Education Strategy Review

Norwich
25 February 2016
Karen Brocklesby Registrar
Tim Birse Chair of Education Board

February 2016

Background
The last major IFoA Education changes were introduced in
2005
The nature of the work of actuaries is changing
Other actuarial associations are either planning or currently
undergoing a strategic review of their qualification process
The IAA is introducing new Core Syllabus standards which the
IFoA must meet

February 2016

Why undertake a review?

Ensure actuaries who qualify with the IFoA remain fit for
purpose over the next ten years
Ensure members of the IFoA are equipped to fulfil wider roles
in more diverse areas of work
Maintain the IFoAs reputation internationally by ensuring our
qualification structure is up-to-date with the current issues
facing actuaries world-wide

February 2016

What will the review accomplish?

Content of subjects is cutting edge and relevant
Removal of less relevant and duplicated material
Balance between technical and softer skills and between
theory and application
Focus on assessing understanding and competence
Appropriate use of technology

February 2016

How is this review being conducted?

February 2016

Who are we consulting?

National and international employers
Learning providers
Students (SCF and local actuarial societies)
Accredited universities and universities with ERAs
Experienced volunteers (examiners, markers)
International associations
International Actuarial Association (IAA)
Regulators (FRC)
IFoA national and international membership
February 2016

Timescales

February 2016

June 2016

Council approval of new syllabus,

assessment methods and exam structure

September
2016

New syllabus, assessment methods and

transitional arrangements published

May 2017

Core Reading and specimen exam papers

published

April 2019

First exams held under the revised exam

structure

Proposals
What changes are the IFoA currently
considering?

February 2016

Core Technical Subjects 1, 3-6 and 8

Syllabus Content
Replace six existing subjects
with four new subjects
1. CS1 and CS2 Core
statistical theory and
applications

Assessment Method
18 hours of exams in total
covering:
1. Paper based written
2. Computer based Excel or
Statistical Package R

2. CM1 Core modelling 1

3. CM2 Core modelling 2

February 2016

Core Technical Subjects CS1/2, CM1/2

CS1 and CS2 Statistical Theory and Applications
Rough equivalent: CT3, CT4 and some of CT6
Aim: Provide a grounding in the aspects of statistics and in particular
statistical modelling that are of relevance to actuarial work

CM1 Modelling 1
Rough equivalent: CT1 and CT5
Aim: Provide a grounding in the principles of modelling as applied to
actuarial work focusing particularly on deterministic models

CM2 Modelling 2
Rough equivalent: CT8 and some of CT6
Aim: Provide a grounding in the principles of modelling as applied to
actuarial work focusing particularly on stochastic models
February 2016

10

Why use R?
R is widely used in education and industry and has a growing user
base
R is used by typing lines of code rather than pointing and clicking
The skills required for the actuarial exams will focus on core
statistics and modelling concepts and will be largely transferrable to
other packages
R is free, well supported and runs on all common platforms
R works with a range of packages and other tools that can support
actuarial applications, education and assessment.
R is, or will be, used by other major actuarial associations
R has functions that support the current IAA draft syllabus

February 2016

11

Core Business Subjects (CT2, 7 and 9)

Syllabus Content
CT2 & CT7 changes include
additions and expansions to
the syllabus topics to make
subjects more relevant
CT9 Introduction to Business
and Management

February 2016

Assessment Method
A 3 hour unseen exam for each
subject covering both a
computer marked element (eg
multiple choice or short
answer) and some longer
questions

12

Core Application 1 (CA1)

Syllabus Content
Move relevant topics to Core
Business subjects, in particular
project management techniques
Remove duplicate content already
covered in STs
Overall proposed changes are
minor
Possibly move risk management
objectives to a new subject
(Introduction to Risk Management)
one two hour exam
February 2016

Assessment Method
Two papers
1. Written
Short answer questions
Mainly application with some
bookwork

2. Written Case-study
hour planning time
2 hour writing time
Content drawn from across
syllabus but not from a single
practice area
13

Core Application 2 and 3

CA2 (Modelling Documentation, Analysis and Reporting)
New content to include data analytics

CA3 (Communications)
Proposals include:
Moving communication of issues to a technical audience into CA2
Moving communication of issues to a non-technical audience into CA1
Covering communication within work-based skills without assessment
Removing requirement for oral presentation
Maintain the status quo, or parts of it

February 2016

14

Work-based Skills
Content
Rename as Personal and
Professional Development
Four Objectives, subdivided
into Key Competencies

Assessment
Credit-based
10-25 credits per key
competency
Minimum annual requirement
(different for CAA, Associate
and Fellow)
Recorded online similar to CPD

February 2016

15

Specialist Technical Subjects (ST/SA)

Renamed Specialist Principles (SP) and Specialist Advanced (SA)
ST5 renamed SP5 Finance and Investment
ST6 renamed SP6 Financial Derivatives
SA5 and SA6 withdrawn and replaced by SA7 Advanced Investments. This paper
will focus on investments but will contain some corporate finance topics
All UK specific legislation and regulation to be moved to UK Practice Modules (as
post qualification learning)
SA subjects become less UK centric
In both SP and SA UK practice can be used as an example with comparative
material from practice elsewhere
Additional specialisms can be added at any time if there is a justification for them

February 2016

16

EXISTING EXAM ASSESSMENT STRUCTURE

Eight Traditional 3 Hour (Centre)
1 Two day or Online (Two weeks Evening and Weekends)

CTs
OPAT
CA1
CA2/3

PSC
2 ST

SA

February 2016

90 Minute Online (at any time)

Two Traditional 3 Hour (Centre)

Two Half Day Online (Office or Home)

One Day Out of Office
8 10 Hours (Evenings and Weekends)
Two Traditional 3 Hour (Centre)

One Traditional 3 Hour (Centre)

17

17

PROPOSED NEW ASSESSMENT STRUCTURE

Four Traditional (Centre)
Four Online (Office or Home)

CS1,
CM1,CM2

BM

CA1
CA2/CA3

OPAT/
PSC

STs

SA

February 2016

3 Hour exams (Centre)

One Traditional 3 Hour Exam (Centre)

One 3 Hour Case Study (Centre)
As yet unknown
OPAT 90 Minutes Online (at any time)
PSC 1 Day Out of Office, 8-10 Hours (evenings and weekends)
Two Traditional 3 Hour (Centre)

One Traditional 3 Hour (Centre)

18

18

FEEDBACK AND COMMENTS

WE WELCOME YOUR FEEDBACK AND
COMMENTS.
PLEASE DIRECT THESE TO:
KIRSTIE.SMITH@ACTUARIES.ORG.UK

February 2016

19

Questions

February 2016

Comments

20