Risk is the central element that influences financial behavior.
Robert C. Merton

What is an actuary?

An actuary is a business professional who analyzes the financial consequences of risk and finds ways to manage them. Actuaries must have a combination of strong analytical skills, business knowledge, and understanding of human behavior. Widely regarded as being intellectually challenging and well-paid, an actuarial career offers constant opportunities for professional growth.

"Actuary" was recently included as one of the Best Careers of 2007 in U.S. News and World Report. It also has been rated the second-best job in the United States by the Jobs Rated Almanac (Sixth Edition, 2002). The U.S. Department of Labor expects the employment of actuaries to grow faster than the average for all occupations through 2014. See these statistics and more at http://www.beanactuary.org/.

Where do actuaries work?

While actuaries work in all sectors of the economy, they are more heavily represented in the financial services sector, including insurance companies, commercial banks, investment banks, and retirement funds. They are employed by corporations as well as by state and federal governments.

Students with a strong foundation in mathematics, problem-solving skills and an interest in a business career should consider the actuarial profession.

How can I be an actuary?

Actuaries achieve professional status by passing a set of examinations prescribed by the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). The road to admission as an Associate, then Fellow, of SOA or CAS begins with the preliminary exams offered by these societies:

• Exam P/1 - Probability
• Exam FM/2 - Financial Mathematics
• Exam MFE/3F - Actuarial Models: Financial Economics
• Exam MLC/3L - Actuarial Models: Life Contingencies
• Exam C/4 - Construction and Evaluation of Actuarial Models

In addition to the preliminary exams, Validation by Educational Experience (VEE) must be satisfied for three subjects: economics, corporate finance, and applied statistical methods. This requirement is typically satisfied through completion of the VEE approved courses offered by a college.

Many students receive on-the-job training while enrolled in the examination process. Employers are generally supportive and may give students study time during working hours, pay exam fees, and award raises for each exam passed. Most employers, however, prefer to hire people who have started the series of examinations while in college.

Actuarial track at USI

The Department of Mathematics at the University of Southern Indiana offers the actuarial track coupled with a bachelor’s degree in mathematics. Along with the courses required for a degree in mathematics, students complete courses in economics, finance, and computer science to satisfy VEE requirements, to prepare for the first two preliminary exams administered by SOA and CAS, and to attain the mathematical foundation for further studies in actuarial or related fields. Students who complete the actuarial track develop a combination of skills and knowledge in business and mathematics that is highly marketable.

Dr. Yalcin Sarol is the major advisor for students in the actuarial track. Feel free to contact him if you have any questions.