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Frequently Asked Questions Basic Information: Current Penn State Student information:
New! Click here to view a PowerPoint presentation about the actuarial science major! Actuaries put a price tag on future risks. They have been called financial architects and social mathematicians because their unique combination of analytical and business skills is helping to solve a growing variety of financial and social problems. Actuaries make financial sense of the future. How? An actuary applies mathematical models to problems of insurance and finance. To be more specific, actuaries improve financial decision making by developing models to evaluate the current financial implications of uncertain future events. If you’ve never met an actuary, that’s not unusual. The actuarial profession numbers only about 19,000 people in North America. But don't let that small number fool you. Actuaries put their special problem-solving skills to work in many different business situations, and their work has had an influence on people’s lives for more than a century. Actuaries make a difference. Their calculations and projections are the backbone of the insurance and financial security industries. Actuarial work involves lots of math, but actuaries must also be up-to-date on business issues and trends, social science, law, and economics. In other words, actuaries have a well-rounded business approach to problem solving. And they must be good communicators to explain things to non-actuaries. Actuaries are key players on a company's management team. They are well paid, and they like what they do for a living. (from http://www.beanactuary.org)
What is the Actuarial Science Club?The Actuarial Science Club organizes information sessions for recruiters. Typically, there are more info sessions during the fall semester. The info sessions provide information about each employer that is coming to Career Services to interview students. Also, the Actuarial Science Club sets up study sessions for the actuarial exams. Once you enter the major as a junior, you are automatically added to the list-serve. If you are not currently enrolled in the actuarial science program, but are interested in being added to the list-serve, contact Andrew Timcheck. You will receive information about upcoming events through email.
What is the history of the Penn State Actuarial Program?
Is being an actuary a good profession?"Actuary" is Rated One of the Best Jobs in America!The job "actuary" has been rated the second best job in the United States by the Jobs Rated Almanac (Sixth Edition, 2002). The popular reference book lists the actuarial profession above other highly regarded careers such as accountant or attorney. Only "biologist" rated higher. The Jobs Rated Almanac printed five previous editions between 1988 and 2001. In two editions, "actuary" was rated as the best job and in two others, actuary was rated second best. "Actuary" has never been rated lower than fourth, a ranking it received in the fifth edition before climbing two spots in the most recent edition. The editors compiled statistics on 250 occupations, from accountant to zoologist. The occupations are ranked on the basis of six key criteria: environment, income, employment outlook, physical demands, security and stress. The data comes from government sources, such as the U.S. Bureau of Labor Statistics and the U.S. Census Bureau, as well as studies from trade associations and industry groups. The Ten Best Jobs
(from http://www.beanactuary.org)
Actuaries work for a variety of employers, including:
The insurance industry can’t function without actuaries, and that’s where most of them work. They calculate the costs to assume risk—how much to charge policyholders for life or health insurance premiums or how much an insurance company can expect to pay in claims when the next hurricane hits Florida. Actuaries provide a financial evaluation of risk for their companies to be used for strategic management decisions. Because their judgment is heavily relied upon, actuaries’ career paths often lead to upper management and executive positions. When other business that do not have actuaries on staff need certain financial advice, they hire actuarial consultants. A consultant can be self-employed in a one-person practice or work for a nationwide consulting firm. Consultant help companies design pension and benefit plans and evaluate assets and liabilities. By delving into the financial complexities of corporations, they help companies calculate the cost of a variety of business risks. Consulting actuaries rub elbows with chief financial officers, operating and human resource executives, and often chief executive officers. Actuaries work for the government too, helping manage such programs as the Social Security system and Medicare. Since the government regulates the insurance industry and administers laws on pensions and financial liabilities, it also needs actuaries to determine whether companies are complying with the law. (from http://www.beanactuary.org) Am I suited for Actuarial Science? Suited for the Career? Take a quiz and find out!
Who can I talk to at Penn State about this major? Contact a student advisor or actuarial science club officer with any questions. They are here to help!
Actuaries in the U.S. and Canada achieve professional status by passing a set of examinations prescribed by the Casualty Actuarial Society (CAS) or Society of Actuaries (SOA). Exams 1-4 are administered by Preliminary Actuarial Examinations for the CAS and SOA (Courses 1, 2 & 4 are the same for both CAS and SOA). Many prospective actuaries begin taking exams while in college with the aid of self-study courses jointly offered by the CAS and SOA. Most achieve Associateship in three to five years. All students acquire a core set of knowledge from required courses before following the CAS or SOA career path. A student's selection to pursue the SOA or CAS career path is frequently influenced by personal interest, set of skills, and acceptance of a particular entry-level job. After achieving Associateship status and usually after gaining a few years of work experience, most actuaries complete the Fellowship exams. Both Associate and Fellowship level exams are difficult, and becoming an actuary requires a fair amount of study and preparation. Depending on which course of study you choose, you'll prepare for exams by studying material required by the CAS or the SOA. (from http://www.beanactuary.org)
Why do I need to take the SOA/CAS exams? Unlike other professions, such as law and medicine, in the actuarial profession you can earn while you learn. 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. However, most employers prefer to hire people who have started the series of examinations on their own and have already passed one or two exams.Check out our SOA exam info page for information on registering for the exams. (Courses 1, 2 & 4 are identical for both SOA and CAS.) (from http://www.beanactuary.org)
Where can I find more information? There are some excellent online sources on our links page.
What PSU classes do I need for the SOA/CAS exams? Click here for a detailed description of material on Course 1 (Probability). Helpful PSU courses include:
Click here for a detailed description of material on Course 2 (Financial Mathematics). Helpful PSU classes include:
Click here for a detailed description of material on Course 3 (CAS- Statistics and Actuarial Models; SOA- Actuarial Models). Helpful PSU classes include:
What classes do I need for an actuarial science major? Check out the course information page. There is a link to the PSU online bluebook at the bottom of the page. For actuarial science majors (through Smeal), look at the sample semester schedule for an idea of when to take classes. For math majors (actuarial science option), refer to this sample semester schedule. *For both majors, it is important that you incorporate as many VEE classes (see below) as you can. The math major is less 'demanding' as far as the number of credits per semester is concerned. Math majors typically minor in Statistics. Other popular minors for math majors are Economics and Business/Liberal Arts. Some ways to decrease the number of credits you must take per semester are AP credits and the 3-6-9 Gen Eds option. See your counselor for more details.
What is Validation by Educational Experience (VEE)? VEE allows students to get credit for CAS/SOA exams simply by taking college courses. There are 3 VEE topics: Economics, Corporate Finance, and Applied Statistical Methods. The minimum grade to receive credit for a VEE course is a "B-". VEE is a great way to avoid having to take more exams so it is STRONGLY SUGGESTED that you work the following courses into your Penn State semester schedule. Required Classes for VEE Economics:
Required Classes for VEE Corporate Finance:
Required Classes for VEE Applied Statistical Methods:
To formally receive credit for passing VEE courses, you must first pass 2 CAS/SOA exams, and then you can apply with this form.
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