REPORT ON THE RESPONSES TO THE IEPC QUESTIONNAIRE AND SOME THOUGHTS ON THE DEVELOPMENT OF THE IAEP Chris Daykin, Executive Director, IAA Fund

Responses to questionnaire Questionnaire responses received : 65 Additional countries included in analysis : 5 Total countries covered by analysis : 70 However, it should be noted that the responses of the SoA, the UK Actuarial Profession and to a lesser extent the Institute of Actuaries of Australia, in fact represent students of the actuarial profession in a number of other countries which are not specifically identified in this analysis

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Does your association organize actuarial education/examinations? (by number of associations)

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Does your association organize actuarial education/examinations? (by number of students)

PROFESSIONAL EXAMINATION SYSTEMS Students currently under professional examination systems AssociationNumber of students a year Society of Actuaries10,000 UK Actuarial Profession 8,000 India 4,000 Casualty Actuarial Society 3,000 China 3,000 Japan 2,300 South Korea 2,000 Germany 1,700 Australia 500 Brazil 400 Taipei 300 Russia 200 Philippines 150 Indonesia 100 TOTAL35,650

PROFESSIONAL EXAMINATION SYSTEMS Possible future demand under IAEP CountryNumber of students a year China 2,500 India 2,500 South Korea 1,500 Asia (other) 1,500 Central & Eastern Europe 1,500 Africa 1,300 Latin America 600 MENA 300 Other 300 TOTAL12,000

PROFESSIONAL EXAMINATION SYSTEMS Possible future demand under IAEP CountryNumber of students a year Low projectionHigh projection China 2,000 3,000 India 2,000 3,000 South Korea 1,000 2,000 Asia (other) 1,000 2,000 Central & Eastern Europe 1,000 2,000 Africa 1,000 1,600 Latin America MENA Other TOTAL 8,80015,200

PROFESSIONAL EXAMINATION SYSTEMS Possible future demand under IAEP - Asia CountryNumber of students a year China 2,500 India 2,500 South Korea 1,500 Taipei 400 Bangladesh 150 Indonesia 150 Philippines 150 Hong Kong 100 Pakistan 100 Vietnam 100 Malaysia 100 Singapore 50 Sri Lanka 50 Thailand 50 TOTAL (incl. 100 other) 8,000

PROFESSIONAL EXAMINATION SYSTEMS Possible future demand under IAEP - Africa CountryNumber of students a year South Africa 700 Morocco 100 Nigeria 70 Kenya 50 Ghana 30 Other East and Central Africa 100 French-speaking Africa (other) 50 TOTAL 1,300

PROFESSIONAL EXAMINATION SYSTEMS Possible future demand under IAEP – Other CountryNumber of students a year Brazil 350 Other Latin America 250 Russia 500 Central Asia/CIS 500 Central Europe 500 MENA 300 Other 300 TOTAL 2,700

UNIVERSITY INVOLVEMENT Does your association currently rely, at least in part, on education provided by universities?

UNIVERSITY INVOLVEMENT Countries with universities interested in teaching IAA core syllabus

UNIVERSITY INVOLVEMENT Countries with universities interested in teaching IAA core syllabus

UNIVERSITY INVOLVEMENT Countries with universities interested in teaching IAA core syllabus

UNIVERSITY INVOLVEMENT Possible levels of accreditation > Level 1 > Financial Mathematics > Economics > Probability & Mathematical Statistics > Accounting > Level 2: Above subjects plus > Statistical Methods > Modelling > Actuarial Mathematics > Level 3: Above subjects plus > Investment and Asset Management > Actuarial Risk Management

UNIVERSITY INVOLVEMENT University accreditation Level 1 > Full accreditation to teach and examine(1) Level 2 > Accreditation to teach and examine all 7 subjects (2A) > Accreditation to teach and examine 1-4+modelling (2B) > with IAEP examinations in Statistical Methods and Actuarial Maths Level 3 > Accreditation to teach and examine all 9 subjects (3A) > Accreditation to teach 7 subjects (3B) > with IAEP examinations in Investment and Actuarial Risk Management

UNIVERSITY INVOLVEMENT Different combinations of universities at different levels

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Role of IAEP > Specification of core syllabus and curriculum > Preparation and promulgation of tuition materials > Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B > Set, administer and mark examinations in key subjects: > Statistical Methods > Actuarial Mathematics > Investment and Asset Management > Actuarial Risk Management > Design generic professionalism training and… > …assist local associations to run professionalism courses

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Role of IAEP > Specification of core syllabus and curriculum > Preparation and promulgation of tuition materials > Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B > Set, administer and mark examinations in key subjects: > Statistical Methods > Actuarial Mathematics > Investment and Asset Management > Actuarial Risk Management > Design generic professionalism training and… > …assist local associations to run professionalism courses

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Specification of core syllabus and curriculum > New core syllabus and guidelines to Council > Develop more detailed curriculum for meeting syllabus > Specify reading materials suitable for curriculum > for most subjects there will be a number of alternatives > selected reading will give an indication of depth as well as breadth > Identify where new tuition materials might be needed

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Role of IAEP > Specification of core syllabus and curriculum > Preparation and promulgation of tuition materials > Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B > Set, administer and mark examinations in key subjects: > Statistical Methods > Actuarial Mathematics > Investment and Asset Management > Actuarial Risk Management > Design generic professionalism training and… > …assist local associations to run professionalism courses

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Preparation and promulgation of tuition materials > Plan programme of new tuition materials > Commission authors for each subject or part of subject > Monitor and peer review preparation of materials > Edit and prepare for publication (electronic and paper) > Commission on-line distance-learning modules > Implement on-line distance-learning programme

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Role of IAEP > Specification of core syllabus and curriculum > Preparation and promulgation of tuition materials > Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B > Set, administer and mark examinations in key subjects: > Statistical Methods > Actuarial Mathematics > Investment and Asset Management > Actuarial Risk Management > Design generic professionalism training and… > …assist local associations to run professionalism courses

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Accreditation of universities > Determine requirements for accreditation > syllabus coverage > teaching staff > teaching methods > examination processes > examination standards > involvement of actuaries > relationship with local association > Review whether requirements are met and accredit > Monitor and regularly review accreditation status > Develop training the training and visiting lecturers

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Role of IAEP > Specification of core syllabus and curriculum > Preparation and promulgation of tuition materials > Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B > Set, administer and mark examinations in key subjects: > Statistical Methods > Actuarial Mathematics > Investment and Asset Management > Actuarial Risk Management > Design generic professionalism training and… > …assist local associations to run professionalism courses

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Set, administer and mark examinations in key subjects > Subcontract setting and marking of each examination > to a university > to an existing actuarial examining body > to an actuarial association or actuarial educational institute > Subcontract administration of each examination… > …or all examinations together > to locate and supervise examination centres > to organise registration for examinations > to organise logistics of getting papers to centre > to maintain confidentiality and security of papers > to ensure high standards of invigilation > to collect papers and deliver them to markers

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Role of IAEP > Specification of core syllabus and curriculum > Preparation and promulgation of tuition materials > Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B > Set, administer and mark examinations in key subjects: > Statistical Methods > Actuarial Mathematics > Investment and Asset Management > Actuarial Risk Management > Design generic professionalism training and… > …assist local associations to run professionalism courses

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Design and delivery of professionalism training > Design generic professionalism course > …with wide selection of case studies > …powerpoint presentations > …notes for presenters and notes for participants > …devise role-plays and/or produce video > Make available course leaders to assist associations to run course for the first time and train local course leaders

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Other possibilities > diploma courses to kick start professional education > other short courses to supplement local universities > development of CPD modules in more advance topics > International Financial Reporting Standards for actuaries > actuarial role in Solvency II and IAIS equivalent > reserving and pricing for general (P/C) insurance > internal models > fair value for insurance companies > actuarial role in pension reform and private pension plans > actuarial role in social security schemes > actuarial role in health care financing > develop generic materials + team of specialist presenters

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Discussion….

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Potential sources of funding > World Bank > Inter-American Development Bank > African Development Bank > Asian Development Bank > European Bank for Reconstruction and Development > development agencies of individual countries > charitable trusts > commercial organisations > charge universities for accreditation

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Commercial organisations > International reinsurance companies > International direct insurance companies > International actuarial consulting firms > International accountancy firms with actuarial presence

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Commercial organisations > Reinsurance companies, say 4 at $50,000 a year > Direct insurance companies, say 4 at $50,000 a year > Actuarial consulting firms, say 5 at $30,000 a year > Accountancy firms, say 3 at $50,000 a year > this would yield $700,000 a year > develop prospectus and covering letter from President > focus in particular on development of training materials

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Development banks > approach each with proposal having regional focus > translation costs of tuition materials relevant to region > university development in region > training the trainers > CPD courses relevant to needs of region > particular focus on social role of actuaries > good governance of social security and public pension plans > regulation and supervision of pension plans > regulation and supervision of insurance companies > meeting Financial Sector Assessment Programme criteria

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Individual country development agencies > approach each with proposal having tailored focus > translation costs of tuition materials into their language > participation of universities from country in programme > training the trainers > particular focus on social role of actuaries > good governance of social security and public pension plans > regulation and supervision of pension plans > regulation and supervision of insurance companies > meeting Financial Sector Assessment Programme criteria > joint approach by IAA and local actuarial association

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Individual country development agencies > UK > US > Canada > France > Germany > Netherlands > Sweden > Japan > Italy > Australia > Switzerland > Norway > Spain > Portugal

INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME Training the actuaries of the future - for a global profession