Society of ActuariesEducation UpdateSociety of ActuariesEducation Update

Exam Systems

Before 1987

• 9 – 10 exams

FES, 1987 - 1999

• 450 Credits

• ASA changes (1995)

• FEM

• FAC (1990)

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• FAC (1990)

2000 – 2005

• 7 exams

• APC

• Seminar

• PD

2005 - ?

• 7 - 8 exams

• ASA Changes

• FAP/FSA Modules

• VEE

1978 Part 8 Sample Question

Describe the assumptions that are generallyused in pricing group survivor income benefits.

As part of your answer, indicate which of theseassumptions could appropriately be used for

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assumptions could appropriately be used forpricing group term life insurance.

2011 ILA, CSP Sample Question

CBA Life, a U.S. insurance company, is acquiring a blockof nonparticipating, two-year term life policies from ZYXLife.

[Assumptions including best estimate and provisions foradverse deviations are provided]

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adverse deviations are provided]

(i) Calculate the GAAP Net Level Premium for the policyusing the Best Estimate Assumptions. Show all work.

(ii) Evaluate the appropriateness of the provisions foradverse deviation, taking into consideration guidanceoutlined in ASOP 10 (Financial Statements under GAAP).Justify your answer.

FSA Pathway (effective July 1, 2013)

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Fellowship Requirements

Nation-Specific Tracks:

• Individual Life and Annuities

• Retirement Benefits

• Group and Health (new in 2013)

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• General Insurance

Other tracks:

• Corporate Finance and ERM

• Quantitative Finance and Investment

Two Exceptions

U.S. Retirement Benefits

• Enrolled Actuaries Exams required

• So four, not three, exams

General Insurance

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General Insurance

• Additional exam on policy coverages andbusiness environment

• Provides additional background beyond FAP

• Some other tracks may follow suit

Why Add General Insurance?

SOA is the only international organization thatcovers multiple, but not all, practice areas

SOA candidates benefit by being able to exploreall areas of actuarial practice before selecting a

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all areas of actuarial practice before selecting aspecialty track.

Objectives of GI Track

Be consistent with other SOA tracks

• Track consistency already an SOA objective

Be attractive regardless of location

• Actuarial methodologies represented on a broadinternational basis

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international basis

• Nation specific expectations for financial andregulatory environment

Be recognized as qualified to practice, includingsigning statutory reports, in the U.S. andCanada.

General Insurance Track

Financial and Regulatory Environment Exam(5 hours)

Financial Economics Module

Introduction to Ratemaking and Reserving Exam(5 hours)

Introduction to General Insurance Exam (1.5 hours)

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Applications of Statistical Techniques Module

Enterprise Risk Management Module(may be taken at any time)

Advanced Topics in General Insurance Exam (2 hours) orEnterprise Risk Management Exam (4 hours)

Introduction to GeneralInsurance Exam

Coverages and business environment

Multiple-choice exam with expected higherpass rate

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pass rate

Supplements material in FAP

Offered twice annually, first time inFebruary 2014

Introduction to Ratemaking andReserving Exam

Unified view of ratemaking and reserving

Global focus

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Global focus

SOA has published a textbook

First offering: October 30, 2013

Financial and RegulatoryEnvironment Exam

Will offer separate U.S. and Canadianversions

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First offering: Spring 2014

Advanced Module - Applications ofStatistical Techniques

To be introduced mid-November

Opportunity for hands-on experience with casestudies

Topics include:

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Topics include:• Generalized linear models with emphasis on classification

ratemaking – including mixed models for adding credibility

• Cluster analysis

• Stochastic and Bayesian reserving methods

• Measuring reserve variability

Other Elements

Financial Economics

E-Learning module

Will be enhanced

Advanced Topics

Two hour exam

Syllabus due

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Will be enhancedwith generalinsurance topics

Syllabus dueshortly

Consider Volunteering

General Chair

CommonCurriculum

PreliminaryCourse Officers

FellowshipCurriculum

CurriculumOfficers

FellowshipExamination

Exam Officers

by Track

Past GeneralChair

Training Officer

Board Partner,AcademicPartner,

ExecutiveDirector,

MD of Education

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Course Officers

FAP Officers

ERM

Curriculum

Shared

Modules

Officers

by Trackby Track

Training Officer

Professionalism

Member –at-Large

Questions and AnswersQuestions and Answers

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Acronyms Defined

Acronym DefinitionAPC Associateship Professionalism CourseCFE Corporate Finance & ERM TrackCSP Company/Sponsor Perspective ExamDMAC Decision-Making & Communication ModuleERM Enterprise Risk Management

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ERM Enterprise Risk ManagementExam C Construction of ModelsExam FM Financial MathematicsExam MFE Models of Financial EconomicsExam MLC Models of Life ContingenciesExam P ProbabilityFAC Fellowship Admissions Course

Acronyms Defined

Acronym DefinitionFAP Fundamentals of Actuarial PracticeFEM Flexible Education MethodsFES Flexible Examination SystemGH Group & Health TrackGI General Insurance Track

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GI General Insurance TrackILA Individual Life & Annuities TrackPD Professional DevelopmentQFI Quantitative Finance & Investment TrackR Retirement TrackVEE Validation by Educational Experience