Undergraduate Student Profile - Kyle Allen

Written by: Meghan Honerlaw, M.S. candidate in Statistics

Kyle Allen
Kyle Allen recently received his B.S. degree in Actuarial Science (Honors) and Statistics in December 2008. With his strong aptitude in math and science, Kyle was drawn to the actuarial field while in junior high school. After his curiosity was piqued, he began looking into the profession and realized all the benefits of being an actuary; namely job security and, of course, salary.

Kyle graduated from Harrison High School in West Lafayette, Indiana and knew Purdue had an actuarial science program. He actually started at Purdue as a physics major, but always had the notion of taking the actuarial exams and becoming an actuary. After his first year, Kyle realized he was truly interested in actuarial science and decided to switch his major from physics to actuarial science and statistics. It was after he changed majors that Kyle participated in his favorite class, MA373, Introduction to Interest Theory. Kyle says he enjoyed the class because of its practical real-world applications to the actuarial profession and because it aided him in the first actuarial exam he took.

To become an "Actuary" an individual must become an Associate, and ultimately a Fellow, of one of two professional societies (Society of Actuaries (SOA) or Casualty Actuarial Society (CAS)). This requires passing eight or nine actuarial exams. The Purdue Actuarial Science program provides preparation for the first five exams, FM (Financial Mathematics), P (Probability), MFE (Financial Economics), MLC (Life Contingencies), and C (Construction and Evaluation of Actuarial Models). To be competitive in the job market, seniors must pass the FM and P exams before interviewing during their senior year. Kyle has passed three exams, the FM, P, and MLC exams. This past November he sat for the MFE exam and is awaiting his score. Having passed three exams, Kyle had an advantage in the job market over his peers who had passed fewer exams.

Kyle knew that internship experience would also make him competitive in today’s job market. For assistance in finding an internship, Kyle turned to Purdue’s Actuary Club. Kyle says, "The club's interviewing program is the most essential tool a student can utilize in finding internships and full-time positions. Instead of a busy day at the job fair, where you are one of hundreds of students hunting for an opportunity, companies come to you on an individual basis. The companies come to Purdue on a staggered schedule, so you have the unique opportunity to go to presentations and participate in full-length interviews throughout the entire semester. Also, by being exposed to so many companies, you get a good feel for differences among areas of the actuarial field and the basics on how each company operates."

Through his participation in the club’s interviewing program, Kyle received an internship with Lafayette Life Insurance, a life/annuity company. During his internship last year, Kyle worked in the Financial Reporting and Valuation sector. In this sector, he worked closely with accountants to produce the company's financial reports. He used modeling to determine how much money the company reserves in order to cover claims and make a profit. "While working at Lafayette Life Insurance, I realized how much I had learned in my classes at Purdue," says Kyle. "I like the work in this area, but I hope to gain experience on the pricing side of life/annuity as well." Kyle will get his wish. Lafayette Life Insurance offered him a full-time position working in the life/annuity actuarial sector.

It is a common misconception that the actuarial profession is "boring". Kyle knows better. He enjoys the problem solving aspect of the profession. Kyle adds, "Actuarial work provides a chance to mingle academic theory with real practical application. Some projects are very technical, like creating a system of databases, while others are largely theoretical, like coming up with a list of statistical assumptions for a model. There is a lot of respect in the insurance field for actuaries because the field demands that you constantly learn new methods and applications."

For incoming students, Kyle advises, "Start off strong and maintain your grades from day one in this competitive field. Your GPA is very likely to be the first thing your future employer will look at and is an effective tool to get your foot in the door. When the first signs of difficulty arise in your classes, get help! Whether it is pulling long hours or going to see your professors, just get it done!"

January 2009