Principles of Actuarial Science
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Actuaries Abroad
Actuaries Abroad California Actuarial Student Summit 2019 UC Santa Barbara Andrew Peterson, FSA, EA, MAAA Senior Director, International, SOA May 25, 2019 Discussion topics ▪ Global actuarial profession ▪ Becoming an actuary & SOA pathway ▪ Working internationally: qualifications & job market 2 Around the Globe – Snapshot Global Actuarial Profession (Total ~80,000) 2% 0% 3% 4% North America 8% Europe Asia 44% Oceania Latin America Africa 38% Middle East Estimated results based on 2018 Intl. Actuarial Association (IAA) data; distributions are approximate due to potential overlap in membership in different regions. 3 Around the Globe – Snapshot SOA Global Footprint (2018) SOA Members + Candidates in Asia (2018) 2% 1% 1% 1,261 22 China 4% Hong Kong 4% 1,221 3,048 United States Malaysia 5% 30% Canada Korea, Republic of China Taiwan 11% 5,213 Asia-Pacific Thailand 20,560 Singapore Latin America 11% Philippines Rest of the World 20% Vietnam 11% Japan Members : 31,325 Indonesia CAS Global Footprint (2018) IFoA Global Footprint (2017/18) 135 186 79 105 UK 538 4,765 US 903 India 559 Canada Ireland 1185 Bermuda South Africa 1636 China/HK/Singapore China 16253 6,944 UK/Switzerland ROW ROW 6064 Members : 8,352 Includes both Actuaries (~15,000) + Students (~16,000) = ~31,000 4 Becoming an actuary & SOA pathway Becoming an Actuary – 4 Primary Intl. Credentials SOA (US)—ASA, FSA • Practice Areas: All covered • Choose specialty track after obtaining ASA • Self-study or university curriculum to master actuarial concepts • Advance through series of exams to earn credential • Complete/attend certain modules/courses https://www.soa.org/education/general-info/default/ CAS (USA)– ACAS, FCAS • Practice Area: Property & Casualty • Self-study or university curriculum to master concepts • University and exam pathways • Advance through a series of exams to earn credential • Complete/attend certain modules/courses https://www.casact.org/admissions/process/ 6 Becoming an Actuary – 4 Primary Intl. -
Exam FM: Financial Mathematics
Welcome! The Actuarial Science program prepares student for careers as actuaries. It helps them learn material that is included in processional examinations administered by the Society of Actuaries and Casualty Actuary Society, which actuarial students must pass in order to achieve professional status. Thank you for your interest in our Actuarial Science Program at the University of Iowa. The Actuarial Science program prepares students for careers as actuaries. It helps them learn material that is included in professional examinations administered by the Society of Actuaries, which actuarial students must pass in order to achieve professional status. In addition to actuarial science courses, students can take courses in preparation for business aspects of the actuarial profession such as accounting, law, finance, insurance, and economics. The Society of Actuaries (SOA) has recognized University of Iowa’s actuarial science program as a Center of Actuarial Excellence (CAE). There are eight criteria for the designation, including curriculum, faculty composition, graduate quality, connection to industry, and research/scholarship. We are a small department in a large University and graduate between 20-15 students each year. We do have SELECTIVE admission due to the difficulty of the professional examinations. Students interested in becoming actuaries should declare an Interest in Actuarial Science as their major when they ENTER the university. Ordinarily, students apply for admission to the Actuarial Science major in the fall semester of their sophomore year, after they have taken Math:2850 (22M:028) Calculus III or MATH:3770 (22M:055) Fundamental Properties of Spaces and Functions I and STAT:3100 (22S:130) Introduction to Mathematical Statistics I. -
Actuarial Science and Financial Mathematics Faqs
Department of Mathematics 250 Mathematics Building 231 W. 18th Avenue Columbus, OH 43210-1174 Actuarial Science and Financial Mathematics FAQs 1. What is the difference between a major in Actuarial Science and a major in Financial Math? Actuarial Science is the mathematical and statistical underpinning of the design, financing, and operation of all types of insurance, pension plans and benefit plans. Actuarial science prepares students for a career in the actuarial side of the insurance business and in actuarial consulting. Please see http://www.beanactuary.org/about/ for more information. Financial math track provides students with a foundation of the mathematics used in financial markets. It focuses on the pricing of the financial instruments (futures, options and other derivatives) and portfolio selection. Though there are job opportunities in financial institutions for students with an undergraduate degree, students in this track are encouraged to continue with graduate study in financial math, financial engineering, computational finance, or quantitative finance (they essentially mean the same thing). There are many professional master degree programs in this area. 2. How many students are currently majoring in actuarial science at Ohio State? We have close to 350 students in our program. 3. Are there any requirements to my actuarial major? If so, what are they? We place students into a pre-major when they switch or add this major. The major prerequisites and requirements can be found at https://math.osu.edu/undergrad/current- majors/requirements/actuarial. Students will also need to complete the College of Arts and Sciences General Education requirements. Students should meet with their academic advisor in the Math Advising Office or review the requirements online, https://math.osu.edu/undergrad/current-majors/requirements. -
Recent Challenges in Actuarial Science
ST09CH01_Embrechts ARjats.cls July 30, 2021 15:51 Annual Review of Statistics and Its Application Recent Challenges in Actuarial Science Paul Embrechts and Mario V. Wüthrich RiskLab, Department of Mathematics, ETH Zurich, Zurich, Switzerland, CH-8092; email: [email protected], [email protected] Annu. Rev. Stat. Appl. 2022. 9:1.1–1.22 Keywords The Annual Review of Statistics and Its Application is actuarial science, generalized linear models, life and non-life insurance, online at statistics.annualreviews.org neural networks, risk management, telematics data https://doi.org/10.1146/annurev-statistics-040120- 030244 Abstract Copyright © 2022 by Annual Reviews. For centuries, mathematicians and, later, statisticians, have found natural All rights reserved research and employment opportunities in the realm of insurance. By defini- tion, insurance offers financial cover against unforeseen events that involve an important component of randomness, and consequently, probability the- ory and mathematical statistics enter insurance modeling in a fundamental way. In recent years, a data deluge, coupled with ever-advancing information technology and the birth of data science, has revolutionized or is about to revolutionize most areas of actuarial science as well as insurance practice. We discuss parts of this evolution and, in the case of non-life insurance, show how a combination of classical tools from statistics, such as generalized lin- ear models and, e.g., neural networks contribute to better understanding and analysis of actuarial data. We further review areas of actuarial science where the cross fertilization between stochastics and insurance holds promise for both sides. Of course, the vastness of the field of insurance limits our choice of topics; we mainly focus on topics closer to our main areas of research. -
Department of Statistics and Actuarial Science Three Year Academic Plan 2004-2006 Approved by Department on 27 June 2006
Department of Statistics and Actuarial Science Three Year Academic Plan 2004-2006 Approved by Department on 27 June 2006 Chronology of Department Planning A. Achievement of Previous and Evaluation: Objectives and Recommendations: • May 2001: Formation of Department • Nov 2003: First Three-Year Plan (2003-6) The Department has achieved most of the • Mar 2005: External Review of Department objectives set out in its previous three-year • Mar 2006: Senate Approval of Recommen- plan, and has made a solid start at dations implementing the recommendations stemming • Jun 2006: Second Three-Year Plan (2007- from the 2005 external review. 9) Full, point-by-point assessments are Since its inception, the Department has provided in Appendices A and B. Of particular grown from 9 faculty positions to 20. Of these note, are the following: positions, 7 come with external or endowed New positions: The three-year plan called for funding. All faculty members are active in several academic appointments. As planned, research, and their collective record of we were able to hire two additional actuaries, external awards and funding is very strong. but the other target areas (a theoretician and a Over the last few years, the Department has lecturer) were not addressed. Instead, we took emerged as a leading Canadian center for advantage of our recognizable strengths to statistical teaching and research. A recruit very strong applicants for externally comparative analysis of NSERC grant funded and endowed positions. funding conducted for the recent external The plan also called for further half-positions in review ranked the Department very close to the general office and in the Statistical the best in the country. -
Actuarial Studies Within the Biometry and Statistics and Statistical Science Majors
Actuarial Studies within the Biometry and Statistics and Statistical Science majors An actuary is a business professional who analyzes the financial consequences of risk. Actuaries use mathematics, statistics and financial theory to study uncertain future events, especially those of concern to insurance and pension programs. They evaluate the likelihood of those events, design creative ways to reduce the likelihood and decrease the impact of adverse events that actually do occur. To be more specific, actuaries improve financial decision making by developing models to evaluate the current financial implications of uncertain future events. Actuaries are an important part of the management team of the companies that employ them. Their work requires a combination of strong analytical skills, business knowledge and understanding of human behavior to design and manage programs that control risk. No matter the source, actuary is consistently rated as one of the best jobs in America. US News and World Report, the Jobs Rated Almanac, CNN Money, and others all agree: few other occupations offer the combination of benefits that an actuarial career can offer. In almost every job satisfaction category, such as work environment, employment outlook, job security, growth opportunity, and salary (especially starting salary), a career as an actuary is hard to beat. Required courses for the Biometry and Statistics and Statistical Science majors Calculus I and II: MATH 1110 & 1120 Multivariable Calculus and Linear Algebra: MATH 2210 & 2220 or 2230 & 2240 -
Statistics and Actuarial Science 1
Statistics and Actuarial Science 1 STAT:3510/IGPI:3510 Biostatistics and STAT:4143/PSQF:4143 Statistics and Introduction to Statistical Methods. Students may not take STAT:3101/IGPI:3101 Introduction Actuarial Science to Mathematical Statistics II and STAT:4101/IGPI:4101 Mathematical Statistics II at the same time and get credit for both (nor go back to STAT:3101/IGPI:3101 after taking Chair STAT:4101/IGPI:4101). • Kung-Sik Chan Statistics Courses Director of Graduate Studies STAT:1000 First-Year Seminar 1 s.h. • Aixin Tan Small discussion class taught by a faculty member; topics Director of Undergraduate Studies, chosen by instructor; may include outside activities (e.g., films, lectures, performances, readings, visits to research Actuarial Science facilities). Requirements: first- or second-semester standing. • Elias S. Shiu STAT:1010 Statistics and Society 3 s.h. Director of Undergraduate Studies, Data Statistical ideas and their relevance to public policy, business, humanities, and the social, health, and physical Science sciences; focus on critical approach to statistical evidence. • Rhonda R. DeCook Requirements: one year of high school algebra or MATH:0100. GE: Quantitative or Formal Reasoning. Director of Undergraduate Studies, STAT:1015 Introduction to Data Science 3 s.h. Statistics Data collection, visualization, and wrangling; basics of • Rhonda R. DeCook probability and statistical inference; fundamentals of data learning including regression, classification, prediction, and Undergraduate majors: actuarial science (B.S.); statistics cross-validation; computing, learning, and reporting in the R (B.S.) environment; literate programming; reproducible research. Undergraduate minor: statistics Requirements: one year of high school algebra or MATH:0100. Graduate degrees: M.S. -
Guide to SOA Written Exams
Guide to SOA Written Exams GUIDE TO SOA EXAMS Updated November 2020 Guide to SOA Exams Table of Contents 1. INTRODUCTION ............................................................................................. 1 1.1. Purpose of this Document ................................................................................................... 1 1.2. Education Principles ............................................................................................................ 1 1.2.1. Assessment Methods Principle .......................................................................... 2 1.2.2. International Organizations Principle ................................................................. 3 1.3. Organizational Structure of Education ............................................................................... 3 2. OVERVIEW AND DEFINITIONS ..................................................................... 3 2.1. Designations/Credentials .................................................................................................... 3 2.1.1. Meaning of the ASA ........................................................................................... 3 2.1.2. Meaning of the FSA ........................................................................................... 4 2.1.3. Meaning of the CERA ........................................................................................ 4 2.2. Component Groupings ........................................................................................................ 4 3. -
Modern Actuarial Risk Theory Rob Kaas • Marc Goovaerts Jan Dhaene • Michel Denuit
Modern Actuarial Risk Theory Rob Kaas • Marc Goovaerts Jan Dhaene • Michel Denuit Modern Actuarial Risk Theory Using R Second Edition Professor Rob Kaas Professor Marc Goovaerts UvA / KE UvA / KE Roetersstraat 11 Roetersstraat 11 1018 WB Amsterdam 1018 WB Amsterdam The Netherlands The Netherlands [email protected] K.U. Leuven University of Amsterdam Naamsestraat 69 Professor Jan Dhaene 3000 Leuven AFI (Accountancy, Finance, Insurance) Belgium Research Group [email protected] Faculteit Economie en Bedrijfswetenschappen K.U. Leuven University of Amsterdam Professor Michel Denuit Naamsestraat 69 Institut de Statistique 3000 Leuven Université Catholique de Louvain Belgium Voie du Roman Pays 20 [email protected] 1348 Louvain-la-Neuve Belgium [email protected] ISBN: 978-3-540-70992-3 e-ISBN: 978-3-540-70998-5 Library of Congress Control Number: 2008931511 © 2008 Springer-Verlag Berlin Heidelberg This work is subject to copyright. All rights are reserved, whether the whole or part of the material is concerned, specifi cally the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfi lm or in any other way, and storage in data banks. Duplication of this publication or parts thereof is permitted only under the provisions of the German Copyright Law of September 9, 1965, in its current version, and permission for use must always be obtained from Springer-Verlag. Violations are liable for prosecution under the German Copyright Law. The use of registered names, trademarks, etc. in this publication does not imply, even in the absence of a specifi c statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. -
Life Anuities with Stochastic Survival Probabilities: a Review
LIFE ANUITIES WITH STOCHASTIC SURVIVAL PROBABILITIES: A REVIEW MICHEL DENUIT Institut de Statistique & Institut des Sciences Actuarielles Universit´eCatholique de Louvain Louvain-la-Neuve, Belgium [email protected] August 27, 2007 Abstract An insurance company selling life annuities has to use projected life tables to describe the survival of policyholders. Such life tables are generated by stochastic processes governing the future path of mortality. To fix the ideas, the standard Lee-Carter model for mortality projection will be adopted here. In that context, the paper purposes to examine the conse- quences of working with random survival probabilities. Various stochastic inequalities are derived, showing that the risk borne by the annuity provider is increased compared to the classical independent case. Moreover, the type of dependence existing between the insured life times is carefully examined. The paper also deals with the computation of ruin proba- bilities and large portfolio approximations Key words and phrases: Lee-Carter model, mortality projection, association, MTP2, stochas- tic orders, ruin probability, prudential life table, securitization. 1 Introduction and motivation During the 20th century, the human mortality globally declined. These mortality improve- ments pose a challenge for the planning of public retirement systems as well as for the private life annuities business. When long-term living benefits are concerned, the calculation of ex- pected present values (for pricing or reserving) requires an appropriate mortality projection in order to avoid underestimation of future costs. Actuaries have therefore to resort to life tables including a forecast of the future trends of mortality (the so-called projected life tables). The composition of the population in the industrialized countries will change significantly in coming decades as the decline in fertility rates following the baby boom, coupled with increasing longevity, leads to an older population. -
Actuary Brochure
Our actuarial professionals play a critical role in society and enjoy benefits available to members of the SOA: • Advanced actuarial and risk management education and knowledge-sharing opportunities • Extensive professional development/ continuing education programs • Access to a variety of publications and the most research activity on a wide range of current pertinent topics that will help in their roles as actuarial professionals • Social and professional networking communities • Members-only pricing on widest array Educating actuaries. Advancing a profession. Impacting society. of extensive professional development opportunities • The ability to take part in professional interest groups—20 from which to choose Take a closer look at the SOA at soa.org soa.org I asia.soa.org I [email protected] I +1 847.706.3500 475 North Martingale Road, Suite 600 I Schaumburg, Illinois 60173, USA From the current state of public pensions to the changing role of big data in business, we see the potential impact of risk—and the growing need to better mitigate it—around the world. That’s why we’re here. We are the Society of Actuaries (SOA), the largest global professional actuarial organization in the world. Every day, our more than 26,000 members in 78 countries take a closer look at the bigger picture of risk. Asking the questions that dig deeper. Mining data for solutions that Risk is everywhere. have a positive impact on business and society. A pioneering organization with unmatched research and education resources, we foster innovative thinking on real-world challenges. Together, we cultivate the well-rounded professionals trusted to bring better decisions into focus. -
070 Valuation of Life Insurance and Annuity Reserves
806 KAR 6:070. Valuation of life insurance and annuity reserves. RELATES TO: KRS 304.1-050, 304.2-290, 304.3-240, 304.6, 304.15-410 STATUTORY AUTHORITY: KRS 304.2-110, 304.6-140 NECESSITY, FUNCTION, AND CONFORMITY: KRS 304.2-110 authorizes the commis- sioner to promulgate reasonable administrative regulations necessary for or as an aid to the ef- fectuation of the Kentucky Insurance Code as defined in KRS 304.1-010. KRS 304.6-140 au- thorizes the commissioner to promulgate administrative regulations approving any mortality ta- ble "adopted by the National Association of Insurance Commissioners after 1980" for use in determining the minimum standard for valuation of policies. This administrative regulation es- tablishes the framework for valuation standards acceptable to the department, and establishes the conditions under which the department actuary will verify the valuation of a company’s re- serves without cost to the insurer. Section 1. Definitions. (1) "1983 GAM Table" means that mortality table developed by the Society of Actuaries Committee on Annuities and adopted as a recognized mortality table for annuities in December, 1983 by the National Association of Insurance Commissioners. (2) "1983 Table ‘a’" means that mortality table developed by the Society of Actuaries Com- mittee to Recommend a New Mortality Basis for Individual Annuity Valuation and adopted as a recognized mortality table for annuities in June, 1982 by the National Association of Insurance Commissioners. (3) "1994 GAR Table" means that mortality table developed by the Society of Actuaries Group Annuity Valuation Table Task Force. (4) "2012 Individual Annuity Mortality Period (2012 IAM Period) Table" means the period ta- ble, developed by the Society of Actuaries Committee on Life Insurance Research, containing loaded mortality rates for calendar year 2012 and containing rates, qx2012.