Actuarial science is the branch of knowledge that uses quantitative skills to analyze and plan for future financial situations. Most actuaries work for insurance companies, consulting firms, and even government agencies. Their duties may include projecting insurance costs, designing pension plans and placing a price on a business that is for sale. A good background in mathematics and statistics is essential, while a knowledge of business, accounting, economics and finance is helpful, if not necessary. Speaking, writing, and computer skills are also important for communicating results.
Good education preparation should include ECON 2013 as an ``S'' course in the Social Sciences area. The second semester, ECON 2023, no longer carries the S designation, but the third course, ECON 3113, does carry an S designation. A good student can probably skip ECON 2023 and take ECON 3113 directly, if desired, to complete the S requirement. The actuarial student may use 8 hours of Physics in the Natural Sciences, or N, area under General Education. For the 9 hours of Natural and Mathematical Sciences in the College/Departmental Requirements block, the actuarial student may use STAT 4013, STAT 4023, and COMSC 2133.
In the Major Requirements block, the actuarial student is advised to take MATH 4513, Numerical Analysis, and MATH 4553, Linear and Nonlinear Programming, as two of the elective MATH courses. The other courses may be chosen by the student. The courses STAT 4203 and STAT 4213 may be used in the ``6 hours from Mathematics or Statistics courses...'' block. The courses FIN 3113 and FIN 4613 may be used as electives in the ``6 hours from upper division courses in any field'' area.
Other electives might include ACCTG 2103 and 2203, a FORTRAN course such as COMSC 2301 or ENGR 1412, the insurance courses FIN 3613, 3623, and 3633, if offered, the Operations Research courses INDEN 4014 and 4023, and other courses in business, economics, or finance which interest the student.
Many graduates of the Department of Mathematics at OSU go on to become actuaries, most with very successful results. One such alum is now Vice President and Chief Actuary of American Fidelity Assurance Company in Oklahoma City. Actuarial science is such a highly respected and highly paid career that the 1988 Jobs Rated Almanac listed it as the best career in the country.
The Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS) are two professional organizations which grant professional recognition to actuaries in the United States and Canada. SOA members practice in life and health insurance, pension planning, and employee benefits. CAS members practice in property and casualty insurance, including such risks as fire, accidents, medical malpractice, and personal injury liability.
Becoming an Associate of either the SOA or CAS requires passing a series of eleven exams. You have six years from the time you take the first exam to obtain the 200 units of credit necessary. Of these 200 units of credits, 155 are required and 45 are elective hours.
About half of the actuarial exams correspond to courses offered by the OSU Department of Mathematics and by the OSU Statistics Department. Moreover, courses in statistics may count toward a minor in statistics, or as electives toward a degree in math. The following is a list of courses you should probably take in order to pass the first few exams (the Society of Actuaries calls the exams ``courses''):
CourseB<>Title B<>Type B<>OSU Courses
100 Calculus and Lin. Alg. Required MATH 2145, 2155,3013
110 Probability & Stat. Required STAT 4203-4213 or
STAT 4113-4223
120 Applied Stat. Methods Required STAT 2023-3013 or
STAT 4013-4023
130 Operations Research Elective MATH 4553 or
INDEN 4014
135 Numerical Methods Elective MATH 2233 & 4513
140 Math. of Compound Int. Required FIN 3113
Other good choices include:
MATH 4583 Intro to Math Modeling
MATH 4513 Numerical Analysis