Certified Actuarial Analyst

A new qualification for a changing global market

I can clearly see how the

internationally recognised
Certified Actuarial Analyst
qualification will strengthen
the skills needed in my
organisation.
Andrew Rear
Chief Executive,
Munich Re

A new qualification
for a changing
global market

Many of the tasks performed within

the organisation are of a technical nature.
A designation attached to the work
performed will elevate the standing of
such work and the trust placed in it.
Stefan Swanepoel,
Consulting Actuary, South Africa

Certified Actuarial Analyst

What is the Certified Actuarial Analyst (CAA)?
The CAA is a new technical qualification and membership category from the Institute and
Faculty of Actuaries (IFoA), providing an internationally recognised professional qualification,
proven technical and professional skills and a gateway to a career in financial services.
It is designed to be broad in nature so that it has wide applicability within a range of financial
organisations and has been developed in partnership with employers to ensure it meets their
needs. It will professionalise the growing number of technical and analytical roles.
The CAA offers a business focus, high academic standards, professional membership of an
internationally recognised organisation and a robust regulatory approach that offers comfort
to employers, regulators and the public alike.
The CAA will:

professionalise technical and analytical roles;

provide assurance to your clients that those working for them are suitably qualified;
aid staff retention and boost morale for your employees;
help you to attract the best employees to your business.

Who would be suited to a career as a CAA?

Those who already have a professional qualification and are looking to add an actuarial
dimension to their current skillset;
A degree level candidate someone who has left university and is interested in
actuarial work;
A school leaver someone who is interested in starting their career and learning on the job
without having to undertake a degree;
A current employee of a professional or financial services organisation perhaps someone
who is working in an analytical support role or someone who has started the Fellowship
exams but feels that is not the right route to support their career aspirations.

How could the CAA benefit your

organisation?

Tony Carter
Risk Analyst and Statistician,
SLE Worldwide Australia,
Sydney, Australia
I already hold a Masters in
Biostatistics and previously
researched in Public Health for over
a decade, so Im fairly comfortable
with the mathematics, statistics
and modelling required for the CAA
course and the insurance industry in
general. Nonetheless, the actuarial
approach has traditionally dominated
analytics in insurance. I see the CAA
qualification as complementary
to my skills, in that Ill have a solid
grounding in the actuarial standards
and methods specific to insurance.
Insurance is an industry where data
is in abundance. With a blend of
statistics and knowledge gained via
the CAA qualification, Ill have the
skills to answer the questions that
keep not only the Chiefs but also the
Underwriters awake at night, and
provide an evidence base to guide
their strategic decisions.

Over the last few years there has been an

increase in the number of analysts working
in professional technical roles in financial
services. Encouraging your employees
to undertake a relevant qualification and
maintain membership with a professional
body goes a long way to ensuring that you
have the right skills and behaviors within
your organisation, enabling you to provide
assurance to stakeholders, regulators and the
wider public that you take your reputation
seriously.
By investing appropriately in the
development of your teams and giving them
membership of a prestigious professional
body, it will aid staff retention and
staff motivation.

What are the benefits of the

CAA for the actuarial profession
globally?
The actuarial profession is growing
internationally and it is important for
actuarial associations to be aware and
responsive to this growth. Introducing
the CAA will allow those interested in
an actuarial role to gain a professional
qualification in a reasonably short
timeframe, regardless of where in the
world they are based. This will help the
worldwide development of actuarial science,
embedding actuarial skills and techniques
as well as satisfying the professionalism
requirements that many regulators seek.

Why the CAA?

An alternative to Fellowship
Some student members of the IFoA have no desire to complete the Fellowship exams. They
may have entered the Fellowship qualification route when in fact it may not be relevant to
their chosen career path. In such cases many have remained student members of the IFoA
to maintain a level of professionalism and recognition within the industry, only undertaking
a small number of exams that are relevant to their area of work, resulting in no professional
qualification or designation.
The CAA will allow employees, in actuarial teams as well as the wider financial sector, the
opportunity to gain a professional qualification in a shorter amount of time, retaining all the
benefits of an IFoA qualification with appropriate requirements for Continuing Professional
Development (CPD).

Organisation structure
Organisational requirements and the structure of actuarial teams indicates a need for
the CAA. The CAA enables employers to provide another qualification to their staff at an
appropriate level for their role and skill set, as many employees do not necessarily need to
achieve Fellowship. For example, if the team has a large technical function, those staff would
be more suited to achieving the CAA qualification.

About the CAA qualification

The qualification equates to around Level 4 on the UKs Qualification Credit Framework.
It is expected that it would take candidates two to three years of part time study (alongside
working) to complete the qualification.

How would a candidate become a CAA?

To become a CAA, candidates need to pass the following six exams:
Module 0: Entry Test
(candidates must pass this before they take any further modules)
Module 1:
Finance and Financial
Mathematics

Module 2:
Statistics
and Models

Module 3:
Long Term Actuarial
Mathematics

Module 4:
Short Term Actuarial
Mathematics

When these modules have been passed, the candidate must then pass:

Module 5: Models and Audit Trails

The format of these exams is as follows:

Exam

Title

Format of Exam

Module 0

Entry exam

Computer based testing multiple choice,

two hours

Module 1

Finance and financial

mathematics

Computer based testing multiple choice,

two hours

Module 2

Statistics and models

Computer based testing multiple choice,

two hours

Module 3

Long term actuarial

mathematics

Computer based testing multiple choice,

two hours

Module 4

Short term actuarial

mathematics

Computer based testing multiple choice,

two hours

Module 5

Models and audit trails

Online exam three hours

In addition candidates must pass the Online Professionalism Awareness Test (OPAT), which
must be sat and passed at any time within one full CPD year of joining as a Student Actuarial
Analyst (SAA) member of the IFoA. This exam consists of five three-part questions, covering
each of the five core principles of the Actuaries Code.
An important part of this qualification and of working as an actuarial professional is
demonstrating the development of skills that reflect the practical aspects of actuarial
training, including the ability to reflect on what has been learnt and the ability to self assess.
Candidates must therefore also complete one year of relevant work based skills.
The syllabus for each subject and useful reference material can be found in the CAA resource
guides available on the IFoA website.

What could your employees expect to learn from the CAA?

Qualified CAAs will have the necessary mathematical skills and understanding to enable
them to:

Carry out the calculations underpinning the determination of the premiums that need to be
charged for products, schemes, contracts and other arrangements that provide benefits on
contingent events;
Be effective in manipulating and analysing data sets;
Communicate financial concepts within the work environment.

Resources available to you and your employees

Resource Guides
The Resource Guides are a one-stop virtual guide to preparing for each of the CAA exams.
They include key information such as sample questions, tuition providers, suggested study
hours and learning resources as well as a copy of the syllabus for each module.
Specimen Examination Papers
The Specimen Examination Papers provide examples of what kind of questions to expect in
the computer based assessment for each module. Although only a few sample questions are
listed in the specimen papers, the Resource Guide for each module explains the total number
of questions to expect in the actual examination.
Tuition Providers
There is one learning provider, based in the UK, that is offering online learning resources for
the CAA:
BPP Actuarial Education - www.bppacted.com
Email: ActEd@bpp.com Tel: +44 (0)1235 550005

Where and when can candidates take the CAA exams?

There are various exam sessions during the year. You can find the dates on our website www.actuaries.org.uk/becoming-actuary/pages/key-dates-and-contacts
Once a candidates exam registration has been completed they can book their exam online
with Pearson VUE, our third party supplier and a world leader in computer based assessment.
You can find your nearest Pearson VUE exam centre by visiting www.pearsonvue.com/ifoa
and clicking on Locate a test centre.

Employer engagement opportunities

We would be happy to come in and meet with you and/or your colleagues to discuss the CAA
in more detail.
If you would like to arrange a meeting with us, please contact Robert Jelly
Email: robert.jelly@actuaries.org.uk Tel: +44 (0)1865 268 238
To read more about the CAA please visit our website:
www.actuaries.org.uk/becoming-actuary/caa

London
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Tel: +44 (0) 20 7632 2100 Fax: +44 (0) 20 7632 2111

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Level 2 Exchange Crescent 7 Conference Square Edinburgh EH3 8RA
Tel: +44 (0) 131 240 1300 Fax: +44 (0) 131 240 1313

Oxford
1st Floor Park Central 40/41 Park End Street Oxford OX1 1JD
Tel: +44 (0) 1865 268 200 Fax: +44 (0) 1865 268 211

Beijing
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Tel: +86 (10) 8573 1000 Fax: +86 (10) 8573 1100

Hong Kong
2202 Tower Two Lippo Centre 89 Queensway Hong Kong
Tel: +11 (0) 852 2147 9418 Fax: +11 (0) 852 2147 2497

www.actuaries.org.uk
2014 Institute and Faculty of Actuaries