Undergraduate Information - Actuarial Studies 2016

Undergraduate information

Actuarial Studies

Actuarial modelling Actuarial statistics Financial mathematics Models for insurance and finance

Contents Bachelor of Commerce major in Actuarial Studies

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Studying the actuarial major

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Becoming an actuary

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Options for further study

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Actuarial careers

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Contact us

Back cover

#1

in Australia

#33

in the world Times Higher Education World University Rankings 2014–2015

“Being a part of the Copland Scholars program elevated my experience at the University of Melbourne. The generous monetary support meant I was able to make the most of my time at university and take advantage of many opportunities on offer, without having to worry about the financial aspect. More indirectly, the access to networking events and being provided with a mentor gave me a unique insight into the business world and allowed me to create links in industry, right from the start of my degree.”

Daniel Tram graduated from the Bachelor of Commerce with a major in Actuarial Studies and Economics in 2013 and now works as a Management Consultant for A.T. Kearney.

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Bachelor of 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.

Exciting student experience opportunities

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!

As part of your degree you can join a student club, volunteer in communities, travel overseas, and build your professional skills.

WHAT WILL I LEARN?

Our graduates are known for their perceptive understanding of business issues, skilful communication and strong leadership.

Actuarial studies will give you a firm grounding in the traditional actuarial skills set: mathematics, statistics, demography, finance and economics.

AM I A GOOD FIT? To be a great actuary you need to be persistent, articulate, comfortable with computers and great 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 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.

Ranked 13th in the world for graduate employabilityQ

Generous scholarship opportunities The Faculty of Business and Economics offers a number of scholarships to domestic and international students commencing the Bachelor of Commerce. Additional scholarships and subject prizes are available to current students, so you have the opportunity to be rewarded for your hard work throughout your degree by one of Australia’s most generous scholarship programs.

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 excluding life insurance. For example, actuarial statistics is used to calculate premiums and no claims discounts for car insurance policies.

Q QS World University Rankings by Subject 2014-2015

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Actuarial Studies

IS THE ACTUARIAL STUDIES MAJOR FOR ME?

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, and is usually taken over three years of full-time study.

You are required to complete at least one major within the Bachelor of Commerce degree.

“I have the opportunity to study a world-class commerce degree while being able to pursue my passion for mathematics.

The Bachelor of Commerce major in actuarial studies is the shortest pathway to becoming a qualified actuary. You must complete a specific sequence of subjects in order to meet Bachelor of Commerce degree requirements as well as accreditation requirements for the actuarial profession.

I have made countless friends, and have had the opportunity to participate in numerous extra-curricular activities which has helped me to build a network of current and future leaders in my industry.”

This sample course plan names compulsory subjects in the Bachelor of Commerce and all subjects required for actuarial accreditation. In total, 21 of 24 subjects in the degree are required for the actuarial studies major.

These subjects also fulfil honours entry requirements for the actuarial discipline.

The actuarial studies major incorporates subjects across Bachelor of 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.

Dhanuka Nanayakkara, major in Actuarial Studies

Sample course plan – Bachelor of Commerce Q Major in Actuarial Studies Meets honours entry and professional accreditation requirements Semester 1

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 Free elective Mathematics II

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

Year 3

Compulsory subjects (including quantitative subjects counted as breadth) Bachelor of Commerce subjects required for actuarial accreditation Breadth subjects required for actuarial accreditation Free elective subjects W Q 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.

W You must use two of your three free electives to complete non-maths breadth subjects.

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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 also 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.

Many of our graduates enjoy international careers in global financial centres like New York, London, Hong Kong and Singapore.

OPTIONS FOR FURTHER STUDY

Honours/Masters of Commerce (Actuarial Science) If you intend to qualify as an actuary we recommend that you do an honours year, or the Master of Commerce (Actuarial Science). This extra year provides advanced knowledge in actuarial studies and fulfils all the requirements for Associateship of the Institute of Actuaries of Australia (AIAA).

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.

Graduate research

For non-actuarial graduates

If you are interested in pursuing highlevel 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.

The Bachelor of 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.

Graduate research programs offered through the Centre include the Master of Commerce by research and the PhD in Actuarial Studies.

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.

Find out more mbs.unimelb.edu.au

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Actuarial Studies

The Bachelor of Commerce 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.

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 most recent graduates are now working at: Allianz AMP

Limited

ANZ

Banking Group

Aon

Benfield

CGU

Insurance

Deloitte Ernst

& Young

Finity

Consulting

Jardine

Matheson Holdings

KPMG Medibank Mercer Ping

An Life Insurance Company of China

PricewaterhouseCoopers QBE

Insurance

Quantium Suncorp-Metway The

Warranty Group

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 believe the Bachelor of Commerce is the best course to prepare me for the business world, offering me specialised knowledge in relevant fields as well as a strong network of students and business related associations that will assist my transition from university to the workforce.”

Joyce Guo, Major in actuarial studies

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Kimberly Fraser Senior Actuarial Consultant, London

Dinuka Jayasuriya Commercial banking, Sydney

Erika Lee Actuarial consulting, Singapore

Elijah Mayr Associate Analyst, Sydney

Daniel Tram Management consulting, Melbourne

Zezan Tam Technology and innovation, Melbourne

Yvonne Wen Consulting and data analytics, Melbourne

Shona Wills MBA candidate, London Business School

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Actuarial Studies

WHERE COULD THE ACTUARIAL STUDIES MAJOR TAKE YOU?

bcom.unimelb.edu.au

CONTACT US University of Melbourne Information Centre Gate 3, Swanston Street The University of Melbourne Victoria 3010 Australia

13 MELB (13 6352) +61 3 9035 5511 13MELB@unimelb.edu.au

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Authorised by: Executive Director, External Relations, July 2015 Published by: The Faculty of Business and Economics Photography: Joe Vittorio, Tessa Shaw and Wei Wei Chong CRICOS Provider Code: 00116K