Dr Trevor Watkins Director of Education Educating the Actuaries of the Future ATRC 02 December 2014

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Education role in 3 parts Preparing qualified actuaries who are ‘fit for purpose’ Maintaining standards Developing system for the future 2

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Student numbers by country CountryNumber UK5822 India3230 Ireland705 RSA522 Kenya459 PR China364 Malaysia290 Singapore266 Zimbabwe196 Hong Kong121 3

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 “A global community” – April 2014 Session 26 exams of which students need 15 to qualify 13,607 entries from 9,846 students (out of 13,468 registered students) 168 exam centres in 81 countries 100 volunteer Examiners who set papers in teams 189 volunteer Markers involved in double blind marking each paper 320 entered ST9 (ERM) for CERA award 550 entered CT1 as non-members 295 qualified as Fellows 4

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Assessments Work-related skills –Work-Based Skills (WBS) Examination subjects –9 Core Technical (CT) –3 Core Applications (CA) –2 Specialist Technical (ST) –1 Specialist Application (SA) Including practical exams –Business awareness (CT9) –Model documentation, analysis and reporting (CA2) –Communications (CA3) 5

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Working with Universities – Accreditation Currently 17 Accredited Universities Broader range of courses now available, including part-time and distance learning courses Equivalence – more scope for universities’ expertise in teaching, learning and assessment Monitoring – by Independent Examiners, Staff Actuaries, employers, students Tracking of subsequent progress with Profession’s exams 6

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Work Based Skills (WBS) - Aims Interaction between theory and practice Commercial environment Professionalism & ethics Communication Management skills Public need for competence Continuing development Reflection and self-assessment 7

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Professionalism … to ensure professional behaviour… At outset –Confirm online that Actuaries’ Code has been read and understood Before taking CT9 –Online multiple choice test on ethical matters Between 4 th and 6 th year of membership –1-day professional skills course (or online) –Taken on attaining Fellowship if not already undergone 8

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 What do employers want? –A good academic record – usually a maths A level at Grade B or A, and a 2:1 at degree level –Work experience/internships –47% of employers say that “it would be unlikely” that they would hire a candidate if they had no work experience (doesn’t have to be actuarial) *High Fliers research, 2012 –Good communication skills – IT skills – An interest in business/relevant industry knowledge – Commitment to the exams and your career – Enthusiasm 9

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Overview of the new CAA qualification Two new membership categories (Certified Actuarial Analyst and Student Actuarial Analyst) and an associated qualification It has been developed in response to market demand A desirable qualification for those working alongside actuaries and in broader financial services This will bring such roles within a professional environment, equipping Certified Actuarial Analysts with high quality technical skills and the support of a leading professional body Certified Actuarial Analysts are clearly differentiated from Fellows and Associates. They can use the post-nominal letters ‘CAA’ 10

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Strategic review of the IFoA qualification process Some key issues: –Time taken to qualify –Relevance –Competences v knowledge 11

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Actuarial skill sets – today /14 “A guide to Becoming an Actuary” Intelligence Communication skills Understanding and meeting clients’ needs Teamwork and organisation Business acumen Common sense 12

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Actuarial education - present 13 Core Technical subjects not purely mathematical Qualify as a specialist actuary rather than generalist Increased range of specialism areas available (e.g. banking/finance, health and care) Greater focus on business and “softer” skills (CT9, CA2, CA3, WBS, Professionalism) Use of Universities More use of Online delivery CERA Analyst qualification (CAA) 13

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Changing skills requirements 14 Intelligence and numeracy is no longer enough Analytical skills “Big data” Interpretation Simplification of models? Softer skills / business skills More globalised / transferable skills? Increased interaction with (and competition from) other professionals? 14

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Some key questions Should we include computer programmes in the early subjects (R or SAS)? Should we rebalance technical skills with softer skills? Should we use more work-based-assessment rather than formal exams? Should we do more computer based assessment? Should we add more on data analytics? What can we drop from the content? 15