When looking for actuarial programs, candidates will want to look at two key areas:

A predictive analytics component with e-learning support that emphasizes hands-on learning. With such an approach, candidates can apply sophisticated computer packages and generalized linear models, decision trees, clustering techniques and principal components analysis to real-life data sets. Case studies can be used to deliver hands-on experience with various modeling techniques and processes. Predictive analytics work will culminate in a "proctored project," where students must show they can use these tools to solve the complex, multifaceted problems they'll face in the workplace. As a prerequisite, candidates may also be required to pass an applied statistics exam to show their grasp of basic risk modeling tools.
A greater emphasis on short-term insurance provides candidates with a more balanced, multidisciplinary skill set that better reflects the growing role of short-term insurance in global markets. As an example, SOA's ASA curriculum will be updated to include material on pricing and reserving for short-term insurance in the replacement for Exam C. Other changes include adding accounting to the existing corporate finance Validation by Education Experience (VEE), placing less emphasis on derivatives with more emphasis on other investments, and replacing the existing applied statistics VEE with a mathematical statistics VEE requirement.

Curriculum that focus on these areas can deliver a range of benefits to employers and actuarial candidates, including:

Producing more seasoned, versatile actuaries with deeper, broader expertise who can work across multiple lines. "Candidates get a stronger understanding of both short-term and long-term insurance through their associateship training," Klugman notes, "so they won't have to wait until their fellowship studies to get that expertise. Employers will be getting actuaries who just know more early on in their careers."
Offer exposure to multiple disciplines to give associates more job options. "They won't have to get locked into one practice area or type of product," explains Klugman. "They will have more flexibility in choosing a career path."
Create candidates whosehands-on applied training better equips them to tackle emerging risks in the property-casualty insurance field. These candidates will then be immediate assets to the companies that hire them.
They conform to the syllabus work of the International Actuarial Association (IAA). This is an important consideration for employers with an international presence.

While it will take time to assess the ultimate impact of pending curriculum improvements in the marketplace, employers who were given an early glimpse of the SOA's changes like what they see, Klugman adds.

Special Reports /

Actuarial education 2.0: Training for a brave new world

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