Education and Examination at the SOA Purdue University March 3, 2008

2 Education and Examination Goal Ensure that all who receive our designations (FSA, ASA, CERA): have the education they need to succeed and demonstrate mastery of that education.

3 We achieve that goal by… Providing relevant educational materials Developing valid and reliable examinations and assessments Ensuring fairness to candidates Conducting all processes in a professional, courteous, and efficient manner

4 The Pathway to our Designations

5 Three designations  Fellow (FSA) Fully qualified with one specialty (individual life and annuities, group and health, retirement benefits, investments, finance/ERM)

6 Three designations  Associate (ASA) Mastered fundamental concepts Is a member of the SOA, but not with full privileges

7 Three designations  Chartered Enterprise Risk Analyst (CERA) Equivalent to ASA in effort CERAs are also ASAs A special combination of exams and modules with an ERM focus.

8 Pathway to FSA APC – Associateship Professionalism Course ASA FAC – Fellowship Admission Course FSA P – Probability FM – Financial Mathematics MFE – Models for Financial Economics FAP – Fundamentals of Actuarial Practice Course – 8 modules EXAM MODULE COURSE Validation by Educational Experience MLC – Models for Life Contingencies C – Construction of Actuarial Models Track choices – Individual Life and Annuity, Group and Health, Retirement Benefits, Investments, Finance/ERM Track Exam 1 Track Exam 2 Track Module 1 Track Module 2 Decision Making and Communication Module Economics, Corporate Finance, Applied Statistics

9 Pathway to CERA APC – Associateship Professionalism Course* CERA P – Probability FM – Financial Mathematics MFE – Models for Financial Economics EXAM MODULE COURSE Validation by Educational Experience *APC can be taken with one FSA component left C – Construction of Actuarial Models Advanced Finance/ERM Exam Financial Reporting and Operational Risk Module Economics

10 CERA Notes  CERAs can become FSAs by filling in the missing pieces.  As ASAs, CERAs have the same membership rights, privileges, and obligations.

11 The E&E Structure  Volunteers are the backbone of this complex system.  Over 600 volunteers contribute and partner with staff.  Executive Group, Education, Examination and e-Learning Committees.

12 Operations and Candidate Interaction

13 Exam Development, Administration, and Grading  Central Review – Exams Finalized  Printing Process: Volunteers, Staff, and Printer  Exams Shipping

14 Exam Development, Administration, and Grading  Exams Administered  Grading: Multiple-Choice (ACT)  Grading: Written Answer (SOA Volunteers)  Grades Released

15 Candidate Interactions  We receive 300 s and 150 phone calls on average in a typical day  The number of s and phone calls is much higher during grade release  Inquiries run the gamut of issues: Basic administrative questions, credit/conversion questions, exam irregularity correspondence, complaints from those who fail, etc.

16 Myths and Legends What candidates think about us What we are Stories from the front lines

17 What candidates think  We grade on the curve  Our objective is to restrict membership in the profession  We are unforgiving stodgy bureaucrats  In other words …

18 We are the evil enemy

19 What we really are  People who take our role in determining who has met our standards seriously  People who listen and adapt.  In short, we are …

20 Wizards!

21 Activity – this will be graded  True (or should be true) stories from the E&E vaults.

22 New and Future Developments

23 E&E in 2008 and beyond  E-learning modules Wider access for SOA candidates and others Continuous improvement Strategic planning for leveraging assets  CBT More frequent offerings and converting other paper and pencil exams to CBT format

24 E&E in 2008 and beyond  Communication skills training to be emphasized at Fellowship Admissions Course  CERA seminars for current SOA members who are experienced in ERM  Participating in discussions for a global ERM credential

25 E&E in 2008 and beyond  Transparency Inform candidates how the system works and their exams are created and graded. Help candidates understand their exam results.

26 E&E in 2008 and beyond  Improving education Focus on better materials Maintain consistency in the exam system structure

27 E&E in 2008 and beyond  Improved academic relations by exploring Accreditation of programs leading to Granting exam credit for college work