Actuarial Science at the University of Minnesota
Program Bulletin
This document contains a
summary of the University's Actuarial Programs, including a brief statement of
requirements for an undergraduate degree in any of three colleges, and for one
graduate degree. It is intended to be collegially neutral. It is
not intended as an introduction to, or an advertisement for, the actuarial
profession. Brochures with those objectives are available from the
Society of Actuaries or the Casualty Actuary Society.
Contents
- General Information
- The Undergraduate Actuarial Core
- Additional Requirements for Graduation
- Other Recommended Courses
- The Graduate Actuarial Program
- Connections to the Actuarial Examinations
- Admission, Advising, Communication, Financial Aid, and Actuarial Club
1. General Information.
University Structure:
Colleges and Degrees. The University of Minnesota is divided into a number of major subunits or "colleges",
three of which are referenced below: the Institute of Technology (IT);
the Curtis L. Carlson School of Management (CSOM) also known as the Business School; and the College of Liberal Arts (CLA).
The Actuarial Program is
cross-collegiate and cooperative, spelling out a core of coursework which has
been developed in consultation with practicing actuaries, and which is designed
to give the student the best possible undergraduate foundation for a career as
an actuary. Because the colleges set their own
graduation requirements and award different degrees (BS, BBA, or BA), the
requirements for a major (or specialization) in Actuarial Science vary
according to the college as will be described below.
Major
Departments. The Actuarial Program
has historical roots going back to 1983 in the School of Mathematics, and official recognition of "Actuarial
Specialization" by transcript notation is possible in the case of a major
in Mathematics (IT or CLA). Since 1996, the Business School (CSOM) has
offered a major known as "Actuarial Science". There is each year only
one course in Actuarial Mathematics, and in this course the students of all
colleges are comingled.
The actuarial
"core", which will be explained below, obligates the student to an
average of one intensively mathematical course per semester (9 in all).
The actuarial core also includes five courses which are required of any
business major. Not surprisingly, a business major will be subject to
several additional business course requirements, whereas a
mathematics major will be subject to departmental requirements of about
five additional math courses.
Core requirements of the
program can also be completed within the framework of a major in any of several
other departments, among them Economics (IT or CLA), Statistics (IT or CLA),
and Insurance/Risk Management (CSOM). Within any one college, a
combination or "double" major is a relatively simple thing.
Mathematics
or Business? There is no
evidence that one college or department has an advantage over another with
respect to employability as an actuary, and for that reason we recommend that
the student follow his/her own preferences, weighing primarily the
non-actuarial aspects of the proposed college. A cross-college
"double major" is possible in principle, but the combined graduation
requirements of two separate colleges would probably involve the student in
more time and more credits than are worthwhile.
All undergraduates at the University of Minnesota are subject to liberal education requirements known as
"diversified cores" and "designated themes". The marginal
impositions of these "CLE" requirements upon a student's program
appear to be the same for business or math, and need not be a factor. Nor
will we attempt to spell them out in complete detail in this document.
However, associated to the
Math major are some possibly hidden requirements which could be
significant: any student in CLA is required to demonstrate a foreign language proficiency, whereas any math major in IT
is required to take three semesters of physics. The foreign language is
not required in IT, and physics is not required for the Math major in
CLA. Thus, if a choice is made to major in math, then the second choice
(CLA or IT) is in essence a choice between foreign language and physics.
Minors. The actuarial core includes enough mathematics for a
Math minor. The CSOM has a Business Minor Program for IT students and
another for CLA students. Either business minor requires a total of eight
specific business-related courses, four of which are already in the actuarial
core. Thus the student needs four additional business courses, all of
which are clearly valuable to the future actuary. This marginal coursework
is easily incorporated into a standard Math major. The actuarial core
leaves the student two courses short of a Statistics minor. (Statistics courses
3011, 3021, or 5302 are possible devices for completing it.) In the CSOM,
an Actuarial Science major can easily qualify for a minor in Insurance/Risk
Management.
2. The Undergraduate Actuarial Core
These are the requirements which are common in all three colleges to the Actuarial Program.
1. Mathematics lower division: 1271-1272-2243-2263 or 1371-1372-2373-2374.
Comment: This amounts to two
years of one- and multi-variable calculus, including some linear algebra and
differential equations. Credits from other institutions are generally
acceptable as substitutes.
2. Computer Science: One course in elementary programming, such as 1103 (Java) or 1113 (Programming in C/C++).
3.
Economics: Elementary Macro (1102 or 1105),
Intermediate Micro (3101) and Financial Economics (Econ 4751 or Fina 4241)
Comment: Intermediate Micro has a prerequisite of Elementary Micro (1101 or 1104)
4.
Business: Acct 2050; Fina
3000; Ins 5100 and/or 5101 and/or 5200 (2 of 3)
5.
Probability/Statistics: Either Stat 5101-5102 or Math 5651-5652 or Stat
4101-4102.
Comment: These are calculus-based sequences. The first
two are preferred, but the last is somewhat easier and may be appropriate for
some students. However, for a math major
there may be significant adverse consequences associated to the election of
Stat 4101-4102, which should not be done unless prior consultation with an
advisor.
6. Actuarial Mathematics: Math 4065-5067-5068.
Comment: Math 4065 is
the Theory of Interest. The next two are the core-of-the-core, Actuarial
Mathematics I-II. The prerequisites for Math 5067 are Math 4065 and the first
Statistics course.
3. Additional Requirements for Graduation
The following requirements
are spelled out more explicitly and contractually in the bulletins of the
respective colleges. We include summaries here for the convenience of the
student. We emphasize once again that we are not stating the so-called
CLE requirements, which can be expected to consume about 36 credits. Some
of these requirements, especially including the diversified core
"Mathematical Thinking" are automatically covered. Consultation
with a college adviser is essential.
A. Requirements for the Math Major in IT.
1) A complete lower division Math
program as in the core, plus Math 2283 or 3283.
2) Three semesters of calculus-based
physics (usually 1301-1302-2303).
Note: The third
semester is waived for students completing the other requirements of the
actuarial program.
3)
A course in computer science as in the actuarial core.
4) Two courses in analysis (can be Math
5651 and 5652).
5) Two courses in algebra (should
include 4242).
6) The so-called "technical
elective" (can be Econ 3101 plus Econ 4751).
7) 120 credits and a GPA at least 2.0.
Comment: The total
number of upper division technical courses required is 10. The program
core together with (4), (5) and (6) above covers 9 of the 10.
If the student for whatever
reason chooses to sacrifice the designation "with Actuarial
Specialization", this by no means bars him or her from seeking actuarial
employment. It may, depending on which core courses are not completed,
impose some additional requirements of analysis or technical elective.
B. Requirements for the Actuarial Science Major in CSOM.
1) The Actuarial Core as stated above.
2) The Functional Core: Acct
3001, IDSc 3001, Fina 3000,
OMS 3001, Mktg 3001, HRIR 3021, Mgmt 3001.
3)
The International Core: one course from a long list of options.
4) The Communications Core: BA
3033
5) Mgmt 4004
Comment: Some of the
courses listed above have prerequisites which are not explicitly stated in this
document.
C. Requirements for the Math major in CLA.
1) A complete lower division Math program as in the core, plus Math 2283 or 3283.
2) A course in computer science as in the core.
3) Two courses in analysis.
4) Two courses in algebra.
5) A senior project. (4997W, can be oriented to Actuarial Math)
Comment: The total
number of upper division math courses required of the pure CLA math major is 6.
However, factoring in the core Probability/Statistics/Economics/Actuarial
requirements raises the number of technical courses to an effective 9 (or 8 if Fina 4241 is chosen over Econ 4751).
4. Other Recommended Courses.
The following list of courses
has been prepared with the assistance of our actuarial consultants, but some of
them are offered irregularly at best. The number of opportunities to take such
additional courses is often quite limited.
Math 2001 Actuarial Science Seminar
Math 4428 Mathematical Modeling
Math 5485 Numerical Methods
Math 5705 Combinatorics A
Math 5707 Combinatorics B
Stat 5302 Applied Regression Analysis (Part of SoA course 4)
Fina 4121 Financial Markets and Interest Rates
Econ 3102 Intermediate Macroeconomics
Econ 4113 Introduction to Mathematical Economics
CSci 4061 Introduction to Operating Systems
CSci 5103 Operating Systems
5. The Graduate Program in Actuarial Science.
A. Mathematics.
The Math Department offers both MA and
PhD programs. However, the program suitable for a person planning
to work as an actuary is strictly at the Masters level. Even here, there
are two choices, and the actuarial student usually takes the route that is
known as "Plan B", which requires neither thesis nor foreign
language. Since the requirements are the same for all Plan B candidates,
we shall summarize them briefly. We will then comment on some of the
course offerings and recommendations for actuarial emphasis.
Requirements. An "area of concentration" (AC) is
identified, not necessarily inside Mathematics. Of the following course
requirements, no two can be fulfilled by the same course:
1)
One year-long 8XXX Math sequence.
2)
A second year-long 8XXX Math
sequence, or one of the approved "depth" sequences (5XXX) for the
undergraduate major.
3)
A year-long 5XXX or 8XXX sequence in the AC
4)
A total of 30 graduate credits, at
least 15 in Math.
Comment: "Actuarial
Science" would be the natural AC for this program, but a student who came
already having had the equivalent of an undergraduate Actuarial Science major
might be hard pressed to find enough courses of direct actuarial interest to
flesh out this program. Up to six credits can be earned by independent
study for specific actuarial exams, but the program is really designed for
students who have not previously taken courses such as Numerical Analysis or
Actuarial Mathematics.
Course
Recommendations. The sequence Math 8651-52 (Probability with Measure Theory) is an
excellent choice for an 8XXX Math sequence. Depending on his/her
background, a person might first want to take Math 5651-52 (Probability), which
would take care of (2). Alternatively, the course Stat 5101-02 is also
acceptable for (2), despite that it is technically not in the Math
Department. The Math sequence 5485-86 (Numerical Analysis) is also
desirable and acceptable for (2). Actuarial Math (5067-68) would be the
obvious choice for (3). Here are some other possibilities for filling out the
program:
Math 4065 Theory of Interest
Math 5705-07 Combinatorics
Math 8568-69 Combinatorial Theory
Math 8680 Topics in Combinatorics
Stat 8061-62 Applied Statistical Methods
CSci 5301-2-X Numerical Analysis
Fina 8801 Theory of Capital Markets
Fina 8811 Corporate Finance
Econ 5151 Elements of Economic Analysis: Firm and Household
Econ 8101-2 Microeconomic Theory
Econ 8103-4 Macroeconomic Theory
Econ 8111-12-13 Introduction to Mathematical Economics
Econ 8211-2-3 Econometrics
B. Business. The
degree would be the MBA. Careful consultation with the graduate adviser
would be necessary, based on the student's background and requirements
previously completed, to determine the number of elective credits in the
program which could possibly be diverted to Actuarial Science/Mathematics
courses.
6. Connections to the Actuarial Exams.
University courses and
programs are valuable and helpful, but actuarial employers generally view
performance on the examinations given by the Society of Actuaries (SoA) as the most reliable measure of competence and
commitment. This is particularly true at the entry level, where the so-called SoA Course 1 exam appears to be an absolute minimum. The
student emerges from our program exposed to the topics of SoA
Courses 2, 3, 4 but exams 3 or 4 are rarely taken by undergraduates at
Minnesota. On the other hand, one of our undergraduates who passes two SoA exams almost
automatically rises to the status of "most qualified applicant" for
entry-level positions.
It is therefore advisable to
take and pass SoA Course 1 early, which is possible
for strong students in the spring of the third year. The subject matter
is probability.
7. Admission, Advising, Communication, Financial Aid, and the Actuarial Club.
Admission:
Admission to the University
in a degree-seeking undergraduate program is handled by central
administration. Application should be made to the student's college of
choice, though transfers are common and it is perhaps fair to say that the CLA's admissions standards are the softest of the three.
Admission to the Graduate School is granted in consultation with the relevant
College or Department.
The University also has
wide-ranging options for non degree-seeking persons, available through the
Extension Division (night school), or through the status of "Adult
Special". However, a person seeking to reach entry-level proficiency
in the actuarial field must realize that the elementary calculus courses cannot
be taken concurrently, and a commitment of at least three years is necessary if
starting from scratch. Furthermore, few upper division courses are
available through Extension.
Advising:
A. Math Majors.
The Math Department appoints an Actuarial Coordinator. Through academic year 2007-2008 Dr. David Frank is serving in this capacity.
Dr. Frank is a faculty member and also a general undergraduate departmental adviser.
The Actuarial Coordinator is the person to see before or after admission about general or particular questions pertaining to a career as
an actuarial student in CLA or IT. The Coordinator will also advise CSOM students about the math courses which they will be required to take.
Dr. Frank may be reached by telephone at (612) 625-4848 or via email ugrad@math.umn.edu. If Dr. Frank
is not available, the Undergraduate Office will redirect your phone call or email to an appropriate adviser.
Some of the courses in the
CSOM are not available to the student body at large. The Actuarial Coordinator
has special forms which will help a serious actuarial student to enroll in such
CSOM courses. For some registration situations, the staff in the Math
Office VH 115 can be of assistance.
B. CSOM Majors are referred to Prof. Andrew Whitman (612) 425-4040.
The primary vehicles of communication is the Actuarial Bulletin Board,
which is located in Vincent Hall outside room 114. Messages of general
interest to actuarial students appear from time to time, and the students are
advised to check it periodically. Although the program does not operate
anything analogous to a "placement service", the messages sometimes
include specific job listings.
Each year a few employers of
actuaries make recruiting visits to the University. Today's recruiters
generally ask first for resumes and schedule interviews accordingly.
Therefore the student who hopes to be interviewed must have his/her resume in
good shape. The visits, which tend to cluster in late January and
February, are coordinated by CSOM Career Services,
1-110 Carlson School of Management
(612) 624-0011. Limited assistance with resumes is available, and
students from IT or CLA are welcome. The magic word is "actuarial
student".
Financial Aid:
A. Math Majors. The Math Department has a limited amount of
scholarship assistance for its majors. These stipends are awarded at the
discretion of the Mathematics advisers, with the amount (typically between $100
and $2500) based in part on need. Actuarial students are not treated
differently from other math majors. The student need not apply, but will
be considered automatically if his/her GPA is above 3.5. Entering
freshmen are not eligible.
At the graduate level, a
certain number of teaching assistants (TAs) are hired annually by the Math
Department. Naturally these are the strongest applicants to the graduate
program, and historically have tended to be persons seeking the PhD.
However, trends in the 1990s suggest that increasingly many Masters candidates will be seriously considered. Other obvious
criteria for selection are the communication skills appropriate to both the
classroom and the actuarial workplace. A candidate is advised to notify the
coordinator of his/her application.
B. CSOM Majors. A limited number of scholarships and
internships are available to CSOM students. Information may be available
through CSOM Financial Services (612) 625-0086.
Actuarial Club
The Actuarial Club was
founded in 1991-92 by certain interested and energetic students. This
club has the wholehearted support of the Program, and conducts many events
which are publicized on the Bulletin Board. The Club actively seeks new
members, and the name and phone number of an officer will be provided by the
Math Office (VH 115) if it is not on the Bulletin Board. The club has its own website (www.tc.umn.edu/~actuary)
and a slightly different style of explaining the program requirements.
The University of Minnesota is committed to the policy that all persons shall have equal access to
its programs, facilities, and employment without regard to race, religion,
color, sex, national origin, handicap, age, or veteran status.
This document prepared by
Professors Agard and Whitman, Jan. 1997
Revised August 2005, Corrections October 2005, Updated March 2008
