ACTUARIAL

MATHEMATICS
Prepared by:
John Raymond D. Pergis
MaEd-Mathematics
EXPLORING
MAJORS:
ACTUARIAL
MATHEMATICS
WHAT IS ACTUARIAL MATHEMATICS?
Actuarial Mathematics is a field of Mathematics that involves evaluating
risk and uncertainty.
 Basically the goal of actuary is to be able to predict the future
as accurately as possible.
 An Actuary is a business professional who deals with the
measurement and management of risk and uncertainty. The name
of the corresponding field is actuarial science.
 Actuaries provide assessments of financial security system, with
a focus on their complexity, their mathematics, and their
mechanisms.
WHAT DOES ACTUARY DO?
While actuarial job are often in the insurance sector, actuaries fill a variety of
different roles
 What actuary does is they use their expertise help make
business decisions and they explain their reasoning usually
its like based a significant amount of data.
 Actuaries evaluate risk and opportunity – applying
mathematical, statistical, economic and financial analyses
to a wide range of business problems.
 Actuary uses math and statistics to estimate the financial
impact of uncertainty and help clients minimize risk.
 Actuaries are problem solvers and strategic thinkers, who
use their mathematical skills to help measure the probability
and risk of future event. They use these skills to predict the
WHAT SKILLS DO ACTUARIES USE?
 A lot of it involve making decisions, but a lot of hard skills by
using excel, a lot of work end up with spreadsheets and data
management. Programming, so knowing how to code, to be able
to run simulations which is the next one running simulations
and creating
Hard skills: models. Soft skills:
 Excel  Analyzing data
 Programming  Communicating to others
 Running models effectively/Good Communication

 so being able to convey information in an effective ways is

extremely important.
WHAT SKILLS DO ACTUARIES USE?
Top Five Skills of an Actuary
Actuaries need a wide range of skills to be successful. Five of the most
important are listed below.
1. Analytical Problem Solving Skills
 Actuaries need to be analytical problem solvers as their tasks
includes examining complex data and identifying patterns and
trends to determine which factors are responsible for specific
outcomes. After evaluating and weighing the significance of these
factors, actuaries look ways to minimize the likelihood of
undesirable
2. Math outcomes
and Numeracy Skillsor the cost of the realization of an undesirable
 outcome.
Actuaries deals with numbers, so being able to do basic arithmetic
quickly and correctly is a definite requirements. However, the math
associated with actuarial science can be more complicated.
Knowledge of calculus, statistics, and probability are also essential
WHAT SKILLS DO ACTUARIES USE?
3. Computer Skills
 Computers and a variety of statistical modeling software are the tools
of the actuary trade. Actuaries frequently use models and tables to
evaluate large amount of data. Not only are basic computers skills
and knowledge of Microsoft office absolutely essential, but being
able to program in a statistical programming language is also
necessity.of Business and Finance
4. Knowledge
 Businesses, financial institutions, and insurance companies often
employ actuaries. As such, they are responsible for evaluating
insurance or pension plans, advising businesses on how to limit
exposure to financial risk, and providing banks and expert opinion on
maximizing returns for a variety of investment products. This
requires a sound understanding of business and financial concepts.
WHAT SKILLS DO ACTUARIES USE?
5. Communications and Interpersonal Skills
 Actuaries often collaborates with various personnel, including
programmers, accountants, and senior management, which makes it
imperative that they can communicate and work effectively with
others. Strong oral communications skills enable actuaries to explain
complex technical and statistical details to a diverse audience, while
solid writing skills ensure that findings and solutions are easily
understood in memos and written reports.
 Actuaries also often lead teams on a variety of projects and thus must
The Bottom Line
be able to handle an assortment of personalities.
 From the above list, it appears that you need to be a good at just
about everything to be an actuary. A number of these skills can be
learned through on-the-job training or on an internship. Given that
the number of actuary positions is projected to increase an above-
average rate over the next years, having the right attitude and an
WHAT KIND OF CLASSES DO ACTUARIAL MAJORS
TAKE?

 Math  Economics
 Business  Data science
 Computer science  Preparation courses for
actuarial exams
WHAT KIND OF CLASSES DO
ACTUARIAL MAJORS TAKE?
 Math - In Mathematics it involve statistics and probability,
financial mathematics involving money, and also
mathematical modeling.

 Business - Business classes, so the job is to make informed

business decisions, business mathematics, business classes
are very important, almost all programs involve some sort
of business components.

 Computer science - Computer science, view modelling and

working with data and also programming that would be
very important.
WHAT KIND OF CLASSES DO
ACTUARIAL MAJORS TAKE?
 Economics - Economics, you need to have a well-diverse
background to be able to understand all of the factors that
lead in to what you are analyzing.
 Data science - Data science increasingly just basically
important, how to deal with the large amount of data, how
to make assumption based off of them.
 Preparation courses for actuarial exams - Preparation course
for actuarial exams, these aren’t like that exams that you
take like in school as part of the curriculum, you have some
exam that you are going to take, so you can take those
without majoring actuarial math and becoming an actuary.
WHAT KIND OF CLASSES DO
ACTUARIAL MAJORS TAKE?
Two main organizations that actuaries end up working for or
giving accreditations

SOA – society of actuaries

 That is more on people side of things, so if you want to do
life or health insurance.
CAS – casualty actuary society
 That is more on property and casualties, so like houses,
cars, etc.
 “ An Accountant is someone who attempts to value the
present.
An Actuary is someone who attempts to value the future.”
There is little difference in people, but that little difference
makes a big difference. The little difference is attitude. The
big difference is whether it is positive or negative.

W. Clement Stone
THANK YOU!
QUIZ
:
In your own understanding, explain Actuarial Mathematics.