report on the responses to the iepc questionnaire and some thoughts on the development of the iaep...

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

43%

57%

Yes

No

Does your association organize actuarial education/examinations?

(by number of associations)


88%

12%

Yes

No

Does your association organize actuarial education/examinations?

(by number of students)

PROFESSIONAL EXAMINATION SYSTEMS

Students currently under professional examination systemsAssociation Number of students a year

Society of Actuaries 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


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


Possible future demand under IAEP


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

TOTAL 8,800 15,200


Possible future demand under IAEP - AsiaCountry 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


Possible future demand under IAEP - Africa


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


Possible future demand under IAEP – Other


Brazil 350

Other Latin America 250

Russia 500

Central Asia/CIS 500

Central Europe 500

MENA 300

Other 300

TOTAL 2,700

UNIVERSITY INVOLVEMENT

40

30

Yes

No

Does your association currently rely, at least in part, on education provided by universities?


0

10

20

30

40

50

60

FM PMS Econ Acc Model Stat M Act M Inv AM ARM Prof

All countries

Countries with universities interested in teaching IAA core syllabus


0

10

20

30

40

50

60


IEP countries



0

10

20

30

40

50

60


All countries IEP countries



Possible levels of accreditation> Level 1> Financial Mathematics > Economics> Probability & Mathematical Statistics > Accounting

> Level 2: Above subjects plus> Statistical Methods > Modelling> Actuarial Mathematics

> Level 3: Above subjects plus> Investment and Asset Management> Actuarial Risk Management


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


Different combinations of universities at different levels

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Type1

Type2

Type3

Type4

Type5

Type6

Type7

Type8

Type9

IEP

U3

U2

U1


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


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


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


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


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


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


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


Discussion….


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


Commercial organisations> International reinsurance companies> International direct insurance companies> International actuarial consulting firms> International accountancy firms with actuarial presence


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


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


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


Individual country development agencies> UK> US> Canada> France> Germany> Netherlands> Sweden

> Japan> Italy> Australia> Switzerland> Norway> Spain> Portugal


Training the actuaries of the future

- for a global profession

report on the responses to the iepc questionnaire and some thoughts on the development of the iaep...

Documents

analysis slide

iaep countrynumber of

iaa fund slide

number of associations

year south africa

central africa

total countries

year china