Next fall, there will be a new undergraduate program in actuarial science. 

Rahul Amba Parsa, senior lecturer in supply chain & information systems, will be the director of the new program.

“An actuary is a person who is an expert in managing risk,” Parsa said. “They generally work in insurance companies. One of the typical jobs they do is pricing of insurance products, whether it be life insurance, car insurance, health insurance,or any kind.”

Working as an actuary was ranked among the top 20 jobs of 2017 by CNN Money, citing its high pay and strong job security as top reasons why it is a great field to work in.

U.S. News and World Report also ranked the job high, citing it as the number two best business job based on a variety of factors, such as salary, stress level, flexibility and opportunity for advancement.

The use of statistics and math are key points within the actuarial science field.

“Students have to be very good in mathematics to succeed in this program,” Parsa said. “They have to be very focused, disciplined and organized. Students who join this program usually have good ACT/SAT scores in math.”

But there is more to becoming an actuary than getting a degree and looking for a job. In order to become an actuary, students must take a series of five exams.

“Iowa State does not make you an actuary, and no school can,” Parsa said. “We teach material that is in the five preliminary exams given by the Society of Actuaries and Casualty Actuarial Society. Students will have to take those exams and pass them to become an actuary.”

Iowa State is the last of the three regent schools to offer an actuarial science program. However, unlike the University of Northern Iowa and the University of Iowa, Iowa State’s program will be the only one housed in the college of business.

“By having this major housed in the college of business and having these students take our core set of business courses in addition to the courses required for actuarial science major, we think we are going to put out the better rounded graduates that insurance companies are really looking for,” said Dean of the Ivy College of Business David Spalding.

The Ivy College of Business is also in the process of adding a business analytics major, but is still awaiting approval from the Board of Regents.