Actuarial Science

Krupa S. Viswanathan, Associate Professor, Program Director
Alter Hall 629
215-204-6183
krupa@temple.edu

www.fox.temple.edu/cms_academics/dept/risk-insurance-healthcare-management/

Located in the Department of Risk, Insurance, and Healthcare Management, Temple's Actuarial Science program provides students the opportunity to develop a strong foundation in mathematics and statistics while being exposed to a wide range of business disciplines. Temple's program in Actuarial Science is one of only a few programs designated as a Center of Actuarial Excellence by the Society of Actuaries.

Actuaries specialize in the evaluation of insurance and financial risks. They hold positions of responsibility with insurance companies, consulting firms, investment banks, government regulatory organizations, and government insurance programs.  Actuaries must also pass a series of professional exams, administered by the Society of Actuaries and Casualty Actuarial Society, to receive the credential of Associate or Fellow.  These professional exams are both quantitative and qualitative, demanding that the actuary demonstrate expertise in a variety of mathematical and business analytic applications. Coursework in Temple's Actuarial Science program help prepare students for several actuarial exams.  Courses in our curriculum are also approved by the Society of Actuaries and Casualty Actuarial Society as satisfying VEE (Validation by Educational Experience) requirements.

Students should meet with the Program Director as soon as they enter the Actuarial Science program. In addition to their coursework and professional examinations, students are strongly encouraged to become active in the Sigma chapter of Gamma Iota Sigma, Temple's national award-winning professional student organization in Risk Management, Insurance, and Actuarial Science. The organization hosts numerous guest speakers from the industry, sponsors a variety of career development seminars, and maintains a widely-distributed résumé book. For more information, please contact the GIS President at 215-204-9368 or visit www.sigmachapter.org.

Summary of Requirements

University Requirements

All new students are required to complete the university's General Education (GenEd) curriculum.

Note that students not continuously enrolled who have not been approved for a Leave of Absence or study elsewhere must follow University requirements current at the time of re-enrollment.

College Requirements

Students are strongly encouraged to take the professional actuarial exams immediately after completing the relevant coursework. Students must meet the College Graduation Requirements for the Bachelor of Business Administration including the requirements of the major listed below. Students must attain a 2.0 cumulative GPA and 2.0 in the major to graduate with the Actuarial Science major. To calculate the GPA in the major, use the major GPA calculator.

Major Requirements

Students must follow the Major Requirements and College Requirements current at the time of declaration. Students not continuously enrolled who have not been approved for a Leave of Absence or study elsewhere must follow University, College, and Major requirements current at the time of re-enrollment.

Requirements of Actuarial Science Major

AS 1501Actuarial Probability and Statistics I3
AS 2502Theory of Interest3
AS 2503Corporate Finance for Actuarial Science 13
AS 3501Actuarial Modeling I3
AS 3502Actuarial Modeling II 23
AS 3596Casualty Contingencies3
RMI 3567Managing International Risk 33
Total Credit Hours21
1

AS 2503 replaces FIN 3101 in the upper division foundation.  This course is not calculated in the major GPA.  

2

This is the major capstone, and all prerequisites must be met.

3

RMI 3567 replaces IB 3101 in the upper division foundation.  This course is not calculated in the major GPA. 

Non-Business Required Courses

MATH 1041Calculus I 14
MATH 1042Calculus II 14
MATH 2043Calculus III4
AS 2101Actuarial Probability and Statistics II 23
STAT 2512Intermediate Statistics 23
Total Credit Hours18
1

MATH 1041 & MATH 1042 replace the STAT 1001 & STAT 1102 requirements listed in the Fox School of Business & Management foundation course requirements.  MATH 1041 also satisfies the Quantitative Literacy (GQ) General Education requirement.

2

These courses replace STAT 2103 in the Fox School of Business & Management foundation course requirements.

Suggested Academic Plan

Bachelor of Business Administration in Actuarial Science

Requirements for New Students starting in the 2016-2017 Academic Year

Please note that this plan is suggested only, ensuring prerequisites are met.

Year 1
FallCredit Hours
MATH 1041Calculus I4
ECON 1101Macroeconomic Principles3
HRM 1101Leadership and Organizational Management3
ENG 0802, 0812, or 0902Analytical Reading and Writing [GW]4
GenEd Breadth Course3
 Term Credit Hours17
Spring
MATH 1042Calculus II4
ECON 1102Microeconomic Principles3
LGLS 1101Legal Environment of Business3
AS 1501Actuarial Probability and Statistics I3
IH 0851 or 0951Mosaic: Humanities Seminar I [GY]3
 Term Credit Hours16
Year 2
Fall
MATH 2043Calculus III4
ACCT 2101Financial Accounting3
BA 2104Excel for Business Applications1
RMI 2101Introduction to Risk Management3
AS 2502Theory of Interest3
IH 0852 or 0952Mosaic: Humanities Seminar II [GZ]3
 Term Credit Hours17
Spring
ACCT 2102Managerial Accounting3
MIS 2101Information Systems in Organizations3
BA 2101Professional Development Strategies1
BA 2196Business Communications [WI]3
AS 2101Actuarial Probability and Statistics II3
AS 2503Corporate Finance for Actuarial Science3
 Term Credit Hours16
Year 3
Fall
MKTG 2101Marketing Management3
STAT 2512Intermediate Statistics3
MSOM 3101Operations Management3
AS 3501Actuarial Modeling I3
AS 3596Casualty Contingencies [WI]3
 Term Credit Hours15
Spring
BA 3103Integrative Business Applications3
BA 3102Business Society and Ethics3
AS 3502Actuarial Modeling II3
RMI 3567Managing International Risk3
Free Elective (AS 2504 recommended)3
 Term Credit Hours15
Year 4
Fall
BA 4101Global Business Policies3
GenEd Breadth Course3
GenEd Breadth Course3
GenEd Breadth Course3
Free Elective (STAT 3503 recommended)3
 Term Credit Hours15
Spring
GenEd Breadth Course3
GenEd Breadth Course3
GenEd Breadth Course3
Free Elective (AS 3503 recommended)3
Free Elective1
 Term Credit Hours13
 Total Credit Hours: 124

Courses

AS 1501. Actuarial Probability and Statistics I. 3 Credit Hours.

In this course, probability theory and its application to insurance and risk management problems are discussed. Among the topics to be covered: counting techniques, conditional probability, Bayes' Theorem, discrete random variables, specific discrete distributions such as Binomial, Poisson, Negative Binomial and Uniform, moment generating functions and functions of two random variables. NOTE: Students need to earn a grade of C or better in this course to be eligible to register for all other required courses in the Actuarial Science major. Prior to spring 2016, the course title was "Introduction to Actuarial Science."

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
MATH 1042|Minimum Grade of C-|May be taken concurrently
OR MATH 1942|Minimum Grade of C-|May be taken concurrently
OR MATH 2043 to 3080| Required Courses:1|Minimum Grade of C-|May be taken concurrently.

AS 1901. Honors Introduction to Actuarial Science. 3 Credit Hours.

Honors version of Actuarial Science 1501 (0001). NOTE: Students need to earn a grade of C or better in this course to be eligible to register for all other required courses in the Actuarial Science major.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School
Cohort Restrictions: Must be enrolled in one of the following Cohorts: SCHONORS, UHONORS, UHONORSTR

Course Attributes: HO

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
MATH 1042|Minimum Grade of C-|May be taken concurrently
OR MATH 1942|Minimum Grade of C-|May be taken concurrently
OR MATH 2043 to 3080| Required Courses:1|Minimum Grade of C-|May be taken concurrently.

AS 2101. Actuarial Probability and Statistics II. 3 Credit Hours.

In this course, probability theory and its application to insurance and risk management problems are discussed in the context of continuous random variables. Among the topics to be covered are: Random variables, probabilities, and percentiles on a continuum; specific continuous distributions such as Uniform, Gamma and Exponential, Normal, and Beta; moments and moment generating functions; conditional and marginal distributions; transformations of one or two random variables; order statistics; and the Central Limit Theorem.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
(MATH 2043|Minimum Grade of C|May not be taken concurrently
OR MA08 Y|May not be taken concurrently)
AND (AS 1501|Minimum Grade of C|May not be taken concurrently
OR AS 1901|Minimum Grade of C|May not be taken concurrently).

AS 2502. Theory of Interest. 3 Credit Hours.

In this course, simple, compound and effective interest functions are analyzed and used in the calculation of present value and future values of various investments. Annuities, loan amortization and bonds are discussed and techniques for computing their values at various dates are explored. NOTE: Students will need to earn a minimum grade of C in this course to be eligible to take Actuarial Science 3501.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
MATH 1042|Minimum Grade of C|May not be taken concurrently
OR MATH 1942|Minimum Grade of C|May not be taken concurrently
OR MATH 2043|Minimum Grade of C-|May be taken concurrently
OR MA07 Y|May not be taken concurrently.

AS 2503. Corporate Finance for Actuarial Science. 3 Credit Hours.

This course develops the conceptual framework of corporate finance and financial derivative from an actuarial perspective. It prepares students for the Derivatives Markets material on Exam FM/2 and also offers VEE credit for Corporate Finance. Topics covered in this course include financial statements, asset valuation, capital budgeting, capital structure, the cost of capital and dividend policy. Financial derivatives, such as forwards, futures, swaps, and options, will be discussed in detail and their application in corporate risk management will be examined. NOTE: This course should be taken in place of Finance 3101 and has been approved by the Society of Actuaries/Casualty Actuarial Society for VEE - Corporate Finance. Completion of this course with a minimum grade of B- is required for VEE - Corporate Finance credit.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
(MATH 1042|Minimum Grade of C|May not be taken concurrently
OR MATH 1942|Minimum Grade of C|May not be taken concurrently
OR MATH 2043|Minimum Grade of C-|May be taken concurrently
OR MA07 Y|May not be taken concurrently)
AND (ACCT 2101|Minimum Grade of C|May not be taken concurrently
OR ACCT 2901|Minimum Grade of C|May not be taken concurrently
OR ACC1 Y|May not be taken concurrently)
AND (AS 2502|Minimum Grade of C|May not be taken concurrently).

AS 2504. Advanced Theory of Interest. 3 Credit Hours.

This course develops the theoretical basis of certain actuarial models and the application of those models to insurance and other financial risks. It prepares students for SOA Exam MFE or CAS Exam 3F. Topics covered in this course include Vasicek and Cox-Ingersoll-Ross bond price models, Black-Derman-Toy binomial model, Black-Scholes option-pricing model, exotic options, Itô's lemma in the one-dimensional case. Simulation of lognormal stock prices and variance reduction techniques will be discussed and delta-hedging in risk management will be demonstrated.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
(AS 2502|Minimum Grade of C|May not be taken concurrently
AND AS 2503|Minimum Grade of C|May not be taken concurrently).

AS 3501. Actuarial Modeling I. 3 Credit Hours.

This course introduces the discrete and continuous random variables measuring the future lifetime of a person. Among the topics covered are calculation of the mean, variance and probability functions for these random variables, introduction of a present value random variable measuring the present value of a life insurance and annuity benefit, calculation of premiums for life insurance and annuities using interest rates and calculation of reserves for insurance companies, examining future liabilities and inflow. NOTE: A grade of C or better is required in this course to be eligible to take Actuarial Science 3502.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
(AS 2502|Minimum Grade of C|May not be taken concurrently)
AND (AS 2101|Minimum Grade of C|May not be taken concurrently).

AS 3502. Actuarial Modeling II. 3 Credit Hours.

This course introduces the evaluation and calculation of reserves for various continuous and discrete policies. Multi-state models are presented, with applications in multiple decrement theory and multiple lives. The valuation of life insurance and annuities is then reexamined, allowing for interest rate and mortality adjustments. The profitability of insurance products is then discussed and calculated.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
AS 3501|Minimum Grade of C|May not be taken concurrently.

AS 3503. Actuarial Modeling III. 3 Credit Hours.

Estimation and fitting of survival, frequency and severity, and compound distribution loss models; credibility methods.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
STAT 2512|Minimum Grade of C|May not be taken concurrently.

AS 3580. Special Topics: Actuarial Science. 3 Credit Hours.

Special topics in current developments in the field of Actuarial Science and exam preparation.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may be repeated for additional credit..

AS 3582. Independent Study. 1 to 6 Credit Hour.

Readings and/or research paper under the supervision of a faculty member.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Repeatability: This course may be repeated for additional credit..

AS 3596. Casualty Contingencies. 3 Credit Hours.

This highly participative course is designed to broaden perspectives on the business environment in which actuaries work. In addition to analyzing the issues behind daily events, several continuing issues will be analyzed including insurance pricing cycles, regulatory developments, the role of the actuary as an educator, advisor, objective information source and problem solver, insurance company financial rating and solvency issues, accounting fraud and questionable financial transactions, insurance and the financial markets managing insurance operations, professional ethics, and the impact of current developments in underwriting, and reinsurance on the actuarial function. NOTE: This is the writing-intensive course for Actuarial Science majors. Students must earn a grade of C in this course if they are using it to fill the writing intensive course requirement for their degree.

College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School

Course Attributes: WI

Repeatability: This course may not be repeated for additional credits

Pre-requisites:
(RMI 2101|Minimum Grade of C|May not be taken concurrently
OR RMI 2901|Minimum Grade of C|May not be taken concurrently
OR RM01 Y|May not be taken concurrently)
AND (MATH 2043|Minimum Grade of C|May not be taken concurrently
OR MA08 Y|May not be taken concurrently)
AND (AS 1501|Minimum Grade of C|May not be taken concurrently
OR AS 1901|Minimum Grade of C|May not be taken concurrently)
AND (ACCT 2101|Minimum Grade of C-|May not be taken concurrently
OR ACCT 2901|Minimum Grade of C-|May not be taken concurrently).

AS 3999. Honors Thesis I. 1 to 3 Credit Hour.

The first of a two-part sequence of courses in which independent research is conducted under the supervision of a thesis advisor from the Actuarial Science department resulting in a substantial piece of original research, roughly 30 to 50 pages in length upon completion of Actuarial Science 4999. The student must publicly present his/her findings at a Temple University Research Forum session or the equivalent during one of the two semesters during which these courses are undertaken.

Field of Study Restrictions: Must be enrolled in one of the following Majors: Actuarial Science
College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School
Cohort Restrictions: Must be enrolled in one of the following Cohorts: SCHONORS, UHONORS, UHONORSTR

Course Attributes: HO

Repeatability: This course may be repeated for additional credit..

AS 4999. Honors Senior Thesis II. 1 to 3 Credit Hour.

Independent research conducted under the supervision of a thesis advisor from the Actuarial Science Department resulting in a substantial piece of original research, roughly 30 to 50 pages in length. Student must publicly present his/her findings at a Temple University Research Forum session or the equivalent if this was not done in Actuarial Science 3999.

Field of Study Restrictions: Must be enrolled in one of the following Majors: Actuarial Science
College Restrictions: Must be enrolled in one of the following Colleges: Business & Mngmnt, Fox School
Cohort Restrictions: Must be enrolled in one of the following Cohorts: SCHONORS, UHONORS, UHONORSTR

Course Attributes: HO

Repeatability: This course may be repeated for additional credit.

Pre-requisites:
AS 3999|Minimum Grade of C-|May not be taken concurrently.