ACTUARIAL SCIENCE PROGRAM at UMass Amherst

From September, 2017, I am the Undergradaute Actuarial Science Program Director at UMass Amherst.

Introduction

The Actuarial Science Program at UMass Amerst is an interdisciplinary program offered by the Department of Mathematics and Statistics. The program offers a concentration in Actuarial Science that prepares students for an actuarial career as well as providing complete preparation for the first six exams set by the Society of Actuaries and the Casualty Actuarial Society. We are one of only three institutions in Massachusetts on the 2015 UCAP list (link is external) maintained by the Society of Actuaries. Actuary is listed as the 4th best job in the 2014 U.S. Bureau of Labor Statistics survey behind Mathematician, Tenured Professor, and Statistician. We currently have almost 200 students selecting the Actuarial Concentration within the major, many of whom are also majoring in another field (Finance, Engineering, Economics,...). Our alumni are employed at insurance and other financial companies throughout the country. We have an active Actuarial Club (link is external) that holds events throughout the year. The UMass Actuarial Science Program has developed a close working relationship with insurance companies and consulting firms in the New England region. Each fall, we arrange an actuarial Career Fair at UMass, and invite on-campus interviews with our corporate sponsors. Students with good grades and have passed at least one actuarial exam usually are able find full-time employment or summer internships.

Overview of Exams


Both the Society of Actuaries and the Casualty Actuarial Society require examination in order to develop knowledge of the fundamental probability tools for quantitatively assessing risk. Below are the tests for examination and useful links to help study for each test. UMass offers reimbursment for each exam passed. Please contact Jinguo Lian with a picture of your passing slip as well as the e-mail containing the receipt/proof of payment for the exam fee.

I. Society of Actuaries

  • P - Probability
  • FM - Financial Mathematics
  • MFE - Models For Financial Economics

    • II. Casualty Actuarial Society

  • Exam 1 - Probability
  • Exam 2 - Financial Mathematics
  • Exam 3F - Models For Financial Economics
  • Exam 4 - Construction And Evaluation Of Actuarial Models


    • Actuarial exam courses offered at UMass

    The department offers several courses related to the actuarial exams. Students must take at least one of the exam courses, and also the Math Finance course (Math 537), for the concentration.

  • Exam P/Eaxam 1: This is an exam covering probability. Math 536 is a course dedicated to preparing students for the exam. Math 536 serves as a preparation for the first SOA/CAS actuarial exam on the fundamental probability tools for quantitatively assessing risk, known as Exam P (SOA) or Exam 1 (CAS). The course covers general probability, random variables with univariate probability distributions (including binomial, negative binomial, geometric, hypergeometric, Poisson, uniform, exponential, gamma, and normal), random variables with multivariate probability distributions (including the bivariate normal), basic knowledge of insurance and risk management, and other topics specified by the SOA/CAS exam syllabus. Many questions from old exam P/1 will be practiced in the course. Recommended book: ASM Study Manual for Exam P, 2nd edition with StudyPlus+ - DIGITAL


  • Exam FM/Exam 2: The updated version of this exam covers just the interest rate theory material. Math 437 serves as a preparation for the second SOA/CAS actuarial exam on an understanding of the fundamental concepts of financial mathematics, and how those concepts are applied in calculating present and accumulated values for various streams of cash flows as a basis for future use in: reserving, valuation, pricing, asset/liability management, investment income, capital budgeting, and valuing contingent cash flows. Students will also be given an introduction to financial instruments, including derivatives, and the concept of no-arbitrage as it relates to financial mathematics. Many questions from old exam FM will be practiced in the course. Some of the material is also touched upon in Finance 301. Text book: ASM Study Manual for Exam FM/Exam 2, Financial Mathematics and Financial Economics," 12th edition, by Harold Cherry.


  • Exam MFE/Exam 3F: Math 537 is an introduction to the mathematical models used in finance and economics with particular emphasis on models for pricing financial instruments, or "derivatives." The central topic will be options, culminating in the Black-Scholes formula. The goal is to understand how the models derive from basic principles of economics, and to provide the necessary mathematical tools for their analysis. Math 537 ideally covers about 80% of the Actuarial Exam MFE/3; however, unlike Math 437, it is not a preparatory class. Actuarial-oriented students are recommended to buy the 3rd edition of the McDonald book, which is the official book of Exam MFE/3F.

    • Program Information


  • Actuarial Science Program of Study are available from the Department of Math & Stat website at UMass Amherst. Actuarial Science concentration has a normal plan of study listed.
  • SOA Exam Applications
  • UMass Actuarial Club: The UMass Actuarial Club has been rebranded to Gamma Iota Sigma, which is an international risk management, insurance and actuarial science professional organization.

    • Scholarships

  • Bob and Lynne Pollack Actuarial Exam Fund. Thanks to the generosity of Bob and Lynne Pollack, the department now offesr all students full reimbursement of fees for passing any of Exam 1/P, Exam 2/FM, or Exam 3F/MFE. Additionally, we are able to help out with the costs for study materials, up to $75 per exam. Reimbursements are paid from the Bob and Lynne Pollack Actuarial Exam Fund. The department will reimburse the full fee for any of the first three exams that are successfully passed. Please contact Jinguo Lian for more details.
  • AICP Scholarship Program

    • 2018 Society of Actuaries Student Research Case Study Challenge

    UMass Amherst has formed two teams participating the 2018 Society of Actuaries Student Research Case Study Challenge this year!