First Year Information Session 2017 David Kwak Education Officer Actuarial Students Society 14th March, 2017
Contents 1 What is an Actuary? 2 Process of becoming an Actuary 3 BCom Actuarial Studies: Course Structure 4 Course Options 5 Study Tips
What is an Actuary? An actuary combines the skills and knowledge in a variety of fields to manage and reduce risk. Mathematics Finance Economics Actuaries then create models to aid in providing advice to decision makers. In actuarial science, risk refers to the level of uncertainty. Economic Conditions Mortality Etc.
What is an Actuary? What type of mathematics do we deal with? Financial Mathematics Should I pay my HECS fees now or later? Probability Assuming that a life table is a good representation of mortality, how many people are expected to die in the next 5 years? Statistics We have data for the ages of deaths in a town. What can we infer about the distribution for the age of death for that town? Probability and Statistics are very important in any actuarial role.
What is an Actuary? Source: 2015 Year in Review - Actuaries Institute
What is an Actuary? Where can you go straight after your degree? Some past graduates have become Actuarial Analysts/Consultants Life Insurance General Insurance Superannuation Data Analysts Management Consultants Investment Bankers and many more...
Process of becoming an Actuary The Actuaries Institute is the overseeing body for actuaries in Australia. Some of things they do include Standards and guidelines Exams Networking events You are not officially an actuary until the Actuaries Institute recognises you as one.
Process of becoming an Actuary Part I *** 3 Years Practical Experience Part II Part III *** Professionalism Course Professionalism Course Associate AIAA Fellow FIAA
Process of becoming an Actuary Part I consists of the technical skills that are required as part of the job The Toolkit Part II is more qualitative, and is about the skills and thought process behind an actuary s actions in a professional environment How do we use that toolkit? Part III is also qualitative, but is more specialised in the different areas that actuaries typically work in
Process of becoming an Actuary Table: Part I and II Modules Part I CT Module CT1 Financial Mathematics CT2 Finance & Financial Reporting CT3 Probability & Mathematical Statistics CT4 Models CT5 Contingencies CT6 Statistical Methods CT7 Business Economics CT8 Financial Economics Part II Module Part IIA The Actuarial Control Cycle Part IIB Investment and Asset Modelling
Process of becoming an Actuary The University of Melbourne allows you to fulfill the accreditation requirements for Part I and Part II (given satisfactory performance in certain subjects). Part III must be done externally (with the Actuaries Institute).
Process of becoming an Actuary Table: Part I Exemptions BCom Exemption Subject CT1 Financial Mathematics CT2 Finance & Financial Reporting CT3 Probability & Mathematical Statistics CT4 Models CT5 Contingencies CT6 Statistical Methods CT7 Business Economics CT8 Financial Economics University Subject ACTL20001 Financial Mathematics I ACTL20002 Financial Mathematics II ACCT10002 Introductory Financial Accounting FNCE10002 Principles of Finance MAST20004 Probability MAST20005 Statistics ACTL30001 Actuarial Modelling I ACTL30002 Actuarial Modelling II ACTL30003 Contingencies ACTL30004 Actuarial Statistics ACTL40002 Risk Theory I ECON10004 Introductory Microeconomics ECON20001 Intermediate Macroeconomics ACTL30006 Financial Mathematics III ACTL40004 Advanced Financial Mathematics I
Process of becoming an Actuary Table: Part II Exemptions BCom (Hons) Exemption Subject Part IIA The Actuarial Control Cycle Part IIB Investment and Asset Modelling University Subject ACTL40006 Actuarial Practice and Control I ACTL40007 Actuarial Practice and Control II ACTL40009 Actuarial Practice and Control III
Process of becoming an Actuary Rules for Exemptions (Part 1) For subjects with a non-actl subject code, an average of 73 is required (with no fails) For subjects with an ACTL subject code, satisfactory performance in the end-of-semester exams is required. For Part 2, satisfactory performance in all three APC subjects required to get exempted.
BCom Actuarial Studies: Course Structure Course Structure 3-year 300-point program + an optional Honours year or 1.5 year Masters Course. Opportunity to gain all Part I and Part II exemptions Recommended course structure assumes the student seeks exemptions and plans to do Honours or Masters
BCom Actuarial Studies: Course Structure Before we cover the course structure, let s look at cohort trends...
Cohort Trends Table: Enrolment Numbers 1 Cohort Graduating in Study Period 2014 2015 2016 2017 2018 1st Year SM2 169 178 173 239 267 2nd Year SM1 136 117 121 165 2nd Year SM2 123 96 107 122 3rd Year SM1 100 80 81 3rd Year SM2 84 77 76 1 Enrolment numbers are based on the ACTL subject with the least amount of enrolments in the appropriate study period. Numbers in third year are likely to be overstated.
Cohort Trends Table: Proportion of Initial Cohort Size advancing through the Degree Cohort Graduating in Study Period 2014 2015 2016 2017 1st Year SM2 100% 100% 100% 100% 2nd Year SM1 80% 66% 70% 69% 2nd Year SM2 73% 54% 62% 51% 3rd Year SM1 59% 45% 47% 3rd Year SM2 50% 43% 44% Generally, exams for ACTL subjects are getting harder (e.g. check 2017 vs. 2016)
Cohort Trends Table: Drop-Out Rates between Semesters Cohort Graduating in Transition Period 2014 2015 2016 2017 1st Year SM2-2nd Year SM1 20% 34% 30% 31% 2nd Year SM1-2nd Year SM2 10% 18% 12% 26% 2nd Year SM2-3rd Year SM1 19% 17% 24% 3rd Year SM1-3rd Year SM2 16% 4% 6%
Cohort Trends What these slides do not show: the number of students who get do not get their exemptions (generally less than 50% of students that enrol in a subject get the exemption for that subject). the number of students who quit after 1st Year 1st Semester. Basically, be prepared to work hard.
BCom Actuarial Studies: Course Structure Recommended First Year Subjects Semester 1 ACCT10001 Accounting Reports and Analysis* ECON10004 Introductory Microeconomics* 7 FNCE10002 Principles of Finance 2 MAST????? Mathematics Subject* Semester 2 ACCT10002 Introductory Financial Accounting 2 ACTL10001 Introduction to Actuarial Studies ECON10003 Introductory Macroeconomics* MAST????? Mathematics Subject* *Prerequisite for exemption subject
BCom Actuarial Studies: Course Structure Mathematics Options To enrol in ACTL20001 Financial Mathematics I (and continue into your second year of the major), you must perform satisfactorily in one of the following: Standard Pathway MAST10006 Calculus 2 MAST10007 Linear Algebra Accelerated Pathway MAST10008 Accelerated Mathematics I MAST10009 Accelerated Mathematics II Highly recommended that you take the Accelerated Pathway if you can.
BCom Actuarial Studies: Course Structure Mathematics Options Must complete one column/row of the following table and satisfy the corresponding condition; Subject Subject Condition Subject Calculus 2 Linear Algebra Average 75 Subject AM1 AM2 Average 60 Condition Total 135 Total 135 Failure to meet the corresponding condition means you will not be able to continue the major (without extending your degree). Again, highly recommended that you take the Accelerated Pathway if you can.
BCom Actuarial Studies: Course Structure Recommended Second Year Subjects Semester 1 ACTL20001 Financial Mathematics I* 1 MAST20004 Probability* 3 Semester 2 ACTL20002 Financial Mathematics II* 1 ECON20001 Intermediate Macroeconomics 7 MAST20004 Statistics* 3 Semester 1 or 2 MGMT20001 Organisational Behaviour *Prerequisite for exemption subject
BCom Actuarial Studies: Course Structure Recommended Third Year Subjects Semester 1 ACTL30001 Actuarial Modelling I* 4 ACTL30002 Actuarial Modelling II* 4 ACTL30006 Financial Mathematics III* 8 Semester 2 ACTL30003 Contingencies* 5 ACTL30004 Actuarial Statistics* 6 ACTL30005 Models for Insurance and Finance* *Prerequisite for exemption subject
Course Options Intensive Subjects The University of Melbourne offers some subjects in intensive periods (Summer, Winter, July, January, etc.) Complete a subject in a quicker time frame Allows you to take less subjects in other semesters (very useful for third year) For more information (as well as the subjects that are available in intensive periods), check the university handbook.
Course Options Both the Honours Program and the Masters of Commerce allows you to complete your Part I and attain your Part II exemptions. Table: What are the main differences? Honours Masters Length 1 Year 1.5 Years Recognised Overseas? No Yes Research Required? Yes No Options Very Restricted Relatively Flexible Refer to the MCom / Honours at Melbourne presentation by Professor Mark Joshi on our website for more information.
Course Options Concurrent Diploma Can take a concurrent diploma in Informatics, Languages, Mathematical Sciences and Music. Mathematical Science Diploma Statistics & Stochastic Processes Must extend degree by atleast half a year. Every other discipline Must extend degree by a year. Other Diplomas Must extend degree by a year Can overload to graduate on time, but do you really want to...? Basic overview of the Mathematical Sciences Diploma can be found in the Actuarial Students Society Subject Review 2016 Mid-Year Edition.
Course Options Double Majors with Actuarial Studies Don t need to do all of the ACTL subjects in 3rd year to get an actuarial major Only need to complete 3 You can get a double major HOWEVER: if you are dead-set on becoming an actuary, highly recommended that you take all the subjects Will help attain CTs if you pursue them externally
Course Options ACTL/ACCT Must extend your degree/too complicated to summarise in a slide. ACTL/FNCE Must not enrol in ACTL30006 Financial Mathematics III. Must enrol in FNCE20005 Corporate Financial Decision Making (ideally in 2nd year). ACTL/ECON Must complete ECON20002 Intermediate Microeconomics in either semester 1 of 2nd year, or a summer semester.
Course Options Complete transitions out of actuarial studies The ACTL course structure is flexible enough to allow you to do any major combination (outside of accounting) after first year. Generally, the earlier you leave, the easier it is to transition.
Study Tips Study Tips Probability and Statistics are extremely important Focus on all your subjects (not just your exemption subjects) Rote-memorisation and grinding exercises (common study techniques in High School) will no longer be as effective. The subjects only get harder as your progress through your degree.
Study Tips By the end of semester you will have been presented with about 150 problems of varying length and of varying degrees of difficulty. If you understand the solutions to these questions you are adequately prepared for the end-of-semester examination. If you do not understand the solutions, extra problems will not help you. 2014 ACTL10001 Lecturer
Useful Links Actuaries Institute Actuarial Students Society Centre for Actuarial Studies
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