How to become a certified actuary

Further training for actuaries


1 Further training for actuaries Further training12s_RZ3.indd: 14

2 Guaranteed Qualified Training12s_RZ3.indd: 14

3 DAV CEO Dr. Michael Renz: Certified quality is an international standard! Learning for a lifetime The professional rules of the actuaries united in the German Association of Actuaries contain the self-commitment of every member of the DAV to keep their own knowledge and the special skills of a qualified actuary permanently at a high and current level. Actuaries fulfill this obligation by taking advantage of in-house training opportunities, attending relevant events organized by the DAV and the German Actuarial Academy and keeping their specialist knowledge up to date through individual literature and self-study. In an international environment, the training of actuaries has followed a uniform global standard for many years. Corresponding requirements both from the European umbrella organization of national actuarial associations and from the globally operating International Actuarial Association illustrate this self-image. In the meantime, the standard setting for professional qualifications goes beyond the basic training of actuaries: Almost all European and the large actuarial associations in Australia, Canada or the USA not only require their members to continue training, but also to provide appropriate evidence. In order to maintain the high level of competitiveness and reputation of German actuaries and, ultimately, their employers, both nationally and internationally, the German Actuarial Association considers it necessary to introduce compulsory evidence of ongoing training for all members of the association. In order to obtain the relevant advanced training certificate, the actuaries should therefore document twenty hours of advanced training per year in the future. Up to eight hours of this can be spent on self-study. Existing or new in-house events can also be taken into account without much effort. In addition, the actuary academy affiliated with the DAV will of course also offer new offers. However, the main task of the DAV in this area will be to help with the documentation of the further training measures of the members and the confirmation by means of a further training certificate. The insurance and finance industry in Germany is facing major challenges. The financial market crisis and the subsequent phase of low interest rates, the risk-based supervisory system for insurance companies Solvency II and extensive changes to the Insurance Contract Act require actuaries to have excellent qualifications in mastering rapidly changing and new areas of responsibility. Against this background, not only a demanding training of actuaries, but also proof of permanent further training is essential in an international environment. Therefore, with your company, support the initiative of the German Actuarial Association for compulsory annual further training. 3 Training12s_RZ3.indd: 14

4 The demands are increasing Learn for a lifetime Why is a further education certificate important? With their specialist know-how, actuaries are traditionally involved in many important steps in the insurance process. With the deregulation of the insurance market in 1994 in particular, the actuaries' field of activity was significantly expanded. Since then, the role of the responsible actuary in personal insurance has been enshrined in law. In this role, he is active in the company in an interface where, more than in almost any other position, it is equally about implementing the corporate strategy, taking into account the requirements of the supervisory authority and increasingly also meeting demands for appropriate consideration of the interests of the insured. In the coming years, the implementation of the new risk-based supervisory system Solvency II will result in an additional expansion of the actuarial field of activity. The present guideline assigns the new supervisory structure to the actuarial function essential tasks in the determination of technical provisions. The risk management function has a major impact on the creation and application of an internal risk model. Up-to-date know-how is not only essential for this. Actuarial expertise is also indispensable for the insurance-specific application of international accounting regulations. In addition, actuaries are increasingly involved in controlling capital investments and, due to their special training, in the optimal coordination of assets and liabilities. Solvency II: fit and proper Legal requirements for the responsible actuary Actuarial expertise through regular further training International convergence of the insurance markets Increased professional requirements for the actuary International developments Expanded area of ​​activity (risk management, capital investment) 4 Training12s_RZ3.indd: 14

5 The DAV training certificate enables all employers to continuously secure and document the high qualification of their own actuaries! Ensure quality Dr. Josef Beutelmann, Chairman of the Board of Directors of the Employers' Association of Insurance Companies in Germany 5 Fortbildung12s_RZ3.indd: 14

6 In an international environment, the training of actuaries has followed a uniform global standard for many years. International standard Highly uniform qualifications: the basis of actuarial activities worldwide Against the background of the expanded area of ​​responsibility and the increased public awareness of actuarial-based activities, further training is of increasing importance. Actuaries have been required to undergo regular further training for many years. When the actuaries' association was founded in 1994, the members set their own binding professional rules to ensure that all professionally organized insurance and financial mathematicians always work correctly and with integrity. These professional rules also include the obligation of every member to lifelong learning. In particular, new tasks may only be taken on if the necessary actuarial know-how is available. As early as 2006, the German Actuarial Association took a first step to further substantiate the general obligation for further training laid down in the professional code of conduct. The DAV training manual, which was introduced following an extensive discussion process, contains recommendations on the minimum scope and content of personal training. Since then, all members of the DAV have been able to have their training activities confirmed voluntarily and receive an annual training certificate. The introduction of a documentation requirement for all members is therefore only the next logical step in the realization of the professional responsibility of the DAV for a reliably perceived high qualification of actuaries in Germany The level of knowledge ensured by the DAV is to be expanded individually, according to requirements and flexibly within the framework of the formalized training system. The title Aktuarin DAV or Aktuar DAV will serve as a permanent quality feature for actuarial and financial mathematical know-how of the actuaries of a company in the future. In an international environment, the training of all actuaries has followed a uniform global standard for many years. In the meantime, in almost all actuarial associations in Europe as well as in America, Canada and Australia, there is an obligation to provide evidence of the annual further training measures taken by members. If the current high reputation of German actuaries, both nationally and internationally, is to be maintained, the DAV considers it necessary to establish evidence of further training in Germany, which is to be carried out via the DAV further training certificate. 6 Training12s_RZ3.indd: 14

7 Documented specialist knowledge How does the evidence work? When developing the new training concept, the DAV made sure that there were no major additional costs or time burdens for the company, taking into account the necessary content requirements. The procedure will be correspondingly simple and unbureaucratic. In future, the DAV will require every member to provide annual proof of the measures taken personally. This proof is kept in a DAV training account. In order to obtain the certificate, each actuary must achieve a total of twenty further training points per year. As a rule, one further training point corresponds to one hour of effort. At least 16 of these points must be proven through professional activities, up to four points can be acquired in topics relevant for the actuary and his employer, such as process management, project work or communication. Up to eight points of the total volume are credited for individual literature or self-study. In justified individual cases, for example with actuaries working part-time, the possible proportion of self-study can be flexibly increased on an individual basis. In order to be able to document the personal training activities, each member receives a DAV training certificate annually. With an individual training account on the DAV website at, all members can keep an eye on their own status at all times. With the help of a direct technical interlinking of the further training module with the club administration software and the registration process for the club's own offers, these services are automatically entered into the personal overview. In addition, the following should apply in detail: For proof of personal activities, further training points from the previous year can be transferred. Any missing points can be made up in the following year. Actuaries are exempt from the obligation to provide evidence in the year in which they acquire membership in the DAV and for the next two calendar years. Members of the DAV who work abroad can submit the confirmation they have obtained about the further training measures they have taken. Experts in actuarial questions of company and professional pension schemes are within the DAV at the Institute of Actuarial Experts for Pensions e.v. (IVS) organized. Following the implementation of the DAV's new advanced training requirements, the IVS is to add content-related additions to the specific topics of the pension actuaries. If a member does not achieve the required amount of further training points, he loses the right to the title of actuary DAV or actuary DAV after the end of the transfer option and after a further period of six months in which missing points can be made up wear. This right can be acquired again through further training measures. It goes without saying that the DAV will fulfill its special duty of care and responsibility towards its members and their employers when implementing the certification system. 7 Training12s_RZ3.indd: 14

8 Through targeted in-house measures, we can provide our actuaries with the best possible support in their regular training in a simple, cost-effective, needs-based and flexible manner. Strengthening internal activities Friedrich Schubring-Giese, Chairman of the Board of Management of the Bavarian Insurance Chamber 8 Fortbildung12s_RZ3.indd: 14

9 What can companies do? In-house training plays an important role in the DAV's training concept. Solutions for numerous new issues are developed in companies every day. Individually acquired actuarial specialist knowledge is regularly prepared and passed on through appropriate lectures in departments or project teams. It is therefore a matter of course that in-house events and personal lectures of this kind should be used for professional evidence of further training. In this context, the DAV is building on the fact that the new meaning of recording further training measures among employers and DAV members will create a new awareness of the large number of qualifying measures that are already taking place regularly in companies today. Any missing modules can be added with little conceptual and organizational effort. It goes without saying that the DAV and the associated actuary academy will also continue to expand their offerings. In addition to traditional events for personal exchange between members, such as the annual meeting at the end of April, the autumn meeting of the specialist groups in November, the annual academy day for responsible actuaries or the regular meetings of the DAV on site, the DAV is planning to increase the number of classic seminars. In the future, there will be a special focus on electronically supported formats: Webinars In future, webinars will be used to present and deal with current topics in a maximum of two-hour blocks in the form of a web seminar. Decentralized participation on their own computer should enable all actuaries to tackle new actuarial issues inexpensively and without having to travel. In the planned implementation form, webinars can be repeated easily and regularly and even allow very large numbers of participants. Virtual Classroom Fundamental actuarial topics are to be worked out in a virtual classroom in the future. Small groups and regular appointments at fixed intervals guarantee ongoing interaction between speakers and participants, so that different modeling approaches and solutions can be developed together. Recorded Sessions At the regular meetings of the branch-specific specialist groups of the DAV, current topics are dealt with in concise lectures every six months. Over people take part in the events each year. However, it is of course not possible for every actuary to be present at the specialist conferences on site. In order to give these members an insight into the topics dealt with, in future the documents will be made available in combination with a recording of the lecture so that the lecture can be called up on one's own computer at any time if interested. Computer-based training The possibilities to build up and expand one's own IT-based knowledge have grown considerably due to the rapid technical development in recent years. Taking into account the current technical possibilities, the DAV will set up a know-how platform that can be used to expand one's own basic knowledge at any time and interactively in suitable units. Use electronic formats Continuing education remains individual the DAV helps 9 Further education12s_RZ3.indd: 14

10 Promote your own actuaries This offer is intended to be a subsidiary of the in-house measures and help to close gaps where the companies and their actuaries do not want to or cannot become active themselves. Experience in other countries shows that a further training system is better and more efficient the more willing everyone involved is to organize themselves and to develop tailor-made offers for their own business areas, company size or regional integration. With the introduction of compulsory training certificates for actuaries, there are new additional opportunities for companies to further establish a common culture of lifelong learning in their own company. The DAV is aware that in times of great challenges for the insurance industry it is difficult to find scope for additional training for employees. Regardless of the size of the company and the number of actuaries employed, it should nevertheless be feasible to achieve the common goal of permanently securing actuarial expertise in the various qualified areas of activity without additional burdens. The current proposal for the advanced training concept for actuaries therefore expressly includes the option of integrating all internal advanced training events into the DAV concept. The regular exchange between different professional groups, if necessary across divisions and departments, promotes mutual understanding, allows a look beyond one's own nose and enables joint solutions to be found for related issues. For many primary insurance companies it could be interesting to establish an actuarial colloquium with regular lectures or to formalize existing departmental rounds accordingly. Reinsurance companies or consulting firms can use their specialist offers for customers accordingly for the DAV training certificate. For the recognition of the individual events it will only be necessary to document the agenda of the meeting and to name the respective speaker. the in-house offers are accredited as well as external seminars and the attendance of the participants is automatically credited to their training account. Overall, according to the DAV's assessment, the continuing education activities that are already being carried out on a regular basis will be sufficient for most members to be able to provide personal evidence annually.With appropriate support from employers, for example through the accreditation of existing internal measures and the additional development of new offers, further training measures in the required scope of twenty hours per year can be managed with no or minimal additional effort. Start of the concept: January 1st, 2012 The DAV first presented its considerations for the introduction of a formal further training certificate in October 2010. Since then there has been an intensive discussion process at local lecture events, at a public workshop between interested association members with the responsible working group and via a discussion forum on the Internet at Certification concept. This proposal is to be adopted at the general meeting of the DAV on April 28, 2011. With the approval of the members, certification of the training measures could begin on January 1, 2012. Internationally respected, well-trained actuaries benefit their company. The certification of lifelong training is an international standard. So support this initiative of the German Actuarial Association with and in your company. In all measures, it is an important principle of the DAV concept not to create any new bureaucracy and to minimize any effort, be it for the company or for the actuaries. The DAV will therefore create a lean, decentralized accreditation system that is based on a common internet platform. Here 10 training12s_RZ3.indd: 14

11 Fit for the future together 11 Advanced training12s_RZ3.indd: 14

12 Further information: Deutsche Aktuarvereinigung e. V. Hohenstaufenring Cologne Tel .: 0221 / Fax: 0221 / Fortbildung12s_RZ3.indd: 14