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Actuarial MathematicsDarci L. KrachtProfessorActuarial Mathematics Program CoordinatorDepartment of Mathematical SciencesKent State UniversityA&S Advising Staff MeetingFebruary 1, 2019

What is an Actuary?Actuaries are professionals whoIManage riskIPredict the likelihood of future events and model the financialimpact of future scenariosIFind creative ways to mitigate the undesirable effects of futureeventsEmploymentIMost are employed in the insurance and financial industriesIOthers work in the transportation, environmental, medical,and manufacturing industries and in governmentINumber of jobs in this field is increasing at a rate of 18%(much faster than average)I2016 median annual salary of actuaries was 100,610IAlways highly ranked in job satisfaction surveys

Credentialing of Actuaries in the USSociety of Actuaries: www.soa.orgIAssociate of the Society of Actuaries (ASA)IFellow of the Society of Actuaries (FSA)IChartered Enterprise Risk Analyst (CERA)Casualty Actuarial Society: www.casact.orgIAssociate of the Casualty Actuarial Society (ACAS)IFellow of the Casualty Actuarial Society (FCAS)IChartered Enterprise Risk Analyst (CERA)Be An Actuary: beanactuary.org

SOA Credentialing: ASA (Associate of the Society of Actuaries)KSU is designated UCAP-Advanced Curriculum by the €“Financial MathematicsIFM–Investment and Financial MarketsLTAM–Long-Term Actuarial MathematicsSTAM–Short-Term Actuarial MathematicsSRM–Statistics for Risk ModelingPA–Predictive AnalyticsVEE Mathematical StatisticsVEE EconomicsVEE Accounting and Finance(Grade of B- or better required for VEE credit)Fundamentals of Actuarial Practice (FAP) eLearning CourseAssociateship Professionalism Course (APC)

SOA Credentialing: ASA (Associate of the Society of Actuaries)KSU is designated UCAP-Advanced Curriculum by the SOA.ExamExamExamExamExamExamExamP–Probability: MATH 40011FM–Financial Mathematics: MATH 30055IFM–Investment and Financial Markets: MATH 40059LTAM–Long-Term Actuarial Mathematics: MATH 40055-6STAM–Short-Term Actuarial MathematicsSRM–Statistics for Risk Modeling (?)PA–Predictive Analytics (?)VEE Mathematical Statistics: MATH 40012VEE Economics: ECON 22060-1VEE Accounting and Finance: ACCT 23020, FIN 36063(Grade of B- or better required for VEE credit)Fundamentals of Actuarial Practice (FAP) eLearning CourseAssociateship Professionalism Course (APC)

Actuarial Mathematics at Kent State UniversityICurrently Concentration under BS in MathematicsIHope to be major in 2019-20 catalogIActuarial Mathematics vs. Actuarial Science

Highlights of Curriculum changes as of Fall 2018INew required courses:IIIIOld requirement removed:IIFIN 36059 Intermediate InvestmentsComputing requirement change:IIIIMATH 20011 Decision Making Under UncertaintyMATH 31011 Proofs in Discrete MathematicsMATH 32044 Ordinary Differential EquationsCS 10062 Programming for Problem Solving in Science ORCS 13001 Comp Sci I: Programming and Problem Solving ORCS 13011 & 13012 Computer Science IA & IBNew statistics cision Making Under UncertaintyApplied StatisticsComputational StatisticsStatistical Learning

Highlights of Curriculum changes as of Fall 2018, cont’dIMathematics Electives (6 hrs) and Allied Area Electives (3hrs) now specified and listed on GPS Audit in FlashlineIIIStudents on old catalogs: Allied Area Electives (9 hrs) nowlisted on GPS AuditStudents need my approval only for courses not on this list(e.g., MATH 31011, MATH 32044 for those on old catalogs)Language added to Catalog entries for MATH 30011 (BasicProb and Stats), MATH 34001 (Fund Concepts of Alg),MATH 34002 (Fund Concepts of Geom):IIThis course CANNOT be used to meet the mathematicsrequirements for a BA in Mathematics or a BS in AppliedMathematics or Mathematics.Exceptions should be rare and only for students on old catalogalready promised approval

Highlights of Proposed Curriculum changes as of Fall 2019IBS in Actuarial MathematicsINew requirement (left off 2018 change as oversight):ICOMM 15000 Introduction to Human Communication

Major RequirementsMATH 12002 Analytic Geometry and Calculus IMATH 12003 Analytic Geometry and Calculus IIMATH 22005 Analytic Geometry and Calculus IIIMATH 21001 Linear AlgebraMATH 20011 Decision Making Under UncertaintyMATH 32044 Ordinary Differential EquationsMATH 31011 Proofs in Discrete MathematicsCS 10062 or 13001 or (13011 and 4005640059Mathematical Theory of InterestProbability Theory and ApplicationsTheory of StatisticsActuarial Mathematics IActuarial Mathematics IIStochastic Actuarial Models(COMM 15000 Intro to Human Communication?)ECON 22060 Principles of MicroeconomicsECON 22061 Principles of MacroeconomicsECON 32050 Applied Econometrics IACCT 23020 Intro to Financial AccountingFIN 36053 Business FinanceMATH Electives (6 hrs) from list in catalogAllied Area Electives (3 hrs) from list in catalog

Typical/Recommended Second Major or MinorIFinanceIEconomicsIData AnalyticsIComputer ScienceIInsurance StudiesIForeign languageIAnything the student loves!

Sequencing Recommendations: General PrinciplesI2–3 MATH courses per semester MAXISpread Kent Core courses across whole 4 yearsISpread Business courses, but start early if considering minoror double majorICS requirement earlyISummer MATH classes very challenging: strong students onlyIRemember that all MATH prereqs require C or better (reallyshould have B or better)ITwo issues in prerequisites:IIContentMathematical maturity

Sequencing RecommendationsITake in sequence without skipping a semester:IIIII12002120032200532044Analytic Geometry and Calculus IAnalytic Geometry and Calculus IIAnalytic Geometry and Calculus IIIOrdinary Differential Equations (“Calc IV”)Can take concurrently with MATH 12003 (Calc II)IIIMATHMATHMATHMATHMATH 21001 Linear AlgebraMATH 20011 Decision Making Under UncertaintyCan take concurrently with MATH 22005 (Calc III)IIMATH 30055 Mathematical Theory of InterestMATH 31011 Proofs in Discrete Mathematics

Highlights of Timing ChangesIMoved Act Math courses earlier in the curriculumIIIIMATH 30055 (Theory of Interest) to be offered Fall (notSpring) beginning Fall 2019IIIActuarial Math students should take it Fall of sophomore yearThen take Exam FM in springMATH 40011 (Probability) to be offered both Fall and Spring(not Summer) beginning Spring 2019IIIStudents can see if they like itTake more SOA exams before graduatingGet internship earlierActuarial Math students should take it Spring of sophomoreyearThen take Exam P in summerMATH 40055-6 (Act Math I-II) can then be taken junior yearIIPrereqs are MATH 30055 and MATH 40011Then take Exam LTAM following fall

Sequencing RecommendationsIMATH 40059 Stochastic Actuarial Models is probably hardestcourse in Actuarial Math curriculum— take Spring of senioryearIECON 32050 Applied Econometrics IIPrerequisitesIIIIMATH 12002 (Calc I)ECON 22060 (Microeconomics)MIS 24056 (Business Analytics I): typically waived for ourstudents who have taken MATH 40011-12ECON 32051 Applied Econometrics II is a good course for ourstudents, so maybe take ECON 32050 earlier than indicated onroadmap

Internships: Must apply in the fall for the following summer

Actuarial Math Club: Student presentations

Actuarial Math Club: Recruiters

Our Graduates

Exam P{Probability Exam FM{Financial Mathematics Exam IFM{Investment and Financial Markets Exam LTAM{Long-Term Actuarial Mathematics Exam STAM{Short-Term Actuarial Mathematics Exam SRM{Statistics for Risk Modeling Exam PA{Predictive Analytics VEE Mathematical Statistics VEE Econ