1. University of New South Wales Presentation to Actuarial Students
Here today representing the IAAust
Council 1997 – 2002
President in 2002
Work at APRA (prudential regulator of Financial Services Sector)
Before that worked at Towers Perrin in super and employee benefits consulting for most of my career
Helen Martin BA FIAA
IAAust Past President
August 2003

2. The Actuarial Profession in Australia
Role of the Institute
Initiatives & activities
Education – Part III Review
Why it’s a great profession!
Agenda for today

3. Role of the Institute
Professional body: representing, and providing services to, members of the actuarial profession since 1897
Over 2600 members, including students, Associates, Fellows & Affiliates
Vision: IAAust aims to position the profession so that wherever there is uncertainty of future financial outcomes, actuaries are sought after for their valued advice and authoritative comment.
2654 members
1258 Fellows & Accredited Members
565 Associates
722 Students
9 Affiliates
Key focus of IAAust activities is to: - educate future actuaries (directly or through others such as universities); and - promote profession/actuaries to employers, Government, Govt departments and advisers, regulators and other industry bodies
IAAust Strategic Plan – Vision & Mission
Actuaries as business-focused problem solvers
Uniqueness of actuarial qualification is that it combines mathematical, statistical and financial techniques and applies them to a wide range of business and social problems/issues

4. Role of the Institute
IAAust represents the actuarial profession by creating, expanding and maintaining an environment where the skills of actuaries are widely used and valued through:
development of professional standards
providing education, CPD & forums for discussion
promoting research & development of actuarial science, and
contributing to public policy.
Code & Standards – developed by actuaries to maintain professional standards and assist actuaries in their day to day work. Cover wide range of areas, particularly legislated responsibilities
Will come back to education & CPD and also public policy
Research - fund projects via research grants, encourage through universities, ongoing studies eg mortality and disability investigations, IFSA genetics data collection & analysis
Important for profession to stay at leading edge to remain relevant
Also need to be aware of developments in other fields & professions
Actuaries are not the only people with strong quantitative skills in the areas in which we work – need to learn from and work with others to continue to develop actuarial science

5. Initiatives & Activities
Education
Recognised as world class - flexible and innovative
Continually evolving – eg current Part III changes
Partnership with universities important
Asian education strategy
CPD, Discussion forums, member services
Conventions, forums & seminars
Journals, magazine, web-site
Links with industry and other bodies
Research, experience studies
Education - Flexible structure
Development leads rest of world – ACC, specialist areas (finance)
Part III – make more modular to enhance flexibility; increase emphasis on business problem solving through case studies and residential approach
Universities – exemptions & accreditation; financial support
IAA education principles - global requirement readily met by Australian actuarial programmes
Promoting actuarial education in Asia – e.g. India, China, Hong Kong & Singapore – tuition, links with universities etc
CPD etc
many & varied – visit website to look at programme for recent Convention – international guests impressed with range and depth of topics covered
students are encouraged to attend IAAust activities eg Horizons series

6. Initiatives & Activities
Policy submissions & representation
General Insurance
Public Liability & Medical Indemnity
Health Financing
Ageing & Retirement Incomes
Governance & prudential issues
Financial reporting, accounting and executive options
International involvement
International Actuarial Association
International Accounting Standards Board
International Association of Insurance Supervisors
As a profession a key role is to inform/enhance public debate on relevant issues and to act in the interests of the public
Focus on implications of policy initiatives rather than advocate particular approach/position
GI – major reforms in 2002 incl. legislated role for actuaries; Likely to expand in future. Actuaries have influenced developments
PL & MI – active particpation in reforms/debate; AGA, IAAust and indiv. actuaries; developing solutions to enhance market stability, build capital, make pricing more robust; balancing needs of different stakeholders important
Health – IAAust round table meetings and CPD courses; range of participants (not just actuaries); aim to develop solutions to long-term health funding/financing/provision. Growing area for actuaries
Governance – IAAust rep on ASX Corporate Governance Council
Financial reporting – international accounting standards (esp insurance – shift from P&L to B/S, fair value); valuation of Exec options; GN on economic valuations of financial entities

7. Education – Part III Review
equivalent to UK 100 series subjects
covers core technical material
Part II (Actuarial Control Cycle)
practical application across all areas
leads to AIAA qualification
Part III
Specialist subjects by practice area
leads to FIAA qualification
Exemptions from Parts I & II for university courses (subject to grades achieved)
Part III must currently be undertaken through IAAust - no exemptions available
Also need to do Professionalism Course and meet experience requirement to be FIAA

8. Education – Part III Review
Current Part III Structure
Pass two Specialist subjects in: - Finance - Investment - Life Insurance - General Insurance - Superannuation & Planned Savings
Finance subject unique to Australia but UK to include in their 2005 changes
Super course recently revised and name change

9. Education – Part III Review
Proposed Part III structure
Each module is a half-year subject, all four modules must be completed
Module 1 Investment Management
Module 2 Specific Practice Area Skills
Module 3 Specific Practice Area Skills
Module 4 Business Applications
Part III

10. Education – Part III Review
Proposed Part III Structure
Module 1 - compulsory
provide adequate level of investment knowledge
Modules 2 and 3 - at selection of student
only one specialist area required
develop technical and judgment skills
Module 4 – compulsory
non-practice area specific
use judgement & apply knowledge and skills to simulated commercial problems.
Reasons for change:
make structure more flexible;
allow students to sit twice per year
increase business/commercial/practical focus
include different assessment approaches
build on ACC approach to better equip actuaries to apply skills in different/new areas
ensure all actuaries have minimum investment knowledge needed beyond what is covered in ACC subject

11. Education – Part III Review
Proposed Part III Structure
Modules 2 and 3
Existing courses split into two modules for: - Life Insurance - General Insurance - Superannuation & Planned Savings
New combined Investment and Finance course established as two modules
Choose one from four under new srtucture

12. Education – Part III Review
Proposed Part III Structure
Module 4
combination of self study material & 5 day intensive residential course
traditional and non-traditional areas
ethical issues & corporate governance
professional standards
accredited communications course
Focus on:
understanding overall business and its impact on actuarial advice/recommendations
measuring and communicating risks associated with alternative solutions
recognise cost/benefit of further analysis and value trade off in developing solutions
applying actuarial skills to both familiar and new/non-traditional areas (similar to ACC approach)

13. Education – Part III Review
Assessment
Modules 1 - 3: combination of assignments & exam (max. 20% based on assignments)
Module 4: combination of case study (completed under exam conditions) & examination
Exploring possibility of other methods eg Viva Voce

14. Education – Part III Review
Transition 2005 & 2006
modules offered twice yearly from 2005
two years to qualify under old structure
Part III subjects passed prior to 2004 = credit of two modules in the new structure
Pass in one paper in 2004 = credit of one module in new structure

15. Why it’s a great profession!
Valuable technical skills with wide application
Areas of work many and varied
Opportunities in financial services and beyond
Member of respected profession
Global qualification - mutual recognition
Access to IAAust services and programs
Industry/professional/political/regulatory involvement
The opportunity to make a difference!
2125 members in Australia (so 20% overseas)
20% in non-traditional areas (investments, energy/greenhouse, health, education, IT etc)

16. Want more information? Visit the IAAust website www.actuaries.asn.au
Contact the IAAust Secretariat
Institute of Actuaries of Australia
Level 7 Challis House, 4 Martin Place
Sydney 2000 AUSTRALIA
Telephone:
Fax: