	University of Missouri College of Arts and Science
	Department of Mathematics 202 Math Sciences Bldg. University of Missouri Columbia, MO 65211-4100 Phone: (573) 882-6221 FAX: (573) 882-1869

The Mathematics department strives to remain responsive to increased student demand for courses related to quantitative methods in actuarial science and finance. There are many outstanding career opportunities for quantitative analysts in these fields. The Emphasis in Mathematical Finance and Insurance program will serve students who wish to pursue a career in the financial and insurance industries as well as students preparing for the first actuarial exams.

Emphasis in Mathematical Finance and Insurance

For more information contact:
Professor Michael Taksar
207 Mathematical Sciences Building
tel. (573)882-7674
fax (573)882-1869
email: taksar@math.missouri.edu

What is Actuarial Science?
What is an Actuary?
Starting Actuarial Salaries
Actuarial Society Exams
Links

What is Actuarial Science?

Actuarial science applies mathematical and statistical methods to finance and insurance, particularly to the assessment of risk. Actuarial science includes a number of interrelating disciplines, in particular the mathematics of probability and statistics. In the life insurance industry, traditional actuarial science focuses on the analysis of mortality and the production of life tables, and the application of compound interest. More recently, actuarial science has come to embrace more sophisticated mathematical modeling of finance. Ideas from financial economics are also becoming increasingly influential in actuarial thinking.

What is an actuary?

Actuaries are professionals who analyze the financial impact of risk, particularly looking ahead far into the future. Actuaries use skills in mathematics, economics, finance and statistics to study uncertain future events, especially those of concern to insurance companies, employee benefits such as medical insurance and pension plans, and social welfare programs such as social security and Medicare. Recently the scope of the actuarial field has widened to include investment advice, and even asset management. Many belong to one or more professional bodies, which include:

the Casualty Actuarial Society in the US;
the Society of Actuaries in the US;
the American Academy of Actuaries in the US;
the Institute of Actuaries in England and Wales;
the Faculty of Actuaries in Scotland;
the Institute of Actuaries of Australia in Australia;
the Canadian Institute of Actuaries;
the Deutsche Aktuarvereinigung e.V. in Germany;
the Actuarieel Genootschap in The Netherlands;
the Royal Association of Belgian Actuaries in Belgium;
the Danish Actuarial Society;
the Society of Actuaries in Ireland in Ireland;
the Hungarian Actuarial Society in Hungary;
the International Actuarial Association;
the International Association of Consulting Actuaries;
the Groupe Consultatif of the European Union.

Starting Actuarial Salaries

Here you can see the starting actuarial salaries for the graduates who passed one, two or three exams. This information is taken from the actuarial grads network.

Actuarial Society Exams

One becomes an actuary by passing professional exams administered by the Society of Actuaries (SOA), and developing practical skills working at an insurance company.

Below are the principles Underlying the Education and Examination by the Society of Actuaries (SOA) as they are formulated by the SOA.

Principles Underlying the Education and Examination (E&E) System

The SOA administers a series of courses leading to Associateship and Fellowship. The principles underlying the SOA E&E system are the following:

To provide the actuary with an understanding of fundamental mathematical concepts and how they are applied, with recognition of the dynamic nature of these fundamental concepts in that the actuary must remain up-to-date with developments in mathematics and statistics;
To provide the actuary with an accurate picture of the sociodemographic, political, legal, and economic environments within which financial arrangements operate, along with an understanding of the changing nature and potential future directions of these environments;
To expose the actuary to a broad range of techniques that the actuary can recognize and identify as to their application and as to their inherent limitations, with appropriate new techniques introduced into this range as they are developed;
To expose the actuary to a broad range of relevant actuarial practice, including current and potential application of mathematical concepts and techniques to the various and specialized areas of actuarial practice; and
To develop the actuary's sense of inquisitiveness so as to encourage exploration into areas where traditional methods and practice do not appear to work effectively.

Preliminary Actuarial Exams

Here is a quote from the official announcement by the SOA.

Effective January 1, 2005 the following requirements for Associateship will be applicable.

All candidates must complete Exams P, FM, M and C, collectively known as the preliminary education component. (Preliminary Actuarial Exams now consist of Probability (P), Financial Mathematics (FM), Actuarial Models (M) and Construction and Evaluation of Actuarial Models (C).)
All candidates shall satisfy Validation by Educational Experience (VEE) for three subjects: economics, corporate finance and applied statistics.

Exams at the University of Missouri, Columbia

The University of Missouri, Columbia is certified to administer SOA exams. It is done twice a year in Fall and in Spring. Check here to find more information about the application and deadlines.

The Emphasis in Mathematical Finance and Insurance program will prepare you for the first two actuarial exams and provide a background for preparation for the third exam.

You can see a sample of problems similar to those appearing at the exam P here.