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Smaller Actuarial Programs: Advantages, Challenges and Recommendations

By Sang Hoon Ahn, Russell Jay Hendel and Fang Yang

Expanding Horizons, November 2024

In this article, we aim to outline the advantages of smaller programs and gather opinions on the challenges these programs face in their efforts to emphasize these strengths. For our purposes, we define small actuarial programs as those with a relatively low student enrollment count. Typically, in actuarial exam curriculum courses, the number of students tends to be nearer 10 than 20 in most small programs. Because of these smaller numbers, the ratio of actuarial students to actuarial faculty may also be smaller, which can be a huge advantage.

The following are three key advantages of small programs, which are similar to those of small colleges:

  • Enhanced benefits from small class sizes: Small programs consistently provide small class environments throughout a student’s four-year journey, fostering increased interaction and mentorship, which can continue even after graduation.
  • Adaptable curriculum: The ability to swiftly modify the curriculum in response to the rapidly evolving technological landscape is a strength of small programs.
  • Increased opportunities for each student: Students typically have more chances to engage in various experiences, both inside and outside the classroom.

All academic programs have their own unique strengths and face challenges related to those strengths. While the recommendations we present in this article can be applied to programs of any size, we have chosen to focus on a select few that are particularly relevant to small programs.

Several articles have documented both achievements and difficulties experienced by these programs. Expanding Horizons has had three such articles in the past two years;[1] thus, the dialogue has already begun. This article proposes to continue this dialogue; summarize approaches that work; offer some new insights; and above all foster an atmosphere of understanding, dialogue, collaboration and support. Although progress is incremental, by individual steps, we believe such a dialogue will enhance actuarial education in general and small programs specifically.

In addition to the three insightful articles published in Expanding Horizons, the authors greatly benefited from the 2024 Actuarial Teaching Conference (ATC) in Nashville, including roundtable discussions on small programs, presentations and many follow-up dialogues and email exchanges with attendees.[2]

The Literature: What Has Already Been Said

The three previously published articles addressed the following challenges and achievements in actuarial programs: creating and getting courses and curriculum approved; facilitating both student and faculty passing exams; collaborating with other departments; obtaining guest speakers, internships and jobs; creating actuarial student clubs; establishing outreach connections, including with alumni; skillfully using the Society of Actuaries (SOA) Student Case Study Challenge; and obtaining a variety of professional recognitions. The following sections elaborate further on these challenges and achievements.

New Course Design and Approval

Perhaps one of the most time-intensive challenges in any actuarial program is developing new courses. This includes course design, approval and resource creation. Several exam preparation providers have advantageously created actuarial exam resources that align with the SOA/Casualty Actuarial Society (CAS) curriculum, including complementary practice materials for students as well as fully developed courses with video lectures. Moreover, with the development of new artificial intelligence (AI) applications, instructors are finding it increasingly convenient to create their own lecture recordings and course content. The resources mentioned allow educators to dedicate more time and energy to implementing diverse and effective pedagogical strategies, focusing on interactive and personalized learning experiences for students, and developing more case studies and examples.

Interdepartmental Collaboration: A Possible Solution to Declining Enrollment

Collaboration always bears sweet fruit. For instance, Cai mentions working with other departments to create the Validation by Educational Experience (VEE) courses required by the SOA.[3] More to the point is the success of the University of New South Wales (UNSW) in Australia, which successfully combated declining enrollment by introducing new combined degrees in Actuarial Science, Computer Science, and Information Systems in 2020.[4]. These efforts have increased enrollment at an annual rate of 13% over the past five years. While UNSW is a large program, Salisbury University is smaller, but collaboration and combined degrees can still lead to remarkable successes.[5]

The adoption of interdisciplinary (multidisciplinary) approaches is emerging as a trend at academic institutions. The actuarial industry, inherently an interdisciplinary field, is increasingly broadening its scope to encompass computing technology across a diverse range of applications and sectors. Actuarial programs by their nature can accommodate students from computing technology and other STEM backgrounds. This expansion can be facilitated through the adoption of a more flexible curriculum and developing combined degrees, dual degrees or minors. At the same time, knowledge from other fields can greatly benefit the actuarial practice in the industry.

By using programmatic agility (a potential strength of small programs), leaders of these programs can foster strategic alliances with other disciplines, potentially paving the way for program expansion. This process encompasses tasks that can be undertaken independently, as well as initiatives requiring institutional backing and support. Under favorable circumstances, one may encounter institutional or industry support for these initiatives and then be able to plan a larger project. It is advantageous to build open communication and enhanced relationships among these stakeholders. A good short-term, time-efficient and effective strategy is to have actuarial faculty deliver presentations and information on actuarial careers connecting various programs to academic advisors. Such an approach helps address the enrollment challenge in today’s rapidly evolving technological landscape.

The SOA Case Study Challenge

Salisbury University is justifiably proud of its student team reaching the finalist round in the 2024 SOA Case Study Challenge, which is now in its 10th year.[6] Many institutions create a credit-bearing course where students work in teams to submit solutions to the case study, providing a valuable opportunity for interdisciplinary collaboration across actuarial science, mathematics, statistics, economics, computer science and marketing. This allows other disciplines to see how actuarial science intersects with their fields, while student teams gain valuable research experience. The SOA offers recognition to participating institutions and their programs through various initiatives. This recognition can serve as a means for smaller colleges to gain visibility within the actuarial community.

Incremental Strategies for Enhancing Small Programs: Practical Insights and Quick Wins

The following are examples of small successes achievable with minimal time investment at individual institutions:

  • Webpage presence: In situations where the program size is relatively small within the institution, the program’s visibility on the university’s prospective student website may be suboptimal. Efforts to secure a prominent position for the program introduction on this platform have shown unexpected promotional benefits. While a dedicated “Actuarial Science” banner on tables during open-house events is indeed important for visiting students and their parents, this is challenging in institutions with many programs. Nevertheless, if one seizes the initial opportunity to implement this practice, it often becomes possible to maintain it as a continuing tradition.
  • Skillful use of core requirements: Incorporating actuarial science courses as core requirements in related programs, such as financial engineering or similar curricula that could benefit from financial mathematics, has proven effective. Even if students in these related majors do not immediately pursue actuarial exams, this integration fosters peer motivation and mutual support. The addition of engaging case study activities using an online group discussion platform can be beneficial to such programs.
  • Alumni outreach: An efficient, easy process of maintaining contact with alumni through annual small gatherings or events can be a good beginning to acquiring industry contacts. Integrating these graduates into the CAS University Liaison program or the SOA Advisory Board can also be valuable. Initially, meetings may occur once per semester, eventually transitioning to annual events or as needed, while maintaining effectiveness. Alumni are typically pleased to assist with informational sessions or give guest lectures on specific topics. These alumni serve as external advocates for the program, providing a voice of support beyond the immediate academic environment.
  • Actuarial Teaching Conference (ATC): The establishment of a round-table discussion for small programs at the SOA’s ATC in 2024 proved to be highly valuable and pragmatic. This forum allowed interested faculty members to get together, discuss challenges and share information pertinent to their specific contexts. The experience was notably beneficial, and attendance is strongly recommended. One professor, attending for the first time, reported a significant sense of belonging fostered by this gathering. Moreover, the attendees gained considerable encouragement and insight upon realizing that their perceived challenges were shared by colleagues from other institutions. This collective understanding provided both reassurance and wisdom to address common issues.
  • Incremental mentoring: When new students, including transfers, arrive on campus, a proactive gradual approach to mentoring can be initiated within the first semester, even if direct classroom interaction is not immediate. The frequency of contact can vary depending on individual student needs, with some students requiring more frequent communication; for the majority of new enrollees, one or two well-structured meetings generally prove adequate to furnish students with a substantial array of resources and foster a sense of affiliation within the small program. Effective implementation of these meetings is likely to yield a favorable impact on student retention rates. To efficiently systematize this process with minimal effort, it is recommended that program staff establish a routine of obtaining student rosters and email addresses from administration within the first two weeks of each semester.

Conclusion

This article continues a recent trend of discussing the challenges faced by small programs and provides strategies for dealing with course design, exam preparation, interdepartmental collaboration, achieving recognition and encouraging research. But the main purpose of the article is to continue encouraging understanding, dialogue, collaboration and support among educators. We believe this will lead to significant improvements in all actuarial programs.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the respective authors’ employers.

Sang Hoon Ahn, FIAK, ASA, MS, MAAA, is the lead faculty for the Actuarial Science program within the School of Business at Virginia Commonwealth University and serves as an officer of the SOA’s Education and Research Section. Sang can be reached atshahn27@vcu.edu.

Russell Jay Hendel, Ph.D., ASA, participates in the Actuarial Science and Risk Program at Towson University, a Center for Actuarial Excellence. He will be vice chair of the Leadership and Development council in 2024–2025. Russell can be reached at RHendel@Towson.Edu.

Fang Yang, Ph.D., ASA, is a coeditor of Expanding Horizons and a clinical associate professor and the director of the undergraduate Actuarial Science program at the Maurice R. Greenberg School of Risk Science at Georgia State University, as well as the 2024 vice chair for the SOA’s Education and Research Section. Fang can be reached at fyang10@gsu.edu.

Endnotes

[1] Jiacheng Cai, “Small Program, Big Dream: Our Journey to the 2024 SOA Student Research Case Study Challenge,” Expanding Horizons, August 2024, https://www.soa.org/sections/education-research/educ-research-newsletter/2024/august/eh-2024-08-cai/; Marco V. Martinez, “Developing an Actuarial Science Program: It Takes a Village,” Expanding Horizons, August 2022, https://www.soa.org/sections/education-research/educ-research-newsletter/2022/august/eh-2022-08-martinez/; Fang Yang, “An Actuarial Science Program: A Journey from an Introductory to an Advanced Curriculum,” Expanding Horizons, June 2024, https://www.soa.org/sections/education-research/educ-research-newsletter/2024/june/eh-2024-06-yang/.

[2] “2024 Actuarial Teaching Conference (ATC),” Society of Actuaries, https://www.soa.org/prof-dev/events/2024-atc/.

[3] Cai, “Small Program, Big Dream.”

[4] Kevin Liu and Andrés Villegas, “Reimagining Actuarial Education in the AI Era: The UNSW Experience,” presented at 2024 SOA Actuarial Teaching Conference, Nashville, TN, July 14–16, 2024. See also Emily Rafferty, “Actuarial Science Enrollment and Student Perceptions,” 2024 SOA Actuarial Teaching Conference, Nashville, TN, July 14–16, 2024. These presentations are available to SOA members under “2024 ATC Nashville Slide Decks” at https://engage.soa.org/browse/communitylibraries.

[5] Cai, “Small Program, Big Dream.”

[6] “2024 Student Research Case Study,” Society of Actuaries, n.d., https://www.soa.org/research/opportunities/2024-student-research-case-study-challenge/.