SOA Education Update:

Transcription

1 SOA Education Update: Understanding the Coming Changes to the Education System May 2, 2012 John I. Mange, FSA, MAAA Education General Chairperson Stephen A. Eadie FSA, FCIA e-learning Chairperson Robert G. Sanford, FSA, MAAA, EA Curriculum Chairperson Stuart Klugman, FSA, CERA Staff Fellow, Education AGENDA Background New CERA Requirements Restructuring of FSA Tracks New FSA Tracks and Transition Rules General Insurance Track Questions & Answers 2 2

2 Webcast Outcomes Participants will understand the reasons for the changes how the changes affect candidates how the changes affect the SOA and the profession 3 3 Background 4 4

3 Background: Motivations for Change Why add new CERA requirements? Incorporate significant developments in enterprise risk management (ERM) education and practice Ensure continued compatibility with the CERA global treaty Ensure that the SOA leads in ERM education and certification Provide an accessible pathway for any FSA to obtain the CERA credential 5 5 Background: Motivations for Change Why change the FSA tracks? Allows candidates pursuing fellowship to earn the CERA credential with only two additional exam hours Opportunity for a comprehensive review and restructuring of current fellowship tracks beyond regular review cycles 6 6

4 Background: Motivations for Change Why add a General Insurance track? Completes the SOA s educational offerings Strengthens preliminary education topics already on SOA syllabus Offers candidates more time to make a specialty track decision Allows for expansion of PD to general insurance topics Serves members and candidates internationally 7 7 New CERA Requirements 8 8

5 Changes to CERA (effective July 1, 2012) 9 9 Changes to CERA (effective July 1, 2012) 10 10

6 Current CERA Pathway New CERA pathway (effective July 1, 2012) NEW Stronger ERM content NEW Important to ERM NEW ERM Exam (4hr) replaces AFE (6hr) Updated 12 12

7 Restructuring of FSA Tracks Basic Structure FSA without CERA Two 5-hour examinations One 2-hour examination Three e-learning s Decision Making and Communication (DMAC) Fellowship Admissions Course (FAC) (Does not apply to the new Corporate Finance and ERM track) 14 14

8 Basic Structure FSA and CERA Two 5-hour examinations 4-hour ERM examination ERM e-learning Two additional s* DMAC and FAC * Three additional s may be required for the general insurance track. The ERM is either required or optional for all other tracks Recommended order For completing examinations and s Not enforced as strict pre-requisites; examination committee can assume prior knowledge For those seeking CERA, the ERM and ERM examination can be taken at any time Recommend taking ERM before ERM examination 16 16

9 Transition rules Specific rules for each track General structure announced March 2011 Details later in this presentation Curriculum changes Learning objectives assigned to allow for a recommended exam order Module requirements change for some tracks Major track-specific changes are on the next slides

10 Timeline Date July 1, 2012 July 2012 Fall 2012 Fall 2012 & Spring 2013 July 1, 2013 July 2013 Fall 2013 Spring 2014 Transition Element New CERA Requirements effective ERM Module available ERM Exam offered for 1 st time AdvF Transitional Exam offered New FSA Structure effective for all tracks FSA track s available Both FSA 5-hr exams offered for 1 st time* FSA 2-hr exams offered for 1 st time *2-hr track exam for Retirement Benefits will be offered beginning Fall New FSA Tracks and Transition Rules 20 20

11 Individual Life and Annuities Track First exam is Life Products and not nation specific Second exam is Life Finance and Valuation and will have Canadian and U.S. versions Two-hour exam is Life Risk Management Individual Life and Annuities Recommended order of requirements Regulation and Taxation Module ERM or Financial Reporting Module (any time) Financial and Health Economics Module (any time) Life Products Exam (5) Life Finance and Valuation Exam (5) Life Risk Management (2) or ERM (4)* Exam *ERM Exam can be taken out of sequence, but ERM Module should be taken prior to exam. DMAC Module and FAC 22 22

12 ILA track transition rules Current ILA DP ILA CSP Regulation and Taxation Financial and Health Economics Operational Risk Financial Reporting Future Life Products and Life Risk Management Life Finance and Valuation* and Life Risk Management Regulation and Taxation Financial and Health Economics ERM Financial Reporting *Will have separate U.S. and Canadian versions Group and Health Track First exam is Group/Health Design, Pricing and Regulation and has Canadian and U.S. versions Second exam is Management of Group/Health Programs and is not nationspecific Two-hour exam will be on Specialty Topics 24 24

13 Financial and Health Economics Module Group and Health Recommended order of requirements Group/Health Design, Pricing and Regulation (5) Exam Management of Group/Health Programs (5) Exam Pricing, Reserving and Forecasting Module ERM or Health Foundations Module (any time) Group/Health Specialty (2) or ERM (4)* Exam *ERM Exam can be taken out of sequence, but ERM Module should be taken prior to exam. DMAC Module and FAC GH track transition rules Current GH DP GH CSP Financial and Health Economics Health Foundations Pricing, Reserving and Forecasting Future Group/Health Design, Pricing and Regulation* and Specialty Topics Management of Group/Health Programs and Specialty Topics Financial and Health Economics Health Foundations Pricing, Reserving and Forecasting *Will have separate U.S./Canadian versions 26 26

14 Retirement Benefits Track First exam is Funding and Regulation. Canadian version only. U.S. candidates will complete the EA exams. Second exam is Design and Accounting and will have separate Canadian and U.S. versions. Two-hour exam on Retirement Plan Investment and Risk Management Retirement Benefits (Canada) Recommended order of requirements Social Insurance Module (both required, in any order) Financial and Health Economics Module Funding and Regulation Exam (5) ERM Module (any time) Design and Accounting Exam (Canada) (5) Retirement Plan Investment and Risk Management (2) or ERM (4)* Exam *ERM Exam can be taken out of sequence, but ERM Module should be taken prior to exam. DMAC Module and FAC 28 28

15 RB Canada track transition rules Current RB DP (Can) RB CSP (Can) Financial and Health Economics Social Insurance Operational Risk Investment Strategy Future Funding and Regulation and Retirement Plan Investment and Risk Management Design and Accounting (Canada) and Retirement Plan Investment and Risk Management Financial and Health Economics Social Insurance ERM Need only complete FHE and SI to fulfill requirements, but does not translate to a future Retirement Benefits (U.S.) Recommended order of requirements Social Insurance Module (both required, in any order) Financial and Health Economics Module EA-2L (2.5) and EA-2F (4) Exam (new names in 2013) ERM Module (any time) Design and Accounting Exam (U.S.) (5) Retirement Plan Investment and Risk Management (2) or ERM (4)* Exam *ERM Exam can be taken out of sequence, but ERM Module should be taken prior to exam. DMAC Module and FAC 30 30

16 RB U.S. track transition rules Current EA-2A EA-2B RB DP (US) RB CSP (US) Financial and Health Economics Social Insurance Operational Risk Investment Strategy Future EA-2F EA-2L Retirement Plan Investment and Risk Management Design and Accounting (U.S.) Financial and Health Economics Social Insurance ERM Need only complete FHE and SI to fulfill requirements, but does not translate to a future Corporate Finance and ERM Track (formerly Finance/ERM) Independent of the Investment track (no longer share an exam) Exams not nation specific Foundations exam followed by Strategic Decision Making exam New in advanced CFE topics 32 32

17 Corporate Finance and ERM Track Recommended order of requirements ERM Module ERM Exam (4) Foundations in CFE Exam (5) (both required, in any order) Financial Reporting Module Strategic Decision Making Exam (5) Advanced Topics in CFE Module DMAC Module and FAC CFE track transition rules Current FETE AFE or (AdvF* and ERM) ERM but not AdvF AdvF but not ERM Operational Risk Financial Reporting Financial and Health Economics *The two hour AdvF exam is to be given only in Fall 2012 and Spring Candidates may register for AdvF alone only if the ERM Exam has been passed Future Foundations in CFE ERM and Strategic Decision Making ERM only Strategic Decision Making Part A** ERM Financial Reporting New Advanced Topics in CFE **In Fall 2013 and Spring 2014, this exam is split in two pieces. Candidates without AdvF must take and pass the entire exam. Candidates with AdvF take only Part B. Starting Fall 2014 all candidates must take the full exam

18 Quantitative Finance and Investments Track (formerly Investment) Now independent of the Finance and ERM track Exams not nation specific First exam is Core topics Second exam is Advanced topics Two-hour exam is Investment Risk Management A new on financial modeling Quantitative Finance & Investments Recommended order of requirements Financial Modeling Module Financial Reporting (any time) ERM Module (any time) QFI-Core Exam (5) QFI-Advanced Exam (5) Investment Risk Management (2) or ERM (4)* Exam DMAC Module and FAC *ERM Exam can be taken out of sequence, but ERM Module should be taken prior to exam

19 QFI track transition rules Current FETE APM Financial Reporting Operational Risk Financial and Health Economics or Investment Strategy s (but not both) Financial and Health Economics and Investment Strategy s Future QFI-Core and Investment Risk Management QFI-Advanced and Investment Risk Management Financial Reporting ERM Financial Modeling If no other s, must take ERM; If have completed a third, no further requriements General Insurance Track 38 38

20 General Insurance Track Details are being developed Use of ERM not decided Placement of nation specific material not decided Transition rules to be determined General Insurance (tentative) Recommended order of requirements Financial and Health Economics Module General Insurance Core Exam (5) General Insurance Advanced Exam (5) General Insurance Module (both required, in any order) Choice of General Insurance Noncore Exam (2) or ERM (4)* Exam Module to be determined, ERM Module may be allowed as choice *ERM Exam can be taken out of sequence, but ERM Module should be taken prior to exam. DMAC Module and FAC 40 40

21 Questions and Answers Following the webcast, send inquiries to: Thank you!