Exam System Changes

[Russell]

There's a well-documented Open Letter, posted 10/31, on the Desert Forum regarding the QRA and other strange directions coming out of the SOA leadership. It is worth the read, especially for the Dilbert reference.

[Dr T Non-Fan]

As usual, our very own Mr White is the most lucid of the bunch. (I read some other threads, too.)
Also, it's nice to see that the task force is not very interested in any opposition.
Prediction: this guy will never pass another actuarial exam.

[CJL]

Reducing travel time seems to be the big goal, apparently seen as the key to attracting more students. You can reduce by travel time by (1) taking more credits at once, hence the 2000 changes; (2) making the tests easier, which dilutes the credentials' significance; (3) trim the fat

Looks like they see Calculus as the fat. I don't see where trimming calculus gets you more students who will fully pursue FSA, or even QRA. Not testing calculus will lead to exam takers who don't understand it well, and struggle when they need to use it. I see it increasing the number of people who attempt an exam, but also increasing the number who become frustrated and quit.

Maybe calculus doesn't need to be tested (I disagree), and if you eliminate that exam, the people who would have gotten their FSA's anyway will get them 1 or 2 sittings earlier. But if the ultimate goal is to include/interest more people, I don't think that's going to happen by dropping course 1.

What is "QRA"?

[CJL]

QRA = Quantitative Risk Analyst

Proposed designation under 2005 Exam changes. Would be obtained prior to getting ASA, covering exam material not specific to actuaries.

Did anyone catch the small reference in the 2005 education paper about the accountants possibly adding an actuarial track? Does that mean we could possibly have certified public actuaries? Would you call them CPA's?

[J-Man]

Does anyone know if the QRS will in any way change the current Course 1-8 system? I mean, is this QRS thing an add-on in some way or is it intended to replace the current system? Maybe this is a stupid question and the answer is in the SOA's Task Force report, but I really couldn't tell.

[Brains&Beauty]

The QRA thing will be happening regardless whether the SoA/CAS decide to participate in this or not - there are many professional financial organizations worldwide who are interested in establishing this designation.

The SoA is currently reviewing whether the QRA is worth pursuing, considering the strategic goals of the profession. If they determine it is worth while, it will not replace the current system, but rather will allow for an additional designation for those people who do not want to study further to attain their ASA and FSA designations.

The current preliminary thought about the QRA structure (that is, IF it is decided it is worth pursuing) is that it may potentially allow an exemption of some early exams (math and business), with the final QRA designation to be awarded based on an all-including exam that would test the knowledge of those exempted courses. The QRA designation will not allow an exemption from Life Contingencies and other actuarial topics - these will remain in the ASA and FSA tracks and will continue to be tested through the exam system.

But, as I said, the whole idea is being reviewed. There are very bright people on the SoA Board of Governors who are looking into this - they too have gone through the exams, they too have the best intentions for the profession, and they too have the same questions/concerns as many of us do.

[mayreeh]

I don't like it that Calculus is being taken out. I wouldn't be an actuary today if Calc hadn't been the first test.

A lot of the best actuaries I know came from weird un-businesslike majors. (Like physics, electric engineering, classical literature and music.) Calculus was a nice familiar thing -- at least they had taken a class in it. It was a way to get their foot in the door.

I think that the new approach would turn off a lot of people who weren't eligible for lots of credits immediately based on college classes.

[Healey]

And as I've pointed out in other threads, where is the relevance of exams to actual work? How are fewer exams going to help when they apparently don't have enough now? The exams sure don't teach you how to do your job.