Education and Examination at the SOA Purdue University March 3, 2008.

Education and Examination at the SOA

Purdue University

March 3, 2008

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Education and Examination Goal

Ensure 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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The 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 Course

ASA

FAC – Fellowship Admission Course

FSA

P – ProbabilityFM – Financial Mathematics

MFE – Models for Financial Economics

FAP – Fundamentals of Actuarial Practice Course – 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 filling in the missing pieces.

As ASAs, CERAs have the same membership rights, privileges, and obligations.

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The E&E Structure

Volunteers are the backbone of this complex system.

Over 600 volunteers contribute and partner with staff.

Executive Group, Education, Examination and e-Learning Committees.

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Operations and Candidate Interaction

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Exam Development, Administration, and Grading

Central Review – Exams Finalized Printing Process: Volunteers, Staff,

and Printer Exams Shipping

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Exam Development, Administration, and Grading

Exams Administered Grading: Multiple-Choice (ACT) Grading: Written Answer (SOA

Volunteers) Grades Released

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Candidate Interactions We receive 300 e-mails and 150 phone

calls on average in a typical day The number of e-mails and phone calls is

much higher during grade release Inquiries run the gamut of issues: Basic

administrative questions, credit/conversion questions, exam irregularity correspondence, complaints from those who fail, etc.

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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 think

We grade on the curve Our objective is to restrict

membership in the profession We are unforgiving stodgy

bureaucrats In other words …

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We are the evil enemy

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What we really are

People who take our role in determining who has met our standards seriously

People who listen and adapt. In short, we are …

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Wizards!

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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 beyond

E-learning modules• Wider access for SOA candidates and others• Continuous improvement• Strategic planning for leveraging assets

CBT• More frequent offerings and converting other

paper and pencil exams to CBT format

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E&E in 2008 and beyond

Communication skills training to be emphasized at Fellowship Admissions Course

CERA seminars for current SOA members who are experienced in ERM

Participating 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 beyond

Improving education• Focus on better materials• Maintain consistency in the exam

system structure

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E&E in 2008 and beyond

Improved academic relations by exploring• Accreditation of programs leading to• Granting exam credit for college work