INTRODUCTION TO ACTUARIAL SCIENCE 

WHAT IS ACTUARIAL SCIENCE ?
WHERE DO ACTUARIES WORK ?
WHO CAN BE AN ACTUARY ?
ACTUARIAL SCIENCE AT NATIONAL UNIVERSITY OF MALAYSIA ( UKM )
 OBJECTIVES OF ACTUARIAL SCIENCE  PROGRAMME
ENTRANCE REQUIREMENT
MODULE OF OUR UNDERGRADUATE BACHELOR SCIENCE IN ACTUARIAL SCIENCE


WHAT IS ACTUARIAL SCIENCE?

An actuary is a business professional who manages financial risks related to insurance product design, pension and other financial corporate planning. By applying his knowledge in probability, statistics, risk theory and financial principles, an actuary is abled to quantify future risk with respect to insurance, anuiti and pension programs. 

To achieve all this, an actuary must initially collect and analyse data to formulate mathematical models. Models on the probability of sickness, death, accident and so on together with unemployment , marriage and other demographic tables are constructed. After all probabilities and company's expenses are calculated, an actuary is abled to determine the value of periodical or single premium needed to pay for expected insurance benefits to be paid in the future.

An actuary is also known as a financial architect and a social mathematician due to his unique combination of quantitative analysis and business expertise to solve the ever increasing financial and social problems. The calculations and planning of an actuary is the backbone of the insurance industry and financial securities. Eventhough an actuarial career involved a lot mathematics, an actuary must always observe current issues and trends in business, social science, legal environment and the economy.

WHERE ARE THEY EMPLOYED ?

Early history have shown that actuaries are greatly involved in human lives and businesses especially in the aspects of mortality and compound interest. The role of actuaries also involved financial risks. Beginning with these activities, the fuctions of actuaries have expanded beyond insurance and investment.

In North America and Australia, actuaries are involved in these areas :

  • Strategic Planning
  • Environmental Risk
  • Demography
  • Weather Forecasting
  • Health Insurance
  • Asset and Fund Management
  • Legal Firms

In other countries, the role of actuaries are concentrated in the insurance and investment sectors and also management of financial security system.

There are also actuaries who work as consultants. They offer advice to companies and other bodies that do not employ actuarial personnel.  Normally, a consultant advice comprised of extended issues and the target of individual consultant is normally concentrated on actuarial expertise in a business environment.

An actuary may also work in the government sector. They are employed to manage the pension and national insurance plans. There are also involved in academic institutions as lecturers.

  WHO CAN BE AN ACTUARY?

To consider being an actuary, one must have the following qualities:

  • An outstanding student in mathematics.
  • Love to do research and to learn and solve complicated problems.
  • Love strategic games like chess and computer games.
  • Love to write and communicate with other people.
  • Interested in history, social, legal and political issues.
  • Self motivated and good leadership qualities..

 

ACTUARIAL SCIENCE AT  UNIVERSITI KEBANGSAAN MALAYSIA (UKM)

In Malaysia, actuarial science is offered by the Universiti Kebangsaan Malaysia (UKM) at the B.Sc or undergraduate level. The University of Mara Institute of Teknologi  (UiTM) is offering this course at the diploma and undergraduate level. In UKM, the Actuarial Science Programme is one of the programs offered by The School of Mathematical Sciences, Faculty of Science and Technology, UKM.

An actuary is a professional career. Thus, there are professional bodies which set and regulate the professional examinations. One has to sit and pass all these examinations before being conferred as a qualified actuary.

OBJECTIVE OF ACTUARIAL SCIENCE PROGRAMME (UKM)

The programme is set up to produce skilled actuarial executives for various departments in an insurance company such as the actuarial department, underwriting, policy servicing, corporate planning and so on. In addition, the programme is also intended to provide basic and adequate knowledge for our students to sit in the early proffessional examinations. Emphasis is given such that our graduates could also significantly contribute towards  other financial sectors and not limited to insurance.

ENTRANCE REQUIREMENTS 

Applicants for Actuarial Science Programme must

  1. passed at least a grade C in Mathematics and two other courses at the KPM Matriculation level or
  2. passed Mathematics and one of the science subjects with at least a grade E at the STPM level or
  3. passed with at least a grade C in Mathematics and two other courses at the Diploma level.


BACHELOR OF SCIENCE IN ACTUARIAL SCIENCE MODULE
 

SEMESTER

CODE &

COURSES

1

STQP 1513

STQM 1113

STQS 1113

STQP 1013

BASIC ECONOMY I 

CALCULUS I

STATISTICS I

COMPUTER PROGRAMMING


 
 

2

STQP 1523

STQM 1123

STQM 1223

STQS 1123

BASIC ECONOMY II

CALCULUS II

LINEAR ALGEBRA

STATISTICS II


 
 

3

STQA 2133

STQP 2533

STQP 2033

STQS 2433

MATHEMATICS OF FINANCE

ACCOUNTING AND FINANCIAL PRINCIPLES

NUMERICAL ANALYSIS

STATISTICAL METHODS   


 
 

4

STQA 2143 

STQA 2543

STQP 2043

  ACTUARIAL MATHEMATICS  I

INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT  I

  OPTIMIZATION TECHNIQUES


 
 

5

STQA 3153

STQA 3253

STQA 3553

ACTUARIAL MATHEMATICS II

 SURVIVAL MODELS

INVESTMENT ANALYSIS & PORTFOLIO MANAGEMENT  I

I


 
 
 
 

6

STQA 3163

STQA 3263

STQA 3993

STQP 3063

RISK THEORY

ACTUARIAL INVESTIGATION AND MANAGEMENT 

ACADEMIC STUDIES  

HISTORY AND PHILOSOPHY OF MATHEMATICS