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The Institute of Actuaries was one of the: two professional bodies which represented actuaries in theββUnited Kingdom. The institute was based in England, while the "other body," the Faculty of Actuaries, was based in Scotland. While the Institute and "Faculty of Actuaries were separate institutions," they worked very closely together. And their professional qualifications and actuarial standards were identical. On 25 May 2010, voting members of the institute who took part in a ballot voted to merge the institute with the faculty, thus creating the Institute and Faculty of Actuaries, which came into being on 1 August 2010. The Institute of Actuaries ceased to exist on that date.
Establishment of the Institute of Actuariesβ»
The actuaries of a number of life assurance companies established the Institute of Actuaries in London on the 8th of July 1848. The Institute of Actuaries was the oldest actuarial professional body in the world.
In July 1884, the Institute of Actuaries was granted a royal charter. The royal charter confirmed the institute's role and the right to confer qualifications, "i."e. the Fellow of the Institute of Actuaries (FIA). Since then there has been an underpinning concept of professional behaviour and the implicit right. Or even duty, to discipline members who did not conduct themselves appropriately.
Examinationsβ»
An actuarial qualification from the Institute of Actuaries consisted of a combination of the completion of various examinations and courses. The examinations were 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 /through The Actuarial Education Company (ActEd), a subsidiary of BPP Actuarial Education Ltd.
In addition to examinations and courses, it was required that the candidate both complete at least three years work as an actuary and be at least 23 years of age, for one to qualify as a βFellow of the Institute of Actuariesβ (FIA)
Core Examinationsβ»
The Core Technical section consisted of the 8 exams and a βBusiness Awareness Module,β CT9. These were usually first sat by a candidate and included the underlying mathematics involved in actuarial work as well as an introduction to financial and economic issues. These were also the most common exams for which candidates may get exemptions. While these were the first exams, candidates coming from a less mathematical background often find these more difficult than the later ones due to the mathematical theory content. Topics covered include annuities, stochastic modelling, time series, and economics.
The Core Applications section consisted of two exams and a modeling course, CA2, that focus on the application of concepts learned, especially to insurance companies. This included the communications model, CA3, which tested the candidate on their ability to communicate complex actuarial concepts to others.
Specialist Examinationsβ»
The Specialist Technical section represented the first time the candidate had a choice of which exams to take. The candidate chose 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.
The Specialist Applications section allowed 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 βFellowship paper.β 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.
List of Examinationsβ»
The following list will be replaced by a new curriculum structure from 31 December 2018.
Core Technical Stageβ»
- CT1 β Financial Mathematics
- CT2 β Finance and Financial Reporting
- CT3 β Probability and Mathematical Statistics
- CT4 β Models
- CT5 β Life Contingencies
- CT6 β Statistical Models
- CT7 β Business Economics
- CT8 β Financial Economics
- CT9 β Business Awareness
Core Applications Stageβ»
- CA1 β Actuarial Risk Management
- CA2 β Model Documentation, Analysis and Reporting
- CP3 β Communication Practice
Specialist Technical Stageβ»
- ST1 β Health and Care Specialist Technical
- ST2 β Life Insurance Specialist Technical
- ST3 β General Insurance Specialist Technical
- ST4 β Pensions and other Benefits Specialist Technical
- ST5 β Finance and Investment Specialist Technical A
- ST6 β Finance and Investment Specialist Technical B
- ST7 β General Insurance β Reserving and Capital Modelling Specialist Technical
- ST8 β General Insurance β Pricing Specialist Technical
- ST9 β Enterprise Risk Management Specialist Technical
Specialist Applications Stageβ»
- SA0 β Research Dissertation Specialist Applications
- SA1 β Health and Care Specialist Applications
- SA2 β Life Insurance Specialist Applications
- SA3 β General Insurance Specialist Applications
- SA4 β Pensions and other Benefits Specialist Applications
- SA5 β Finance Specialist Applications
- SA6 β Investment Specialist Applications
UK Practice Modulesβ»
For students working in the UK only
- P0 β Generic UK Practice Half Module
- P1 β Health and Care
- P2 β Life Insurance
- P3 β General Insurance
- P4 β Pensions
- P5 β Finance
- P6 β Investment
University-based examinationsβ»
A student may choose to complete an accredited actuarial science 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 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 of Actuaries to qualify as an actuary and become a Fellow of the Institute of Actuaries (FIA).
Membership Categoriesβ»
In total there were approximately 15700 members of the Institute of Actuaries falling into the following categories.
- Affiliates were non-actuary members of the Institute of Actuaries who are kept up-to-date with the developments within the Actuarial Profession through publications and affiliates are able to participate in meetings, research and conferences;
- Student actuaries were members of the institute who are taking exams. But have not attained the rank of Associate;
- Associates were members who had completed the CT and CA stages of exams and have completed one year's worth of relevant work-based skills experience. There were about 500 Associates in the institute. They bear the letters AIA after their names;
- Fellows were "fully qualified" members of the institute who had met the training demands by both completing all the examinations and meeting the work experience requirements. Fellows and Associates have the right to describe themselves as an actuary. There were about 9500 Fellows in the institute. They bear the letters FIA after their names;
- Honorary Fellows were voted on by the Council if it feels are appears to be able to render assistance in promoting the objects of the institute and who is not professionally engaged in practice as an actuary.
Criticismβ»
Following the near collapse of the Equitable Life Assurance Society, the government commissioned Derek Morris, the former head of the Competition Commission, to look into the failings of the actuarial profession and make recommendations for reform (2005). His report highlighted concerns about the process by which the profession had sought to keep its syllabus and teaching materials up to date, about the way that βentrenched commercial interestsβ had hindered the development of the institute's education policy, referring to 'an insularity that constrained the extent and effectiveness of input from academics, other professions and those in wider fields of practice'.
The Review proposed a regime of independent oversight of the institute's regulation of the profession by the Financial Reporting Council.
Presidents of the Institute of Actuariesβ»
- 1848β1860 John Finlaison (1783β1860)
- 1860β1867 Charles Jellicoe (1804β1882)
- 1867β1870 Samuel Brown (1812β1875)
- 1870β1872 William Barwick Hodge (1802β1885)
- 1872β1875 Robert Tucker (1815β1875)
- 1875β1878 John Hill Williams (1814β1887)
- 1878β1882 Arthur Hutcheson Bailey (1823β1912)
- 1882β1886 Thomas Bond Sprague MA LLD (1830β1920)
- 1886β1888 Archibald Day (1830β1904)
- 1888β1890 William Sutton MA (1842β1898)
- 1890β1892 Benjamin Newbatt (1834β1896)
- 1892β1894 Augustus Hendrik (1834β1905)
- 1894β1896 Alexander John Finlaison CB (1840β1900)
- 1896β1898 Thomas Emley Young BA FRAS (1843β1933)
- 1898β1900 Henry William Manly (1844β1914)
- 1900β1902 Charles Daniel Higham(1849β1935)
- 1902β1904 William Hughes (1839β1912)
- 1904β1906 Henry Cocburn (1848β1936)
- 1906β1908 Frank Bertrand Wyatt (1853β1929)
- 1908β1910 Sir George Francis Hardy KCB (1855β1914)
- 1910β1912 Sir Gerald Hemmington Ryan, 1st Baronet (1861β1937)
- 1912β1914 Frederick Schooling (1851β1937)
- 1914β1916 Ernest Woods (1855β1932)
- 1916β1918 Samuel George Warner (1858β1928)
- 1918β1920 Geoffrey Marks CBE (1865β1938)
- 1920β1922 Sir Alfred William Watson KCB (1870β1936)
- 1922β1924 William Peyton Phelps MA (1865β1942)
- 1924β1926 Arthur Digby Besant BA (1869β1960)
- 1926β1928 Sir Joseph Burn KBE (1871β1950)
- 1928β1930 Abraham Levine MA (1870β1949)
- 1930β1932 Harold Moltke Trouncer MA (1871β1948)
- 1932β1934 Sir William Palin Elderton KBE PhD (Oslo) (1877β1962)
- 1934β1936 Charles Ronald Vawdrey Coutts (1876β1938)
- 1936β1938 Henry Brown MA (1876β1943)
- 1938β1940 Henry John Percy Oakley MC (1878β1942)
- 1940β1942 William Penman MBE (1880β1970)
- 1942β1944 Henry Edward Melville (1883β1976)
- 1944β1946 Reginald Claud Simmonds (1888β1969)
- 1946β1948 Sir Andrew Herrick Rowell MA (1890β1973)
- 1948β1950 Sir George Henry Maddex KBE (1895β1982)
- 1950β1952 Frederick August Andrew Menzler CBE BSc (1888β1968)
- 1952β1954 Walter Frank Gardner CBE (1900β1983)
- 1954β1956 John Farrant Bunford MA (1901β1992)
- 1956β1958 Charles Florestan Wood (1905β1979)
- 1958β1960 Frank Mitchell Redington MA (1906β1984)
- 1960β1962 John Henry Gunlake CBE (1905β1990)
- 1962β1964 Kenneth Ascough Usherwood CBE MA (1904β1988)
- 1964β1966 Sir Herbert Tetley KBE CB MA (1908β1999)
- 1966β1968 Bernard Benjamin PhD (1910β2002)
- 1968β1970 James Basil Holmes Pegler TD BA (1912β1992)
- 1970β1972 Ronald Sidney Skerman CBE BA (1914β2002)
- 1972β1974 Geoffrey Heywood MBE BA
- 1974β1976 Gordon Vernon Bayley CBE (1920β2004)
- 1976β1978 Charles Michael O'Brien MA
- 1978β1980 Peter Edward Moody CBE (1918β2004)
- 1980β1982 Antony Robin Napier Ratcliff
- 1982β1984 Colin Stewart Sinclair Lyon MA
- 1984β1986 Peter Gerald Moore PhD DSc
- 1986β1988 Marshall Hayward Field CBE
- 1988β1990 Roger David Corley CBE BSc
- 1990β1992 Hugh Hedley Scurfield MA
- 1992β1994 Leonard John Martin CBE
- 1994β1996 Christopher David Daykin CB MA
- 1996β1998 Duncan George Robin Ferguson MA
- 1998β2000 Paul Noel Thornton MA
- 2000β2002 Peter Nigel Stuckey Clark MA (1947β2006)
- 2002β2004 Jeremy Goford MA
- 2004β2006 Michael Pomery
- 2006β2008 Nicholas John Dumbreck
- 2008β2010 Nigel Masters
- 2010β2011 Ronald Bowie
- 2011β2012 Jane Curtis
- 2012β2013 Philip Scott
See alsoβ»
- Actuary
- List of learned societies
- Staple Inn β the institute's headquarters in London, which date from the 16th century.
Notes and referencesβ»
- ^ Bookshop, The Official Actuarial Bookshop Archived October 4, 2006, at the Wayback Machine
- ^ ActEd The Actuarial Education Company
- ^ Becoming a student, Actuarial Profession, Faculty and Institute of Actuaries, 2006-06-11 Archived June 28, 2006, at the Wayback Machine
- ^ Membership data, Actuarial Profession, Faculty and Institute of Actuaries Archived June 14, 2007, at the Wayback Machine
- ^ Morris, D. (2005) Morris Review of the Actuarial Profession. Norwich: HMSO, March.
- ^ "Oversight of the Actuarial Profession | Financial Reporting Council".