Education Strategy Review Norwich 25 February 2016 Karen Brocklesby – Registrar Tim Birse – Chair of Education Board February 2016

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Background The last major IFoA Education changes were introduced in 2005 The nature of the work of actuaries is changing Other actuarial associations are either planning or currently undergoing a strategic review of their qualification process The IAA is introducing new Core Syllabus standards which the IFoA must meet February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Why undertake a review? Ensure actuaries who qualify with the IFoA remain ‘fit for purpose’ over the next ten years Ensure members of the IFoA are equipped to fulfil wider roles in more diverse areas of work Maintain the IFoA’s reputation internationally by ensuring our qualification structure is up-to-date with the current issues facing actuaries world-wide February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 What will the review accomplish? Content of subjects is cutting edge and relevant Removal of less relevant and duplicated material Balance between technical and softer skills and between theory and application Focus on assessing understanding and competence Appropriate use of technology February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 How is this review being conducted? February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Who are we consulting? National and international employers Learning providers Students (SCF and local actuarial societies) Accredited universities and universities with ERAs Experienced volunteers (examiners, markers) International associations International Actuarial Association (IAA) Regulators (FRC) IFoA national and international membership February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Timescales February June 2016Council approval of new syllabus, assessment methods and exam structure September 2016 New syllabus, assessment methods and transitional arrangements published May 2017Core Reading and specimen exam papers published April 2019First exams held under the revised exam structure

Proposals What changes are the IFoA currently considering? February 2016

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Core Technical Subjects 1, 3-6 and 8 Syllabus Content Replace six existing subjects with four new subjects 1.CS1 and CS2 ‘Core statistical theory and applications 2.CM1 ‘Core modelling 1’ 3.CM2 ‘Core modelling 2’ Assessment Method 18 hours of exams in total covering: 1.Paper based – written 2.Computer based – Excel or Statistical Package ‘R’ February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Core Technical Subjects CS1/2, CM1/2 CS1 and CS2 Statistical Theory and Applications –Rough equivalent: CT3, CT4 and some of CT6 –Aim: Provide a grounding in the aspects of statistics and in particular statistical modelling that are of relevance to actuarial work CM1 Modelling 1 –Rough equivalent: CT1 and CT5 –Aim: Provide a grounding in the principles of modelling as applied to actuarial work – focusing particularly on deterministic models CM2 Modelling 2 –Rough equivalent: CT8 and some of CT6 –Aim: Provide a grounding in the principles of modelling as applied to actuarial work – focusing particularly on stochastic models February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Why use R? R is widely used in education and industry and has a growing user base R is used by typing lines of code rather than pointing and clicking The skills required for the actuarial exams will focus on core statistics and modelling concepts and will be largely transferrable to other packages R is free, well supported and runs on all common platforms R works with a range of packages and other tools that can support actuarial applications, education and assessment. R is, or will be, used by other major actuarial associations R has functions that support the current IAA draft syllabus February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Core Business Subjects (CT2, 7 and 9) Syllabus Content CT2 & CT7 changes include additions and expansions to the syllabus topics to make subjects more relevant CT9 ‘Introduction to Business and Management’ Assessment Method A 3 hour unseen exam for each subject covering both a computer marked element (eg multiple choice or short answer) and some longer questions February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Core Application 1 (CA1) Syllabus Content Move relevant topics to Core Business subjects, in particular project management techniques Remove duplicate content already covered in STs Overall proposed changes are minor Possibly move risk management objectives to a new subject (Introduction to Risk Management) – one two hour exam Assessment Method Two papers 1.Written Short answer questions Mainly application with some bookwork 2.Written Case-study ¾ hour planning time 2½ hour writing time Content drawn from across syllabus but not from a single practice area February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Core Application 2 and 3 CA2 (Modelling Documentation, Analysis and Reporting) –New content to include data analytics CA3 (Communications) –Proposals include: Moving communication of issues to a technical audience into CA2 Moving communication of issues to a non-technical audience into CA1 Covering communication within work-based skills – without assessment Removing requirement for oral presentation Maintain the status quo, or parts of it February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Work-based Skills Content Rename as ‘Personal and Professional Development’ Four Objectives, subdivided into Key Competencies Assessment Credit-based credits per key competency Minimum annual requirement (different for CAA, Associate and Fellow) Recorded online similar to CPD February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 Specialist Technical Subjects (ST/SA) Renamed Specialist Principles (SP) and Specialist Advanced (SA) ST5 renamed SP5 ‘Finance and Investment’ ST6 renamed SP6 ‘Financial Derivatives’ SA5 and SA6 withdrawn and replaced by SA7 ‘Advanced Investments’. This paper will focus on investments but will contain some corporate finance topics All UK specific legislation and regulation to be moved to UK Practice Modules (as post qualification learning) SA subjects become less UK centric In both SP and SA UK practice can be used as an example with comparative material from practice elsewhere Additional specialisms can be added at any time if there is a justification for them February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 February EXISTING EXAM ASSESSMENT STRUCTURE Eight Traditional 3 Hour (Centre) 1 Two day or Online (Two weeks – Evening and Weekends) 90 Minute Online (at any time) Two Traditional 3 Hour (Centre) Two Half Day Online (Office or Home) One Day Out of Office 8 – 10 Hours (Evenings and Weekends) Two Traditional 3 Hour (Centre) One Traditional 3 Hour (Centre) 17 CT’s OPAT CA1 CA2/3 PSC 2 ST SA

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 February PROPOSED NEW ASSESSMENT STRUCTURE Four Traditional (Centre) Four Online (Office or Home) 3 Hour exams (Centre) One Traditional 3 Hour Exam (Centre) One 3 Hour Case Study (Centre) As yet unknown OPAT – 90 Minutes Online (at any time) PSC – 1 Day Out of Office, 8-10 Hours (evenings and weekends) Two Traditional 3 Hour (Centre) One Traditional 3 Hour (Centre) 18 CS1, CM1,CM2 BM CA1 CA2/CA3 OPAT/ PSC ST’s SA

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 FEEDBACK AND COMMENTS WE WELCOME YOUR FEEDBACK AND COMMENTS. PLEASE DIRECT THESE TO: February

Colour palette for PowerPoint presentations Dark blue R17 G52 B88 Gold R217 G171 B22 Mid blue R64 G150 B184 Secondary colour palette Primary colour palette Light grey R220 G221 B217 Pea green R121 G163 B42 Forest green R0 G132 B82 Bottle green R17 G179 B162 Cyan R0 G156 B200 Light blue R124 G179 B225 Violet R128 G118 B207 Purple R143 G70 B147 Fuscia R233 G69 B140 Red R200 G30 B69 Orange R238 G Dark grey R63 G69 B72 February Questions Comments