ACTUARIAL SCIENCE (ACSC)
College of Arts and Sciences, Interdisciplinary Program
O’Shaughnessy Science Hall (OSS) 201, (651) 962-5495
Axtell (MATH) director, Falconbury (MATH), Kang (MATH), Kroschel (MATH), Shemyakin (MATH), Tang (MATH)
The Bachelor of Science in Actuarial Science is an interdisciplinary degree program offered through the Department of Mathematics. (See also the Department of Mathematics in this catalog.)
Actuarial science education equips students with strong mathematical problem-solving skills that can be applied to business careers. The major requirements consist of courses in mathematics, actuarial science, computer science, business, economics and a course in communication. Coupled with a firm foundation in the liberal arts, this major provides a sound grounding in analytical problem-solving and communication skills.
This program prepares students for a variety of careers with insurance companies, consulting firms, financial institutions, industrial corporations, or government agencies. It also provides a good preparation for non-actuarial careers in banking, finance, or insurance. In addition, the statistical background developed by an actuarial student is valuable in a variety of other fields.
Students graduating with a major in Actuarial Science will become proficient in basic mathematics through multivariate calculus and probability together with basic notions of insurance and risk management. They will demonstrate the ability to think clearly and critically in solving problems related to the analysis and management of risk. They will be able to effectively communicate technical and non-technical information to their peers and to non-specialists in their work environment.
To be certified as a Fellow or an Associate by either the Society of Actuaries or the Casualty Actuarial Society, one must pass a series of rigorous examinations. The earlier examinations are focused on mathematics and statistics and can be taken while a student. The later examinations cover aspects of business, economics, and the regulatory climate.
A careful selection of courses from a variety of departments helps a student to prepare for many excellent professional opportunities in this field. Students should see the director of the Actuarial Program for advice in selecting courses for a particular purpose.
Within the Department of Mathematics, the Center for Applied Mathematics provides opportunities for actuarial science students to work on significant mathematical problems of current interest to business, industry, and government.
Admission Guideline
Due to the demanding nature of the Actuarial Science Program and the difficulty of the examinations required for professional designation, it is strongly suggested that prospective majors have a minimum Math GPA of 3.0. Most students who have been successful in this program and actuarial examinations have had GPA’s considerably higher than 3.0.
Major in Actuarial Science (B.S.)
- ACCT 100 Principles of Accounting I (4 credits)
- ACSC 220 Risk Management and Insurance (4 credits)
- ACSC 264 Theory of Interest (4 credits)
- ACSC 375 Short-term Actuarial Models (4 credits)
- FINC 310 Core Financial Management (2 credits)
- FINC 311 Advanced Financial Management (2 credits)
- MATH 113 Calculus I (4 credits)
or (MATH 108 and MATH 109)
or (MATH 111 and MATH 112) - MATH 114 Calculus II (4 credits)
- MATH 200 Multi-Variable Calculus (4 credits)
- MATH 240 Linear Algebra (4 credits)
- MATH 313 Probability (4 credits)
- STAT 314 Mathematical Statistics (4 credits)
- STAT 333 Predictive Modeling (4 credits)
Complete one of the following two advanced course sequences (8 credits)
Life & Health Sequence:
- ACSC 451 Foundations of Actuarial Mathematics (4 Credits)
- ACSC 452 Actuarial Contingencies (4 credits)
Note: ACSC 452 has prerequisites of a grade of C- or above in ACSC 351 or ACSC 451
P&C/Data Analytics Sequence:
- STAT 370 Bayesian Statistical Models and Credibility Theory (4 credits)
- One of STAT 360, STAT 400, STAT 413
Note: STAT 360 and STAT 400 require CISC 130 or 131
Allied Requirement:
- CISC 131 Intro to Programming and Problem Solving (4 credits)
or CISC 260 Data Fundamentals and Applications (4 credits) - ECON 252 Principles of Microeconomics (4 credits)
- COMM 100 Public Speaking (4 Credits)
or COMM 105 Communication in the Workplace (4 credits)
or ENGL 315 Topics in Pro. Writing (4 credits)
(Note: Students wishing to take the P&C/Data Analytics and/or double major in STAT should take CISC 131)
Suggested Electives:
- ACSC 364 Mathematical Finance (4 credits)
- BLAW 301 Legal Environment of Business (4 credits)
- CISC 230 Object-Oriented Design and Programming (4 credits)
- CISC 450 Database Design I (4 credits)
- ECON 251 Principles of Macroeconomics (4 credits)
- ECON 351 Macroeconomic Theory (4 credits)
- ECON 352 Microeconomic Theory (4 credits)
- ECON 355 Game Theory (4 credits)
- FINC 400-level Investment Courses(4 credits)
- MBIS 701 Insurance Seminar (3 credits)
- MKTG 300 Principles of Marketing (4 credits)
Minor in Actuarial Science
- ACSC 220 Risk Management and Insurance (4 credits)
- ACSC 264 Theory of Interest (4 credits)
- MATH 113 Calculus I (4 credits)
or MATH 108 Calculus with Review I (4 credits)
or MATH 109 Calculus with Review II (4 credits) - MATH 114 Calculus II (4 credits)
Plus eight credits from the following:
Note: At least four credits must not satisfy the student’s major field requirement (including allied requirements)
- ACCT 100 Principles of Accounting I (4 credits)
or ACCT 210 Introduction to Financial Accounting (4 credits) - ACCT 215 Managerial Accounting (4 credits)
- ACSC 364 Mathematical Finance (4 credits)
- ACSC 451 Foundations of Actuarial Mathematics (4 credits)
- ECON 252 Principles of Microeconomics (4 credits)
- FINC 321 Financial Management (4 credits)
or FINC 300 Finance for non-Business Majors (4 credits - MATH 200 Multi-Variable Calculus (4 credits)
- MATH 313 Probability (4 credits)
or MATH 303 Statistics for the Applied Sciences (4 credits)
Actuarial Science Undergraduate Courses
| Course Number | Title | Credits | |
|---|---|---|---|
| ACSC 220 | Risk Management & Insurance | 4 | |
| Description of course Risk Management & Insurance : | This course introduces students to the subjects of insurance--theory and practice--and corporate risk management. In addressing these subjects, students will receive exposure to risk theory, insurance pricing, contract analysis, insurance company operations, reinsurance, regulation and the concepts and principles of business risk management. Offered fall semester. Prerequisite: Sophomore standing | ||
| ACSC 243 | Individual Study | 2 OR 4 | |
| Description of course Individual Study : | No description is available. | ||
| ACSC 264 | Theory of Interest | 4 | |
| Description of course Theory of Interest : | A survey of topics in the mathematical analysis of financial transactions which involve payments made over time. Specific areas of concentration will include the time value of money, the analysis of annuities, amortization and sinking funds, and the pricing and rates of return on investments. Both continuous time and discrete time problems will be considered. Offered spring semester. Prerequisite: a grade of C- or above in MATH 114 | ||
| ACSC 269 | Research | 2 OR 4 | |
| Description of course Research : | No description is available. | ||
| ACSC 300 | Internship | 0 | |
| Description of course Internship : | This zero-credit course is for co-curricular practical training in actuarial science and insurance for undergraduate students. | ||
| ACSC 364 | Mathematical Finance | 4 | |
| Description of course Mathematical Finance : | The focus of this course is on applications of probability, stochastic processes, and other mathematical tools to problems in finance. Both discrete and continuous models, including binomial, Brownian motion, and geometric Brownian motion models will be used to investigate the effects of randomness in financial markets and the behavior of financial instruments. The mathematical realization of arbitrage and hedging strategies will be examined, including the Arbitrage Theorem and the concept of risk-neutral pricing. Applications will include the pricing of equity options, currency transactions and the use of duration and convexity in fixed income analysis. The course will be of interest to students of actuarial science, mathematics, finance and economics who want to develop a better quantitative understanding of financial risk. Offered fall semester. Prerequisites: a grade of C- or above in MATH 313 or MATH 303 and ACSC 264 or a course in FINC approved by the instructor | ||
| ACSC 375 | Short-term Actuarial Models | 4 | |
| Description of course Short-term Actuarial Models : | This course provides a thorough introduction to the area of short-term actuarial mathematics utilized in the Property&Casualty field as well as some areas in the Life&Health field. Topics include severity, frequency and aggregate loss models, risk measures, construction and selection of parametric models, pricing and reserving for short-term insurance coverages. Prerequisites: A grade of C- or better in both of MATH 313 and STAT 314, or a grade of C- or better in MATH 303. Enrollment via consent by the instructor is also an option. | ||
| ACSC 389 | Research | 2 OR 4 | |
| Description of course Research : | No description is available. | ||
| ACSC 393 | Individual Study | 2 OR 4 | |
| Description of course Individual Study : | No description is available. | ||
| ACSC 402 | Advanced Topics in RM&I | 2 | |
| Description of course Advanced Topics in RM&I : | This course serves as, partly, a Capstone course for the Actuarial Science major and one of the tracks in the Risk Management & Insurance Certificate, but also presents some flexibility for focusing on timely and relevant topics in the field. As such, there is an expectation that some topics will change over time to reflect current issues of importance. Nevertheless, the general thematic structure of this course is to examine risk management and insurance ‘in action.’ On the risk management side of the course this will mean examining risk management program operations and will entail some case study activity. Such topics could include problems in managing work-related injury; managing risks in global firms; and alternative risk financing. On the insurance side of the course, the intention is to consider insurance industry challenges and problems. Such topics could include the effects of climate change on the insurance contract; insuring driverless vehicles; and an examination of the reinsurance sector. Prerequisites: ACSC 220 or FINC 2XX (crosslisted course equiv. to ACSC 220) and either ACSC 264 and MATH 313 or FINC 301, FINC 302, and FINC 303 | ||
| ACSC 451 | Foundations:Actuarial Math | 4 | |
| Description of course Foundations:Actuarial Math : | The course covers the theory and applications of contingency mathematics in the area of life and health insurance, annuities and pensions from both the probabilistic and deterministic approaches. Topics will include: survival distributions, actuarial notation, life insurance and life annuities, net premiums and reserves. Offered fall semester. Prerequisite: a grade of C- or above in ACSC 264 and MATH 313 | ||
| ACSC 452 | Actuarial Contingencies | 4 | |
| Description of course Actuarial Contingencies : | Extension of the analysis of ACSC 451 to multiple life functions and multiple decrement theory. Topics will include: multiple life functions and multiple decrement models, valuation of pensions, insurance models including expenses, non-forfeiture benefits and dividends. Offered spring semester. Prerequisite: a grade of C- or above in ACSC 451 | ||
| ACSC 464 | Mathematical Finance | 4 | |
| Description of course Mathematical Finance : | The focus of this course is on applications of probability, stochastic processes, and other mathematical tools to problems in finance. Both discrete and continuous models, including binomial, Brownian motion, and geometric Brownian motion models will be used to investigate the effects of randomness in financial markets and the behavior of financial instruments. The mathematical realization of arbitrage and hedging strategies will be examined, including the Arbitrage Theorem and the concept of risk-neutral pricing. Applications will include the pricing of equity options, currency transactions and the use of duration and convexity in fixed income analysis. The course will be of interest to students of actuarial science, mathematics, finance and economics who want to develop a better quantitative understanding of financial risk. Offered fall semester. Prerequisites: a grade of C- or above in MATH 313 or MATH 303 and ACSC 264 or a course in FINC approved by the instructor | ||
| ACSC 476 | Experiential Learning | 1 TO 4 | |
| Description of course Experiential Learning : | No description is available. | ||
| ACSC 478 | Intern/Experiential Learning | 0 | |
| Description of course Intern/Experiential Learning : | This zero-credit course is for practical training for undergraduate students. | ||
| ACSC 489 | Topics | 4 | |
| Description of course Topics : | The subject matter of these courses will vary from year to year, but will not duplicate existing courses. Descriptions of these courses are available in the Searchable Class Schedule on Murphy Online, View Searchable Class Schedule | ||
| ACSC 491 | Research | 2 OR 4 | |
| Description of course Research : | No description is available. | ||