CAS/SOA Joint Math Meeting 2007 Session on “Starting an Actuarial Program” Question and Answers

RB: Robert Buck, Slippery Rock University
BAC: Bettye Anne Case, Florida State University

1. What math classes are needed to start a concentration/degree program in actuarial science?

RB: Aside from the usual calculus, etc. the main thing is a sequence in probability and stat, at least for an Introductory Program. It allows them to sit for Exam P. We offer a course in the Theory of Interest, but this is not absolutely necessary. They need to be able to pass an exam to get a job.

BAC: I distinguish between a concentration and a degree. I would propose: for an undergraduate "concentration," courses supporting the first two current exams of both SOA and CAS would seem reasonable: e.g., Probability at an appropriate level, and Theory of Interest with the added topics now in the Financial Mathematics Exam 2. Also, a reasonable number of courses approved for VEE areas would seem to be “2”. The offerings suggested for "concentration" should be required if a program is called "major" or "degree in", and all 3 of the VEE area coursesshould be required. Additionally, an essential difference between a concentration and a major is the offering of an actuarial models (life contingencies) course at a level to support today's SOA MLC or CAS 3 exam. Or, one could say using the current SOA criteria for college listings that a concentration is Undergraduate Introductory on the SOA listing, and a major or program should be Undergraduate Advanced.

2. How do you help your students pass the first exam? For example, do you coach the students and if so, do you get teaching credit for doing so?

RB: We buy study materials (manuals and DVDs) from companies like Actex and I loan them to the students. They are told to treat them as their own, and generally need to be replaced after about three exam sessions. We do not offer exam prep courses.

BAC: We have a strong supporting course taught by Statistics faculty and an actuarial tutorial available 15-20 hours per week at convenient hours, with student tutors. Also we offer a 20-hour formal seminar for Exam P/1. Incidentally, we also offer 20-hour formal seminars for Exam FM/2 and Exam MLC.

3. What other (non-math) courses should the student take, and how do you work with other departments getting your students in these courses?

RB: Micro & macro economics, finance courses, an accounting course, and any writing courses you can talk them into, especially courses that satisfy the VEE requirement. Most of the economics and finance faculty are very excited about getting quantitative math types and are willing to override into courses even if they are full.

BAC: Students should take courses that support the VEE areas. At FSU the College of Business normally does not allow non-business majors to take their courses, but we have a special arrangement that allows our students to not only take the finance courses for which they can earn VEE – Finance credit but also other relevant courses such as those in Risk Management and Insurance. The Dean of the College of Business was receptive to this request when we approached him about it. After all, actuarial science students are generally academically strong students. Since the Economics Department is housed in the College of Social Sciences and the Mathematics and Statistics Departments, although separate departments, are housed in the College of Arts and Sciences, it’s a little easier getting students into courses for which they can earn VEE – Economics and VEE – Applied Statistics credit.

4. How do you apply for VEE credit?

RB: There are forms and instructions available on the SOA and CAS websites. You send in information about the course topics and prerequisites and they need to be renewed every few years. The economics is basically the intro to micro and macro that is offered at most places. Applied stat covers regression and time series, which may be one or two courses. The finance seems to be the most difficult because there seems to be no standard sequence. Our students need to take a sequence of three courses to get in all the needed finance topics.

BAC: See CAS and SOA websites.

5. How do you adjust to the seemingly continuous change in Society of Actuaries / Casualty Actuarial Society requirements?

RB: With difficulty, although with only an introductory program, it is not as hard for us as for those with advanced programs. Our prob/stat course is not geared particularly to actuaries, but serves several groups of students. We make students aware of topics that they may need to cover on their own. They need to get used to that anyway.

BAC: With great difficulty. Academic systems don't move on a dime – and certainly not on the head of a pin.

6. How do you convince other faculty in your department that it is worth the resources to create an actuarial science program?

RB: Start small and build slowly. The prob/stat course is the start and serves more than one group. Our only course directed specifically at actuaries is the Theory of Interest and we had an introductory program for a number of years before we added this. It also attracts occasional econ or finance types. You don't have to offer each course every year. We offer prob/stat sequence and the Theory of interest every other year. One year the students can prepare for exam P and the next for exam FM. Either one can be taken first.

BAC: It doesn’t hurt that we are attracting strong majors who are the envy of the other areas in the department.

7. How do you advertise the profession and your program?

RB: On the department website, flyers, having talks about actuarial careers at the math club (don't forget to invite the business types to these).

BAC: At FSU, each actuarial science student belongs to the Florida State Student Actuarial Society (FSSAS). On most Thursdays throughout the semester, the FSSAS hosts presentations from practicing actuaries about their work and their company. These presentations are always preceded by a pizza and refreshments party. These presentations not only advertise the profession to students, but they also advertise our program to the practicing actuarial community. We also use department and university websites to advertise our program, and of course if you’re doing a good job, then you’ll get advertising by word of mouth.

8. Are there internships the students can participate in while still in college?

RB: There are lots of opportunities for paid summer internships, although many companies want the students to have passed an exam.

BAC: Yes, there are many summer internships available. Most, if not all, of the companies that come to FSU to give presentations to the FSSAS conduct interviews on the following day for summer internships and full time positions.

9. Where do your students work after they graduate?

RB: Insurance and financial firms, a few for the government.

BAC: Insurance, government, consulting ... An easier question for us is: where don't they work.

10. How do you keep track of, and make use of, alumni?

RB: We have a department newsletter and the alumni association helps keep track. Alumni can help students with job placement, summer internships, and, if close by, will come and talk to students at things like math club meetings. Consider forming an Advisory Board for the program.

BAC: Many of the speakers we have give presentations to the FSSAS are alumni. Alumni are usually easily persuaded to come back to talk to students. Also we try to keep them on an e-alias list.

11. Who can you talk to or where can you go for advice on getting started?

RB: There is always a session on actuarial education at the joint meetings. The SOA has the Future Actuaries section and the CAS has the Academic Correspondents program. Look at the Actuarial College Listing on the societies’ websites and talk with the contact person at some of the listed colleges.

BAC: There are lots of websites to browse. Also, don’t hesitate to ask experienced faculty