SOA Education

University of IowaSeptember 11, 2008

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Presenters• Stuart Klugman, FSA, PhD, Principal Financial

Group Professor of Actuarial Science at Drake University

• Ken Guthrie, SOA Managing Director–Education

• Martha Sikaras, SOA Director of International Activities

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Goal of Basic EducationEnsure that all who receive our

designations (FSA, ASA, CERA):

• have the education they need to succeed and

• demonstrate mastery of that education.

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We achieve that goal by…• Providing relevant educational materials

• Developing valid and reliable examinations and assessments

• Ensuring fairness to candidates

• Conducting all processes in a professional, courteous and efficient manner

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Pathway to our Designations

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Three designations

Fellow (FSA)• Fully qualified with one specialty

(individual life and annuities, group and health, retirement benefits, investments, finance/ERM)

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Three designations

Associate (ASA)• Mastered fundamental concepts• Is a member of the SOA, but not with full

privileges

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Three designations

Chartered Enterprise Risk Analyst (CERA)• Equivalent to ASA in effort• CERAs are also ASAs• A special combination of exams and

modules with an ERM focus.

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Pathway to FSA

APC –Associateship Professionalism CourseASA

FAC – Fellowship Admission CourseFSA

P – ProbabilityFM – Financial Mathematics

MFE – Models for Financial Economics

FAP – Fundamentals of Actuarial PracticeCourse – 8 modules

EXAMMODULECOURSEValidation by Educational Experience

MLC – Models for Life Contingencies

C – Construction of Actuarial Models

Track choices – Individual Life and Annuity, Group and Health, Retirement Benefits, Investments, Finance/ERM

Track Exam 1Track Exam 2Track Module 1Track Module 2Decision Making and Communication Module

Economics, Corporate Finance, Applied Statistics

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Pathway to CERA

APC –Associateship Professionalism Course*CERA

P – ProbabilityFM – Financial Mathematics

MFE – Models for Financial Economics

EXAMMODULECOURSEValidation by Educational Experience*APC can be taken with one FSA component left

C – Construction of Actuarial Models

Advanced Finance/ERM ExamFinancial Reporting and Operational Risk Module

Economics

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CERA Notes

CERAs can become FSAs by completing the remaining elementsASAs and CERAs have the same membership rights, privileges and obligations.

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Professionalism CoursesAPC – Associateship Professionalism Course• required for ASA and CERA• one-day seminar

FAC – Fellowship Admissions Course• required final component for FSA• Oral presentation• Graduation festivities

Both provide an opportunity for positive face-to-face interaction with candidates.

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Operations andCandidate Interaction

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The Education StructureVolunteers are the backbone of complex system.Over 600 volunteers contribute & partner with staff.Executive Group oversees Education system

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The Education StructureThree components

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Exam Staff ActivitiesExam Preparation• Type exams• Review exam copy for printed exams

Exam Centers• Set up centers worldwide• Arrange for Supervisors

Exam Shipping• Pack and ship materials• Over 350 exam centers

Approx. 500 packages – 6 days

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United States Canada other countries

Exams Administration60% United States17% Canada23% other countries

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GradingMultiple-Choice (ACT)Written Answer and e-Learning Assessments (SOA Volunteers)• Essay Sort - Staff

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Education – The RulesRules/regulations for examsTerms/conditions for e-LearningPenalties imposed for violations

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Candidate Interactions300 e-mail & 150 calls on an average dayHigher numbers during grade releaseWide variety of inquiries

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Myths and Legends• What candidates think about us

• What we are

• Stories from the front lines

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What candidates may thinkWe grade on the curveOur objective is to restrict membership in the professionWe are unforgiving stodgy bureaucratsIn other words …

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We are the evil enemy

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What we really arePeople who take our role in determining who has met our standards seriouslyPeople who listen and adapt.In short, we are …

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Heroes!

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Activity – this will be graded

True (or should be true) stories from the E&E vaults.

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New and Future Developments

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E&E in 2008 and beyondE-learning modules• Wider access for SOA

candidates and others• Continuous improvement• Strategic planning for

leveraging assets

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E&E in 2008 and beyondComputer-Based Testing• Two exams offered via CBT

Exam PExam FM

• More frequent offerings• Converting other exams to

CBT

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E&E in 2008 and beyondCommunication skills training now emphasized at FACCERA Experienced Practitioners seminars for members experienced in ERMParticipating in discussions for a global ERM credential

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E&E in 2008 and beyond

Transparency• Inform candidates how the system works

and their exams are created and graded.• Help candidates understand their exam

results.

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E&E in 2008 and beyondImproving education• Focus on better

materials• Maintain consistency in

the exam system structure

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E&E in 2008 and beyondImproved academic relations by exploring• Accreditation of

programs• Improving connections

to the business community

Questions?