UTEP, Society of Actuaries Partner to Increase Diversity in Actuarial Profession
By Laura L. Acosta
UTEP Marketing and Communications
The Diversity Extension program is among the SOA’s key strategic initiatives, which aim to engage diverse communities to address societal issues and build a more diverse actuarial profession by partnering with HSIs and Historically Black Colleges and Universities, or HBCUs.
UTEP is one of two universities designated as an SOA Center of Actuarial Excellence to take part in the program. The other is Morgan State Ãå±±ÂÖ¼é – located in Baltimore, Maryland – one of the nation’s HBCUs.
The program – crafted in partnership between UTEP, Morgan State and the SOA – will allow high-achieving undergraduate students in the Woody L. Hunt College of Business risk management concentration in finance to earn credit for some SOA preliminary examinations, such as the Financial Mathematics exam. Exam credit will be awarded to students who receive required scores in courses that cover that exam’s syllabus.
"The opportunity to participate in the SOA program certainly brings attention to our risk management degree and to the quality of students produced with these much-needed skillsets," said James E. Payne, Ph.D., Dean of the College of Business Administration.
Actuaries use math and statistics to help organizations such as insurance companies measure and manage risk. To become an actuary, a candidate must pass a series of exams in areas such as probability, financial mathematics, and actuarial modeling to demonstrate to actuarial employers that a clear set of skills have been mastered.
“UTEP was selected for this UEC Diversity Extension Program because of our demonstrated successes in building a diverse pipeline for Hispanic students and graduates in the actuarial field,” said Erik Devos, Ph.D., professor of finance and associate dean of the Woody L. Hunt College of Business. “Although our program is fairly new, our students and graduates are passing actuarial exams and moving into actuarial positions.”
Since 2017, UTEP’s Risk Management Academy has aimed to increase diversity in the actuarial workforce by preparing students with the knowledge and exam preparation to succeed in the actuarial field.
It is one of four corporate academies in the Woody L. Hunt College of Business designed to engage corporate partners in the delivery of relevant coursework and experiential learning opportunities for students.
Students in the Risk Management Academy develop leadership and business skills through professional development activities, internship and job placement, and certification exam preparation.
Devos said the UEC Diversity Extension program will provide UTEP with additional resources to grow and expand opportunities for students.
Participating schools will receive financial assistance to strengthen their actuarial science programs, including instructor fees, textbooks, study materials, exam fees and other needs that may be present. The support will be flexible to address the needs of the participating university.
At UTEP, the Diversity Extension program will help amplify the efforts of the successful risk management program by providing technical support for faculty, financial resources to support students who are taking SOA exams, and additional corporate partnerships to create new career pathways, Devos said.
“Equally important, the program will remove some of the barriers that underrepresented students face as they navigate preparing for professional exams and will allow us to create a more equitable pathway into the actuarial profession,” he added.
In 2020-21, 93% of the college’s Risk Management Academy students and graduates were Hispanic.
The fall 2021 SOA Diversity Report estimated that 3.7% of new entrants into the actuarial profession who had taken the Financial Mathematics or Probability exams in 2021 were Hispanic and 3.8% were Black. Nearly 65% of new entrants in 2021 were White.
“We aim to foster a more diverse and inclusive profession by focusing on specific, meaningful efforts to address the real barriers to entry,” SOA President Jennifer Gillespie said. “This is an investment in strengthening actuarial science programs at universities that serve predominantly underrepresented communities and giving their students the opportunity to participate in a piece of the UEC program is one practical step we can take. It’s not enough, of course, and not all we will do, but we think it’s a significant move forward. Achieving meaningful change will take time and the combined efforts of many in the profession.”
UTEP’s risk management curriculum integrates four classes specifically designed to help students pass national actuarial Financial Mathematics (FM) and Probability exams. Students who successfully complete the UEC-certified FM course will receive FM exam credit. Devos expects to start offering the UEC-Certified FM course during the 2022-23 academic year.
For more information about UTEP’s Risk Management Academy, visit /business/riskmanagement/.