Travel Time An Introduction to the Cost of Becoming a Casualty Actuary Arlie Proctor, FCAS, MAAA Vice President, Munich Re America Chair, CAS Examination Committee

2 CANE 26 September 2006 Agenda How does the CAS define “travel time?” Recent study results What those results mean to candidates and employers What the CAS is doing to affect travel time

3 CANE 26 September 2006 How does the CAS define travel time? Prior to 2001, the CAS defined travel time to be the average elapsed time from first exam to ACAS/FCAS for each new graduating class or the average number of exam sittings. In November, 2001, the CAS Board of Directors redefined travel time to be the median time from employment date to ACAS/FCAS by year of first actuarial employment. Furthermore, the Board of Directors defined 5-7 years as the target.

4 CANE 26 September 2006 Recent Study Results The following are from the 2005 report on travel time and are based on Exam/VEE results through May 2005  Distribution of travel times for the population of all ACAS/FCAS  Median travel times for starting cohorts  “Fisher” statistics  New entrant statistics

5 CANE 26 September 2006 Travel Times for Associates

6 CANE 26 September 2006 Travel Times for Fellows

7 CANE 26 September 2006 Median Travel Time: FCAS

8 CANE 26 September 2006 Fisher Statistics for FCAS

9 CANE 26 September 2006 Fisher Statistics for FCAS

10 CANE 26 September 2006 Demographics – Who is Sitting?

11 CANE 26 September 2006 How are they Doing?

12 CANE 26 September 2006 Sitting Statistics

13 CANE 26 September 2006 What does it all mean? Travel time appears to be improving. We have never come close to achieving the current board goal of 5-7 years median travel time. Is that bar too high? Enrollment is up sharply and the supply of future Fellows is increasing, even if there is something of a supply crunch at the moment. Our demographics are changing, and we need to keep a careful eye on them.

14 CANE 26 September 2006 What is the CAS doing to affect Travel Time? Looking for syllabus materials with better pedagogical approach. Administering higher quality, shorter examinations with more emphasis on core knowledge and less on exam taking skills. Redefining what every actuary needs to know (White Paper presented at September 2006 Board meeting).

15 CANE 26 September 2006 Questions and/or Comments?