| INTERNATIONAL DEVELOPMENTS IN ACTUARIAL EDUCATION : INTERNATIONAL DEVELOPMENTS IN ACTUARIAL EDUCATION Chris Daykin
Chairman, Education Committee
European Actuarial Consultative Group |
| ROUTES TO ACTUARIAL EDUCATION : ROUTES TO ACTUARIAL EDUCATION exams offered by the profession
university education
professional exams allowing for exemptions
university education + professional exams
university education + experience
|
| EUROPEAN ACTUARIAL CONSULTATIVE GROUP : EUROPEAN ACTUARIAL CONSULTATIVE GROUP Consultative Group established in 1978
mutual recognition agreement in 1992
Education Committee established in 1992
core syllabus adopted in 1998
endorsement by member associations in 2001
implementation by 2005
further evolution planned |
| MUTUAL RECOGNITION : MUTUAL RECOGNITION mutual recognition of higher education diplomas a requirement of EU legislation from 1992
agreement between actuarial associations in 1992
full mutual acceptance of fully qualified actuaries …subject to adaptation period of one year
common code of conduct requirement
coordination of syllabus for actuarial education |
| OBJECTIVES FOR EACG : OBJECTIVES FOR EACG strong actuarial education throughout EU
firm basis for mutual recognition
clarity for regulators in definition of actuary
development of common educational materials
increasingly European education process
European actuaries
|
| EDUCATIONAL APPROACH : EDUCATIONAL APPROACH |
| GC SYLLABUS STRUCTURE : GC SYLLABUS STRUCTURE
Stage 0: Preliminary Stage
Stage 1: Actuarial Foundation Stage
Stage 2: Generalised Applications Stage
Stage 3: Country/Practice Area Stage |
| PRELIMINARY STAGE : PRELIMINARY STAGE
mathematics
probability & statistics
stochastic processes
computing
economics
accounting & reports
structure of EU
communication
language |
| ACTUARIAL FOUNDATION STAGE : ACTUARIAL FOUNDATION STAGE financial mathematics
survival models and simple applications
risk mathematics
investment and asset management |
| GENERALISED APPLICATIONS STAGE : GENERALISED APPLICATIONS STAGE actuarial control cycle
life insurance
general insurance
pensions and social security
health insurance & living benefits |
| PRACTISING STAGE : PRACTISING STAGE country specific terminology
commercial environment
legal & accounting environment
practical applications in this context
advanced applications
professionalism & standards
continuing professional development |
| WHAT NEEDS UPDATING? : WHAT NEEDS UPDATING? bibliography
non-life statistical methods
more on financial maths, financial risk management and solvency methods
keep up with modern thinking
reflect convergence of practice areas
proposal to introduce finance subject |
| ACTUARIAL FOUNDATION STAGE (revised) : ACTUARIAL FOUNDATION STAGE (revised) financial mathematics
survival models and simple applications
risk mathematics
investment and asset management
finance and financial economics |
| INTERNATIONAL ACTUARIAL ASSOCIATION (IAA) : 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 : 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 : 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 : IAA CORE SYLLABUS - 1 financial mathematics
probability and mathematical statistics
economics
accounting
modelling
statistical methods |
| IAA CORE SYLLABUS - 2 : IAA CORE SYLLABUS - 2 actuarial mathematics * life insurance * general insurance * pensions * health care
investment and asset management
principles of actuarial management
professionalism |
| STRATEGIC REVIEWS : 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 2/3)
Joint Education Task Force 2005 |
| CORE TECHNICAL (F&IoA) : 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 : 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) ASSOCIATESHIP COURSE (SoA) PRINCIPLES OF ACTUARIAL MANAGEMENT (IAA) : CORE APPLICATIONS (F&IoA) ACTUARIAL CONTROL CYCLE (IAAust) ASSOCIATESHIP COURSE (SoA) 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 : 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 (F&IoA) : ASSOCIATESHIP (F&IoA) Core Technical
+ Core Applications
+ Module 1 of Professionalism Course
= Associate of Institute (or Faculty) of Actuaries
(AIA or AFA) |
| SPECIALIST AREAS : SPECIALIST AREAS Life insurance
General insurance
Pensions and other benefits
Finance & Investment
Health & Care
|
| SPECIALIST LEVEL : 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 : 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
|
| ASSOCIATESHIP (SoA) : ASSOCIATESHIP (SoA) Validated by educational experience - Economics (E) - Corporate Finance (CF) - Applied Statistical Methods (AS)
Validated by traditional actuarial examination - Probability (P) - Mathematics of Finance (MF) - Models for Quantifying Risk (M) - Construction and Evaluation of Risk Models (C)
ASA Course – the Control Cycle |
| CONTINUING PROFESSIONAL DEVELOPMENT (CPD) : 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
|
| IAA PROCESS : IAA PROCESS still under discussion
self-certification the first step
audit by subcommittee of Education Committee
difficulty of defining depth
challenge of specialist qualifications |
| MUTUAL RECOGNITION : MUTUAL RECOGNITION IAA process may facilitate mutual recognition…
… but at “Associateship” level
bilateral agreements most likely
exam for exam credit |
| A&A – DIPLOMA PROGRAM : A&A – DIPLOMA PROGRAM F&IoA programs in central & eastern Europe
preliminary actuarial education
not necessarily sufficient for IAA accreditation…
… but may be a good start
needs to lead on to full actuarial education process
Basic Diploma Program (1 year)
Advanced Diploma Program (1 year)
Dissertation and defence (6 months) |
| BASIC DIPLOMA PROGRAM : BASIC DIPLOMA PROGRAM Financial mathematics
Life insurance mathematics
Statistics and probability
Mathematics for non-life insurance
Economics and investment
Social security and private pension plans
Principles and practice of life insurance
Principles and practice of non-life insurance
|
| ADVANCED DIPLOMA PROGRAM : ADVANCED DIPLOMA PROGRAM Demography
Advanced actuarial mathematics
Investment and asset/liability management
Actuarial management of life insurance
Actuarial management of non-life insurance
Actuarial management of health insurance
Principles of accounting in local environment
Principles of law in local environment |
| CURRENT ISSUES : CURRENT ISSUES compliance with GC core syllabus
upgrading basic education systems
some introductory diploma programs still needed
looking for funding partners (USAID?, IFC?)
possibility of establishing regional centres
seeking IAA Education Committee support |
| TRAINING THE TRAINERS : TRAINING THE TRAINERS 29 June – 9 July
Oxford and London
Incorporating Actuarial Teachers and Research Conference |