SOA International Strategy: Q&A with Andy Peterson, Managing Director International

By The International News Editorial Board

International News, November 2023

In this exclusive feature, International Section Council members have the privilege of engaging in a conversation with Andy Peterson, Managing Director International at SOA, offering a deeper understanding of the SOA’s global strategy. Join us as we delve into the strategic vision and initiatives guiding our international pursuits, reaffirming our commitment to serving and empowering actuarial professionals across the globe.

International News: Could you please share the SOA’s international strategy for the near future? For example, any key areas of education and research?

Andy Peterson: As part of the 2022–2024 Strategic Plan, the SOA Board specifically identified “Accelerate International Growth” as one of four strategic themes, with the goal that, “Our vibrant international membership is supported by SOA services customized to meet local market needs.” While the focus on international markets is not a new emphasis at the SOA, I believe we are looking at things differently and much more intentionally than in past years.

Our current focus includes a tactical emphasis on:

• Increasing local staff and resources to service key international markets, particularly where we already have experienced or see the opportunity for the growth of the actuarial profession.
• Creating more localized services and products, rather than simply assuming the credentials and products created for the US will work in global markets.  
• Exploring and experimenting with opportunities in new markets.

We have a growing team of staff located outside of the US focused on supporting members and candidates. These staff provide support in a range of activities, such as promoting the profession at universities, planning local/regional professional development events (often in cooperation with local actuarial societies), supporting new research projects and much more.

We have varying areas of focus in the different regions that reflect the relative development of the actuarial profession and our SOA positioning in each market. For example, for a number of countries across Asia, the profession is quite well-developed, and the SOA has a strong candidate and membership base. At the same time, there are also some more developing markets, particularly in Southeast Asia—Vietnam is an example—that don’t have such a long history of an actuarial profession, but where the profession is growing quickly. Similarly, the Middle East and Africa have a few countries with mature actuarial professions, but many more where the profession is still in a development phase.

As a general rule, in more developed markets we are focused on providing member services with professional development opportunities and localized resources whereas in developing markets we focus more on promoting the actuarial profession as a career. Ultimately it is not an “either/or” approach but a matter of emphasis, as both aspects are needed in every market.

IN: Any thoughts on the effectiveness of the international examination fee discount program, and how to improve on/further maximize the potential of this type of initiative?

AP: One of our current objectives is to attract more candidates into our SOA pathway. Additionally, we believe there are a number of things we can do to improve the candidate experience, and as a result, help more candidates achieve success, while maintaining the rigor of our exams. We understand that for many markets, exam fees can be a significant barrier for candidates. To that end, we are currently looking at changes in the SOA’s exam discount program, particularly for candidates early in their credentialing process prior to when they may have employer support. We will be piloting a small test for a revised program in early 2024 and hope to provide a broader release in mid- to late 2024. In addition, we are also looking at scholarship programs for targeted regions, aimed primarily at providing assistance on Exams P & FM.

IN: How does the SOA plan to support more universities in emerging markets to develop actuarial programs, or to obtain accreditation for VEEs?

AP: A lot of what we do is about building awareness through meeting with universities and helping them understand the actuarial profession and our SOA credentialing process. We seek to help them understand what is required for VEE applications and point them towards the benefits of our Universities and Colleges with Actuarial Programs (UCAP). We are working on developing more activities to support professors and instructors. For example, we hosted an Actuarial Teaching Conference in December 2022 in Bangkok that had over 50 professors from universities in Asia in attendance and in China we have hosted several Education Forums with university professors, the most recent in connection with our June China Symposium.

In Latin America, our Latin America Committee appointed a small team that first familiarized themselves with the VEE/UCAP process. They then created a simple brochure with hyperlinks that walked through the application process. The team meets with different universities and those with interest in the application process have received additional support from the team, including follow-up check-ins.

We are in the midst of planning additional activities for the future.

IN: What are the “must win battles” for the SOA to continue to grow market share as the preferred internationally recognized actuarial designation?

AP: I don’t really like the terminology of a “must win battle.” I think our SOA goal is to provide an actuarial credential that is seen as the gold-standard for actuarial credentials while still being locally relevant. If we do that, we will be able maintain strong interest in our credentials and SOA membership.

We have made and continue to make a number of changes to make sure our SOA credentials remain and improve on their relevancy. For example, the ASA curriculum has changed over the last 5+ years to provide a significant emphasis on predictive analytics and add modules that emphasize the importance of communication and AQ/EQ skills. The recently announced FSA changes are another example of the way we are working to make sure our credentials are relevant for markets outside the US/Canada. As a result, FSA candidates outside the US and Canada will no longer need to learn the detailed US/Canadian regulatory material in order to obtain the FSA credential. In addition, they will be able mix/match courses from different actuarial practice areas in a way that better aligns with many international markets. We believe these changes will make it possible to further customize our credentials for specific international markets in the future.

Let me say that as an actuary who experienced several exam changes while in the process of obtaining my FSA, I recognize these changes can feel disconcerting to candidates in the process. However, changes and updates are needed to make sure our credentials remain valued for what actuaries need to know today and in the years to come.

IN: How does the SOA decide in which countries we should invest our time?

AP: The SOA has candidates in over 100 countries and members in about 90. We can’t be everywhere and have to make choices about where we invest our time/resources. When evaluating whether to directly invest SOA resources, we have a framework that looks at a number of factors such as receptivity to the actuarial profession, local interest in SOA credentials, presence of a local association or other actuarial credentialing options, local demographics and much more.

IN: Over the last five years, which countries have turned out as well as expected, and which have not?

AP: It’s always dangerous to answer a question like this (it’s kind of like being asked to pick a favorite child) when I could point to a number of success stories. But let me focus on a market where we’ve seen strong growth of the actuarial profession. In Saudi Arabia the profession has moved from being nearly non-existent from a local context 10+ years ago to having a strong base of candidates and an increasing number of locally developed credentialed actuaries (SOA and others), including imminently having the first Saudi-born woman to complete her FSA.

I see this as the result of a combination of factors, but probably the biggest factor is the push from their insurance regulator, the Saudi Arabian Monetary Authority (SAMA). SAMA (which will soon spinoff the insurance oversight to a new agency known as the Insurance Authority) has provided a mandate for the growth of Saudi national actuaries. They are requiring all insurance companies to have actuarial development programs and hire Saudi actuaries. At the same time there are two key universities, King Fahd University of Petroleum and Minerals and King Saud University that have actuarial majors that have received the SOA’s UCAP-Advanced Curriculum designation in the last two to three years. Having a strong regulator working with an industry that is supported by robust actuarial university programs seems to be a recipe for success.

Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the respective authors’ employers.