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Travel TimeAn Introduction to the Cost of Becoming a Casualty Actuary
Arlie Proctor, FCAS, MAAAVice President, Munich Re AmericaChair, CAS Examination Committee
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Agenda
How does the CAS define “travel time?”
Recent study results http://www.casact.org/admissions/reports/travel2005.pdf
What those results mean to candidates and employers
What the CAS is doing to affect travel time
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How does the CAS define travel time?
Prior to 2001, the CAS defined travel time to be the average
elapsed time from first exam to ACAS/FCAS for each new
graduating class or the average number of exam sittings.
In November, 2001, the CAS Board of Directors redefined travel
time to be the median time from employment date to
ACAS/FCAS by year of first actuarial employment.
Furthermore, the Board of Directors defined 5-7 years as the
target.
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Recent Study Results
The following are from the 2005 report on travel time and are
based on Exam/VEE results through May 2005
Distribution of travel times for the population of all
ACAS/FCAS
Median travel times for starting cohorts
“Fisher” statistics
New entrant statistics
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Travel Times for Associates
Travel Time Distribution: ACAS
2338
153
423
468
444
389
307
203
156
99
66
44 4126
15 9 9 12 6 5 5 0 1 0 1 2 0 1 0 10
50
100
150
200
250
300
350
400
450
500
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Number of Years
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Travel Time Distribution: FCAS
5 213
60
167
290
241
275
252
201
167
128
103
79
3933 30
2413 11
6 60 4 2 1 3 0 0 0 0 1
0
50
100
150
200
250
300
350
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31
Number of Years
Travel Times for Fellows
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Median Travel Time: FCAS
FCAS: Median Time From First Employment to Designation
3.00
5.00
7.00
9.00
11.00
All Fellows Truncated @ 10 Yrs Truncated @ 5 Yrs
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Fisher Statistics for FCAS
Travel Time for 50th Percentile
4.005.006.007.008.009.00
10.0011.0012.0013.0014.00
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
Entry Year (First J ob)
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Fisher Statistics for FCAS
Travel Time for 35th Percentile
4.005.006.007.008.009.00
10.0011.0012.0013.0014.00
Entry Year (First J ob)
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Demographics – Who is Sitting?
Age At First Recorded Exam
18.000
20.000
22.000
24.000
26.000
28.000
30.0001990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
First Exam Year
Age
Avg Age Median Age
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How are they Doing?
Travel Time to Fellow by Age at First Employment Date
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35
Age
Mean_TT Median_TT Std_Dev_TT
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Sitting Statistics
Number of Candidates Sitting
0
1000
2000
3000
4000
5000
6000
7000
S2000 F 2000 S2001 F2001 S2002 F2002 S2003 F2003 S2004 F2004 S2005
Exam 1 Exam 2 Exam 3 Exam 4
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What does it all mean?
Travel time appears to be improving.
We have never come close to achieving the current board goal
of 5-7 years median travel time. Is that bar too high?
Enrollment is up sharply and the supply of future Fellows is
increasing, even if there is something of a supply crunch at the
moment.
Our demographics are changing, and we need to keep a careful
eye on them.
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What is the CAS doing to affect Travel Time?
Looking for syllabus materials with better pedagogical
approach.
Administering higher quality, shorter examinations with more
emphasis on core knowledge and less on exam taking skills.
Redefining what every actuary needs to know (White Paper
presented at September 2006 Board meeting).
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Questions and/or Comments?
