The CAS Education Process

The CAS Education Process

CAS Spring MeetingMiami, Florida

May 7, 2001

Discussion Facilitators

Bob CongerSteve D’ArcyMary Frances

Miller

2G:\CONGER\WPDOC\CAS\EducationProcess 04242001.ppt

May 2, 2001

Agenda

Introductions

The CAS basic education process

How do other countries/organizations educate actuaries?

Continuing education

We have some questions for you

Open microphone

Perspectives on the CAS Basic Education Process


May 2, 2001

Strengths of our education process

Draw from a large range of schools and majors

Provide opportunity for self study of material relevant for career

Provide rewards commensurate with success in mastering material

Exams developed, written and graded by practitioners


May 2, 2001

Current concerns

Increase in travel time

Addition of material not basic for field Too specialized

Overly theoretical types of questions

Loss of advantages of old Part 1


May 2, 2001

Travel time to designation

3

4

5

6

7

8

9

10

1980 1985 1990 1995 2000

Year

s

FCAS ACAS


May 2, 2001

Addition of material not basic to field

Among the topics that some have questioned are:

Advanced modeling topics

Stochastic processes

Life contingencies Benefit reserves Multiple decrement models

Dynamic Financial Analysis


May 2, 2001

Types of Questions

Course 3 - November 2000

25. Given

Superscripts M and N identify two forces of mortality and the curtate expectations of life calculated from them.

(i)

(ii)

(iii)Calculate

(A) 9.2

(B) 9.3

(C) 9.4

(D) 9.5

(E) 9.6

1)(

10)1(*1.0)()(

25

2525

tt

tttt

M

MM

0.1025 Me

Ne25


May 2, 2001

Types of Questions


36. Given

(i) 0,)( 2 xeFx x

(ii)

Calculate F.

(A) -0.20

(B) -0.09

(C) 0.00

(D) 0.09

(E) 0.20

50.004.0 p


May 2, 2001

Types of Questions


10. You are given

(i)

(ii)

(A) Generalized Pareto

(B) Burr

(C) Pareto

(D) Lognormal

(E) Inverse Exponential

Sample size = 100

The negative loglikelihoods associated with five models are:

Model

Generalized ParetoBurrParetoLognormalInverse Exponential

Number of Parameters

33221

Negative Loglikelihood

219.1219.2221.2221.4224.2

(iii)

The form of the penalty function is

2ln

nr

Which of the following is the best model, using the Schwartz Bayesian Criterion?


May 2, 2001

Loss of advantages of old Part 1

Benefits as attractor exam Often recommended by math advisors Gave students confidence they could succeed in

field

Benefits as screening exam Companies could require this exam of applicants Failure to pass this exam indicates likely problems

with future exams


May 2, 2001

Course corrections

Exams 3 (Actuarial Models) and 4 (Actuarial Modeling) Eliminating some readings Commissioning new study material Studying other potential revisions

Educational Consultant Additional training for exam committees Source of expertise on professional testing


May 2, 2001

View from a university

Actuarial profession is still attractive to students with strong math skills

Early exams are much more of a challenge than previously

Connection between actuarial science and business programs is very important

How do other countries/organizations educate actuaries?


May 2, 2001

Other ways to do it

Credit for traditional university courses

On-site seminars

Individualized development programs

Distance learning

Big picture followed by details


May 2, 2001

University courses

Institute and Faculty of Actuaries (UK)

Limited number of schools

Pre-approved syllabus Currently at level of Exams 1-4 Intend to add courses at Exams 5-6 level

Grade based on final exam

Pass mark for IA/FA credit set by outside examiner above course pass mark (65%)


May 2, 2001

On-site seminars

SoA Modeling Seminar in place of Exam 7

Pre-exam required for enrollment (70%-85%)

Week-long, hands-on course Allows for more complicated problems than in an

exam setting Group work Nightly assignments Major individual project required to pass (90%-

100%)


May 2, 2001

On-site seminars

American Academy Seminar on Life/Health Regulation

Major pre-reading syllabus (500+ pages)

Three days followed by ½ day exam

Lecture/discussion format

Exam is open book (100% of 18 who sat)


May 2, 2001

Individualized development programs

Society of Actuaries CPD replaces 9th exam

Minimum of 50 hours of continuing education tailored to the actuary’s specialty

Overseen by “mentor” qualified actuary and approved by SoA

Minimum of 25 hours must be in face-to-face, organized activities

Substantial written project required (may be a project completed for the actuary’s job)


May 2, 2001

Distance Learning

UK equivalent of ACTEX offers optional correspondence course with assignments

Australia requires enrollment in course and completion of assignments before sitting for fellowship exams

Australian “Actuarial Control Cycle” course now offered in an internet-based version


May 2, 2001

The Actuarial Control Cycle

CAPITAL

risk assessment

contract design

pricing

valuing liabilities

asset review

A/L mgmt

solvency

experience analysis

profit


May 2, 2001

The big picture

IAAust Actuarial Control Cycle course

Case study approach Some case studies continue through time as

various topics are addressed

Lecture/discussion

Group projects

Final examination (65%, but 85% for new internet course)


May 2, 2001

The Actuarial Control Cycle

CAPITAL

risk assessment

contract design

pricing

valuing liabilities

asset review

A/L mgmt

solvency

experience analysis

profit

68

7 5, 9

Continuing Education


May 2, 2001

Purposes and objectives of CAScontinuing education - “audience” perspective

General ongoing learning and intellectual exercise

Post-Fellowship specialization

Access emerging fields and technologies, and new ideas

Fulfill practice requirements

Networking

Fun


May 2, 2001

Purposes and objectives of CAScontinuing education - presenter perspective

Venue for research and publication

Give something back to the profession by sharing your expertise

Personal and corporate marketing

Networking

Fun


May 2, 2001

Purposes and objectives of CAScontinuing education - CAS perspective

Maintain CAS organizational viability and visibility

Our stature as a profession requires that we take continuing education seriously


May 2, 2001

The CAS and its affiliates use various media to deliver continuing education

Meetings and seminars Large / small / limited attendance Multi-topic / single topic

Publications Refereed, or not

Electronic media Website


May 2, 2001

The CAS and its affiliates have sponsoreda wide array of continuing education offerings

“Open” Meetings and Seminars

Spring and Fall meetings

CLRS and Ratemaking seminars

Reinsurance

Valuation of insurance operations

Funding of catastrophe risk

Understanding the ERM process

DFA

UK meetings

CIA appointed actuary

ASTIN colloquium

Limited Attendance Seminars

Loss distribution

Convergence of insurance and financial market

Reinsurance; reinsurance lunches

Principals of finance

DFA, advanced DFA

Business skills sessions at CAS meetings

Co-sponsor

more . . .


May 2, 2001

The CAS and its affiliates have sponsoreda wide array of continuing education offerings

Publications

Proceedings

Forum

Discussion paper programs

Website Meeting materials Publications Distance learning courses in financial risk management

Regional Affiliate/Special Interest Section Meetings

Let’s hear from you


May 2, 2001


How many years should it take to achieve Fellowship? Average? Minimum? Maximum? What is the basis for your answer?


May 2, 2001


How should the CAS address ongoing increases in the number of areas important to casualty actuaries? Add more to the Syllabus? Drop general introductory material (calculus,

statistics)? Give exam credit for college courses? Specialization tracks along the path to Fellowship? Specialization certificates after Fellowship? Continuing education? Other?


May 2, 2001


Would an “attractor” exam be good?

Have you changed your hiring criteria for entry level actuaries in light of changes in structure of early exams? (e.g., Part 1 used to be a requirement) What changes have you made? What do you use as a substitute?


May 2, 2001


What format and media would you like to see used more extensively in CAS Continuing Education? e.g., limited attendance workshops, internet-

based programs

Do you have someviews to share?


May 2, 2001

Call us if you have more ideas, suggestionsor want to volunteer for a committee or task force

Bob Conger

Steve D’Arcy

Mary Frances Miller

Tom Downey(CAS Office)

404-365-1634

217-333-0772

615-269-4469

703-276-3100

[email protected]

[email protected]

[email protected]

[email protected]

Documents

The CAS Education Process