Transcript international developments in actuarial education

INTERNATIONAL
DEVELOPMENTS IN ACTUARIAL
EDUCATION
Chris Daykin
Strategy Implementation Group
Faculty and Institute of Actuaries
ROUTES TO ACTUARIAL
EDUCATION
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exams offered by the profession
university education
professional exams allowing for exemptions
university education + professional exams
university education + experience
ALTERNATIVE ROUTES OF
ACTUARIAL EDUCATION
• professional body sets full set of examinations
- UK, USA, Japan, Greece, Netherlands
• university plus professional examinations
- Australia, Germany, Switzerland, UK, South Africa
• government controlled examination
- Italy, Finland, Greece
• university education only
- Austria, Belgium, Denmark, France, Portugal, Spain
• reliance on qualification routes in other countries
- Canada, Ireland, South Africa, Cyprus
INTERNATIONAL ACTUARIAL
ASSOCIATION (IAA)
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new constitution in June 1998
adoption of core syllabus and guidelines
applies for students starting from 2005 onwards
requirement for Full Member Associations
transitional arrangements permitted
PURPOSES OF GUIDELINES
AND SYLLABUS
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to help establish new education systems
for reviewing existing education systems
to underpin bilateral mutual recognition
for accreditation as Full Members of IAA
NATURE OF GUIDELINES
AND SYLLABUS
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not prescriptive for associations
leaves structure of actuarial education open
emphasis and packaging may differ
additional requirements permitted
overall balance of depth and breadth
indicative reading provides guidance
IAA CORE SYLLABUS - 1
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financial mathematics
probability and mathematical statistics
economics
accounting
modelling
statistical methods
IAA CORE SYLLABUS - 2
• actuarial mathematics
* life insurance
* general insurance
* pensions
* health care
• investment and asset management
• principles of actuarial management
• professionalism
STRATEGIC REVIEWS
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IAA Syllabus and Guidelines (by 2005)
Groupe Consultatif Core Syllabus (by 2005)
Faculty and Institute of Actuaries (for 2005)
Society of Actuaries (with CAS) (for 2005)
Institute of Actuaries of Australia (Parts II/III)
Joint Education Task Force 2005
JOINT EDUCATION TASK
FORCE 2005
• Society of Actuaries/Casualty Actuarial Society
* review of joint Parts 1 to 4
• Society of Actuaries
* review of rest of ASA and FSA syllabus
• Faculty and Institute of Actuaries strategy 2005
• Institute of Actuaries of Australia review of Pts 2/3
• discussions on QRA and common syllabus
QRA
Quantitative Risk Analyst:
• elements shared with other educations
• corresponds to courses taught in (US) universities
• … not just in actuarial departments
• basis for agreement between SoA, CAS & FIoA?
• and, potentially, for SoA to allow exemptions or
some form of credit
• probably not a separate designation
Country
Specific
Application
Technical
Applications
Technical
Pre-entry
Knowledge
Core (QRA+)
Core
Pensions
CORE TECHNICAL (F&IoA)
Financial Mathematics
Finance and Financial Reporting
Probability and Mathematical Statistics
Models
Contingencies
Statistical Methods
Economics
Financial Economics
+ Business Awareness Module (non-examined)
CORE APPLICATIONS
• broad education in actuarial applications
• taught and assessed by real practical examples
and courses
• exam on assets and investments
• exam on liabilities and asset/liability issues
• modelling course
• communications paper
CORE APPLICATIONS (F&IoA)
ACTUARIAL CONTROL CYCLE (IAAust)
PRINCIPLES OF ACTUARIAL MANAGEMENT (IAA)
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Stakeholders
 General Environment
Investment and assets • Risk
Specifying the problem
Input validation
Developing the solution
Living with the solution
Monitoring/feedback  Professionalism
KEY ELEMENTS
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meeting the needs of clients/customers
awareness of risk
consistency through pricing, valuation, etc
measurement of value, profit and return
holistic approach
based on principles rather than practice area
examples from a wide range of applications
ASSOCIATESHIP
Core Technical
+ Core Applications
+ Module 1 of Professionalism Course
= Associate of Institute (or Faculty) of Actuaries
(AIA or AFA)
SPECIALIST AREAS
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Life insurance
General insurance
Pensions and other benefits
Finance & Investment
Health & Care
SPECIALIST LEVEL
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2 specialist technical papers (ST)
1 specialist application assessment in two parts
1 or 2 STs may be in another speciality
dissertation as a possible alternative to one ST
other qualifications instead of one ST
structured work experience
WORK EXPERIENCE
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practical application of knowledge
development of professionalism
mentored experience
development of work-based competencies
maintenance of lifelong learning log-book
start of Continuing Professional Development
CONTINUING PROFESSIONAL
DEVELOPMENT (CPD)
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lifelong learning philosophy
need to maintain currency of knowledge
need for personal development and challenge
How formal does it need to be?
re-certification not yet on the agenda
TRANSITIONAL ARRANGEMENTS
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all passes under old should count under new
all current subjects map into something in new
should not qualify just because of change
aim to avoid students having to take extra exams
some subjects will be split for transition
CORE TECHNICAL STAGE
CT1
CT2
CT3
CT4
CT5
CT6
CT7
CT8
Financial Mathematics
102
Finance and Financial Reporting
108
Probability and Mathematical Statistics 101
Models
103 & 104
Contingencies
105
Statistical Methods
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Economics
107
Financial Economics
109
CORE APPLICATIONS STAGE
CA11 1 paper on assets
301
CA12 1 paper on liabilities and ALM
302, 3 or 4
CA2 Modelling course
CA3 Communications (English or Chinese) 201
No need to do modelling course if any of 300 series
subjects are passed before 31 December 2004
SPECIALIST TECHNICAL
ST1 Health & care ST
ST2 Life Insurance ST
302
ST3 General Insurance ST
303
ST4 Pensions & other Benefits ST
304
ST5 Finance & Investment ST A
305
ST6 Finance & Investment ST B
CiD
302, 3, 4 can be used as credit for ST or for CA12
If used for CA12 cannot take corresponding ST
SPECIALIST APPLICATIONS
SA1
SA2
SA3
SA4
SA5
SA6
Health & care SA
Life Insurance SA
General Insurance SA
Pensions & other Benefits SA
Finance SA
Investment SA
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401
No requirement to take an SA that corresponds to the STs
taken, but SA will assume knowledge of relevant ST