Swedish Actuarial Education
Erik Alm
Hannover Life Re Sweden
Annual Meeting
Helsinki, February 28 2011
Disclaimer
The information provided in this presentation does in no way whatsoever constitute legal,
accounting, tax or other professional advice.
While Hannover Rückversicherung AG has endeavoured to include in this presentation
information it believes to be reliable, complete and up-to-date, the company does not make
any representation or warranty, express or implied, as to the accuracy, completeness or
updated status of such information.
Therefore, in no case whatsoever will Hannover Rückversicherung AG and its affiliate
companies or employees be liable to anyone for any decision made or action taken in
conjunction with the information in this presentation or for any related damages.
© Hannover Rückversicherung AG. All rights reserved.
Hannover Re is the registered service mark of Hannover Rückversicherung AG.
Swedish Actuarial Education
Agenda
International Education Requirements
The Swedish Actuarial Education
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Swedish Actuarial Education
International Actuarial Organisations
Groupe Consultatif Actuariel Europeén (GC)
• European
• 30 member associations
– Including Sweden and Finland
International Actuarial Association (IAA)
• International
• 63 member associations
– Including Sweden and Finland
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Swedish Actuarial Education
Groupe Consultatif
Actuarial education requirements
Core Syllabus
• Ten subjects
• Many topics per subject
A discussion on changes is ongoing just now
• Should number of ECTS per subject be defined?
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Swedish Actuarial Education
GC education requirements
Preliminary stage
Mathematics
Probability and Statistics
Stochastic Processes
Economics
Accounting and Financial reporting
Formal assessment
• May be examined before the actuarial education programme
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Swedish Actuarial Education
Groupe Consultatif
Actuarial education requirements
1. Mathematics
Aim: To provide a grounding in mathematical techniques to support the
understanding of the other subjects and to provide an understanding of
mathematical modelling.
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(a) Functions, equations and inequalities
(b) Differential and integral calculus
(c) Differential equations
(d) Sequences and series
(e) Linear algebra
(f) Introductory measure theory
(g) Difference equations
(h) Fourier analysis
(i) Numerical analysis
Swedish Actuarial Education
GC education requirements
Preliminary stage
Computing
Structures and Legislative Instruments of the European Union
Communication Skills
Language Skills
No formal assessment
May be integrated in the education of other subjects
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Swedish Actuarial Education
GC education requirements
Actuarial Foundation Stage
Financial Mathematics
Survival Models
Contingencies
Risk mathematics
Finance and financial markets
Formal assessment
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Swedish Actuarial Education
GC education requirements
Generalised Applications Stage
Life Insurance
General Insurance
Pension
Living benefits
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Formal assessment
Swedish Actuarial Education
GC education requirements
Country specific and specialist stage
Country specific items
Specialist items
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Swedish Actuarial Education
IAA education requirements
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Financial Mathematics
Probability and Mathematical Statistics
Economics
Accounting
Modelling
Statistical Methods
Actuarial Mathematics
Investment and Asset Analysis
Actuarial Risk Management
Professionalism
Swedish Actuarial Education
IAA education requirements
Specialities
Modelling
• Would normally be integrated in other subjects rather than separate subject
Actuarial Mathematics
• Does not specify life or non-life, one is enough
– Follows US standard
Professionalism
• Will be added to GC Syllabus
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Swedish Actuarial Education
Swedish Actuarial Education
Requirements for membership
University exam
• Bachelor
• Master
• Civil Engineer
60 ECTS Mathematics (basic)
60 ECTS Mathematical Statistics (basic)
30 ECTS Mathematics of Mathematical Statistics or close subjects (advanced)
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Swedish Actuarial Education
Swedish Actuarial Education
Requirements for full membership (Diploma)
University exam
• Bachelor
• Master
• Civil Engineer
60 ECTS Mathematics (basic)
60 ECTS Mathematical Statistics (basic)
30 ECTS Mathematics of Mathematical Statistics or close subjects (advanced)
60 ECTS Actuarial/Insurance subjects
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Swedish Actuarial Education
Swedish Actuarial Education
Requirements for full membership (Diploma) (cont)
University exam
Actuarial programme
Language
• Able to understand Swedish insurance regulation
• Able to read Swedish and English actuarial literature
• Able to write actuarial reports in Swedish or English
A thesis
• At least 100 hours
• Could be bachelor or master thesis if relevant
• Will be presented orally to the education committee
Three years of actuarial experience
• One year Swedish experience
• One year after studies
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Professionalism course
Swedish Actuarial Education
Swedish Actuarial Education
Decision on full membership
Examination Committee
Looks at each application
Evaluates studies against requirements
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Often complicated
Foreign studies
Technology vs university
Old exams
Double counting
Gives recommendation to the board
The board decides (in line with recommendation)
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Swedish Actuarial Education
Swedish Actuarial Education
Stockholm University Actuarial Programme
Blocks of 7.5 ECP each
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Life insurance part I
Life insurance part II
Non-life reserving
Non-life pricing
General law
Insurance law
Insurance accounting
Financial mathematics
Economics
Swedish Actuarial Education
Swedish Actuarial Education
Stockholm University Actuarial Programme
Close cooperation with the university
Observer in the Education Committee
Many subjects taught by actuaries
Courses follow syllabus
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Swedish Actuarial Education
Swedish Actuarial Education
Literature (examples)
Andersson, Gunnar, Livförsäkringsmatematik I
• In Swedish
Alm, Andersson, von Bahr, Martin-Löf, Livförsäkringsmatematik II
• Partly in English, partly Swedish
Ohlsson, Johansson, Non-Life Insurance Pricing with Generalized Linear Models
• In English
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Swedish Actuarial Education
Swedish Actuarial Education
Professionalism
One day seminar
Mainly case study discussions
Some presentations
• The legal environment
• The Code of Conduct
• The disciplinary scheme
No exam, active participation in discussions is enough
Should maybe first obligatory CPD
• Participate every tenth year??
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Swedish Actuarial Education
Swedish Actuarial Education
Continuous Professional Development
Not obligatory in our association
We have a policy
• Follows the policy of the GC
• Recommends CPD
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Swedish Actuarial Education
CPD
Why not obligatory?
Very complicated to administer complete tracking
• Or just random checking
• Some associations have build up a very complicated system for tracking CPD
Relevant?
• All seminars are not relevant for all actuaries
• Much relevant CPD is hard to measure
• Signing a list of attendees does not mean that you have learnt anything (or even actually
attended)
• Is obligatory CPD used to finance the association by making seminars semi-obligatory?
• Has listening to this speech improved the actuarial competence of the listeners??
Code of conduct requirements
• You should only accept assignment that you are competent to handle
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Swedish Actuarial Education
CPD
Obligatory
• Maybe professionalism
• Maybe every ten years
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Swedish Actuarial Education
Requirements to become appointed actuary
Set by our regulator
Studies comparable to the present syllabus of Svenska Aktuarieföreningen, or
Studies comparable to the present syllabus of IAA
Some exemptions are made
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We do not have enough actuaries who have studied the present syllabus
Often temporary
Often connected to a study plan
Sometimes depending on type of assignment
Sometime depending on the person
Easier for very experienced actuaries to get an exemption
Present appointed actuaries could stay at their assignments
• But would have to fulfil the rules if changing appointment
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Swedish Actuarial Education
CERA
Certified Enterprise Risk Analyst
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In principle an add-on to the actuarial education
Good back ground for CRO (Chief Risk Officer)
Organised through a cooperation between a number of actuarial associations
Has an official syllabus
Intention to have a qualification that is recognised globally
Sweden is a founding member
Swedish Actuarial Education
CERA
Our activities
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We cooperate with the Royal Institute of Technology
Some existing courses (22.5 credits) in financial mathematics and risk
management fulfil part of the CERA syllabus.
A new course (7.5 credits) in more practical ERM (Enterprise Risk Management)
has been developed to fill the gaps.
The course will be set up so that it can be taken over one year on a part time
basis (50%), and will be open to both existing students at the Royal Institute of
Technology and external students who are already in employment
We have not yet ascertained if the proposed course covers the CERA syllabus
adequately, but the hope is that it should cover enough of the syllabus to be
CERA compliant.
Over and above this, the association needs to set up procedures around the
qualification to comply with the required “governance”
Swedish Actuarial Education
Thank you for your attention