Consider a Career as an Actuary Presenter 1, XYZ Insurance Company Presenter 2, UW-Madison actuarial student About XYZ Insurance  Headquartered in xxx, xx  X,xxx employees worldwide, including xx actuaries  Core business is yyyy  Member of UW-Madison’s Actuarial Co-curricular Learning Board Agenda  The Actuarial Profession  Characteristics of actuaries  Why Become an Actuary?  Steps to become an Actuary  Wrap-up and Questions Agenda  The Actuarial Profession Math Related Professions  ACTUARY  Engineer  Computer systems analyst  Economist  Statistician 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 doctor) Actuarial Areas of Expertise  Property & Casualty – expert in personal property risks and risks associated with businesses  Life & Health – expert in risks of illness, disability or death  Pension – expert in developing and analyzing retirement programs Where Actuaries Work?  Insurance companies  Consulting firms  Government  Others – where quantifying risk is needed (management consultants, investment firms) Desirable Skills for Actuaries  Good analytical and problem solving skills  Strong computer skills  Good business acumen  Excellent communication and interpersonal skills Actuarial Exercise Automobile insurance: What variables you think are predictive of insurance claims for :  Different drivers  Different cars What to look for in a University? UW-Madison Offers degree in Actuarial Science  In the school of business  Offers Risk Management and Insurance major and classes  Offers all actuarial courses every year  Has an active student Actuarial club  Produces a significant number of graduates each year  Produces high quality graduates who are in demand by employers  Connects to industry through advisory boards, campus speakers  Employs at least one full-time credentialed actuary on faculty  Actuarial Science specific career fair  Close Connections to Industry UW-Madison’s Actuarial Co-Curricular Learning Board  Outside of the classroom learning opportunities with industry professionals  Unique opportunities to interact and learn about the industry  Structured learning events, informal lunches, social events Career Path of an Actuary  One or more paid summer internships while in college  Begin credentialing process while in college  Find full time job after four year actuarial degree  Finish credentialing process while being paid to work Agenda  The Actuarial Profession  Characteristics of actuaries  Why Become an Actuary?  How I become an Actuary?  Wrap-up and Questions Actuarial Web Resources Be an Actuary: www.beanactuary.org Society of Actuaries: www.soa.org Casualty Actuarial Society: www.casact.org Actuarial Foundation: www.actuarialfoundation.org UW-Madison Resources UW-Madison Faculty Contact: Kirk Peter kpeter@bus.wisc.edu UW-Madison Actuarial Science, Risk Management and Insurance Department: www.bus.wisc.edu/asrmi UW-Madison Actuarial Club: http://actclub.rso.wisc.edu XYZ Insurance Resources XYZ Homepage: XYZ.com XYZ Actuarial Contact: Presenter presenter1@xyz.com  END OF PRESENTATION Actuaries at XYZ Insurance      Highly visible positions Rotation program to give our actuaries broad experiences Unique community of professionals Many actuaries in senior leadership roles Other Actuarial Exercise How many people 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 Exercise If you have N people in a room, the probability of all having unique birthdates = 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 birthdate = 50.7% 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 son? A.) 1/2 B.) 1/3 C.) 2/3 D.) 1/4 Actuarial Exercise 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 of the remaining instances there is a boy Actuarial Exercise  Hole-in-one insurance for a charity golf outing  Grand prize if someone hits a hole in one  What information would you want to know to correctly price this policy Actuarial Exercise  Number of golfers  Quality of the golfers  Difficulty of hole  Value of the prize/Number of prizes  Validation of hole in one