Welcome!

The program prepares student for careers as . It helps them learn material that is included in processional examinations administered by the and Casualty Society, which actuarial students must pass in order to achieve professional status.

Thank you for your interest in our Actuarial Science Program at the University of Iowa.

The Actuarial Science program prepares students for careers as actuaries. It helps them learn material that is included in professional examinations administered by the Society of Actuaries, which actuarial students must pass in order to achieve professional status. In addition to actuarial science courses, students can take courses in preparation for business aspects of the actuarial profession such as accounting, law, finance, , and . The Society of Actuaries (SOA) has recognized University of Iowa’s actuarial science program as a Center of Actuarial Excellence (CAE). There are eight criteria for the designation, including curriculum, faculty composition, graduate quality, connection to industry, and research/scholarship. We are a small department in a large University and graduate between 20-15 students each year. We do have SELECTIVE admission due to the difficulty of the professional examinations. Students interested in becoming actuaries should declare an Interest in Actuarial Science as their major when they ENTER the university. Ordinarily, students apply for admission to the Actuarial Science major in the fall semester of their sophomore year, after they have taken Math:2850 (22M:028) Calculus III or MATH:3770 (22M:055) Fundamental Properties of Spaces and Functions I and STAT:3100 (22S:130) Introduction to Mathematical Statistics I. Students should apply no later than the end of the spring semester of their junior year. We have 17 active faculty teaching Statistic courses and 5 teaching Actuarial Science classes. More information on our program follows! If you have any questions or concerns please contact Margie Ebert, Academic Program Coordinator at (319) 335-2082 or email [email protected] or actuarial- [email protected]

Actuarial Science Fall 16 Orientation Schedule

Undergraduates: Are you a new student or a transfer student interested in Actuarial Science?

Specific details (time and place) will be sent to all students or check out the Club’s Facebook page for the latest information: https://www.facebook.com/ groups/163654807082416/

Thursday, August 18: College of Liberal Arts and Sciences (CLAS) Open House at Hubbard The University Park at 4-6 p.m. While promoting their majors and programs, departments will sponsor games, give of Iowa demonstrations, do art projects, and give away promotional items. Stop by to meet us! Department of Saturday, August 27: Actuarial Science Club Social Event with Fun and Games at the Statistics and Park! 1:30-3:30 p.m. More details soon! Actuarial Science Tuesday, August 30: Program Overview. We encourage all new and transfer undergraduate students to join us to learn more about the Actuarial Science major with Professor Shiu. 3:30 p.m.

Thursday, September 1: Willis Towers Watson invited all student to attend their famous 241 Schaeffer Hall networking activity (Mocktail) and help with writing resumes! 6:30 p.m. Phone: 319 335-0712 Tuesday, September 6: Transamerica sponsored Picnic! Great way to meet all of our Actuarial Science students and have some fun! Details coming soon! Plan on 5-8 p.m. E-mail: actuarial- [email protected] Thursday, September 8: Resume Workshop/ Interview Skills Practice/short Hire-a-hawk overview, 6:30 p.m.

Tuesday, September 13: Principal Presentation by the chief actuary & general information to prepare for the job fair! 6:30 p.m.

Tuesday, September 20: Intern Night, 6:30 p.m. Learn more about what it is like to work as an Actuarial Intern! Thursday, September 22: from 9-4 in Pomerantz Center: Principal Mock Interviews

Thursday, September 22: from 11-4 pm in the IMU: University Fall Job & Internship Fair

Wednesday, September 28: from 1-4 pm in the IMU: Actuarial Science, Insurance & Risk Management Job and Internship Fair s & Actuarial Science For each event you attend, your name will be submitted in a raffle to have breakfast with a company before the fair!

Join us at

Actuaries Risk is Opportunity.

Pathway to Membership

Exam Exam FM (1st or MFE 2nd year)  Exam FM: Financial Mathematics (3rd year) Exam  Exam P: Probability MLC  Exam MLC: Models of Exam P Exam C (4th year)  Exam MFE: Models for Life Contingencies (2nd or 3rd (after year) graduation)  Exam C: Construction and Evaluations of Actuarial Models

VEE– Validation by Educational Experience FAP (Fundamentals of Actuarial Practice) Includes courses in Economics, Corporate They are e-Learning courses and written Finance and Applied Statistics. Required assessments. Usually done post graduation. specified grade after passing two exams.

“In the forefront of actuarial folklore stands the belief that the actuarial examinations constitute a mystery impenetrable by mortal man.” Charles A. Spoerl, Transactions of the Society of Actuaries, Volume 1 (1949)

“The primary unifying force of the actuarial profession in North America is the shared experience of the actuarial exams. These difficult and competitive exams . . . yield a bond among actuaries that is stronger and longer lasting than that produced by the entry trials of other professions and careers. Actuaries are unique in the extent to which they remember and discuss their qualifying process, contribute their time to the education and examinations of prospective actuaries, and share a sense of community with those who have traveled the same road. The exams are sufficiently difficult to produce a sense of accomplishment best appreciated by other successful candidates.” Society of Actuaries Task Force on the Actuary of the Future (1988)

Required Courses for the BS degree in Actuarial Science • CS:1210 (22C:016) Computer Science I: Fundamentals (4 s.h.) • ECON:1100 (06E:001) Principles of Microeconomics (4 s.h.) • ECON:1200 (06E:002) Principles of Macroeconomics (4 s.h.) • MATH:1850 (22M:025) Calculus I (4 s.h.) • MATH:1860 (22M:026) Calculus II (4 s.h.) • MATH:2700 (22M:027) Introduction to Linear Algebra (4 s.h.) • MATH:2850 (22M:028) Calculus III (4 s.h.) • MATH:3770 (22M:055) Fundamental Properties of Spaces and Functions I (4 s.h.) • STAT:3100 (22S:130) Introduction to Mathematical Statistics I (3 s.h.) • STAT:3101 (22S:131) Introduction to Mathematical Statistics II (3 s.h.) • STAT:4100 (22S:153) Mathematical Statistics I (3 s.h.) • STAT:4101 (22S:154) Mathematical Statistics II (3 s.h.) • ACTS:3080 (22S:180) Mathematics of Finance I (3 s.h.) • ACTS:4130 (22S:174) Quantitative Methods for Actuaries (3 s.h.) • ACTS:4180 (22S:181) Life Contingencies I (3 s.h.) • ACTS:4280 (22S:182) Life Contingencies II (3 s.h.) • ACTS:4380 (22S:183) Mathematics of Finance II (3 s.h.)

ACTS:4280 (3 s.h.) may be substituted with BOTH ACTS:6480 (22S:177) Loss Distributions (3 s.h.) and ACTS:6580 (22S:176) Credibility and Survival Analysis (3 s.h.).

MATH:3600 (22M:100) Introduction to Ordinary Differential Equations (useful for Exams MFE and MLC) and STAT:6300 (22S:195) Probability and Stochastic Processes I (useful for Exam MLC and also the new Exam S of the Casualty Actuarial Society) are highly recommended. For satisfying the General Education Program requirements in Natural Sciences, calculus-based courses such as PHYS:1611, 1612 (029:081, 082) are recommended.

Some Facts: The University of Iowa has the second oldest actuarial science program in the U.S.A. It began with the course “The Mathematical Theory of Insurance,” taught by Dr. Westfall, in academic year 1902/1903. Since 1913, actuarial science courses have been taught every year at UI. Five past presidents of the Society of Actuaries and two past presidents of the Casualty Actuarial Society were UI students. The total number of new Fellows of the Society of Actuaries (FSA) from 2000 to 2014 is 9669, of which 218 are graduates of UI. http://www.stat.uiowa.edu/fellows- society-actuaries-fsa In other words, UI has produced 2.25% of all new FSA’s. 1

Sample Schedules

Year Fall Semester Spring Semester MATH:1850 Calculus I MATH:1860 Calculus II

1 CS:1210 Computer Science I: Fundamentals MATH:2700 Introduction to Linear Algebra

ECON:1100 Principles of Microeconomics (for VEE) ECON:1200 Principles of Macroeconomics (for VEE) MATH:3770 Fundamental Properties of Spaces and Functions I MATH:2850 Calculus III 2 STAT:3101 Introduction to Mathematical Statistics II STAT:3100 Introduction to Mathematical Statistics I ACTS:3080 Mathematics of Finance I (Exam FM) ACTS:3080 Mathematics of Finance I (Exam FM) STAT:4101 Mathematical Statistics II

STAT:4100 Mathematical Statistics I ACTS:4180 Life Contingencies I (Exam MLC) 3 ACTS:4130 Quantitative Methods for Actuaries ACTS:4380 Mathematics of Finance II (Exam MFE)

ACTS:4380 Mathematics of Finance II (Exam MFE) FIN:3300 Corporate Finance (for VEE) ACTS:4280 Life Contingencies II (Exam MLC) ACTS:4380 Mathematics of Finance II (Exam MFE)

ACTS:4380 Mathematics of Finance II (Exam MFE) 4 ACTS:6480 Loss Distributions (Exam C)

STAT:4510 Regression, Time Series and Forecasting (for ACTS:6580 Credibility and Survival Analysis (Exam C) VEE and also Exam S of the Casualty Actuarial Society)

• ACTS:3080 is offered in both semesters. It appears twice in the table above. Most undergrads will take it in the spring semester of their sophomore year, while transfer students will probably take it in the fall semester of their junior year. • ACTS:4380 is offered in both semesters beginning in 2016. It appears in four places above. Most undergrads will take it in the spring semester of their junior year. • ACTS:4130 will NOT be offered any more in the spring semester beginning 2017.

Graduation with Honors in Actuarial Science Honors students in actuarial science must be members of the University of Iowa Honors Program, which requires that students maintain a cumulative UI GPA of at least 3.33. They also must maintain a GPA of at least 3.40 in departmental courses. To graduate with honors in the actuarial science major, students must complete the following five courses in addition to all courses required for the major. FIN:3300 (06F:117) Corporate Finance 3 s.h. MATH:3600 (22M:100) Introduction to Ordinary Differential Equations 3 s.h. STAT:4510 (22S:150) Regression, Time Series, and Forecasting (or STAT:3200&3210) 3 s.h. ACTS:6480 (22S:177) Loss Distributions 3 s.h. ACTS:6580 (22S:176) Credibility and Survival Analysis 3 s.h. 2

Second Major in Mathematics (Program C) For this major, you need to take two upper-level Mathematics courses. MATH:3600 (22M:100) Introduction to Ordinary Differential Equations (useful for Exams MFE and MLC) is highly recommended. Consider taking MATH:4820/CS:4720 (22M:174/CS:174) Optimization Techniques as the other course, but note that it has MATH:3800/CS:3700 (22M:072/CS:072) Elementary Numerical Analysis, which is not counted as an upper-level course, as pre-requisite. You may want to get the BA, not the BS, in Math because it seems more impressive to append the letters “BA, BS” after your name than just “BS.”

Second Major in Statistics (Mathematical Statistics) Students interested in working for property & casualty insurance companies should consider getting this second major. STAT:2010 (22S:030) Statistical Methods and Computing STAT:3200 (22S:152) Applied Linear Regression (pre-requisite is STAT:2010) STAT:3210 (22S:158) Experimental Design and Analysis STAT:6300 (22S:195) Probability and Stochastic Processes I recommended For VEE (Applied Statistical Methods), take STAT:6560 (Applied Time Series Analysis) instead of STAT:4510.

Large Data Analysis Certificate STAT:2010 (22S:030) Statistical Methods and Computing STAT:3200 (22S:152) Applied Linear Regression Three “Level II” courses such as • MATH:3800/CS:3700 Elementary Numerical Analysis • MATH:4820/CS:4720 Optimization Techniques • MSCI:3200 Database Management MSCI:6421/CS:6421 Knowledge Discovery MATH/STAT/CS:4740 Large Data Analysis (capstone course) http://www.stat.uiowa.edu/undergraduate-programs/large-data-analysis-certificate

Risk Management and Insurance Certificate FIN:3400 (06F:102) Principles of Risk Management and Insurance FIN:4410 (06F:104) Corporate and Financial Risk Management Other requirements can be found in http://tippie.uiowa.edu/vaughan/documents/2015-16applicationallmajors.pdf The person to talk to is Ms. Viana Rockel, whose e-mail address is [email protected]

Business Minor ACCT:2100 (06A:001) Introduction to Financial Accounting ACCT:2200 (06A:002) Managerial Accounting MGMT:2000 (06J:047) Introduction to Law MGMT:2100 (06J:048) Introduction to Management MKTG:3000 (06M:100) Introduction to Marketing Strategy

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FIN:3300 (06F:117) Corporate Finance (in place of FIN:3000) http://tippie.uiowa.edu/undergraduate/documents/businessminor.pdf

Gamma Iota Sigma is an international risk management, insurance and actuarial science collegiate fraternity. Its purpose is to encourage, enhance, and sustain student interest and professionalism in insurance, risk management and actuarial science programs. The Beta Alpha Chapter at the University of Iowa was chartered in April 2007. http://www.biz.uiowa.edu/gis/

The following table shows the correspondence between the five Society of Actuaries (SOA) preliminary examinations and University of Iowa (UI) courses.

SOA Examination UI Courses P Probability STAT:3100 and/or 4100 FM Financial Mathematics ACTS:3080, 4160 MFE Models for Financial Economics ACTS:4380 MLC Models for Life Contingencies ACTS:4130, 4180, 4280 C Construction & Evaluation of Actuarial Models STAT:4101, ACTS:6480, 6580

The following table shows how the three Validation by Educational Experience (VEE) requirements can be satisfied by UI courses. VEE UI Courses Economics ECON:1100, 1200 or ECON:3100, 3120 Corporate Finance FIN:3300 Applied Statistical Methods STAT:4510 or STAT:3200, 6560 or STAT:5200, 6560 The pre-requisite for STAT:3200 is STAT:2010 (22S:030) or STAT:2020 (22S:039).

The Casualty Actuarial Society (CAS) offers a four-hour multiple choice examination on statistics and probabilistic models, called Exam S. It has four parts: Probability Models (Stochastic Processes and Survival Models), Statistics, Extended Linear Models, and Time Series with Constant Variance. Most of the topics in this exam are covered in STAT:4101, 4510 & 6300 and ACTS:4130 & 4180. Students interested in working for property & casualty insurance companies should consider doing a second major in Statistics. CAS will continue to require its students to pass SOA’s Exams P, FM, MFE and C. Exams P and FM, easiest of all actuarial examinations, are offered six times each year. Exam P is offered in January, March, May, July, September, and November, and FM in February, April, June, August, October, and December. For these two exams, we offer two pass/fail 1 s.h. prep courses, ACTS:3110 and 3210. As P and FM are based on introductory courses, some recruiters expect their applicants to have at least passed these two examinations. There is no public record of how many times a student has attempted an actuarial examination; in other words, failing an actuarial exam

4 has no penalty other than the exam fee. These are multiple choice examinations; you can always be lucky.

Students who have taken CAL 1 AB or BC and scored high on The University of Iowa Math Placement Test (MPT) and have credit for CAL 1. We do not recommend students to go straight into CAL 3, unless they have been recommended to do that by our faculty.

Year Fall Semester Spring Semester MATH:1850 Calculus II MATH:1860 Calculus III

1 CS:1210 Computer Science I: Fundamentals ECON:1200 Principles of Macroeconomics (for VEE)

ECON:1100 Principles of Microeconomics (for VEE) ACTS:3080 Mathematics of Finance I (Exam FM) MATH:3770 Fundamental Properties of Spaces and Functions I MATH:2700 Introduction to Linear Algebra 2 STAT:3101 Introduction to Mathematical Statistics II STAT:3100 Introduction to Mathematical Statistics I

STAT:4101 Mathematical Statistics II STAT:4100 Mathematical Statistics I ACTS:4180 Life Contingencies I (Exam MLC) 3 ACTS:4130 Quantitative Methods for Actuaries ACTS:4380 Mathematics of Finance II (Exam MFE) ACTS:4380 Mathematics of Finance II (Exam MFE) FIN:3300 Corporate Finance (for VEE) ACTS:4280 Life Contingencies II (Exam MLC) ACTS:4380 Mathematics of Finance II (Exam MFE)

ACTS:4380 Mathematics of Finance II (Exam MFE) 4 ACTS:6480 Loss Distributions (Exam C)

STAT:4510 Regression, Time Series and Forecasting (for ACTS:6580 Credibility and Survival Analysis (Exam C) VEE and also Exam S of the Casualty Actuarial Society)

5

Sample Schedule Undergraduate Program (not including General Education requirements) Actuarial Science Year 1, Fall  MATH:1850 Calculus I  CS:1210 Computer Science 1  ECON:1100 Principals of Microeco- nomics

Year 1, Spring

 MATH:1860 Calculus II  MATH:2700 Introduction to Linear Algebra  ECON:1100 Principals of Macroeco- nomics

Year 2, Fall

 MATH:2850 Calculus III  STAT:3100 Introduction to Mathe- matical Statistics

Year 2, Spring

 MATH:3770 Fundamentals of Prop- erties of Space and Functions I  STAT:3101 Introduction to Mathe- matical Statistics II The University of Iowa offers a  ACTS:3080 Mathematics of Finance I B.S. Program in Actuarial Science  ACTS:3210 Actuarial Exam FM Prep Year 3, Fall

 The Actuarial Science program prepares students for careers as ac- STAT:4100 Mathematical Statistics I  ACTS:4130 Quantitative Methods tuaries. It helps them learn material that is included in professional for Actuaries examinations administered by the Society of Actuaries, which actu-  ACTS:3110 Actuarial Exam P Prep arial students must pass in order to achieve professional status. In Year 3. Spring addition to actuarial science courses, students can take courses in  STAT:4101 Mathematical Statistics Ii preparation for business aspects of the actuarial profession such as  ACTS:4180 Life Contingencies I accounting, law, finance, insurance, and economics. The Society of  ACTS:4380 Mathematics of Finance II Actuaries (SOA) has recognized University of Iowa’s actuarial sci-  FIN:3300 Corporate Finance (for ence program as a Center of Actuarial Excellence (CAE). There are VEE) eight criteria for the designation, including curriculum, faculty com- Year 4. Fall position, graduate quality, connection to industry, and research/  ACTS:4280 Life Con-tingencies II scholarship.  STAT:4310 Regres-sion, Time Series and Forecasting (for VEE) For more information contact us at: actuarial – [email protected] or www.stat.uiowa.edu or 319.335.0712

Department of Statistics & Actuarial Science Declared Majors – Spring 2015 (February 3, 2015 /me)

Graduate Students Total Number in Graduate Programs Nationality USA Int’l Gender M 17 36 53 F 5 31 36 22 67 89 ( 30 M + 16 F = 46 supported; 13 additional are supported by other department and internships)

PhD Students in Statistics Nationality USA Int’l Gender M 3 7 10 F 0 4 4 3 11 14 ( 8M + 3 F = 11 supported)

MS Statistics MS Actuarial Science Nationality Nationality USA Int’l USA Int’l Gender M 7 10 17 Gender M 7 19 26 F 3 9 12 F 2 18 20 10 19 29 9 37 46 ( 15 M + 10 F = 25 supported) (7 M + 3 F = 10 supported)

Undergraduate Students Total Number Nationality USA Int’l Gender M 47 49 96 F 27 46 73 74 95 169

Statistics Declared Actuarial Science Nationality Nationality USA Int’l USA Int’l Gender M 26 35 61 Gender M 21 14 35 F 24 29 53 F 3 17 20 50 64 114 24 31 *55

Spring 2015: Statistics Undergrad include: 22 students working on “minor” in Statistics (not included in Statistics Undergrad count) Subprograms Majors: 80 Math Statistics; 24 Business, Industry Government and Research Track; 10 Computing and Data Track. Actuarial Science Interest Students: 132; Total interested in Actuarial Science: *55 + 132= 187

ASA and CERA Curriculum Changes Transition Rules

Posted June 28, 2016

Transition Rules For ASA Candidates This table provides the transition credit candidates will receive if they have completed a current requirement by July 1, 2018. Candidates who have completed requirements under previous systems have them first moved to the current system using previous transition rules and then moved to the new system.

Current Transitions To

VEE Economics VEE Economics

VEE Corporate Finance* VEE Accounting and Finance

VEE Applied Statistics Statistics for Risk Modeling (SRM) Exam and VEE Mathematical Statistics

P (Probability) Probability Exam

FM (Financial Mathematics) Financial Mathematics Exam

MFE (Models for Financial Investment and Financial Markets Exam Economics)

MLC (Models for Life Contingencies) Long-Term Actuarial Mathematics Exam

C (Construction of Actuarial Models) Short-Term Actuarial Mathematics and VEE Mathematical Statistics

FAP (Fundamentals of Actuarial FAP Practice)

APC (Associateship Professionalism APC Course) *VEE Corporate Finance credits earned prior to July 1, 2019 will earn transition credit. The following addresses several issues that arise from these transitions. VEE Transitions When discussing VEE there are two important dates. One is when the course is completed. This is referred to as the “earned” date. The second is when the candidate applies for and receives the credit. This is referred to as the “claimed” date. There is currently no time limit between when the credit is earned and when it is claimed. Economics – All currently approved courses will continue to be approved. New courses and those being renewed will be held against the slightly revised learning objectives. Accounting and Finance – With the addition of accounting, this will be a two-part approval. Candidates may earn the accounting and finance credits through separate courses, but may only claim the credit once both are earned. Candidates who have earned corporate finance credit prior to July 1, 2019 may claim this credit at any time and convert it to accounting and finance credit. All other candidates must earn both components. Schools with corporate finance courses may use them until the approval period expires. As with economics, all new applications will be held to the new learning objectives. Applied Statistics – Credits earned prior to July 1, 2018 may be claimed at any time and converted to VEE Mathematical Statistics and SRM Exam credit. Mathematical Statistics – The process for schools to submit courses will begin soon. Because this is a fairly stable subject, many applications will include retroactive approval (courses taken in prior years can be claimed). Further information on which candidates will need to complete this requirement is in a later section. Additional detail on the VEE changes. Associateship Professionalism Course (APC) Eligibility Currently, candidates can take the APC if they have either passed (1) all five preliminary exams (P, FM, MFE, MLC, and C) and the FAP Interim Assessment or (2) four of the five preliminary exams and both FAP assessment. It is possible that a person could complete the APC under current rules but then not be eligible to have taken the APC if they later become held to additional requirements. APC credit earned will not be lost. For candidates to be eligible to register for the APC starting July 1, 2018 they must be missing at most one required exam or the FAP Final Assessment as set out under the new requirements a혠er transition rules are applied. New Exam Components Predictive Analytics Exam – There are no exam transitions to this component. Candidates who are not an ASA by July 1, 2018 must complete this requirement. Candidates who are an ASA by July 1, 2018 are exempt from this requirement, provided they also earn fellowship by July 1, 2022. Note that historically, holding an ASA earned in the past does not mean FSA can be earned by completing only the current post-ASA requirements. Thus, this approach is generous in that some candidates will be exempted from a current requirement. No member will lose an ASA due to this transition. VEE Mathematical Statistics – While this is a new component without a direct counterpart in the current system, there are two opportunities to gain transition credit. Candidates who have not earned transition credit (which may be claimed later in the case of using VEE Applied Statistics credit) by July 1, 2018 must earn the credit through an approved VEE course. The new exams will be o혷ered for the first time in the second half of 2018. The changeover date to the new system is thus July 1, 2018. When determining the date for an exam, it is the date the exam is taken, not the date grades are released.

Transition Rules And Requirements For CERA Candidates The requirements for CERA are a subset of ASA and FSA requirements. The current requirements are: VEE – Economics and Corporate Finance Exams – P, FM, MFE, C, and ERM Modules – FAP and ERM Seminar – APC The SOA Board has approved the following revised CERA requirements: VEE – Economics, Accounting and Corporate Finance, and Mathematical Statistics Exams – Probability, Financial Mathematics, Investment and Financial Markets, Short-Term Actuarial Mathematics, Statistics for Risk Modeling, and ERM Modules – FAP and ERM Seminar – APC At the current time, candidates fulfilling the CERA requirements are entitled (but not required) to apply for SOA membership and the ASA designation. E혷ective July 1, 2018, candidates who earn a CERA must also pass the Predictive Analytics exam before application for ASA may be made. For transition rules on this plan, the same rules as for ASA to FSA apply. Those who meet the current CERA requirements except for the ERM exam and module and APC by July 1, 2018 can earn the CERA provided those three components are completed by July 1, 2022. Candidates who earn an ASA on the current CERA pathway by July 1, 2018 may earn an FSA provided all remaining FSA-level components are passed along with having passed or received transition credit for the Statistics for Risk Modeling and Long-Term Actuarial Mathematics Exams by July 1, 2022.

Related Links

ASA & CERA Curriculum Changes  ASA and CERA Curriculum Changes Fact Sheet

Posted June 28, 2016

Background The SOA’s Learning Strategy Task Force presented a set of initiatives to the Society of Actuaries (SOA) Board of Directors in June 2015. One of them was a complete review of the curriculum for the Associate of the Society of Actuaries (ASA) designation. The ASA Curriculum Review Task Force began its work in August 2015. To understand stakeholder views, the Task Force circulated a dra擴 proposal and a survey to key sections, employers, academic institutions, other associations, and the SOA’s member and candidate survey panel. The results of the survey showed broad support with about 80 percent indicating they favor or strongly favor the proposal. The survey revealed some concerns and preferences, which were incorporated into later dra擴s. The syllabus work of the International Actuarial Association (IAA) also informed the proposal. A擴er an initial SOA Board review of the proposal in March 2016, there were further meetings of the Task Force and additional feedback received from employers and actuarial associations. There was approval of the transition rules and Chartered Enterprise Risk Analyst (CERA) requirements by the Education Executive Group. At its June 2016 meeting the SOA’s Board of Directors approved the proposal and the accompanying transition rules for implementation.

Key Drivers Of The Curriculum Changes Predictive Analytics The use of predictive analytics has spread to most areas of actuarial practice. While there may be disagreement on what constitutes predictive analytics (or even if that is the best name), there is a clear consensus that actuaries need to know more than the basic regression and time series methods that are the focus of the current ASA curriculum. The new curriculum will incorporate predictive analytics topics to better prepare SOA trained actuaries for today’s opportunities. Short-term/Long-term Insurance Balance Short-term insurance coverages (e.g., health and general insurance) have been increasing in importance, particularly in global markets. The new curriculum will provide a better balance between short-term and long-term topics.

New Curriculum In total, the number of components will increase from the current ten [three Validation by Education Experience (VEE) subjects, five formally examined subjects, FAP, and APC] to twelve components, with three VEE subjects, seven formally examined subjects, FAP, and APC. While there are modest changes to the learning objectives throughout, the major changes are: VEE Applied Statistics is replaced with VEE Mathematical Statistics Addition of accounting to the Corporate Finance VEE Addition of pricing and reserving of short-term to Exam C, with some current topics moved to other exams Less emphasis on derivatives and more on investment in the Investment and Financial Markets exam Addition of an exam on the basics of applied statistics (Statistics for Risk Modeling) Addition of an exam on predictive analytics Validation by Educational Experience Economics This subject is unchanged. It covers microeconomics and macroeconomics at the level of a first undergraduate course. Accounting and Finance There are two changes here with respect to the current Corporate Finance VEE requirement. One is the addition of accounting. This will ensure candidates have an accounting background for their fellowship work. The finance requirement will be somewhat lighter than the current VEE requirement as the more advanced topics that were previously listed are covered in later components. Mathematical Statistics With the addition of more general predictive analytics, it is appropriate to return mathematical statistics to the curriculum in full. Formally Examined In the following, CBT refers to computer-based testing. While in their ultimate state, CBT exams provide instant unoicial results, it should be noted that when there is a substantial changes in an exam’s syllabus oering instant results must be suspended while the item bank is recalibrated. Probability Exam

This component contains all of the current Exam P probability topics. There are some minor changes in learning objectives. It will continue to be assessed by CBT. Financial Mathematics Exam This is the interest theory portion of the current FM (Financial Mathematics) exam with some minor changes. It is similar to the revised FM exam starting in June 2017 with the addition of a few corporate finance topics pulled from the current Corporate Finance VEE requirement. It will continue to be assessed by CBT. Investment and Financial Markets Exam There is a change from the current Exam MFE (Models for Financial Economics) in two directions. Stochastic calculus has been reduced as have some of the other deeper mathematical topics (eective with the July 2017 changes). The eliminated topics will be on fellowship exams as appropriate for each track. The syllabus adds some corporate finance and portfolio theory topics not covered in the other finance-related components. It will continue to be assessed by CBT. Long-Term Actuarial Mathematics Exam This is a replacement for the current Exam MLC (Models for Life Contingencies). A few topics from the current syllabus have been removed (e.g., yield curves and diversifiable risk) while some estimation topics that are currently on Exam C have been moved here. Universal Life coverage details will be moved to FAP while a section on life and annuity products will be added. This exam will continue to be a combination of multiple choice and written answer responses. Short-Term Actuarial Mathematics Exam This is the replacement for the current Exam C (Construction of Actuarial Models). Of the current exams, this one will undergo the largest change. The basic material on estimation has been moved to the Mathematical Statistics VEE subject and specific material on life table estimation appears in the Long-Term Actuarial Mathematics exam. These topics are replaced with more product-oriented information relating to short-term insurance (e.g., health, property, and liability). In particular, the basics of pricing and reserving will be added. This exam will continue to be CBT. Statistics for Risk Modeling (SRM) Exam This is one of the two components on the new curriculum that is devoted to predictive analytics education. It provides the transition from mathematical statistics as presented in the Probability Exam and Mathematical Statistics VEE to predictive analytics and its applications. It covers the regression and time series topics formerly in the Applied Statistics VEE subject. This exam will add the generalized linear model. This exam will be CBT and will be a formal prerequisite for the Predictive Analytics Exam. Predictive Analytics Exam This is a completely new topic for the ASA curriculum. Candidates will use computer packages to analyze data sets and then communicate their findings. To achieve this, the task force recommends two elements that have not been part of preliminary education. The first is an e-Learning module that will take the candidates through the modeling process allowing them the opportunity to work through case studies that will illustrate the various methods. The second is an assessment using a fully-functioning computer that will allow for the use of so擴ware and the ability to write a report. FAP and APC Fundamentals of Actuarial Practice e-Learning Course The basic structure of FAP will not change. The adjustment of a relatively small number of topics may occur as the rest of the curriculum is developed. Associateship Professionalism Course The structure of APC is not expected to change. Relationships Between New Curriculum Components