Centre for Actuarial Research Actuarial education Rob Dorrington Professor of Actuarial Science

Centre for Actuarial Research Overview  Routes  University-specific  Response to 2005  South African Qualification Examinations  Problems

Centre for Actuarial Research Routes  Self study (traditional, part-time)  Postgraduate (occasionally some students go to UK to complete the examinations)  No degree (very few these days)  Virtually all through the Institute and Faculty of Actuaries in the UK  University specific  All fashioned on the UK curriculum

Centre for Actuarial Research University-specific  Undergraduate  Subjects covered by general university courses: Statistics, Economics, Financial Accounting(?) Financial Economics(?), Stochastic modelling (?)  Specialist subjects: Financial Mathematics, Survival Models, Life and Pensions Maths, Risk Stats and Modelling  Exemptions determined by external/independent examiners (in SA usually require 60%+)  Exemptions only as part of degree, and once degree completed

Centre for Actuarial Research University-specific  Undergraute ( Contd )  Most SA degrees have major in Mathematical Statistics and two years of Mathematics  UCT BBusSc also has: two years Economics and business courses (e.g. Law, HRM, marketing, etc)  Postgraduate  Preparation/training on 300 series subjects  Exemptions courses offered by only two universities  Maximum exemptions allowed per university is 3 out of 4 (5 from this year) subjects  Must be part of a degree/diploma and only awarded after completion of degree/diploma

Centre for Actuarial Research Likely response to the 2005 education strategy  Can only speak for UCT  Still much uncertainty about future developments  Core Technical  All CT subjects except CT4 (Models) map 1-1 onto existing undergraduate courses  Will replace 103 and 104 with CT4 (possibly as a full course over a year, depending on size)  Assuming the “business awareness module” is provided for, in the case of the BBusSc students, by passes in a combination of courses such as: Thinking About Business, Human Resource Management, Business Law, Marketing, and Business Strategy

Centre for Actuarial Research Likely response to the 2005 education strategy  Core Applications  CA1 (Core Applications Concepts - i.e. assets, liabilities and asset-liability modelling): Need further clarity on what this entails but probably cover by expanding our existing 301 course  CA2 (Modelling): Waiting to see what this entails - possibly work in AIDS modelling?  CA3 (Communications): Use our existing exemption course

Centre for Actuarial Research Likely response to the 2005 education strategy  Specialist Technical  ST2 to ST4 (Life, General and Pensions) already covered as exemption courses  We have been offering courses in health care financing so will decide whether we want to offer ST1 (Health can Care)  Need to decide if we want to employ someone to offer ST5 and/or ST6 (Finance and Investment A and/or B). Fits in with our degree in Quantitative Finance.  However, may need to limit offerings since not enough students to support all (students need only 2 subjects)  May discuss specialization with other Us

Centre for Actuarial Research Likely response to the 2005 education strategy  Specialist Applications  Currently don’t offer this level of subjects  S A qualification (UK vs SA)  Could expand any or all of our current subjects to offer ST course  Not enough students to support the whole suite  Not exemption, and many changes, so unlikely to rush into this, unless much support from the industry/profession

Centre for Actuarial Research South African Qualification Examinations  From this year SA to offer South African equivalents of the 400 series subjects - the ‘Fellowship’ examination.  Syllabi and Core Reading has been prepared by South African Actuaries (in consultation with UK bodies and structured on the UK syllabi) on Investments, Life, Pension and General  Examination jointly between SA and UK. Students awarded FIA or FFA.  Exemptions not to be awarded  Only offering once a year, in September  Only Wits currently offering courses (UCT still considering)

Centre for Actuarial Research Problems  Frequent changes (every 5-10 years)  Need up to three years to phase new subjects into a four year degree  Usually won’t allow exemptions from new subjects for a number of year  Reluctance to recognize university examination  Insistence on closed book examinations as the only form of assessment encourages (forces?) a great deal of rote learning  Cost of correspondence material (priced in £) and membership and examination fees while sitting exams