International Actuarial Association

INTERNATIONAL ACTUARIAL ASSOCIATION

ASSOCIATION ACTUARIELLE INTERNATIONALE

EDUCATION QUESTIONNAIRE

This questionnaire relates to the International Actuarial Association (IAA)Full Membership Education Requirements adopted in April May 2012effective 1 January 2013.

This questionnaire has four sections, A-D.

Section A. CONTACT PERSON INFORMATION

A1Name of Association:

A2Name of Person Completing Survey:

Address and email:

Position:

A3Date:
A4Signature of President or IAA Council Delegate of actuarial association

…………………………………………………………………………………………………….…

Please return to or fax to 1-613-236-1386

Secretariat: 601–150 Metcalfe, Ottawa, ON Canada K2P 1P1  1-613-236-0886  1-613-236-1386
/ — /

Section B. EDUCATIONAL REQUIREMENTS

Under this section the IAA would like to get a brief overview of your education system. It is helpful to understand which bodies have a say in your training system, e.g. some governments directly approve the syllabus. Please give a brief explanation to your replies where appropriate.

B1 / Please provide a brief description of the education process used by your association. This should include the structure and how assessments are carried out.
B2 / Does your association admit members mainly on the basis of its own examinations? This might be examinations set by the association at all stages of education or for part of the education requirements to supplement university education.
YES / NO / N/A
B3 / Does your association admit members mainly on the basis of university examinations alone?
YES / NO / N/A
Please comment, if appropriate.
B4 / Does your association admit members mainly or solely on the basis that they are fully qualified members of other IAA Full Member associations?
YES / NO / N/A
Please comment, if appropriate.
Please list all these other associations.
B5 / Does your association admit members under any criteria that do not meet the IAA Education Syllabus and Guidelines?
YES / NO / N/A
Please give details.
B6 / Does the government of your country directly approve the education syllabus to enable someone to be called an actuary?
YES / NO / N/A
If so please describe how the association influences and affects any of the governmental process.
B7 / Does your education process meet the legal requirements for an actuary in your country?
YES / NO / N/A
B8 / Please provide a brief description of the review processes your association uses for keeping the education system up-to-date.
B9 / Please explain how your association satisfies itself that the education in all bodies (for example, universities) which contribute to your actuarial education process is appropriate.
B10 / When did your education system undergo a major change?
B11 / Please give the anticipated date (if known) of any future major change.
B12 / If you have recently changed or plan to change your education system how will you treat students who have started in one system and are moving to the new system?
B13 /

PROFESSIONALISM

Where are the professionalism topics covered by your association?
Is this a requirement for full membership in your association?
NOTE
Associations who only admit individuals as Full Memberson the basis that the individual has satisfied the qualification criteria of another association which is an IAA Full Member association do not need to respond to C1-C9.
All other associations are asked to complete the rest of the questionnaire.

Section C. EDUCATION SYLLABUS

In the questions on coverage of the IAA Syllabus please indicate for each topic where it is covered in the education process for your association. The IAA Education Syllabus guidelines will be presented in different formats in different associations so a cross-reference to the course provided by the association or by universities should be indicated. Please also indicate the depth of coverage. In assessing the depth a view across the subject overall is required so there may be differences in coverage of individual topics. A mapping between the IAA Syllabus and the education process for your association would be helpful.

C1FINANCIAL MATHEMATICS

Aim:

To provide a grounding in the techniques of financial mathematics and their applications.

Topics:

Deterministic theory of interest rates
Generalised cash-flow models
Introduction to contingent claims analysis
Term structure models
Risk neutral valuation, including derivative pricing and deflators
Stochastic calculus for finance
Stochastic theory of interest rates
Dynamic portfolio management
Introductory applications to insurance and other financial liabilities

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

2 - The student has a good knowledge of the subject as defined in the syllabus and an understanding of how the subject is used in problem solving so that the student is able to solve well-defined problems as needed by actuaries.

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C2PROBABILITY AND MATHEMATICAL STATISTICS

Aim:

To provide a grounding in probability and mathematical statistics.

Topics:

Concepts of probability
Random variables and their characteristics
Methods and properties of estimation
Correlation and regression analysis
Hypothesis testing and confidence intervals
Data analysis

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C3ECONOMICS

Aim:

To provide a grounding in the fundamental concepts of microeconomics, macroeconomics, and financial economics.

Topics:

Microeconomics
Macroeconomics
Financial Economics
Expected utility theory
Efficient Markets Hypothesis
Asset return models and asset pricing models
Behavioural finance: prospect theory, investor heuristics and biases.

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C4ACCOUNTING

Aim:

To provide the ability to interpret the accounts and financial statement of companies.

Topics:

Basic principles of accounting
The role of accounting standards
Different types of business entity
Basic structure of company accounts
Interpretation and limitation of company accounts

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C5MODELLING

Aim:

To provide an understanding of the principles of modelling and its applications.

Topics:

Model structures
Selection process
Calibration
Validation
Scenario setting
Sensitivity testing
Limitations
Computer applications of modelling
Documentation and audit trail

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C6STATISTICAL METHODS

Aims:

To provide the skills and expertise in the use of statistical methods for the understanding of risk in a range of actuarial work.

Topics:

Statistical models, such as regression and time series
Survival and multi-state models
Risk models (individual and collective)
Parametric and non parametric analysis of data
Graduation principles and techniques
Estimation of frequency, severity and survival distributions
Credibility theory
Ruin theory
Concepts of stochastic processes
Simulation methods

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C7ACTUARIAL MATHEMATICS

Aim:

To provide skills and expertise in the application of the mathematics of contingent payments to common problems in actuarial practice.

Topics:

Nature of the events giving rise to a contingency
Typical solutions offered by insurance, social insurance, other financial services, or risk management e.g. products, schemes, contacts or transactions that will provide payments or benefits on future financial events in relation to:
the risk profile and aims of the parties involved
the concepts of risk avoidance, risk transfer and risk retention
the level and form of cash flows to be provided
any options or guarantees that may be included
the method of financing the cash flows to be provided
the choice of assets when payments or benefits are funded
the charges that will be levied
the capital requirements

Actuarial methods for evaluating the prospective cost of solutions, e.g.:
Pricing of insurance contracts
Financing methods for other products or plans
Financial effects of other risk management solutions
Actuarial methods for monitoring the results and maintaining financial stability, such as:
Reserving
Financial Reporting
Reinsuring
Profitability analysis
Financial condition analysis

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C8INVESTMENT AND ASSET ANALYSIS

Aim:

To develop the ability to apply actuarial principles to the valuation, appraisal, selection and management of investments and to liaise with other investment professionals.

Topics:

The objectives of institutional and individual investors
Types of investment (bonds, shares, property and derivatives)
Valuation of investments
Portfolio selection - incorporating assessment of relative value
Performance measurement
Portfolio management
Management of investments with respect to liabilities using techniques such as immunisation, asset-liability management and liability driven investment

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C9ACTUARIAL RISK MANAGEMENT

Aim:

To develop the ability to apply the principles of actuarial planning and control needed for the identification, quantification and management of risks for the operation of risk related programs on a sound financial basis.

Topics:

The general operating environment of the enterprise
Assessment of risks; risk types and risk measures
Design and development of products and/or services
Pricing of products and services and assumptions underlying the pricing
Reserving and valuation of liabilities
Management of risks and methods of reducing risk exposure, such as reinsurance
Management of the relationships between assets and liabilities
Monitoring of experience and exposure to risk
Solvency and profitability of the enterprise and the management of capital
Principles of regulation of financial institutions.

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

C10.PROFESSIONALISM

Aim:

To develop awareness of the meaning of professionalism, the importance of professionalism in the work of an actuary and the professionalism issues that may arise in the course of that work.

Topics:

Characteristics and standards of a profession including the need for:

Specialised skill and education
Ongoing training and development
High quality of advice
Exercise of independent judgment
Objectivity, integrity and accountability

Code of conduct
Discipline process
Practice standards set by actuarial bodies and other stakeholders
Considerations for actuaries in international practice
Regulatory roles of actuaries
The professional role of the actuary

Analysis and resolution of ethical issues
Identifying and managing conflicts, misuse of or undue influence on advice
Nature of advice
The public interest

Where are these topics covered by your association?

If they are not covered directly what alternative topics compensate?

Depth of coverage

0 - Not covered at all

1 - An introduction to the topics so the student has a superficial knowledge of the subject

3 - The student has a deep knowledge of the subject and is able to solve complex problems using judgment.

SECTION D. SUMMARY

D1 / Does the education content overall required of new members meet the IAA Education Syllabus and Guidelines? / YES / NO
D2 / If the education content overall does not meet the IAA Education Syllabus and Guidelines what are your plans to change this?
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
D3 / Please give details of where additional information on the education content teaching material and assessment methods including any examination papers may be found.
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

End of Questionnaire