The CAS Basic Education System. Jim Dornfeld, FCAS MAAA CPCU ARM Iowa Actuaries Club February 14, 2017

Transcription

1 The CAS Basic Education System Jim Dornfeld, FCAS MAAA CPCU ARM Iowa Actuaries Club February 14, 2017

2 Casualty Actuarial Society World s only actuarial organization exclusively focused on property and casualty risks year track record in training property/casualty actuaries Over 7,500 members worldwide, and growing Vibrant, growing community with extensive resources and strong employer support that helps CAS members, candidates, and students advance their careers. 2

3 Current CAS Syllabus to Reach ACAS Validation by Educational Experience (VEE): VEE-Corporate Finance VEE-Economics Two CAS Online Courses: Online Course 1 Risk Management and Insurance Operations Online Course 2 Insurance Accounting, Coverage Analysis, Insurance Law, and Insurance Regulation Course on Professionalism Exams

4 Current CAS Syllabus to Reach ACAS Required CAS Learning Objectives Met Through Following Exams P Probability FM Financial Mathematics MFE Models for Financial Economics C Construction and Evaluation of Actuarial Models CAS Exams Exam S Statistics and Probabilistic Models Exam 5 Basic Techniques for Ratemaking and Estimating Claim Liabilities Exam 6 Regulation and Financial Reporting (Nation Specific) Actuarial Institute of Chinese Taipei, China Association of Actuaries, Canada, and United States

5 Current CAS Preliminary Education Waivers For CAS learning objectives currently addressed through Exams 1/P, 2/FM, 3F/MFE, and 4/C, CAS will grant waiver to candidates who receive credit for exams offered by other organizations deemed to cover CAS learning objectives in acceptable depth and breadth. Society of Actuaries Actuaries Institute (Australia) Actuarial Society of South Africa Canadian Institute of Actuaries China Association of Actuaries Institute and Faculty of Actuaries (UK) Institute of Actuaries of India

6 Current CAS Syllabus to Reach FCAS ACAS plus: Exam 7 Estimation of Policy Liabilities, Insurance Company Valuation, and Enterprise Risk Management Exam 8 Advanced Ratemaking Exam 9 Financial Risk and Rate of Return

7 CAS Announced Two New Exams Effective in 2018 Replacements for Existing Requirements Addresses the emerging needs of future actuaries and their employers Increases the relevance of the CAS exam syllabus with respect to emerging statistical and analytics skills 7

8 Modern Actuarial Statistics I (MAS-I) Largely a modification of current CAS Exam S Similar to Exam S, but with more emphasis on applied modeling and a deeper coverage of generalized linear models First offered in the spring of 2018 Transition rule: candidates with credit for Exam S achieved through an examination administered prior to January 1, 2018 will receive credit for MAS-I 8

9 Modern Actuarial Statistics I (MAS-I) Topics Covered: Probability Models (Stochastic Processes and Survival Models) Statistics Extended Linear Models Time Series with Constant Variance 9

10 Modern Actuarial Statistics II (MAS-II) Replaces the current CAS Exam 4 requirement, which is typically fulfilled by most candidates through completion of SOA Exam C. (Exam C is being discontinued) Covers several topics from Exam C, along with new statistics and predictive analytics material First offered in the fall of 2018 Transition rule: candidates with credit for SOA Exam C achieved through an examination administered prior to July 1, 2018 will receive credit for MAS-II 10

11 Modern Actuarial Statistics II (MAS-II) Topics Covered: Introduction to Credibility Linear Mixed Models Bayesian Analysis and Markov Chain Monte Carlo Statistical Learning 11

12 MAS-I and MAS-II Four-hour exams, resulting in virtually no net increase in exam hours required for CAS credentials Offered every six months as multiple-choice paper-and-pencil exams Offered in the same general windows in the spring and fall in which other CAS exams are offered Complete syllabi available on CAS website Sample questions and answers for the two new exams will be published well in advance of their first offerings 12

13 2018 CAS Syllabus to Reach ACAS Required CAS Learning Objectives Met Through Other Exams 1 Probability 2 Financial Mathematics 3F Investment and Financial Markets CAS Exams Exam MAS I Modern Actuarial Statistics I Exam MAS II Modern Actuarial Statistics II Exam 5 Basic Techniques for Ratemaking and Estimating Claim Liabilities Exam 6 Regulation and Financial Reporting (Nation Specific) Actuarial Institute of Chinese Taipei, China Association of Actuaries, Canada, and United States

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15 Basic Education: Strategic Focus Determining the basic education for the actuary of the future and adjusting the CAS system accordingly Reviewing foundational requirements Transformation of content delivery and validation methods Add more integrative forms of testing on Fellowship examinations Consider whether certain Associate-level educational content could be effectively delivered through a Massive Open Online Course Increase use of computer-based testing 15

16 Basic Education: In Summary Constantly being adapted and refreshed Emergence of new P&C risks and coverages New era of Big Data and Big Data methods Evolving expectations on the part of students on how educational content is delivered and tested Activities of other organizations Curriculum reflects experience of practicing actuaries who understand what is required to practice in casualty actuarial field 16

17 Basic Education: In Summary Is the most robust and comprehensive framework for training property/casualty actuaries Is a proven commodity and highly valued around the world by employers and other stakeholders Will continue to evolve to meet the needs of employers and other stakeholders Will continue to focus on the breadth and depth of materials covered in our higher-level examinations 17

18 Introducing The CAS Institute 18

19 What is The CAS Institute? Subsidiary of the Casualty Actuarial Society Provides specialist credentials and resources for quantitative professionals in selected areas, such as: Initial Offerings: Planned Offerings: Predictive Analytics / Data Science Quantitative Reinsurance Analysis Capital Modeling / ORSA analysis Catastrophe Modeling Other analytics and quantitative specialties 19

20 Why was The CAS Institute Created? To meet market needs for quantitative specialists To serve professionals in areas where quantitative skills and actuarial skills overlap or are complementary To allow the CAS to continue credentialing property and casualty actuaries and to address needs of broader audiences 20

21 CSPA Certified Specialist in Predictive Analytics - Credential Requirements 1.P&C Insurance Fundamentals Extracts from CAS Online Courses 1 & 2; extracts from Intro to Ratemaking / Reserving (CAS Exam 5) One Online Module similar to CAS Online Courses 1 and 2 Exam through The Institutes (multiple choice, short answer) 2.Data Concepts, Tools & Analysis with P&C Applications Exam through The Institutes (multiple choice, short answer) 3.Predictive Modeling Methods and Techniques Computer-Based exam ability to use software 4.Case Study Project: P&C Predictive Modeling Application Individual project; not an exam or online module Assessed by Project Review Panel 5.Online Course on Ethics and Professionalism 21

22 What Value will The CAS Institute Credentials Provide? Provides recognition of expertise and knowledge Demonstrates knowledge of practical applications Set credential-holders apart from others Advances both knowledge and practical skills Prepares a specialist for additional job duties Helps advance and enhance a specialist s career Provides a practice community to meet colleagues

23 The CAS Institute Timeline When will the CSPA courses and exams be offered? Oct 2016 Nov First course is open: Property-Casualty Insurance Fundamentals icas Membership opened and includes a Practice Community for Predictive Analytics and Data Science in P&C Insurance 2 nd course opens March Materials for 3 rd exam Apr/May Projects open Oct/Nov Online module and study materials now available Experienced Practitioner Pathway also opened in Nov 1 st exam Jan/Feb 2 nd exam July/Aug 3 rd exam July/Aug 23

24 Questions and Discussion