Just One of the Fellows

1
Just One of the Fellows

• Christy Cresap
• Colleen Forque
• Tara Horn

2
Overview

• Required Information
• What is an Actuary?
• Fellowship and Testing
• Jobs and Skills

3
Required Information

• Original Source Gilbert, Charles L. Actuaries
  The Best Kept Secret in Business. n.d. September
  10, 2006 lthttp//www.fenews.com/fen47/my-perspecti
  ve/my-perspective.htmlgt.

4
Required Information

• In Chapter 2 under Trade in Risk page 34 the book
  talks about actuarial risks but does not go any
  further to explain what an actuary is.
• We found actuaries interesting because they are
  not talked about much but are one of the top jobs
  in the nation.

5
What is an Actuary?
6
What is an Actuary?

• Actuary
• A business professional who deals with the
  financial impact of risk and uncertainty.
• They evaluate the likelihood of events and
  quantify the contingent outcomes in order to
  minimize losses associated with undesirable
  events.

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What is an Actuary?

• Stats
• Actuaries have consistently been rated one of the
  top four jobs in the United States
• The typical starting salary is 40,000 a year
• Actuaries who have passed all the exams can earn
  as much as 100,000 a year by their early 30s

8
What is an Actuary?

• Education
• Actuaries will spend up to 10 years or more after
  university studying risk-related topics founded
  on probability and statistics, financial
  economics and life contingencies to gain the
  coveted Fellowship designation
• Most actuaries are mathematicians turned risk
  professionals

9
What is an Actuary?

• Actuarial Exams
• Described as the most difficult professional
  exams in the world
• No other profession demands such a rigorous
  qualification process
• Pass percentages are kept low to ensure that the
  highest standards for entry into the profession
  are maintained

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Fellowship and Testing
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Fellowship and Testing

• Job Classifications
• Property casualty actuaries
• Life, health, property, casualty, liability,
  reinsurance, pensions, annuities, asset
  management, and social welfare programs
• Life health actuaries
• Mortality risk , morbidity, and consumer choice
  regarding the ongoing utilization of drugs and
  medical services risk

12
Fellowship and Testing

• Exams
• Society of Actuaries
• for life and health actuaries
• Casualty Actuarial Society
• for property and casualty actuaries

13
Fellowship and Testing

• Associateship Requirements
• Validation by Educational Experience
• VEE-Applied Statistical Methods
• VEE-Corporate Finance
• VEE-Economics
• Examinations
• Exam 1 Probability
• Exam 2 Financial Mathematics
• Exam 3 Statistics and Actuarial Models
• Exam 4 Construction and Evaluation of Actuarial
  Models
• Exam 5 Introduction to Property and Casualty
  Insurance and Ratemaking
• Exam 6 Reserving, Insurance Accounting
  Principles, Reinsurance, and Enterprise Risk
  Management
• Exam 7 Nation-Specific Annual Statement,
  Taxation, and Regulation, Canada and U.S.
• Course on Professionalism
• Fellowship Examinations
• Exam 8 Investments and Financial Analysis
• Exam 9 Advanced Ratemaking, Rate of Return, and
  Individual Risk Rating Plans

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Fellowship and Testing

• Statements of Actuarial Opinion
• Member of the American Academy of Actuaries
• Academy membership requirements include
• membership in one of the recognized actuarial
  societies
• at least three years of full-time equivalent
  experience in responsible actuarial work
• residency in the United States for at least three
  years or a non-resident or new resident who meets
  certain requirements

15
Fellowship and Testing

• Typical Job Requirements
• B.S. Degree in Mathematics or Statistics
• Member - American Academy of Actuaries
• Actuarial Fellowship designation (FSA)
• Working knowledge of U.S. GAAP and Statutory
  reporting, especially XXX and AXXX

16
Jobs and Skills
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Jobs and Skills

• Contributions to the Industry
• Duration
• Immunization Theory
• Partial Duration
• Loss Models
• Stochastic Modeling of Risk
• Enterprise Risk Management (ERM)
• Asset Liability Management (ALM)

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Jobs and Skills

• Types of Employers
• Insurance companies
• Consulting firms
• Government insurance departments
• Colleges and universities
• Banks and investment firms
• Large corporations
• Public accounting firms

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Jobs and Skills

• Positions Held by Actuaries
• Chartered Financial Analysts (CFA)
• Financial Risk Managers (FRM)
• Professional Risk Managers (PRM)
• Chief Risk Officers (CRO)
• Quantitative Analysts
• Investment Specialists
• Expert Witnesses

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Jobs and Skills

• Skills
• Mathematics
• Economics
• Finance
• Probabilities and statistics
• Business
• Analytical skills
• Understanding human behavior
• Product and system designs

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Conclusion

• What is an Actuary?
• Fellowship and Testing
• Jobs and Skills

22

• Which of the following are not requirements for
  academy membership?
• Membership in one of the recognized actuarial
  societies
• At least three years of full-time equivalent
  experience in responsible actuarial work
• A Masters Degree in mathematics or statistics.
• Residency in the United States for at least three
  years or a non-resident or new resident who meets
  certain requirements

23
References

• Actuarial Salary Surveys. Clear Solutions HR.
  n.d. Novermber 2, 2006. lthttp//www.beanactuary.or
  g/onthejob/salary_survey.pdfgt
• "Actuary." Wikipedia, The Free Encyclopedia. 6
  Nov 2006, 0404 UTC. Wikimedia Foundation, Inc. 7
  Nov 2006 lthttp//en.wikipedia.org/w/index.php?titl
  eActuaryoldid85983991gt.
• Be An Actuary A Career Without Boundaries. n.d.
  November 2, 2006 lthttp//beanactuary.org/gt
• Genworth Financial. Careerbuilder.com. October 8,
  2006. November 1, 2006 lthttp//www.careerbuilder.c
  om/JobSeeker/Jobs/JobDetails.aspx?IPathOCCGjob_d
  idJ3H2637918MR0BCB86DcbRecursionCnt1cbside091
  2d8326d24796897905928b29041e-216166959-TG-4gt.
• Gilbert, Charles L. Actuaries The Best Kept
  Secret in Business. n.d. September 10, 2006
  lthttp//www.fenews.com/fen47/my-perspective/my-per
  spective.htmlgt.