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April 2018 CAE Student Webcast April 25, 2018

Society of ActuariesCAE Student Webcast

April 25, 2018

Agenda

Introduction to the SOA and its University ProgramsTiffany Tatsumi – SOA Academic Administrator

Curriculum Changes OverviewStuart Klugman, FSA, CERA, PhD - SOA Senior Staff Fellow, Education

Predictive Analytics and the ActuaryKyle Johnson, FSA, CERA – Assistant Actuary, Principal Financial Group

April 2018 CAE Student Webcast April 25, 2018

The SOA and its University Programs

Over 30,000 Members worldwide

44,000+ Candidates

Three-fold commitment:

Education, Research and the Profession

3,800+ Volunteers

April 2018 CAE Student Webcast April 25, 2018

SOA University Programs

University Outreach154 schools visited to date

Hickman Scholars5 Stipends awarded annually

renewable for 4 years

Subscribe at:SOA.org/candidateconnect

SOA Candidate Connect Newsletter

April 2018 CAE Student Webcast April 25, 2018

SOA Candidate Connect EventsStand-alone eventsEvents at larger SOA meetings

Candidate Connect sponsors other student events Midwest Actuarial Student Conference Actuarial Student National Association

(ASNA) convention & case competition Gamma Iota Sigma

Upcoming Events: Baltimore, MD, May 7Charlotte, NC, May 25Austin, TX, June 25

SOA Explorer Tool

SOA Resources

April 2018 CAE Student Webcast April 25, 2018

SOA on Facebook, Twitter, & LinkedIn

ASA Curriculum Changes Update

April 2018 CAE Student Webcast April 25, 2018

ASA Pathway

Key Events

• P and FM• July and August use old syllabus, but changes are minor

• Instant, unofficial, results

• IFM, STAM• July and October with new syllabus

• No instant results

• LTAM• October with new

• Same protocol as MLC

April 2018 CAE Student Webcast April 25, 2018

Key Events

• SRM• First administration in September, then every four

months

• Computer-based multiple choice, no instant results

• PA• First administration in December. 2019 schedule yet to

be determined

• Computer-based project, no instant results

Predictive Analytics Exam

• Five hours

• Complete a project and write a report

• Use R/RStudio

• Exam SRM is a prerequisite

• Regression, time series, principal components analysis, decision trees, clustering

April 2018 CAE Student Webcast April 25, 2018

Learn more at www.soa.org/curriculumchanges

Predictive Analytics and the ActuaryKYLE JOHNSON, FSA, CERAAssistant Actuary, Principal Financial Group

April 2018 CAE Student Webcast April 25, 2018

About Me

• Received FSA Dec. 2017• Quant. Finance Track

• Work at Principal Financial Group in Advanced Analytics department• Actuarial focus: Mortality and Dental Pricing

• Text Analytics, Customer Segmentation

What is Predictive Analytics (PA)?

“Predictive Analytics encompasses a variety of statistical techniques from predictive modelling, machine learning, and data mining that analyze current and historical facts to make predictions about future or otherwise unknown events.”

- Wikipedia

April 2018 CAE Student Webcast April 25, 2018

Successful PA Applications

“To be successful with Predictive Analytics, the practitioner must have good technical understandingand subject area expertise to produce optimal results.”

- Kyle Johnson (your presenter)

PA in Action

April 2018 CAE Student Webcast April 25, 2018

April 2018 CAE Student Webcast April 25, 2018

• Movie recommendations – adapted to each individual

• Previously viewed

• Mood• Time of day

• Watching with someone else?

• What makes a good compelling story?

April 2018 CAE Student Webcast April 25, 2018

Traditional Rating Approach

High

Medium

Low

More Granular Rating Approach

High

Medium

Low

High 3

Medium 1

Low 3

Medium 2Medium 3

Low 2Low 1

High 1

High 2

April 2018 CAE Student Webcast April 25, 2018

• Track fitness levels through FitBit (free) or Apple Watch (as low as $25)• Accumulate points throughout year with healthy

activities

• Earn Vitality Status each year based on points

• Get premium discounts and discounts on other products

• Ability lower annual premiums up to 15%

• Savings on healthy food purchases

April 2018 CAE Student Webcast April 25, 2018

Industry View

WTW Big Data and PA Survey

Source: https://www.towerswatson.com/en-US/Insights/IC-Types/Survey-Research-Results/2016/04/infographic-how-life-insurers-are-using-or-plan-to-use-big-data-and-predictive-analytics

April 2018 CAE Student Webcast April 25, 2018

Why the PA Exam?

• PA is an important field that is growing in many areas

• Helps candidates in the job market

• Competencies align well within actuarial toolbox

• Companies are demanding people with these skills!

Let’s Discuss

April 2018 CAE Student Webcast April 25, 2018

Questions?

Thank you!