Actuarial studies in Estonia: current status

Kalev Pärna

Institute of Mathematical Statistics, University of Tartu, Estonia e-mail: kalev@ut.ee

In Estonia the teaching in actuarial sciences was resumed in 1993, after a break of more than fifty years. The University of Tartu, especially its Faculty of Mathematics has taken initiative in this newly recognized field, now providing courses at both undergraduate and graduate level.

Since 1993 different courses in actuarial mathematics have been given for students majoring in mathematical statistics or mathematics. In 1999 Master Program in Financial and Actuarial Mathematics was launched to meet the demand and students’ interest in this area. Students’ interest towards actuarial mathematics has been largely determined by favorable employment opportunities offered by local insurance companies and banks. Still, it is difficult to expect that enlarged demand in actuaries can continue for a longer period. Therefore, the master program was designed to cover not only actuarial courses but also important topics of financial mathematics and economics.

Master Program in Financial and Actuarial Mathematics is a two-years program that covers (together with the bachelor degree in Mathematical Statistics or Mathematics) most of the content of Stages 0 and 1 of the Core Syllabus for Actuarial Training in Europe. The total number of credit points (80) is divided between master studies (45), practical training (20), and thesis (15). Master studies include a number of obligatory courses of mathematical content: Financial Mathematics and its Equations, Numerical Solution of Integral and Differential Equations, Non-Life Insurance Mathematics, Life Insurance Mathematics, Time Series, Martingales, Risk Theory. Obligatory subjects in economics are: Microeconomics, Macroeconomics, Corporate Finance, Analysis of Securities, Investments and Financial Management. There are also optional courses. The degree is called Master of Financial and Actuarial Mathematics.

The number of students participating in the Master Program is 10 at the moment. With some exceptions, the studies are financed by the state.

The Master Program provides a basis for further, more specialized studies that can be taken abroad or at home by inviting lectures from foreign institutions. In the latter case, there are good perspectives for cooperation between three Baltic states.

University and Estonian Actuarial Society are working together to elaborate a comprehensive training scheme for actuarial profession in Estonia.