REPORT ON THE RESPONSES TO THE
IEPC QUESTIONNAIRE AND SOME
THOUGHTS ON THE DEVELOPMENT OF
THE IAEP
Chris Daykin, Executive Director, IAA Fund
Responses to questionnaire
Questionnaire responses received : 65
Additional countries included in analysis : 5
Total countries covered by analysis : 70
However, it should be noted that the responses of the SoA,
the UK Actuarial Profession and to a lesser extent the
Institute of Actuaries of Australia, in fact represent students
of the actuarial profession in a number of other countries
which are not specifically identified in this analysis
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Does your association organize actuarial education/examinations?
(by number of associations)
43%
Yes
No
57%
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Does your association organize actuarial education/examinations?
(by number of students)
12%
Yes
No
88%
PROFESSIONAL EXAMINATION SYSTEMS
Students currently under professional examination systems
Association
Society of Actuaries
Number of students a year
10,000
UK Actuarial Profession
8,000
India
4,000
Casualty Actuarial Society
3,000
China
3,000
Japan
2,300
South Korea
2,000
Germany
1,700
Australia
500
Brazil
400
Taipei
300
Russia
200
Philippines
150
Indonesia
100
TOTAL
35,650
PROFESSIONAL EXAMINATION SYSTEMS
Possible future demand under IAEP
Country
Number of students a year
China
2,500
India
2,500
South Korea
1,500
Asia (other)
1,500
Central & Eastern Europe
1,500
Africa
1,300
Latin America
600
MENA
300
Other
300
TOTAL
12,000
PROFESSIONAL EXAMINATION SYSTEMS
Possible future demand under IAEP
Country
Number of students a year
Low projection
High projection
China
2,000
3,000
India
2,000
3,000
South Korea
1,000
2,000
Asia (other)
1,000
2,000
Central & Eastern Europe
1,000
2,000
Africa
1,000
1,600
Latin America
400
800
MENA
200
400
Other
200
400
8,800
15,200
TOTAL
PROFESSIONAL EXAMINATION SYSTEMS
Possible future demand under IAEP - Asia
Country
Number of students a year
China
2,500
India
2,500
South Korea
1,500
Taipei
400
Bangladesh
150
Indonesia
150
Philippines
150
Hong Kong
100
Pakistan
100
Vietnam
100
Malaysia
100
Singapore
50
Sri Lanka
50
Thailand
50
TOTAL (incl. 100 other)
8,000
PROFESSIONAL EXAMINATION SYSTEMS
Possible future demand under IAEP - Africa
Country
Number of students a year
South Africa
700
Morocco
100
Nigeria
70
Kenya
50
Ghana
30
Other East and Central Africa
100
French-speaking Africa (other)
50
TOTAL
1,300
PROFESSIONAL EXAMINATION SYSTEMS
Possible future demand under IAEP – Other
Country
Number of students a year
Brazil
350
Other Latin America
250
Russia
500
Central Asia/CIS
500
Central Europe
500
MENA
300
Other
300
TOTAL
2,700
UNIVERSITY INVOLVEMENT
Does your association currently rely, at least in part, on
education provided by universities?
30
Yes
No
40
UNIVERSITY INVOLVEMENT
Countries with universities interested in teaching IAA core
syllabus
60
50
40
30
20
10
0
FM
PMS
Econ
Acc
Model
Stat M
All countries
Act M
Inv AM
ARM
Prof
UNIVERSITY INVOLVEMENT
Countries with universities interested in teaching IAA core
syllabus
60
50
40
30
20
10
0
FM
PMS
Econ
Acc
Model
Stat M
IEP countries
Act M
Inv AM
ARM
Prof
UNIVERSITY INVOLVEMENT
Countries with universities interested in teaching IAA core
syllabus
60
50
40
30
20
10
0
FM
PMS
Econ
Acc
Model
All countries
Stat M
Act M
IEP countries
Inv AM
ARM
Prof
UNIVERSITY INVOLVEMENT
Possible levels of accreditation
> Level 1
> Financial Mathematics
> Probability & Mathematical Statistics
> Economics
> Accounting
> Level 2: Above subjects plus
> Statistical Methods
> Actuarial Mathematics
> Level 3: Above subjects plus
> Investment and Asset Management
> Actuarial Risk Management
> Modelling
UNIVERSITY INVOLVEMENT
University accreditation
Level 1
> Full accreditation to teach and examine
(1)
Level 2
> Accreditation to teach and examine all 7 subjects (2A)
> Accreditation to teach and examine 1-4+modelling (2B)
> with IAEP examinations in Statistical Methods and Actuarial Maths
Level 3
> Accreditation to teach and examine all 9 subjects (3A)
> Accreditation to teach 7 subjects
(3B)
> with IAEP examinations in Investment and Actuarial Risk Management
UNIVERSITY INVOLVEMENT
Different combinations of universities at different levels
100%
90%
80%
70%
60%
IEP
50%
U3
40%
U2
30%
U1
20%
10%
0%
Type Type Type Type Type Type Type Type Type
1
2
3
4
5
6
7
8
9
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Role of IAEP
> Specification of core syllabus and curriculum
> Preparation and promulgation of tuition materials
> Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B
> Set, administer and mark examinations in key subjects:
>
>
>
>
Statistical Methods
Actuarial Mathematics
Investment and Asset Management
Actuarial Risk Management
> Design generic professionalism training and…
> …assist local associations to run professionalism courses
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Role of IAEP
> Specification of core syllabus and curriculum
> Preparation and promulgation of tuition materials
> Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B
> Set, administer and mark examinations in key subjects:
>
>
>
>
Statistical Methods
Actuarial Mathematics
Investment and Asset Management
Actuarial Risk Management
> Design generic professionalism training and…
> …assist local associations to run professionalism courses
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Specification of core syllabus and curriculum
> New core syllabus and guidelines to Council
> Develop more detailed curriculum for meeting syllabus
> Specify reading materials suitable for curriculum
> for most subjects there will be a number of alternatives
> selected reading will give an indication of depth as well as breadth
> Identify where new tuition materials might be needed
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Role of IAEP
> Specification of core syllabus and curriculum
> Preparation and promulgation of tuition materials
> Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B
> Set, administer and mark examinations in key subjects:
>
>
>
>
Statistical Methods
Actuarial Mathematics
Investment and Asset Management
Actuarial Risk Management
> Design generic professionalism training and…
> …assist local associations to run professionalism courses
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Preparation and promulgation of tuition materials
> Plan programme of new tuition materials
> Commission authors for each subject or part of subject
> Monitor and peer review preparation of materials
> Edit and prepare for publication (electronic and paper)
> Commission on-line distance-learning modules
> Implement on-line distance-learning programme
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Role of IAEP
> Specification of core syllabus and curriculum
> Preparation and promulgation of tuition materials
> Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B
> Set, administer and mark examinations in key subjects:
>
>
>
>
Statistical Methods
Actuarial Mathematics
Investment and Asset Management
Actuarial Risk Management
> Design generic professionalism training and…
> …assist local associations to run professionalism courses
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Accreditation of universities
> Determine requirements for accreditation
>
>
>
>
>
>
>
syllabus coverage
teaching staff
teaching methods
examination processes
examination standards
involvement of actuaries
relationship with local association
> Review whether requirements are met and accredit
> Monitor and regularly review accreditation status
> Develop training the training and visiting lecturers
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Role of IAEP
> Specification of core syllabus and curriculum
> Preparation and promulgation of tuition materials
> Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B
> Set, administer and mark examinations in key subjects:
>
>
>
>
Statistical Methods
Actuarial Mathematics
Investment and Asset Management
Actuarial Risk Management
> Design generic professionalism training and…
> …assist local associations to run professionalism courses
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Set, administer and mark examinations in key subjects
> Subcontract setting and marking of each examination
> to a university
> to an existing actuarial examining body
> to an actuarial association or actuarial educational institute
> Subcontract administration of each examination…
> …or all examinations together
> to locate and supervise examination centres
> to organise registration for examinations
> to organise logistics of getting papers to centre
> to maintain confidentiality and security of papers
> to ensure high standards of invigilation
> to collect papers and deliver them to markers
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Role of IAEP
> Specification of core syllabus and curriculum
> Preparation and promulgation of tuition materials
> Accreditation of universities at Levels 1, 2A, 2B, 3A, 3B
> Set, administer and mark examinations in key subjects:
>
>
>
>
Statistical Methods
Actuarial Mathematics
Investment and Asset Management
Actuarial Risk Management
> Design generic professionalism training and…
> …assist local associations to run professionalism courses
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Design and delivery of professionalism training
> Design generic professionalism course
> …with wide selection of case studies
> …powerpoint presentations
> …notes for presenters and notes for participants
> …devise role-plays and/or produce video
> Make available course leaders to assist associations to
run course for the first time and train local course leaders
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Other possibilities
> diploma courses to kick start professional education
> other short courses to supplement local universities
> development of CPD modules in more advance topics
>
>
>
>
>
>
>
>
International Financial Reporting Standards for actuaries
actuarial role in Solvency II and IAIS equivalent
reserving and pricing for general (P/C) insurance
internal models
fair value for insurance companies
actuarial role in pension reform and private pension plans
actuarial role in social security schemes
actuarial role in health care financing
> develop generic materials + team of specialist presenters
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Discussion….
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Potential sources of funding
> World Bank
> Inter-American Development Bank
> African Development Bank
> Asian Development Bank
> European Bank for Reconstruction and Development
> development agencies of individual countries
> charitable trusts
> commercial organisations
> charge universities for accreditation
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Commercial organisations
> International reinsurance companies
> International direct insurance companies
> International actuarial consulting firms
> International accountancy firms with actuarial presence
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Commercial organisations
> Reinsurance companies, say 4 at $50,000 a year
> Direct insurance companies, say 4 at $50,000 a year
> Actuarial consulting firms, say 5 at $30,000 a year
> Accountancy firms, say 3 at $50,000 a year
> this would yield $700,000 a year
> develop prospectus and covering letter from President
> focus in particular on development of training materials
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Development banks
> approach each with proposal having regional focus
> translation costs of tuition materials relevant to region
> university development in region
> training the trainers
> CPD courses relevant to needs of region
> particular focus on social role of actuaries
>
>
>
>
good governance of social security and public pension plans
regulation and supervision of pension plans
regulation and supervision of insurance companies
meeting Financial Sector Assessment Programme criteria
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Individual country development agencies
> approach each with proposal having tailored focus
> translation costs of tuition materials into their language
> participation of universities from country in programme
> training the trainers
> particular focus on social role of actuaries
>
>
>
>
good governance of social security and public pension plans
regulation and supervision of pension plans
regulation and supervision of insurance companies
meeting Financial Sector Assessment Programme criteria
> joint approach by IAA and local actuarial association
INTERNATIONAL ACTUARIAL EDUCATION PROGRAMME
Individual country development agencies
> UK
> Japan
> US
> Italy
> Canada
> Australia
> France
> Switzerland
> Germany
> Norway
> Netherlands
> Spain
> Sweden
> Portugal
INTERNATIONAL
ACTUARIAL EDUCATION
PROGRAMME
Training the actuaries of the future
- for a global profession