Transcript Document
Society of Actuaries
Education Update
March 12, 2013
Spring 2013 Actuarial Education Event
Drake University
Stuart Klugman, FSA, CERA
SOA Staff Fellow, Education
AGENDA
FSA Requirements – Effective July 1, 2013
• Restructuring of all tracks
Preliminary Exams
General Insurance Track
• Curriculum
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FSA Requirements
Effective July 1, 2013
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Fellowship Requirements (2013)
Exams
• Two five-hour exams
• One two-hour exam
Modules
• Three modules that are track-specific (though
some modules are shared)
• Decision Making and Communication module
Fellowship Admissions Course
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FSA Designation (effective July 1, 2013)
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Fellowship Requirements
The following tracks have separate
Canada and U.S. versions. Amount of
difference depends on track.
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Individual Life and Annuities
Retirement Benefits
Group and Health (new in 2013)
General Insurance
Other tracks are
• Corporate Finance and ERM
• Quantitative Finance and Investments
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Two Exceptions
U.S. Retirement Benefits
• The two Enrolled Actuaries Exams are
required.
• Total of four, rather than three, exams
General Insurance
• Additional exam on policy coverages and
business environment
• Need background that goes beyond
introduction in FAP
• May be a pilot for other tracks
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CERA option for all tracks
On all tracks other than Corporate Finance
and ERM candidates may replace the twohour track-specific exam with the four-hour
ERM exam
Candidates who do so and also complete
the ERM module will receive a CERA in
addition to their FSA
This is not a change in CERA
requirements
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Preliminary Exams
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Joint Arrangement with CAS Ending
Effective December 31, 2013
Business as usual for SOA exams
• Same curriculum
• Same exam schedule
• Same CBT availability
Candidates should proceed normally
CAS will recognize the SOA exams
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Written-Answer Questions on MLC
Third time a charm?
Can ask questions more in line with
desired learning outcomes.
Effective Spring 2014:
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40% multiple choice; 60% written answer
4 hours (was 3 hours)
Twice per year
No change in source material
Written answers not graded for all
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General Insurance Track
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Motivation
The SOA is currently the only major international
organization that covers many, but not all,
practice areas
SOA candidates benefit by being able to explore
all areas of actuarial practice before selecting a
specialty track.
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Objectives of GI Track
Be consistent with the other five SOA tracks
• Track consistency is already an SOA objective
Be attractive to candidates regardless of location
• Ensure that actuarial methodologies are represented
in the syllabus on a broad international basis
• Nation specific material included for financial and
regulatory environment topics
Be recognized as qualified to practice, including
the signing of statutory reports, in the U.S. and
Canada.
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General Insurance
Curriculum
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General Insurance Track
Introduction to General Insurance Exam (2 hours)
Introduction to Ratemaking and Reserving Exam
(5 hours)
Financial and Regulatory Environment Exam
(5 hours)
Financial Economics Module
Advanced Topics in General Insurance Exam (2 hours)
Enterprise Risk Management Exam (4 hours)
or
Applications of Statistical Techniques Module
Enterprise Risk Management Module
(may be taken at any time)
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Introduction to General
Insurance Exam
Coverages and business environment
Multiple-choice exam with expected higher
pass rate
Supplements material in FAP
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Introduction to Ratemaking and
Reserving Exam
Unified view of ratemaking and reserving
Global focus
SOA has commissioned a textbook
First offering in Fall 2013
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Financial and Regulatory
Environment Exam
Will offer separate U.S. and Canadian
versions
First offering in Spring 2014
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Financial Economics Module
Currently offered without General
Insurance
Will add topics such as
• Valuing the equity of a firm
• Managing interest rate, cash flow, credit and
investment risks
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Advanced Topics in General
Insurance Exam
A two-hour exam
Topics being considered include
• Premium rates for excess, deductible and
individual risk rating
• Reinsurance premium rates and reserves
• Strategies for achieving a portfolio rate of
return
• Estimating risk transfer
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Advanced Module - Applications of
Statistical Techniques
A new module to be introduced in 2013
An opportunity to provide a hands-on experience
with case studies
Topics being considered include
• Generalized linear models with emphasis on classification
ratemaking – including mixed models for adding credibility
• Cluster analysis
• Stochastic and Bayesian reserving methods
• Measuring reserve variability
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ERM Module
Same module used for other tracks
Requirement for CERA
Generic corporate risk management
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ERM Exam
May take instead of the two-hour
Advanced Topics Exam
Includes a choice of reading extension with
track-specific readings
General Insurance already one of the
extensions
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Questions and Answers
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