Actuarial Science Master's Program (MS)

Actuaries apply mathematical theories of probability and statistics and the principles of finance to the construction and management of insurance and pension programs. The actuarial science program at the University of Wisconsin-Madison is routinely ranked among the top programs in the nation.

The graduate program in actuarial science prepares students to work in the areas of insurance and pension programs. Students acquire a foundation in mathematics and then go on to study business, computer science, economics and statistics. Actuarial science graduates apply this knowledge to construct, analyze and manage insurance and pension programs, determining sound rate and reserve structures.

Students learn from award-winning actuarial science faculty of the School of Business and from faculty from the highly ranked computer science, economics and statistics programs of the University of Wisconsin Madison.

A foundation of mathematics is first developed. The student then continues to study computer science, economics, statistics, and the functional areas of business. Only the MS degree in Actuarial Science is available.

MS Actuarial Science Admission Process

MS Actuarial Science Brochure 

MS Actuarial Science Degree Plan

Foundation Courses

• Econ 302 Macroeconomics
• Math 221,223,234 Calculus
• Math 340 Linear Algebra

Advanced Courses (30 credits minimum)

• ACCT 700 Financial Accounting
• FIN 700 Corporate Finance
• Act Sci 303 Theory of Interest and Life Insurance
• Stat 309/310 Mathematical Statistics (also Stat 311/312 or Math 431/Stat 310)
• RMI 700 Principles of Risk Management
• RMI 630 Life and Health Insurance
• OIM 312 Operations Research for Management
• Act Sci 650 Actuarial Math 1
• Act Sci 651 Actuarial Math 2
• Act Sci 652 Risk Theory and Credibility
• Act Sci 653 Loss Dist and Survival Models
• Act Sci 654 Seminar in Actuarial Science
• Gen Bus 706 Advanced Statistical Methods 1
• Master's Thesis (6 cr.) (P: consent of advisor)

Elective Courses

• Math 431 Introduction to Probability Theory
• Math 632 Introduction to Stochastic Processes (P: M431)
• Math 633 Stochastic Processes in Operations Research (P: M632)
• Math 443 Applied Linear Algebra (P: M340)
• Stat 349 Introduction to Time Series
• Stat 701 Applied Time Series Univariate
• Stat 702 Applied Time Series Multivariate
• Stat 741 Biostatistics (Survival Analysis)
• Stat 775 Bayesian Inference
• RMI XXX Insurance courses (P: RMI 700)
• Gen Bus 806 Panel Data Analysis (P: Gem Bus 706)
• FIN 720 Investment Theory (P: FIN 700)

Actuarial Program Course Descriptions

Math 221 Calculus and Analytic Geometry. I, II, SS: 5 cr. Introduction to differential and integral calculus and plane analytic geometry; applications; transcendental functions.P: (1) Sdv math comp-alg & suitable plct scores, or Math 112 & (2) Adv math comp-trig & suitable plct scores, or Math 113; or Math 114.

Math 222 Calculus and Analytic Geometry. I, II, SS: 5 cr. Techniques of integration, conic sections, polar coordinates, vectors, two and three dimensional analytic geometry, infinite series. P: Math 221.

Math 234 Calculus- Functions of Several Variables. I, II, SS: 3 cr. Introduction to calculus of functions of several variables; calculus on parameterized curves, derivatives of functions of several variables, multibple integrals, vector calculus. P: Math 222. Stdts may not receive cr for both Math 223 & Math 234.

Econ 301 Intermediate Microeconomic Theory. I, II, SS; 3-4 cr (S-I). Contemporary theory of consumption, production, pricing and resource allocation. P: Any two intro econ courses and one semester calc (Math 221 or 211; Math 221 recommended).

Econ 302 Intermediate Macroeconomic Theory. I, II, SS; 3-4 cr (S-I). Principles and theories of national income determination, analysis of savings, consumption, investment and other aggregates in the national and international economy and relation to employment, inflation and stabilization. P: Any two intro econ courses and one semester calc (Math 221 or 211; Math 221 recommended).

Math 303 Theory of Interest and Life Insurance. (Crosslisted with Act Sci) I, II; 3 cr (N-I). Application of calculus to compound interest and insurance functions; interest compounded discretely and continuously; force of interest function; annuities payable discretely and continuously; bonds and yield rates; life tables, life annuities, single and annual premiums for insurance and annuities; reserves. P: Math 234 or con reg, or cons inst.

Stat 309 Introduction to Mathematical Statistics. I; 4 cr (N-A). Elements of probability, discrete and continuous distributions, moments, moment generating functions, sampling theory, distributions associated with the normal, the central limit theorem, point estimation, principles of maximum likelihood, large sample theory. P: For majors in Business & Soc Sci, Math 223.

Stat 310 Introduction to Mathematical Statistics. II; 4 cr (N-A). Confidence intervals, theory of hypothesis testing, Bayesian estimation, method of least squares, regression, applications and limitations; analysis of variance. For majors in business and social sciences. P: For majors in Business & Soc Sci, Stat 313.

Math 340 Elementary Matrix and Linear Algebra. I, II, SS; 3 cr (N-A). Matrix algebra, linear systems of equations, vector spaces, sub-spaces, linear dependence, rank of matrices, determinants, linear transformations, eigenvalues and eigenvectors, diagonalization, inner products and orthogonal vectors, symmetric matrices. P: Math 223 or 234.

RMI 610 Property Risk Management. I; 3 cr. Comprehensive analysis of loss control and transfer techniques (including insurance), risk management concepts, loss adjustment and underwriting problems, and profitability/regulatory issues concerning the insurance industry. Current topics: large-scale catastrophes (hurricanes and earthquakes), solvency, insurance coverages for property exposures, and loss control. P: RMI 300 or Real Est 306.

RMI 615 Liability Risk Management. II; 3 cr. Comprehensive analysis of economic services, benefits, rates and rating theory, loss adjustment problems, legal theory factors, risk management concepts, loss prevention and transfer techniques and government regulation of public liability insurance. Topics include: medical malpractice, no-fault auto insurance, professional liability, workers' compensation, products liability and pollution liability. P: RMI 300.

RMI 620 Employee Benefits Management. II; 3 cr (A). Nongovernmental schemes for treating the risks of superannuation of members of a group; property, liability, legal expense, life and health coverages available to groups; organizational characteristics, benefit structure and pricing of risk transfer schemes for groups; characteristics and funding of various types of pension plans; effects of Erisa. P: RMI 300 or MHR 305.

RMI 625 Government Insurance Programs. II; 3 cr (D). Development and analysis of techniques and procedures used by the risk manager to deal with government insurance programs. Examples of programs to be covered include: Social Security, Fdic, Fcic, Oasdi, Opic, Medicare, nuclear liability, unemployment compensation, Fair plans, flood, crime, and workers' compensation. P: RMI 300.

RMI 630 Life and Health Insurance. I; 3 cr (A). Determination of human life values and the conservation of those values through personal and business life and health insurance; a consumerist orientation that develops a scheme for rational buying behavior; analysis of contractual provisions; introduction to mathematics of life contingencies and pricing. P: RMI 300 or cons inst.

Act Sci 650 Actuarial Mathematics 1. I; 3 cr (A). Advanced problems in the mathematical theory of life contingencies; force of mortality, laws of mortality; premiums and reserves for insurance and annuities based on a single life. P: Act Sci 303 and either Math 431 or Stat 313.

Act Sci 651 Actuarial Mathematics 2. II; 3 cr. Continuation of Act Sci 650. Joint life probabilities, annuities and insurances; multiple-Decrement theory; pension fund mathematics. P: Act Sci 650.

Act Sci 652 Risk Theory and Credibility. II; 3 cr (I). The individual and collective risk models for insurance systems. Methods of approximating the distribution of total claims. Application of risk theory to the operation of insurance systems; assessment of the credibility of data for ratemaking. P: Math 431 or Stat 313 or equiv.

Act Sci 653 Loss Distributions and Survival Models. II; 3 cr (A). Selection and fitting of probability distributions appropriate for insurance data that are heavy tailed and skewed; techniques for estimating mortality rates; construction of mortality tables from the records of insured lives, employee benefit plans, and population statistics. P: Act Sci 303 & Stat 313 or cons inst.

Act Sci 654 Seminar in Actuarial Science. I; 3 cr (A). Current topics in actuarial science. P: Sr st or cons inst.

Acct 700 Financial Accounting. I,II; 3cr. Principles, concepts and procedures of financial accounting essential to the proper preparation, understanding and interpretation of accounting information. P:Gradst.

Fin 700 Introduction to Financial Management. I,II; 3cr. Introduction to financial management of firms and investment decision making; both theory and practice are emphasized. Topics covered include the financial environment and securities markets, financial statements and analysis, working capital management and capital budgeting, cost of capital, dividend policy, asset valuation, investments, decision making under uncertainty and selected topics such as mergers, options, futures. P:Acct I S 700 & Gen Bus 303 or equiv.

RMI 700 Principles of Risk Management. I,II; 3cr. Background for advanced work in insurance. Nature of risk, principal techniques of risk management, and the bases for decision making in management of business and personal risks. P:Grad St & Econ 101 or 103.

Gen Bus 806 Panel Data Analysis. I; 3cr. Advanced topics in regression; nonparametric methods; time-series analysis, autocorrelation, auto-regressive and moving average models, identification, fitting, and forecasting. P:Gen Bus 706 or Stat 349 or equiv.