1. You Can Be an Actuary! Jarrett Cabell, FCAS Kezia Charles, ASA, EA
Presented By
Jarrett Cabell, FCAS
Kezia Charles, ASA, EA

2. Overview Introduction
What does the future hold for you? (Prospects / Risks)
What is an actuary?
What do actuaries do?
Where do actuaries work?
What skills are needed to become an actuary?
How do I become an actuary?
What is the current and future career outlook for actuaries?
Conclusion (Advice, Helpful Links, Q&A)

3. Overview Introduction
What does the future hold for you? (Prospects / Risks)
What is an actuary?
What do actuaries do?
Where do actuaries work?
What skills are needed to become an actuary?
How do I become an actuary?
What is the current and future career outlook for actuaries?
Conclusion (Advice, Helpful Links, Q&A)

4. Introduction Kezia Charles, ASA, EA Jarrett Cabell, FCAS
Henderson County High School (KY)
Washington University in St. Louis (Mathematics, ’06)
Allstate (since July ‘09); Zurich North America (3 years)
Work in Property & Casualty sector (“P&C”)
Kezia Charles, ASA, EA
St Joseph’s Convent (POS, Trinidad)
MIT (Mathematics, ’04)
Watson Wyatt/Towers Watson (2004 – Present)
Work in Pension Consulting

5. Overview Introduction What does the future hold? (Prospects / Risks)
What is an actuary?
What do actuaries do?
Where do actuaries work?
What skills are needed to become an actuary?
How do I become an actuary?
What is the current and future career outlook for actuaries?
Conclusion (Advice, Helpful Links, Q&A)

6. What Does the Future Hold?
Prospects (“Desirables”)
Health & Wellness
Successful Careers
Homes & Neighborhoods
Vacation
Retirement in Jamaica
Identify prospects

7. What Can Thwart Your Future?
Risks (“Undesirables”)
Illness (injuries, disability)
Insecurity (job layoffs, financial burdens)
Accidents
Man-made (home, auto, work place)
Acts of nature (earthquake, hurricane, tornado)
Crime (theft, arson, murder, terrorism)
Death
Accidents – (auto, home, earthquake, hurricane, tornado)

8. Overview Introduction
What does the future hold for you? (Prospects / Risks)
What is an actuary?
What do actuaries do?
Where do actuaries work?
What skills are needed to become an actuary?
How do I become an actuary?
What is the current and future career outlook for actuaries?
Conclusion (Advice, Helpful Links, Q&A)

9. What is an actuary? An actuary:
Analyzes, manages, and measures the financial implications of future risk
Develops financial models to guide decision making
Serves as the analytical backbone of our society’s financial security programs (i.e., insurance, Social Security, pensions)

10. What do actuaries do? Evaluate likelihood of future events
Forecast potential impact of catastrophes
Calculate expected lifetime of retiree receiving pension benefits
Design creative ways to reduce the likelihood of undesirable events
Life insurance policy, annuity
Promote safety (e.g., seat belts)
Decrease the impact of undesirable events that do occur
Death benefits
Retirement benefits
Indemnity benefits
Use example of Avian (Bird) Flu.

11. What do actuaries do? Participate in corporate planning
Mergers & Acquisitions
Evaluate investment programs
Help insurance companies:
Calculate rates for new insurance products
Forecast and interpret underwriting results
Maintain databases uniquely suited for the analysis of pricing issues

12. Where do actuaries work?
Actuaries are largely employed by insurance companies and
consulting firms, specializing in the following areas:
Life, Annuities, and Mutual Funds
Health
Pensions
Property & Casualty

13. Life, Annuities, and Mutual Funds
1) Life Insurance
Offers several term and permanent insurance products
to provide death benefit protection to its customers.
2) Annuities
Fixed and variable annuity products allow customers to make a
lump-sum payment or series of payments today in return for
periodic payments beginning immediately or in the future.
3) Mutual Funds
A mutual fund pools the assets of multiple investors and
purchases securities to achieve a common, pre-defined goal.
With its pooled assets, mutual funds provide advantages that
an individual investor would not be able to receive.
Source:

14. Source: http://www.aetna.com
Health
1) Individual
Offers Medicare and other health products to individuals, families, and sole proprietors.
2) Employers
Offers administration services, Health Benefit and Health Insurance Plans incorporating managed medical, pharmacy and dental care services and other valuable resources and products based on employer size. An example:
Small Group – 2 to 50 employees
Middle Market – 51 to 3000 employees
National Accounts – employees
Source:

15. Source: http://wikipedia.org
Pensions
Provide steady income, typically in the form of a guaranteed annuity, to a retired or disabled employee under pre-determined legal and/or contractual terms.
Plans can be divided into two broad types:
1) Defined benefit plans - incorporate the employee's pay, years of employment, age at retirement, and other factors in calculating the benefit.
2) Defined contribution plans - such as a 401(k) plan or 403(b) plan, in which the employee elects to defer some amount of his/her salary into the plan and bears the investment risk.
Source:

16. Source: http://www.travelers.com
Property & Casualty
1) Business Insurance
Offers a broad array of property and casualty insurance and
insurance-related services to its clients, which range from small
“Main Street” businesses to Fortune 100 corporations. 
2) Personal Insurance
Offers a broad array of property casualty insurance products to
individual customers such as Auto, Homeowners, etc…
3) Financial, Professional & International Insurance
Includes surety and financial liability coverages, as well as
property and casualty products that are primarily marketed on
an international basis.
Source:

17. What Skills are Needed to Become an Actuary?
Keen analytical, project management, and problem-solving skills
Good business acumen
Excellent communication skills (oral and written)
Solid computer skills (Microsoft Office)
Strong work ethic (especially for the exam process!)
Motivation
Creativity
Independence
Ability to collaborate effectively with others

18. Overview Introduction
What does the future hold for you? (Prospects / Risks)
What is an actuary?
What do actuaries do?
Where do actuaries work?
What skills are needed to become an actuary?
How do I become an actuary?
What is the current and future career outlook for actuaries?
Conclusion (Advice, Helpful Links, Q&A)

19. How do I become an actuary?
Professional designation is achieved by passing a series of examinations
Actuarial examinations are administered by the Casualty Actuarial Society (CAS) and the Society of Actuaries (SOA)
Examinations are held multiple times a year
Two levels of membership in each organization:
Associate (ACAS or ASA)
Fellow (FCAS or FSA)
You work AND take exams!

20. Actuarial Student Programs
To prepare you for success in completing the series of professional exams, most companies offer the following benefits:
100 to 140 paid study hours per exam sitting
Reimbursement for exam registration fees, study materials, and a preparatory exam seminar
Time off on exam days and the day prior to each exam
Receive rewards for each exam you pass!

21. What do the exams cover? Preliminary Exams
Joint exams (for which both societies give credit)
P/1: Probability
FM/2: Financial Mathematics
MFE/3F: Financial Economics
C/4: Actuarial Models
SOA’s MLC (Life Contingencies) vs.
CAS’s 3L (Life Contingencies & Statistics)

22. How to Prepare for Exams
Set up a study schedule
Go through the syllabus
The syllabus for each exam is on the SOA/CAS website
Be sure that you have covered all the material before the exam
Get a study manual (e.g. ASM, Actex)
Exam Seminars

23. How to Prepare for Exams
Take practice exams
Study groups
Know your study style
Do you study better in mornings or evenings?
Can you study for long blocks of time or would shorter blocks on more days work better?

24. What do the exams cover? Upper-Level Exams: Vary by discipline:
SOA: Retirement Benefits; Group & Health Design & Pricing; Individual Life & Annuities; Investments
CAS: Introduction to P&C Insurance/Pricing; Reserving; Accounting/Annual Statement; Advanced Financial Management; Advanced Pricing

25. Exam Statistics
See next page

26. Exam Statistics

27. Overview Introduction
What does the future hold for you? (Prospects / Risks)
What is an actuary?
What do actuaries do?
Where do actuaries work?
What skills are needed to become an actuary?
How do I become an actuary?
What is the current and future career outlook for actuaries?
Conclusion (Advice, Helpful Links, Q&A)

28. Salary Information Starting salaries of $46,000-$65,000
(passed one exam, years experience)
Merit-based increases (contingent upon workplace performance)
Exam passing increases
Increases upon achievement of professional designations
Source: D.W. Simpson & Company Website:

29. Salary Survey Preface to the forthcoming salary survey slides:
These figures serve as a general range and average of various compensation levels
These figures are base salaries only and do not figure in bonuses or annual incentives
Last Updated: October 2009

30. Life / Health Actuary 0-0.5 yrs 0.5- 2.5- 4.5- 6.5- 9.5- 14.5- 19.5+
(excl. sign-on)
2.5 yrs
4.5 yrs
6.5 yrs
9.5 yrs
14.5 yrs*
19.5 yrs*
yrs*
1 course
46-62
51-66
55-72
2 courses
49-67
60-77
64-82
3 courses
52-69
57-76
63-83
67-88
(MLC+MFE=1)
4 courses
54-71
61-83
67-89
72-96
75-103
5 courses
65-88
80-108
84-118
(or 4 + FAP I)
ASA
73-98
78-108
88-119
93-132
98-146
7 courses
95-137
8 courses
FSA
95-148
Life/Health/Pension combined-CEO/CFO/CIO/COO/Pres.-10th-90th%
N/A
TBD data points - from 2009 SEC Def 14A filings

31. Pension Actuary 0-0.5 yrs 0.5- 2.5- 4.5- 6.5- 9.5- 14.5- 19.5+
(excl. sign-on)
2.5 yrs
4.5 yrs
6.5 yrs
9.5 yrs
14.5 yrs*
19.5 yrs*
yrs*
1 course
47-62
51-64
55-70
2 courses
53-66
60-76
63-81
3 courses
53-70
58-72
63-85
66-91
72-95
(MLC+MFE=1)
4 courses
55-73
61-79
68-90
73-100
78-106
5 courses
67-88
71-94
76-104
80-112
(or 4 + FAP I)
ASA
68-91
74-99
81-111
85-117
7 courses
89-129
8 courses
FSA
97-134
Life/Health/Pension combined-CEO/CFO/CIO/COO/Pres.-10th-90th%
N/A
TBD data points - from 2009 SEC Def 14A filings

32. Property & Casualty Actuary
0-0.5 yrs
0.5-
2.5-
4.5-
6.5-
9.5-
14.5-
19.5+
(excl. sign-on)
2.5 yrs
4.5 yrs
6.5 yrs
9.5 yrs
14.5 yrs*
19.5 yrs*
yrs*
1 exam
48-65
51-66
55-72
2 exams
51-68
60-77
65-82
3 exams
53-70
57-77
66-84
69-89
73-100
4 exams
57-74
62-84
69-92
75-99
75-109
93-138
5 exams
65-89
73-104
80-112
83-126
97-149
6 exams
71-94
80-113
87-124
97-140
ACAS
81-110
84-124
92-137
8 exams
91-133
FCAS
CEO/CFO/COO/CIO/CRO/President - 10th-90th percentile
N/A
TBD data points - from 2009 SEC Def 14A filings

33. Career Outlook for Actuaries
Expected growth of 21% from
Specific Areas of Growth
Management Consulting; Financial Management: > 21%
Insurance Industry: < 21%
Other Areas of Growth
Enterprise Risk Management
Health Services
Source:

34. Overview Introduction
What does the future hold for you? (Prospects / Risks)
What is an actuary?
What do actuaries do?
What skills are needed to become an actuary?
How do I become an actuary?
What is the current and future career outlook for actuaries?
Conclusion (Advice, Helpful Links, Q&A)

35. Advice to High School Students Who Want to be Actuaries
Follow a college preparatory curriculum
Take math classes every year
Take advantage of advanced courses, such as calculus
Enroll in computer science courses to develop your
computer skills
Explore colleges and universities that offer Actuarial Science curriculum
Participate in math-based competitions such as Mathletes

36. Advice to College Students Who Want to be Actuaries
Develop disciplined study habits
Take a well-rounded curriculum
There are people in the actuarial profession who majored in Music, Biology, etc., who were able to attain their designations. However, the majors that would better prepare you for this profession are:
- Actuarial Science - Mathematics
- Economics - Statistics
- Finance
Enhance your general business knowledge
Sharpen your communication and presentation skills
Take actuarial exams while you are in school – the sooner you start, the sooner you will finish!!!

37. Which Skills Can I Sharpen while in college . . . and How?
Interpersonal Skills
Speeches (e.g., Toastmasters)
Involvement in college (or local) actuarial organizations (e.g., IABA!)
Writing Skills
Don’t immediately shy away from writing-intensive electives—they could help you in the long run!
Technical Skills
Microsoft Office (Excel, Word, Access, PowerPoint), VBA, SQL, SAS, C++

38. Which Skills Can I Sharpen while in college . . . and How?
Current Events
Wall Street Journal, New York Times, Insurance Journal, etc. should be helpful here
Additional Resources
Career Counselor, Academic Advisor, Math Professor
People you meet here at the Annual Meeting
IABA Mentors and Mentor Resources
Recruiters

39. Top 10 Reasons to Consider Being an Actuary
10. You enjoy continually learning.
  9. You want a professional title, but don’t want to be a doctor, lawyer, or accountant.
  8. You want a career that is dynamic and challenging.
  7. You want a career that you can control because advancement early in one’s career is largely exam-based.
  6. You want a career with many opportunities that will provide you with skills that are transferable across multiple industries.
  5. You want a career with superior job security through economic cycles.
  4. You would like to “earn while you learn.”
  3. You want to be able to choose among several job offers.
  2. You are self-motivated, goal oriented, and have superior math aptitude and communication skills.
  1. You want a highly competitive salary and excellent benefits.

40. Helpful Links To learn more, visit www.blackactuaries.org

41. Questions?
???

42. A Brief History of the IABA
Founded in 1992 as the National Association of Black Actuaries (NABA), the International Association of Black Actuaries (IABA) was created in recognition that blacks represented less than 1% of the actuarial profession in areas where the population of blacks is greater than 15%
NABA was changed to IABA recognizing that two of its charter members, Daisy McFarlane-Coke and W. St. Elmo Whyte, are both from Jamaica

43. A Brief History of the IABA
The issue of representation is critical because of its root causes:
1) lack of awareness among black children about the profession,
2) lack of support through the exam process,
3) lack of advocacy during career development, and
4) lack of role models for self visualization
IABA exists to address this issue and its root causes.

44. A Brief History of the IABA
IABA seeks to address the issue of representation through:
1. High School Awareness Programs,
2. Collegiate Scholarships and Professional Development Workshops,
3. Mentoring Programs
4. Professional Continuing Education Workshops (including the Annual Meeting),
5. Professional Networking and Relationship Building,
6. Exam Success Recognition, and
7. Exam Study, Resource, and Emotional Support