Institute and Faculty of Actuaries
Encyclopedia
The Institute and Faculty of Actuaries is the professional body which represents the actuaries
in the United Kingdom
. It operates publicly under the name Actuarial Profession.
and the Faculty of Actuaries
in Scotland after voting members of both bodies voted to merge their respective organisations in a ballot held on 25 May 2010.
s, liabilities
and membership rights of the Faculty of Actuaries in Scotland were transferred on this same day to the Institute and Faculty of Actuaries and the Charter of the Faculty of Actuaries in Scotland
was surrendered. Essential elements of the merger arrangements, such as the Scottish constituency and its representation on the Council of the Institute and Faculty of Actuaries, are incorporated into the new governance documents.
Authority for the governance, control and strategic direction of the Institute and Faculty of Actuaries sits with the Council which will in turn delegate to various boards, committees and staff.
of the Institute and Faculty of Actuaries is Jane Curtis. She is the first woman to be President of the Institute and Faculty of Actuaries and its predecessor bodies, the Institute of Actuaries and the Faculty of Actuaries. She succeeded Ronnie Bowie on June 27, 2011.
Each of these areas is supported by an executive committee which oversees the development of knowledge and research within its own area, provides members with CPD opportunities and takes forward a programme of practice-specific research. The committees also foster a sense of community among actuaries practising in their particular field of expertise.
(FRC) assumed responsibility for oversight of the actuarial profession and the independent setting of actuarial technical standards with effect from May 2006.
Fully qualified actuaries are Fellows and may bear the designations FIA or FFA while Associates bear the designations AIA or AFA.
Practising certificates are issued to certain actuaries for their statutory role in the financial management of life offices and most pension schemes. The Institute and Faculty of Actuaries continues the former Institute’s role as a designated professional body, under the Financial Services and Markets Act 2000
, which enables it to license firms that are managed or controlled by actuaries, allowing them to carry on certain limited regulated activities.
An actuarial qualification from the Institute and Faculty of Actuaries consists of a combination of the completion of various examinations and courses. The examinations are split into four sections: core technical, core applications, specialist technical, and specialist applications.
In addition to examinations and courses, it is required that the candidate both complete at least three years work as an actuary and to qualify as a Fellow.
In addition to examinations and courses, it is required that the candidate complete at least three years work as an actuary to qualify as a “Fellow of the Institute and Faculty of Actuaries” (FIA) How to Register as a Student a student, The Actuarial Profession, Faculty and Institute of Actuaries, 2011-01-25
The Core Applications section consists of a 6 hour written exam and two practical exams which focus on the application of concepts learned and a candidate's ability to communicate actuarial concepts to others.
Since the 2010 examinations, the General Insurance Specialist Technical paper ST3 was replaced by two subjects ST7 and ST8 How to Register as a Student a student, The Actuarial Profession, Institute and Faculty of Actuaries, 2011-01-25.
The Specialist Applications section allows the candidate to choose one area for which they take the SA paper and attain full Fellowship; leading to many referring to this as the “Fellowship paper.” However, as the rules on the ordering of examinations were relaxed, this examination may be taken before taking some earlier examinations resulting in candidates qualifying on other papers.
degree at an undergraduate or at a postgraduate level through a number of recognised universities. Successful students may offer proof of having covered the topics whilst at university and students may be granted exemptions from certain professional examinations from the Institute and Faculty of Actuaries.
Depending on the University, a different number of courses may be recognised for exemption. The examinations and the exemption pass level for the examinations is usually externalised by members of the Institute and Faculty of Actuaries.
Naturally, the quality of the courses and lecturing at these universities are a determinant as to whether the course is recognised by the Institute and Faculty of Actuaries.
Most universities offering actuarial science
courses also require the student in addition to complete various other related topics, including statistics, mathematics, applied mathematics, economics and accounting for recognition of an actuarial degree.
Upon completion of the university degree, students would then complete all remaining examinations through the Institute and Faculty of Actuaries to qualify as an actuary
and become a Fellow of the Institute and Faculty of Actuaries(FIA or FFA).
Alternative routes to Fellowship are:
Actuary
An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms ....
in the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
. It operates publicly under the name Actuarial Profession.
History
The Institute and Faculty of Actuaries came into being on 1 August 2010 as a result of the merger of the Institute of ActuariesInstitute of Actuaries
The Institute of Actuaries was one of the two professional which represented actuaries in the United Kingdom . The Institute was based in England, while the other body, the Faculty of Actuaries, was based in Scotland...
and the Faculty of Actuaries
Faculty of Actuaries
The Faculty of Actuaries in Scotland was the professional body representing actuaries in Scotland. The Faculty of Actuaries was one of two actuarial bodies in the UK, the other was the Institute of Actuaries, which was a separate body in England, Wales and Northern Ireland...
in Scotland after voting members of both bodies voted to merge their respective organisations in a ballot held on 25 May 2010.
Structure and governance
The Queen in Council granted an amendment effective 1 August 2010 to the Charter of the Institute of Actuaries in terms that converted it to the Charter for the Institute and Faculty of Actuaries. The assetAsset
In financial accounting, assets are economic resources. Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset...
s, liabilities
Liability
A liability can mean something that is a hindrance or puts an individual or group at a disadvantage, or something that someone is responsible for, or something that increases the chance of something occurring ....
and membership rights of the Faculty of Actuaries in Scotland were transferred on this same day to the Institute and Faculty of Actuaries and the Charter of the Faculty of Actuaries in Scotland
Scotland
Scotland is a country that is part of the United Kingdom. Occupying the northern third of the island of Great Britain, it shares a border with England to the south and is bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the...
was surrendered. Essential elements of the merger arrangements, such as the Scottish constituency and its representation on the Council of the Institute and Faculty of Actuaries, are incorporated into the new governance documents.
Authority for the governance, control and strategic direction of the Institute and Faculty of Actuaries sits with the Council which will in turn delegate to various boards, committees and staff.
President
The PresidentPresident of the United States
The President of the United States of America is the head of state and head of government of the United States. The president leads the executive branch of the federal government and is the commander-in-chief of the United States Armed Forces....
of the Institute and Faculty of Actuaries is Jane Curtis. She is the first woman to be President of the Institute and Faculty of Actuaries and its predecessor bodies, the Institute of Actuaries and the Faculty of Actuaries. She succeeded Ronnie Bowie on June 27, 2011.
Research and member support
Actuaries work in a number of different practice areas: enterprise risk management, finance and investment, general insurance, health and care, life insurance and pensions.Each of these areas is supported by an executive committee which oversees the development of knowledge and research within its own area, provides members with CPD opportunities and takes forward a programme of practice-specific research. The committees also foster a sense of community among actuaries practising in their particular field of expertise.
- Enterprise risk managementEnterprise Risk ManagementEnterprise risk management in business includes the methods and processes used by organizations to manage risks and seize opportunities related to the achievement of their objectives...
- helping companies understand and manage risk in line with their business objectives - Finance and investment - for actuaries working in banking, corporate finance and investment
- General insuranceGeneral insuranceGeneral insurance or non-life insurance policies, including automobile and homeowners policies, provide payments depending on the loss from a particular financial event. General insurance typically comprises any insurance that is not determined to be life insurance. It is called property and...
- rating products, advising on reserves and capital requirements, and similar general insurance activity - Health and careHealth careHealth care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
- a growing area in both the private and public sectors as health provision models evolve to meet changing needs - Life insuranceLife insuranceLife insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
- a traditional area for actuaries, with the roles evolving as life insurance itself evolves - PensionPensionIn general, a pension is an arrangement to provide people with an income when they are no longer earning a regular income from employment. Pensions should not be confused with severance pay; the former is paid in regular installments, while the latter is paid in one lump sum.The terms retirement...
s - actuaries play a key role in advising companies on all manner of pension schemes and structures.
Education and regulation
The Institute and Faculty of Actuaries sets examinations, continuing professional development, professional codes and disciplinary standards. The Financial Reporting CouncilFinancial Reporting Council
The Financial Reporting Council is the UK's independent regulator responsible for promoting high quality corporate governance and reporting to foster investment.-Structure:...
(FRC) assumed responsibility for oversight of the actuarial profession and the independent setting of actuarial technical standards with effect from May 2006.
Fully qualified actuaries are Fellows and may bear the designations FIA or FFA while Associates bear the designations AIA or AFA.
Practising certificates are issued to certain actuaries for their statutory role in the financial management of life offices and most pension schemes. The Institute and Faculty of Actuaries continues the former Institute’s role as a designated professional body, under the Financial Services and Markets Act 2000
Financial Services and Markets Act 2000
The Financial Services and Markets Act 2000 is an Act of the Parliament of the United Kingdom that created the Financial Services Authority as a regulator for insurance, investment business and banking.-Outline:...
, which enables it to license firms that are managed or controlled by actuaries, allowing them to carry on certain limited regulated activities.
An actuarial qualification from the Institute and Faculty of Actuaries consists of a combination of the completion of various examinations and courses. The examinations are split into four sections: core technical, core applications, specialist technical, and specialist applications.
In addition to examinations and courses, it is required that the candidate both complete at least three years work as an actuary and to qualify as a Fellow.
Examinations
An actuarial qualification from the Institute and Faculty of Actuaries consists of a combination of the completion of various examinations and courses. The examinations are split into four sections: Core Technical (CT), Core Applications (CA), Specialist Technical (ST), and Specialist Applications (SA). Study material for the examinations is usually obtained through the official bookshop of the Institute of Actuaries Bookshop, The Official Actuarial Bookshop or through the Actuarial Education Company (ActEd) Acted The Actuarial Education Company , a subsidiary of BPP Actuarial Education Ltd.In addition to examinations and courses, it is required that the candidate complete at least three years work as an actuary to qualify as a “Fellow of the Institute and Faculty of Actuaries” (FIA) How to Register as a Student a student, The Actuarial Profession, Faculty and Institute of Actuaries, 2011-01-25
Core Examinations
The Core Technical section consists of 8 written exams and a “Business Awareness Module,” CT9. These are usually sat first by a candidate and include the underlying mathematics involved in actuarial work as well as an introduction to financial and economic issues. These are also the most common exams for which candidates may get exemptions.The Core Applications section consists of a 6 hour written exam and two practical exams which focus on the application of concepts learned and a candidate's ability to communicate actuarial concepts to others.
Specialist Examinations
The Specialist Technical section is the first stage the candidate has a choice of which exams to take. The candidate choses two from the various actuarial specialist subjects i.e. Health and Care, Life Insurance, General Insurance, Pensions, Finance or Investments and further technical knowledge on said subjects is attained.Since the 2010 examinations, the General Insurance Specialist Technical paper ST3 was replaced by two subjects ST7 and ST8 How to Register as a Student a student, The Actuarial Profession, Institute and Faculty of Actuaries, 2011-01-25.
The Specialist Applications section allows the candidate to choose one area for which they take the SA paper and attain full Fellowship; leading to many referring to this as the “Fellowship paper.” However, as the rules on the ordering of examinations were relaxed, this examination may be taken before taking some earlier examinations resulting in candidates qualifying on other papers.
Core Technical Stage
- CT1 - Financial Mathematics
- CT2 - Finance and Financial Reporting
- CT3 - Probability and Mathematical Statistics
- CT4 - Models
- CT5 - Contingencies
- CT6 - Statistical Methods
- CT7 - Business Economics
- CT8 - Financial Economics
- CT9 - Business Awareness Module
Core Applications Stage
- CA1 - Core Applications Concepts
- CA2 - Modelling
- CA3 - Communications
Specialist Technical Stage
- ST0 - Alternative Specialist Technical (not examined)
- ST1 - Health and Care Specialist Technical
- ST2 - Life Insurance Specialist Technical
- ST3 - General Insurance Specialist Technical (no longer available)
- ST4 - Pensions and other Benefits Specialist Technical
- ST5 - Finance and Investment Specialist Technical A
- ST6 - Finance and Investment Specialist Technical B
- ST7 - General Insurance - Reserving and Capital Modelling Specialist Technical
- ST8 - General Insurance - Pricing Specialist Technical
- ST9 - Enterprise Risk Management Specialist Technical
Specialist Applications Stage
- SA0 - Research Dissertation Specialist Applications
- SA1 - Health and Care Specialist Applications
- SA2 - Life Insurance Specialist Applications
- SA3 - General Insurance Specialist Applications
- SA4 - Pensions and other Benefits Specialist Applications
- SA5 - Finance Specialist Applications
- SA6 - Investment Specialist Applications
UK Practice Modules
For students working in the UK only- P0 - Generic UK Practice Half Module
- P1 - Health and Care
- P2 - Life Insurance
- P3 - General Insurance
- P4 - Pensions
- P5 - Finance
- P6 - Investment
University-based examinations
A student may choose to complete an accredited actuarial scienceActuarial science
Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries. Actuaries are professionals who are qualified in this field through education and experience...
degree at an undergraduate or at a postgraduate level through a number of recognised universities. Successful students may offer proof of having covered the topics whilst at university and students may be granted exemptions from certain professional examinations from the Institute and Faculty of Actuaries.
Depending on the University, a different number of courses may be recognised for exemption. The examinations and the exemption pass level for the examinations is usually externalised by members of the Institute and Faculty of Actuaries.
Naturally, the quality of the courses and lecturing at these universities are a determinant as to whether the course is recognised by the Institute and Faculty of Actuaries.
Most universities offering actuarial science
Actuarial science
Actuarial science is the discipline that applies mathematical and statistical methods to assess risk in the insurance and finance industries. Actuaries are professionals who are qualified in this field through education and experience...
courses also require the student in addition to complete various other related topics, including statistics, mathematics, applied mathematics, economics and accounting for recognition of an actuarial degree.
Upon completion of the university degree, students would then complete all remaining examinations through the Institute and Faculty of Actuaries to qualify as an actuary
Actuary
An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide expert assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms ....
and become a Fellow of the Institute and Faculty of Actuaries(FIA or FFA).
Certificate in Financial Mathematics
Any candidate worldwide can take the CT1 Financial Mathematics exam without being a member of the Actuarial Profession and if they pass, will receive the Certificate in Financial Mathematics Certificate in financial mathematics, The Actuarial Profession, Institute and Faculty of Actuaries, 2011-01-25.Diploma in Actuarial Techniques
The Diploma in Actuarial Techniques is sent to students on completion of all Core Technical stage subjects: CT1, CT2, CT3, CT4, CT5, CT6, CT7, CT8 and CT9 Certificates for Students, The Actuarial Profession, Institute and Faculty of Actuaries, 2011-01-25.Certificate in Finance and Investment
The Certificate in Finance and Investment is sent to all students who complete or are exempted from CT1, CT2, CT4, CT7, CT8, CT9 and CA1 Certificates for Students, The Actuarial Profession, Institute and Faculty of Actuaries, 2011-01-25.Associate of the Institute and Faculty of Actuaries
On completion of all of the Core Technical and Core Applications exams, then students can become Associate members of the Institute and Faculty of Actuaries and gain the right to describe themselves as an actuary and to use the letters AIA or AFA provided that they have one year of work experience as an actuary Associate membership, The Actuarial Profession, Institute and Faculty of Actuaries, 2011-01-25.Fellow of the Institute and Faculty of Actuaries
On completion of all of the Associate exams, two of the Specialist technical subjects and one of the Specialist applications subjects, students can become Fellows of the Institute and Faculty of Actuaries and to use the letters FIA or FFA provided that they have three years of work experience as an actuary Fellow membership, The Actuarial Profession, Institute and Faculty of Actuaries, 2011-01-25.Alternative routes to Fellowship are:
- By vote of the membership
- By mutual recognition of qualifications
- Honorary Fellow