Undergraduate information
Actuarial Studies Actuarial modelling Actuarial statistics Financial mathematics Models for insurance and finance
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Commerce major in Actuarial Studies
Actuaries evaluate and manage risk. They weigh up the probability of adverse events, find ways to prevent them, and minimise the impact of events that do occur. Is the actuarial studies major for me? Are you naturally curious? Do you enjoy finding solutions to complicated problems? If you love numbers and want to use your maths skills to provide practical business advice, actuarial studies might be the major for you.
What will I learn?
Am I a good fit?
Actuarial studies will give you a firm grounding in the traditional actuarial skills set: mathematics, statistics, demography, finance and economics.
To be a great actuary, you need to be persistent, articulate, comfortable with computers and good with numbers. You should have strong analytical skills and a love of learning.
Why choose Melbourne? One of only six fully-accredited programs in Australia
Ranked 10th in the world for graduate employability#
With full accreditation from the Actuaries Institute, you can be sure that our actuarial studies major is the best possible preparation for work as a qualified actuary.
Our graduates are known for their perceptive understanding of business issues, skilful communication and strong leadership.
Exciting student experience opportunities
Over $2M in exclusive Commerce scholarships
There’s more to uni than lectures, assignments and exams. Get involved outside of the classroom – there’s something for everyone.
Be rewarded for your hard work in high school and at uni, through one of Australia’s most generous scholarship programs.
QS World University Rankings 2013
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I chose actuarial studies because I was interested in applied maths, economics and financial markets. The core subjects for the major were relevant and well structured, and the technical skills I developed allow me to add value in my workplace. Viola Chan, BCom Hons 2011, now works for Deloitte
Core study areas Financial mathematics covers topics that are particularly important in the finance sector, including the theory of interest, investment mathematics and stochastic models for asset returns.
Life insurance mathematics aims to produce valuations of life insurance policies, using probability models of human mortality and morbidity along with financial models.
Actuarial statistics is most prominent in general insurance, or any insurance that is not on a human life. For example, actuarial statistics is used calculate premiums and no claims discounts for car insurance policies.
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Studying the actuarial major
The University of Melbourne is known for its actuarial program, and our Centre for Actuarial Studies offers the widest choice of actuarial subjects in Victoria. The Bachelor of Commerce consists of 24 subjects, usually taken over three years of full-time study. As part of the BCom, you must complete at least one major.
Sample course plan – Bachelor of Commerce1 Major in Actuarial Studies Meets honours entry and professional accreditation requirements
The Bachelor of Commerce major in actuarial studies is the shortest pathway to becoming a qualified actuary. To meet Commerce course requirements as well as accreditation requirements for the actuarial profession, you must complete a specified sequence of subjects.
Introductory Microeconomics
Accounting Reports and Analysis
Free elective
Accelerated Mathematics 1
Semester 2
Introductory Macroeconomics
Introductory Financial Accounting
Introduction to Actuarial Studies
Accelerated Mathematics 2
Semester 1
Probability
Organisational Behaviour
Financial Mathematics I
Business Finance
Semester 2
Statistics
Intermediate Macroeconomics
Financial Mathematics II
Free elective
Semester 1
Actuarial Modelling I
Actuarial Modelling II
Financial Mathematics III
Free elective
Semester 2
Contingencies (double subject)
Actuarial Statistics
Models for Insurance and Finance
Year 1
Year 2
This sample course plan names compulsory subjects in the BCom and all subjects required for actuarial accreditation. In total, subjects required for the actuarial studies major comprise 21 of 24 subjects in the degree. These subjects also fulfil honours entry requirements for the actuarial discipline. The actuarial studies major incorporates subjects across Commerce disciplines, as accreditation requires studies in accounting, economics and finance. Free electives in the degree offer further opportunities to explore other disciplines, whether it be other commerce areas or subjects outside the degree. Note that two of these electives must be used to complete non-maths breadth subjects.
Semester 1
Year 3
Compulsory subjects (including quantitative subjects counted as breadth) Commerce subjects required for actuarial accreditation Free elective subjects2 Breadth subjects required for actuarial accreditation 1 2
This is a sample course plan only. Subjects offered may change from year to year. You will be advised of current subject offerings prior to subject selection and enrolment. You must use two of your three free electives to complete non-maths breadth subjects.
I love that my subjects have the perfect balance between theory and application. There’s a lot to learn, but it’s interesting and relevant in the real world. I can already see that what I’m studying will be useful when I finish uni. Harry Breidahl, major in Actuarial Studies
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Becoming an actuary The University of Melbourne is one of only six institutions in Australia with full accreditation from the Actuaries Institute, the professional actuarial body in Australia. Pathway to associateship
Pathway to fellowship
International recognition
If you complete relevant subjects at the University of Melbourne – and perform sufficiently well – you will be recommended for exemption from the corresponding subjects offered by the Actuaries Institute. Should you receive the maximum exemption, you will be exempt from both Part I and Part II by the end of your Honours degree.*
To become a fellow of the Institute of Actuaries of Australia (FIAA), you must undertake Part III of the Institute’s professional exams. Part III is directly administered by the Institute. Examinations are held in May and October each year and are undertaken after you graduate, while you are working full time.
Overseas actuarial bodies give recognition for the qualification of FIAA, subject to some supplementary training. There is also partial recognition for exams passed (or obtained through exemptions) under the Actuaries Institute.
Successful completion of the Institute’s Parts I and II exams, the three-year practical experience requirement and the Institute’s Professionalism Course leads to your designation as an actuary and an associate of the Institute of Actuaries of Australia (AIAA).
The length of time taken to qualify varies from student to student. The FIAA qualification can be achieved in a minimum of five years, but the average time to gain full accreditation is between seven and eight years. This estimate includes completion of the four year Bachelor of Commerce (Honours) degree.
*If you do not obtain the mark needed to achieve exemption, you do not need to repeat the subject. As long as you achieve a pass mark or above the subject will still be credited towards your Bachelor of Commerce degree.
Options for further study The BCom major in actuarial studies is only the first step towards being an actuary – an Honours year might follow, and further research if you’re interested. Honours
Graduate research
If you intend to qualify as an actuary, we recommend that you do an honours year. An honours year provides advanced knowledge in actuarial studies and fulfils all the requirements for Associateship of the Institute of Actuaries of Australia (AIAA).
If you are interested in pursuing high-level research in actuarial science, you can go on to do research programs offered through the Centre for Actuarial Studies at the University of Melbourne. Established in 1992, the Centre is internationally recognised for its research in insurance, superannuation, financial mathematics and related areas.
In this fourth year of study, usually taken immediately after completing the Bachelor of Commerce, you will take advanced coursework in the areas of risk theory and financial mathematics. You will also produce a research essay or undertake a set of research projects in under-explored areas of actuarial science.
Graduate research programs offered through the Centre include the Master of Commerce in Actuarial Studies and the PhD in Actuarial Studies.
Many of our graduates enjoy international careers in global financial centres like New York, London, Hong Kong and Singapore.
for non-actuarial graduates The Commerce major in actuarial studies is the most straightforward way into the actuarial profession, but it’s not the only way to become an actuary. The Master of Actuarial Science, offered by Melbourne Business School, is specifically designed for graduates who have mathematical or statistical specialisations – such as mathematics, physics or engineering. The course will equip you with the skills to work as a trainee actuary, and possible exemption from Part I of the professional requirements of the Actuaries Institute. www.mbs.unimelb.edu.au
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Actuarial careers
Our graduates receive high-level training in actuarial science, combined with exposure to complementary disciplines and opportunities for development outside the classroom. They enjoy excellent career outcomes, including high starting salaries, outstanding job satisfaction and exceptional employment rates. Where do actuarial graduates work? Some of our recent graduates are now working at: Allianz
Medibank
AMP Limited
Mercer
ANZ Banking Group Aon Benfield
Ping An Life Insurance Company of China
CGU Insurance
PricewaterhouseCoopers
Deloitte
QBE Insurance
Ernst & Young
Quantium
Finity Consulting
Suncorp-Metway
Jardine Matheson Holdings
The Warranty Group
KPMG
Towers Watson
Career progression in actuarial Sample job titles Your first job:
Analyst Associate Graduate
In 5-10 years:
Manager Actuary Consultant
In 15-20 years
Chief Executive Officer Chief Financial Officer Partner
I’ve secured a graduate role at Quantium, and will join a team that specialises in retail strategy and customer analytics. The position requires knowledge of statistical techniques and how they can be used in the commercial environment. That is essentially what we learn in the actuarial major. Saurav Acharya, major in Actuarial Studies
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Where could the actuarial studies major take you?
Erika Lee Actuarial consulting, Singapore
Joyce Au-Yeung Insurance, Auckland
Kimberly Fraser Actuarial consulting, Melbourne
Elijah Mayr Investment banking, Sydney
Daniel Tram Management consulting, Melbourne
Dinuka Jayasuriya Commercial banking, Melbourne
Yvonne Wen Consulting and data analytics, Melbourne
Zezan Tam Technology and innovation, Melbourne
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www.bcom.unimelb.edu.au
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Actuarial Undergraduate Information brochure Authorised by: Provost Published by: The Faculty of Business and Economics Photography: Joe Vittorio CRICOS Provider code: 00116K Intellectual Property: For further information refer to www.unimelb.edu.au/Statutes Copyright: Copyright University of Melbourne 2014. Copyright in this publication is owned by the University and no part of it may be reproduced without the permission of the University.
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