Education Strategy Review North West Actuarial Society …kschaik/pub/slides... · Education Strategy Review North West Actuarial Society 28 April 2016 Karen Brocklesby – Registrar

Education Strategy Review

North West Actuarial Society

28 April 2016

Karen Brocklesby – Registrar

Paul King - Consultant Education Actuary

April 2016

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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

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Why undertake a review?

• Ensure actuaries who qualify with the IFoA remain ‘fit for

purpose’ over the next ten to fifteen years

• Ensure members of the IFoA are equipped to fulfil wider roles

in more diverse areas of work

• Maintain the IFoA’s reputation internationally by ensuring our

qualification structure is up-to-date with the current issues

facing actuaries world-wide

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What will the review accomplish?

• Content of subjects is cutting edge and relevant

• Removal of outdated, less relevant and duplicated material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

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How is this review being conducted?

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Education Strategy Review Working

Party

Education Board

Technical Building Blocks (CT1,3-6, 8

& CA2)

Working Parties

Business Management

(CT2,7,9)

Core Application (CA1)

Communication (CA3)

Practical Experience

(WBS)

Practice Boards (ST and SA)

Oversight and approval of logistical decisions

Oversight and approval of strategic decisions

Oversight and coordination of research and proposals (working party

members and coordinator)

Council

Management Board

Oversight and approval of strategic corporate decisions

Oversight and approval of business decisions

Production of research and proposals (specialists and executive)

Education Committee


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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

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Timescales

April 2016 7

June 2016

(2nd)

Council approval of new syllabus,

assessment methods and exam structure

July/August

2016

Formal consultation with membership and other

stakeholders

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?

April 2016


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Core Technical Subjects 1, 3-6 and 8

Syllabus Content

• Replace six existing subjects

with four new subjects

1. CS1 Statistical theory and

applications 1

2. CS2 Statistical theory and

applications 2

3. CM1 Modelling 1

4. CM2 Modelling 2

Assessment Method

• Each subject will have:

1. Paper based in exam centre

– written, 3 hours

2. Computer based in

office/home – Excel or

statistical package ‘R’, 2

hours

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Core Technical Subjects CS1/2, CM1/2

• CS1 Statistical Theory and Applications 1

– Rough equivalent: Most of CT3 and some of CT6, with added practical

objectives using ‘R’

• CS2 Statistical Theory and Applications 2

– Rough equivalent: Most of CT4 and CT6, with added practical

objectives using ‘R’

• CM1 Modelling 1

– Rough equivalent: Most of CT1 and CT5 and a small part of CT4,

focusing particularly on deterministic models

• CM2 Modelling 2

– Rough equivalent: CT8 and small parts of CT1 and CT6,.focusing

particularly on stochastic models

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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

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Core Business Subjects (CB1, CB2, CB3 )

Syllabus Content

• CB1 and CB2 are very close to

existing CT2 and CT7 with

changes to the syllabus topics to

make subjects more relevant for

the present and future

• CB3 ‘Introduction to Business and

Management’. Will include

leadership, managing people,

strategic analysis, managing

change and project management

(from CA1) to provide a broad

foundation

Assessment Method

• A 3 hour unseen exam for

each subject including both

a computer marked element

(30%) (eg multiple choice or

short answer) and some

longer questions (70%)

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Core Application 1 (CA1)

Syllabus Content

• Project management techniques

moves to CB3

• Additional material on data

management and control

• Remove duplicate content already

covered in STs

• Overall proposed changes are

minor

Assessment Method

• Two papers

1. Written

• Short answer questions (5 to 12

marks)

• Mainly application with some

bookwork

2. Written Case-study

• ¾ hour planning time

• 2½ hour writing time

• Content drawn from across

syllabus but not from a single

practice area

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Core Application 2 and 3

• CA2 (Modelling Documentation, Analysis and Reporting)

– New content to include data analytics. Communication to a technical

audience covered by the model write-up.

• CA3 (Communications)

– Current proposals involve a written paper (probably 2 – 2.5 hours)

covering:

• Determining what to communicate, given a large amount of information

• Determining how to communicate – graphs, bullet points, slides, etc.

• A practical written communication exercise to a non-technical audience.

– Practical presentation moved to work-based skills – without assessment

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Personal and Professional Development (formerly Work-based Skills)

Content

• Four Objectives, subdivided

into Key Competencies

– Effective Communications

– Problem Solving and Decision

Making

– Professional Standards

– Professionalism in Practice.

Assessment

• Credit-based

• 10-25 credits per key

competency

• Minimum annual requirement

(different for Trainee Analyst,

Trainee up to Associate and

Trainee up to Fellow)

• Recorded online similar to CPD

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Specialist Subjects (SP/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

• Detailed 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

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EXISTING EXAM ASSESSMENT STRUCTURE

Eight Traditional 3 Hour (Centre)

1 Two day or Online (Two weeks – Evening and Weekends)

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)


One Traditional 3 Hour (Centre)

17

CT’s

OPAT

CA1

CA2/3

PSC

2 ST

SA


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April 2016 18 18

PROPOSED NEW ASSESSMENT STRUCTURE

Four Traditional (Centre)

Four Online (Office or Home)

Three 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)


One Traditional 3 Hour (Centre)

18

CS1/2, CM1/2

BM1-3

CA1

CA2/CA3

OPAT/

PSC

SPs

SA


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FEEDBACK AND COMMENTS

WE WELCOME YOUR FEEDBACK AND

COMMENTS.

PLEASE DIRECT THESE TO:

[email protected]

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April 2016 20

Questions Comments

Documents

Education Strategy Review North West Actuarial Society …kschaik/pub/slides... · Education Strategy Review North West Actuarial Society 28 April 2016 Karen Brocklesby – Registrar