INTERNATIONAL DEVELOPMENTS IN ACTUARIAL EDUCATION Chris Daykin Strategy Implementation Group Faculty and Institute of Actuaries

ROUTES TO ACTUARIAL EDUCATION 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) 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 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 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 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 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

Applications Core Technical Core (QRA+) Pre-entry Knowledge

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) Stakeholders  General Environment Investment and assets Risk Specifying the problem Input validation Developing the solution Living with the solution Monitoring/feedback  Professionalism

KEY ELEMENTS 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 Life insurance General insurance Pensions and other benefits Finance & Investment Health & Care

SPECIALIST LEVEL 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 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) 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 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 CT1Financial Mathematics102 CT2Finance and Financial Reporting108 CT3Probability and Mathematical Statistics101 CT4Models103 & 104 CT5Contingencies105 CT6Statistical Methods106 CT7Economics107 CT8Financial Economics109

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 ST1Health & care ST - ST2Life Insurance ST302 ST3General Insurance ST303 ST4Pensions & other Benefits ST304 ST5Finance & Investment ST A305 ST6Finance & Investment ST BCiD 302, 3, 4 can be used as credit for ST or for CA12 If used for CA12 cannot take corresponding ST

SPECIALIST APPLICATIONS SA1Health & care SA - SA2Life Insurance SA402 SA3General Insurance SA403 SA4Pensions & other Benefits SA404 SA5Finance SA - SA6Investment SA401 No requirement to take an SA that corresponds to the STs taken, but SA will assume knowledge of relevant ST