Actuarial Science and Risk Management presentation - Queen's ...

BSC in Actuarial Science and
Risk Management

BSC in Actuarial
Science and Risk
Management
• Presentation by
Mark Farrell
(Actuarial Science and Risk
Programme Director)

What is an Actuary?
Someone who uses
mathematics to solve
business problems
An actuary is a business
professional who deals
with the financial impact
of risk and uncertainty
Actuaries apply financial
and statistical theories to
solve real business
problems.

What is an Actuary?

What does an actuary do?
• Employed to quantify financial risks
• Looks at past experience
• Models experience using statistical
models
• Projects the model forward into the
future.
• Estimates the timing and amount of
future cashflows
• Puts a “price” (present value) on those
expected future cashflows
• Advises the client on how to fund for, or
mitigate against those risks.

Career Opportunities for Actuaries
• Actuarial pensions consultancies/firms
• Insurance and reinsurance industry
• Risk management in finance/banking
• Public sector/government agencies

Where do actuaries work?
• The majority of actuaries are based in
London
• Edinburgh, Manchester, Birmingham,
Glasgow also have many actuarial firms
• Bristol, Cardiff, York have more than a
handful of firms
• Northern Ireland has 6 actuarial firms

Actuaries in Northern Ireland?

Actuaries in London?
Aon Consulting Limited
APR LLP
AXA UK
Barnett Waddingham LLP
BDO Stoy Hayward
Buck Consultants
Deloitte LLP
EMB Consultancy LLP
Financial Services Authority
GAAPS Actuarial
Genworth Financial
Government Actuary’s Department
Grant Thornton UK LLP
HSBC Actuaries and Consultants
Limited
Hymans Robertson LLP
Jardine Lloyd Thompson plc
KPMG
Lane Clark & Peacock LLP
Lucida plc
Mercer Limited
Milliman Limited
Munich Re UK Life Branch
Nigel Sloam & Co Actuaries
& Consultants
Pearl Group
Punter Southall Limited
Prudential
Royal London Group
Towers Perrin
Watson Wyatt Ltd
Xafinity Consulting Ltd

Salary Rewards
• On qualifying as an actuary salaries are
in excess of £45,000 and can be as high
as £60,000 depending on location.
• Five years post qualification salaries
can be in excess of £100,000
• Job Opportunities in London,
Birmingham, Manchester, Edinburgh,
Belfast, Dublin
• Internationally recognised qualification –
job opportunities worldwide

Actuarial Science and Risk Management – Key Features
• Degree commenced September 2007
• Original name was Actuarial Studies
• Four year degree (3 years at
university; 1 in an industrial placement)
• A broad based intellectually
demanding degree which includes:
– mathematics, statistics, probability,
actuarial modelling, finance,
accounting and economics

Actuarial Science and Risk Management – Entry Grades
• For entry in September 2013 A-Level
requirements will be AAA plus a fourth
A at AS-level
• One of the A-Levels must be in
Mathematics
• Likely intake in September 2013 is 40
home based students.
• Further Mathematics is not a
requirement but is recommended.

Actuarial Science and Risk Management – Year One
• Semester 1
– Financial Reporting and Analysis
– Probability
– Microeconomics
• Semester 2
– Statistics
– Macroeconomics
– Financial Institutions and Markets

Actuarial Science and Risk Management – Year Two
• Semester 1
– Actuarial Methods in General Insurance
– Investment Analysis
– Placement Learning
• Semester 2
– Principles of Actuarial Modeling
– Actuarial Mathematics
– Mutual and Pension Fund Management

Actuarial Science and Risk Management – Year Three
• Combines academic theory with
industry relevant focus
– Year 3 is spent in a high quality and
salaried actuarial placement
– Examples of placements will
include:
– Spence & Partners, Kerr
Henderson Hewitt, Buck
Consulting, Allstate, AXA, several
Lloyds syndicates....
– Located in, London, Edinburgh,
Manchester, Birmingham, Bristol,
Dublin Belfast and overseas.

Placement Year – The Student Perspective
“The placement year has
been the best experience
of my degree so far.
Moving away from home
and working in London has
really opened my eyes to
what is out there.”
“Great to be able to see
insurance module being put
into practise and also learning
new terminology. Structured
learning – good incorporation
of class and work based
learning. Very friendly team
and company.”
“Placement is a good stepping stone
for the final year. I particularly liked
putting my understanding of the
pensions module into practice. I Feel
I have a better understanding of what
an actuary does which will help in
other modules and future career
decisions.
“The first two years of
university has given a useful
broad base of economics,
maths and finance and
actuarial however being here
has really given insight to
what to expect in future”

Actuarial Science and Risk Management – Year Four
• Semester 1
– Stochastic Processes
– Capital Markets
– Time Series Financial Econometrics
• Semester 2
– Actuarial Modelling
– Financial Engineering
– Fixed Income Instruments

Accreditation – What’s it all about?
• The Actuarial Studies degree at Queen’s has
been accredited by the Institute of Actuaries
– Exemption from subjects CT1 – CT8 of the
professional exams
– Students must achieve 65% or more to get all 8
exemptions
– Achieving less than 65% can still entitle you to
some exemptions (at discretion of the IOA)

After your degree
• Enter paid employment and undertake
professional examinations as offered
by the Institute of Actuaries.
• Professional examinations will take
around a further 3 / 4 years to
complete.
• Enter paid employment in a risk
management setting but not
progressing to become an actuary
• Continue in education and study the
Msc in Finance or the Msc in Risk
Management

Checklist when choosing your degree
– Does the degree subject material match
my strengths?
– Is the degree structure interesting?
– Is the university offering the degree of
good quality?
– Are the academics teaching on the
programme engaged in high quality
teaching and research?
– Are the students leaving the degree
employable and in rewarding careers?

Who is this degree for?
• Enthusiastic about Mathematics?
• Going to achieve an A at A-level
Mathematics without any problems?
• Want a career where numerical skills
are highly regarded?
• Want a professional career which is
highly regarded around the world
• For more information about Actuarial
Science and Risk Management visit the
website: http://www.qub.ac.uk/mgt/