UNL Graduates Support Nebraska’s Third-Largest Industry
By Susan Houston Klaus
University of Nebraska student Otto Gross wanted to be an actuary. But in 1924, the university didn’t have an actuarial science program. So, he and some friends convinced their math professor, Floyd S. Harper, to teach them the equivalent of today’s Theory of Interest and Life Contingencies course. Their nudging gave actuarial science a jump start, not only in Nebraska but across the country. Fast forward 100 years and Gross’ name lives on in the Otto Gross Fund.
The fund, started by Gross’ son, Gary, who also became an actuary, includes a $100,000 matching gift for the Actuarial Science Program at Nebraska — $50,000 for the Otto Gross Fund for scholarships and $50,000 for the World Class Actuarial Science Fund for student and faculty support.
A century after Otto Gross and his friends convinced Harper to share his knowledge, UNL has become a valuable partner in providing actuarial science graduates to insurance companies in Nebraska. Insurance is the third-largest industry in Nebraska, with 14,000 professionals working in the home offices of the state’s insurers, according to the Nebraska Department of Insurance. Many insurance companies are domiciled in Nebraska, including local names like Assurity, Ameritas and Mutual of Omaha as well as companies like Pacific Life and Aflac.
“Our program was originally designed just to provide actuaries to feed the local companies, but then as we’ve grown, we’ve really built a strong reputation,” said Sue Vagts, director of the Actuarial Science Program at the University of Nebraska–Lincoln. “Now our students graduate and go all over the United States and, really, all over the world.”
UNL actuarial science grads lead Nebraska insurance companies, including as CEOs of Mutual of Omaha, Assurity and Ameritas. Vagts said local companies may have 50 or more UNL actuarial science alumni working for them.
UNL’s program holds an esteemed honor. It’s one of 15 in the United States with the Center of Actuarial Excellence/University Earned Credit (CAE/UEC) designation — the highest level of recognition given by the Society of Actuaries.
Otto Gross’ story is a great example of the initiative the program’s students have, Vagts said.
“That’s kind of how actuarial science students are. They’re super bright, they’re energetic, they’re engaged, and they really are the kind of students that go out and change the world.”
“That’s kind of how actuarial science students are. They’re super bright, they’re energetic, they’re engaged, and they really are the kind of students that go out and change the world.”
What is Actuarial Science?
Actuarial science uses analytical skills and knowledge in economics, finance, mathematics and statistics to manage risk and its financial consequences. As “architects of financial security,” actuaries are key players in companies that deal with risk, including insurance companies.
“Actuaries work with designing, pricing and making sure insurance companies are adequately funded to support people when bad things happen,” said Vagts. “They’ve made sure that the insurance company has set aside enough money to pay the future claims that come, so that when you have that accident, you can file your claim, be reimbursed quickly and get back on with your life as quickly as possible.”
