get jobs
 Only 7% of students without exams, got a job last year.
 Some employers (& grad schools) only look at students with GPA > 3.5
 Take STAT 414 & SOA Probability Exam in Sophomore year
 Eberly students can transfer to UP early to take STAT 414
 We enforce the STAT 414 prerequisite for RM 410
 Poor grades in Calc can hurt your GPA (reduce it below 3.20), which can block you from
getting into any Smeal Major, so only try Actuarial Science if you are really good in Math
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Faculty & Club Officers
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 Ron Gebhardtsbauer, FSA
 Worked in Insurance, Pensions, Head of Retirement Practice-NYC
Mercer
 Spokesperson for US profession from 1996 to 2008, Actuary for Congress
 Teaches RM 410 (Financial Math) in Spring
 Teaches RM 412 (Pricing Life Insurance) in Fall
 Zhongyi Yuan, PhD in Actuarial Science
 Teaches RM 410 (Financial Math) in Fall
 Teaches RM 420 (C Exam = P&C and Health) in Spring
 Nan Zhu, PhD & FSA
 Teaches RM 415 (Pricing Derivatives) in Fall & RM 411 (Pricing Life Ins)
in Spring
 Lisa Weaver, LLD
 Retirement Consultant, Teaches RM 401 (Pensions) each Spring
 Lisa Posey and Dave Cather
 Teach Insurance and Risk Management
The Good We Do For the World
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 Mutual Benefit Societies cared for Widows & Orphans
 Captains could build new ships & continue commerce
 Banks can make loans for tall buildings after 9/11
 Actuaries’ project future so that Insurers can fulfill
promises, stay solvent, & create products so:
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You needn’t worry about needing an expensive operation
Parents needn’t worry about the financial consequences to their
kids of parents dying early or becoming disabled
Car owners can get a new car if someone crashes into them
Homeowners needn’t worry about home burning down, or floods
Retirees don’t outlive their assets
Companies won’t go under if sued
Club Officers
Officer
Position
Internship
Luke Yang
President
Cigna – Hartford, CT
Matt Mielnik
Vice President
Liberty Mutual – Boston, MA
Robert Hedges
Treasurer
Highmark – Pittsburgh, PA
Joe Hayes
Secretary
AIG – Houston, TX
Luke Peterson
Corporate Liaison
Gen Re – Stamford, CT
Brigh Desjardins
Corporate Outreach Officer
EY – Philadelphia, PA
Joe Palladino
Alumni Liaison
Towers Watson–Philadelphia, PA
Matt Reilly
Communication Chair
Mercer – Washington, D.C.
Amanda Zigarovich
Student Relations Liaison
Gen Re – Stamford, CT
Peter Zhu
Philanthropy Chair
AIG – New York, NY
Max Guo
Webmaster
Jason Xu
Resume Officer
Feel free to email officers or Ron after talking to your mentor.
You can get a mentor by using Google doc of Mentors or emailing Terron Graham.
Where Do Actuaries Work?
Industry
• Insurance
• 12-18 Month Rotational Programs
• Competitive study programs
• Clear reporting structure (one boss), Reasonable hours
• Consulting, Investment, and Accounting Firms
• Longer hours – especially during busy season
• Dynamic work environment
• Government & Academia
Practice Area
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Life/Annuity
Health
Retirement
Property/Casualty
Reinsurance
Finance/Investment
Get Started
Early!
Success in the Classroom and the Business World
 Profs and Bosses want students who understand why
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Word problems; essay answers
Memorization helps but understanding is most important
 Preparation before class or meeting with boss
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Read & do synopsis of material before class/meeting
 Work with others
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Homework teams (plus good friends help after graduation)
 Confidence
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Class Participation; Teaching HW problems; Be TA’s
Officers organize projects (not just put on resume)
 Good at self-study, internship, pass FSA exams
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Projects (e.g., selling insurance to parents, your retirement projection)
International Students
 International students get jobs in US
 CPT/OPT/H1-B/Green cards/Eb5 really help
 If citizen or permanent resident, put near top of resume
 Communication as important as exams
 Join HW groups with US students
 Talk English all the time!
 Having US roommates has worked well
 Important to pass Exam P in Sophomore year
 3 exams to get Full-Time Job
 Attend upcoming meeting for International Students
 If can’t get internship or FT job
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Try grad school (need good GPA), and then easier to get job
PSU has Masters in Applied Statistics (MAS), and then you can be a TA with us
Sample Schedule
Yr
Fall
Spring
1st
MATH 140* (Calc I)
ECON 102 (Micro) - VEE
MATH 141* (Calc II)
ECON 104 (Macro) – VEE
ACCTG 211 (Accounting–FIN 301 Pre-req)
2nd
MATH 231* (Calc III)
MATH 220 (Matrices) helps in 412/MLC
FIN 301 (Corp Finance) -VEE
STAT 414* (Probability Theory) & RM 297
Take P Exam in May
STAT 483# (better SAS class)
3rd
R M 410* (Financial Math) Excel
Take FM in December
STAT 415# (Math Stat) helps C/S
R M 411* (Life Contingencies) VBA
STAT 416#(Stochastic Processes) helps S
4th
R M 412* (Life Contingencies)
Take MLC in late October
STAT 462# (Regression Analysis)
RM 420* (P&C/Health) Stat allows as sub.
or RM401*(Pensions)
STAT 463# (Applied Time Series) R
Take C Exam in June or CAS S Exam in April
To catch up, take Math 231 in summer at UP or World Campus or concurrent with STAT 414
Placing out of a course helps you take ACCTG 211 (or 211H) in 2nd semester & FIN 301 in 3rd semester
* C or better required. If C’s, consider other options or majors
# for STAT minor; 462/463 already needed for VEE & S.
P&C and Health insurers tell us that STAT 483 and a Data Analytics course will help you get a job
Alternate Schedule with Stat Minor
Yr
Fall
Spring
1st
MATH 141* (Calc II)
ECON 102 (Micro) - VEE
MATH 231* (Calc III)
ECON 104 (Macro) – VEE
ACCTG 211 (Accounting–FIN 301 Pre-req)
2nd
STAT 414* (Probability Theory) & RM297
Take P Exam in Jan for internship
FIN 301 (Corp Finance) –VEE
R M 410* (Financial Math) Excel
Take FM Exam in June
STAT 416#(Stochastic Processes) helps 412/415/S
3rd
R M 415 (Derivatives Markets)
Take MFE in late November
STAT 415# (Math Stat) helps 412/C/S
R M 411* (Life Contingencies) VBA
STAT 483# (better SAS class)
MATH 220 (Matrices) helps in 412/MLC
4th
R M 412* (Life Contingencies)
Take MLC Exam in late October
STAT 462# (Regression Analysis)
RM 420* (P&C/Health) Stat allows as substitute
Take SOA C Exam in June
STAT 463# (Applied Time Series) R
Take CAS S Exam in Oct for P&C job
If you pursue this plan, there is a risk that your ETM & Overall GPAs could be hurt beyond repair, making it impossible to pursue
other Smeal Majors. Please make your decision carefully, taking into account your abilities & commitment to this rigorous plan.
Students with 44 PSU credits can apply to ActSci Option & if admitted may schedule RM 410 (if have STAT 414 prerequisite).
If 5 on AP exam, you can place out of MATH 140 (to take 231/414 sooner). If you got a 4, see this website on whether to place out
To catch up, take Math 231 at World Campus or UP in summer, or concurrent with STAT 414.
Placing out of courses helps you to take ACCTG 211 in 2nd semester and FIN 301 in 3rd semester.
P&C and Health insurers tell us that STAT 483 and other Data analytics courses help you get a job
* C or better required. If C’s, consider other options or majors
# for STAT minor; 462/463 needed for VEE & S
Smeal Major Required Courses
R M 301* (Fall Only)
• Risk & Decisions
R M 320W* (Spring Only)
• Risk Management & Insurance
RM 430* (Fall Only)
• Life & Health Insurance
* C or higher required
reference
Smeal’s Business Core
SCM 200*:
Statistics for
Business
MIS 204*:
Business
Information
Systems
FIN 301*:
Finance
ACCTG 211*:
Accounting
MKTG 301*:
Marketing
MGMT 301*:
Management
BA 411:
Analyzing
Business &
Industry
B LAW 341:
Business Law
BA 342:
Business Ethics
Act Sci students can skip Supply Chain 301
* C or higher required
Instead of double majoring in Smeal’s Finance & Eberly’s Act Sci option, take Smeal’s Act Sci Option, RM 415,
read the FIN 414 handouts at https://sites.google.com/site/lougattis/financial-modeling-files, and sign up
for Penn State Asset Mgmt Club, PS Investment Assoc, PS Finance Society, or PS Econ Assoc
reference
Stat Major -Actuarial Option
 Additional Statistics & Mathematics courses:
◦ MATH 230 instead of MATH 231
◦ MATH 220: Matrices (good course for RM 412)
◦ STAT 415: Mathematical Statistics (good course for C exam)
◦ STAT 461: Analysis of Variance
◦ STAT 470W: Problem solving in Applied Statistics
◦ STAT 483: SAS (better than STAT 480)
◦ STAT 462/463:Applied Regression/Time Series Analysis-VEE
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1 from CMPSC 101/102/121/200/201/202: C++, VB, Matlab, Fortran
Select 9 credits from:
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STAT 416: Stochastic Modeling
RM 420: Loss Models (needs a petition, which will be accepted)
STAT 440: Computational Statistics
STAT 464: Applied Nonparametric Statistics
STAT 466: Survey Sampling
MATH 436/441: Linear or Matrix Algebra
MATH 451/455: Numerical Computations & Numerical Analysis
IE 434/436: Quality Control/Industrial Engineering
reference
Math Major -Actuarial Option
 Additional Mathematics & Statistics courses:
 MATH 230 instead of MATH 231
 MATH 311W & 312: Discrete Math & Real Analysis
 MATH 251: Ordinary & Partial Differential Equations
 MATH 220: Matrices (definitely take)
 MATH/STAT 415: Mathematical Statistics (definitely take)
 MATH/STAT 416: Stochastic Modeling (definitely take)
 MATH 486: Game Theory or MATH 451: Numerical Computations
 MATH 484: Linear Programming
 CMPSC 101, 121, 201C: Computer Programming
 IE 425: Operations Research
 RM 415: Pricing Derivatives or 420: Loss Models (ask)
Eberly Majors -Actuarial Option
 Business courses required:
◦ FIN 301: Corp Finance & Financial Markets
◦ RM 302: Risk & Insurance (Fall is a good time to take it)
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Replaces RM 301/320/430
RM 410*/411*/412*: Actuarial Courses
ACCTG 211: Accounting (only Stat Majors)
 Business courses not required:
◦ ACCTG 211: Math Majors don’t need for Fin 301
◦ Business Core
◦ B LAW 341 & BA 342: Business Law & Ethics
◦ MIS 204: Intro to Business Information Systems
* C or Higher required
Other Good Courses to Take
reference
If controls allow (e.g., Eberly students can’t take FIN 305/408)
MATH 220: Matrices – great for Markov Chains & MLC
 MATH 251:Differential Equations with PDEs
 MATH 412: Partial Differential Equations
 MATH 451 or 455: Numerical Computations/Analysis
 MATH 486: Game Theory
 FIN 305 (2 piece): Financial Mgmt of Business Enterprise
 FIN 408 (2 piece): Financial Markets and Institutions
 ECON 302/304: Intermediate Micro/Macro Economics
 ECON 351: Money and Banking
 HPA 057: Consumer Choices In Health Care for gym Gen Ed
 FIN 414: https://sites.google.com/site/lougattis/financial-modeling-files
and sign up for Penn State Asset Mgmt Club, PS Investment
Assoc, PS Finance Society, or PS Econ Assoc instead
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Actuarial Exams
 Given in Harrisburg, Philly, Pittsburg by:
 Society
of Actuaries (SOA)
Life/Pension/Health/Enterprise Risk Mgmt
MLC Exam is given at PSU
 Casualty Actuarial Society (CAS)
Property/Casualty
 SOA exams satisfy CAS
 Except MLC does not satisfy the CAS Exam S
Why should I take these exams?
 To get internships
 Internship + 2 or 3 exams for FT job
 Take FM Exam right after RM 410
Use breaks to pass exams
 Tough passing FM exam when in RM 411
 We cover all 5 exams here
 Some pass all before graduation
 Almost Associates in the SoA
 We pay you $100 if you pass exam
 Take formal pass slip with score to 355 Business
 Request right away. Right before graduation is too late
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SOA/CAS Exams
Exam
Course(s)
1/P - Probability Theory
STAT 414 &
RM 497C
2/FM - Financial
Mathematics
Best Manual
reference
Take it when?
Comments
Infinite Actuary,
ACTEX, ADAPT,
ActuaryExamTutor
Sophomore year!!
Sophomores:
January
Others in May
RM 410
ASM
Sophomores:June
Others in Dec
Don’t take when in
RM 411
RM 415
ASM or ADAPT
Study it before 415
Late November or
July
If 4 extra classes in
Oct, can be done by
late Nov
MLC - Life
Contingencies
RM 411/412
Infinite Actuary or
ADAPT cheap in
last wk
Late October
Early May
MLC no longer
helps get ACAS
4/C – P&C and Health
Ins
RM 412/420
STAT 415/416
Infinite Actuary or
ASM
June
Stan says easy after
Zhongyi’s RM 420
S Exam (CAS)
STAT 416, 462,
463 & RM 411
?
October 30, 2015
LC, Statistics, &
Probability Models
3F/MFE – Financial
Econ
Use before & in course
Tutorials at http://instruction.bus.wisc.edu/jfrees/UWCAELearn/default.aspx
SOA policy on calculators: https://www.soa.org/education/exam-req/exam-day-info/edu-calculators.aspx
Some prefer TI 30X II. BA II Plus preferred for FM exam, because it has financial keys
Validation by Educational Experience: VEE
 Required by SOA, CAS, & Employers
 ECON 102/104 & FIN 301 required to graduate
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ACCTG 211 (new VEE): Math Majors can take in Spring
 Must receive a grade of B- or better
 Or 4 or 5 on AP tests
 Apply for VEE credit after passing P & FM
 Or apply after you get job (& get a raise)
 Other Campuses can use University Park VEE codes per SOA
 Can also get credit by exam through
 ACTEX for Finance & Applied Stat VEE’s
 CLEP for Econ VEE
VEE: Applied Statistical Methods
 Accepted Courses: take one from each
o Applied Regression
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STAT 462, STAT 501, or ECON 306
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o
Applied Time Series
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o
ECON prerequisites can be satisfied by Stat 414
STAT 463 (STAT 510 or ECON 483 if available)
You can mix and match
 Get STAT Minor - if also take:
o STAT 415 (Mathematical Statistics) already required for Math
o STAT 416 (Stochastic Processes) maybe
o STAT 480 (Intro to SAS - 1 credit) STAT 483 is better
Some get ECON Minor: take ECON 302/304 & 6 credits of 400 level ECON such as 445
(Health Policy), 412 (Labor), 444 (Corp), & 457 (Banking)
Best Practices to Learn & Pass Exams
27
 Read the book
 Don’t just read the words. Read them until you understand them.
 Take notes on what you read
 Create a synopsis to refer to later
 Reproduce the calculations in the examples
 Ensure they are right. Email author with corrections
 Don’t trust what you read, unless and until you agree with it
 Take the class on the subject
 Be engaged in class
 Use recommended study manual on each exam
 Do lots of sample exam questions (with required calculators)
 Without looking at the answers first
 Work on a HW team. Talk your teammates about the class
 Talk to your actuarial mentor about the material
 We assign mentors to all rising Juniors. Do you have a mentor?
 Meet with the prof on lectures points and HW you don’t understand
Possible Changes
 Mathematical Statistics (STAT 415)
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New Exam or VEE
 Applied Statistics (STAT 462/463)
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May be elevated to Exam
Will need to know R and Generalized Linear Models (GLM)
 Predictive Analytics
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New Exam or Module
 Creating Mortality Tables
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Moving from C to MLC
 Casualty Reserving and Ratemaking (pricing)
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Being added to Exam C.
Reserving using Loss Development Factors and Triangles
Actuarial Science Career Fair
Monday 9/19/16 from 4 to 7:30 PM in Atrium
 Over 35 companies
 Great place to find Internships
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1st yr students can get internships without exams if very good in Math
 To Attend:
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Must do Mock Interview with Mentor
GPA>3.20, or A’s in Calculus, or Exam Passed
Pay Club Dues
 Some firms (like Met Life, NY Life, and AXA) don’t attend
Career Fairs, so apply on their websites
Club Opportunities
 Résumé & Mock Interview Workshop
 Wednesday 9/9: 6 – 7:30 PM in 107 Business
 Put resumes on SmealConnect/SciOpps ASAP
 Must use instructions on Club’s Resume webpage
 RM 410 students must do mock interview ASAP
 Meeting for International Students
 Monday 9/7: 6 – 7:30 PM in 102 Business
 Ideas for internships, jobs, grad school (e.g., MAS)
 Mentors for Juniors (& interested Frosh/Soph)
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If interested, email Terron Graham [email protected]
Actuarial Science Club
 Company Info Sessions (listed on Club’s Home Page)
 Exam Review Sessions (Club’s Review Sessions Page)
 Tutors for help on exams
 Field Trip to Actuarial Employers (Spring)
 Speakers Series
 THON involvement
 Social Events
 Panel Discussion
Actuarial Science Club
 Club website: http://www.psuactsci.com/
 List Serve signup on home page
 Facebook group
 Study Manual exchange
 Questions about Actuarial Exams & PSU Classes
 Our Internships
Questions?