Syllabus Changes to the Pathway to ASA
By Patrick Ring
Retirement Section News, March 2022
Editor’s Note: Stuart Klugman is the senior staff fellow for Education at the SOA.
The SOA has made changes to the ASA curriculum to meet employer and market demand for actuaries to be formally trained in data analytics and new soft skills for adapting to change and using emotional intelligence. The skill in adapting to change is measured as an Adaptability Quotient (AQ), and the skill in using emotional intelligence is measured as an Emotional Quotient (EQ). These changes do not increase the “travel” time to achieve the ASA designation and maintain the same exam rigor as existed before the changes. These changes also introduce: (1) Micro credentials for those pre-ASA individuals who no longer will pursue the ASA certification, and (2) Affiliate Membership for those pre-ASA individuals who continue working toward the ASA certification. The following is my interview with Stuart Klugman, FSA, who provides some details of the changes. You can click here to view an extended outline of the changes.
Patrick Ring (PR): Tell us a little about yourself and what interested you in being the senior staff fellow for Education at the SOA?
Stuart Klugman (SK): In 2009, after having spent 35 years teaching actuarial science at two universities and serving in numerous SOA volunteer roles, I was offered an opportunity to have a more direct influence on SOA education. In this job I support volunteer committees across the education system, in particular assisting in the implementation of new initiatives, such as the ones being discussed here.
PR: What drove the recent change to the ASA syllabus?
SK: There are several forces affecting actuarial work and the profession. They could be grouped into three themes. One is changes to the ways actuaries work. The availability of more and different data sources and the automation of some actuarial processes requires actuaries to learn new skills and then communicate their findings. A second is the competitive landscape for those with actuarial-type skills. Data science and related fields provide opportunities across a variety of industries and there are no exams. Finally, credentialling has changed to where the objective is not a single hard-to-obtain designation (e.g., FSA) but rather smaller components, each representing a specific skill set.
PR: Give us a helicopter view of the changes to the ASA syllabus.
SK: The major changes are the introduction of micro-credentials (earned when specific subsets of the ASA pathway are completed) along with affiliate membership categories and the introduction of a new data science course called Advanced Topics in Predictive Analytics. A constraint that went with these changes was to ensure that the overall path to ASA was not lengthened.
PR: The revised syllabus includes training in AQ and EQ. Will you elaborate on what those terms mean and how this training is beneficial to actuaries?
SK: A definition of Emotional Quotient is the ability to monitor emotions, to discriminate between them, and to use this information to guide thinking and behavior. In our context that relates to communication and influence, particularly when the audience is non-actuaries.
A definition of Adaptability Quotient is the ability to adjust in response to uncertainty, new information, and unanticipated change. In our context it is the ability to manage ambiguity, particularly when information is vague or contradictory and hence there is no “right answer.”
PR: What are some details about micro credentials and the intended audience?
SK: There are three micro-credentials. Each is a subset of the ASA pathway and represents a specific set of learning objectives.
Pre-Actuarial Foundations: Represents the skills required and ability needed to learn how to solve actuarial problems. The requirements are Exams P (Probability) and FM (Financial Mathematics), Economics, Finance and Accounting via Validation by Educational Experience, and completion of the Pre-Actuarial Foundations Module.
Actuarial Science Foundations: Represents an understanding of and ability to solve basic actuarial problems. The requirements are all components of the Pre-Actuarial Foundations micro-credential plus Exams SRM (Statistics for Risk Modeling) and FAM (Fundamentals of Actuarial Mathematics), Mathematical Statistics via Validation by Educational Experience, and completion of the Actuarial Foundations Module.
Data Science for Actuaries: Represents an advanced understanding of data science and predictive analytics with an emphasis on actuarial applications. The requirements are Exam SRM (Statistics for Risk Modeling) and Project-Based Assessments PA (Predictive Analytics) and ATPA (Advanced Topics in Predictive Analytics).
The new modules for the first two micro-credentials include the AQ/EQ education mentioned previously.
Those who earn a micro-credential can claim a digital badge and indicate their accomplishment on a resume or in social media. None of them convey membership, practice rights, or post-nominal letters.
PR: What are some details about Affiliate Members and the intended audience?
SK: There are two categories of Affiliate Membership. Neither conveys practice rights or post-nominal letters.
Affiliate Member: This is a free membership designed for those interested in the actuarial profession either for themselves or those they influence. It provides access to a variety of SOA-provided information such as an on-line library of courses, connections to peers or mentors, and an ability to explore career options.
Professional Affiliate Member: This is available to those who have earned either of the last two micro-credentials described above. Nominal dues are required and these members are held to a Code of Conduct similar to the one that currently applies to exam candidates who are not ASA. Additional benefits include webcasts and podcasts and ability to serve on some SOA committees.
PR: What is the expected future impact on the syllabus for the fellowship exams, if any?
SK: Whenever the ASA pathway changes, each fellowship track considers how the revised preparation affects what they include in their exams. For example, when the Predictive Analytics Exam was introduced in 2018, several tracks added specialized analytics methods that built on the ones in the ASA curriculum. There will likely be some similar adjustments over the next year or two.
PR: Is there anything else you would like to tell us? (e.g., future changes being considered such as open book exams, college courses replacing exams, training in prevailing technologies such as artificial intelligence)
SK: The technology challenge is daunting in two directions. While COVID forced us to turn to computer-based tests for fellowship exams earlier than we had planned, it provides an opportunity to test candidates in ways not previously available. We want to keep exploring ways to bring more realism to the exam setting while maintaining the high level of security that our stakeholders expect. The second issue is the technology itself. For example, it is hard to test analytics skills without using software of some kind. But should it be R, Python, or something else? While the Predictive Analytics Exam continues (for now) to require R, we have not set a similar requirement for the new Advanced Topics in Predictive Analytics Exam. While the e-Learning modules will provide code in R and Python, candidates can use any platform they like to perform their calculations. In line with the AQ/EQ demands, the key to success will be doing good work and explaining it in a way that is independent of the tools used.
Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the newsletter editors, or the respective authors’ employers.
Patrick Ring, ASA, volunteers as the acting chair of the Retirement Section Council’s Communication Team, which is responsible for publishing Retirement Section News and the Retirement Forum, hosting podcasts, and maintaining the Retirement Section Council’s webpage. He can be contacted at pringactuary@gmail.com.