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From the Readers
Time and Money Dear Editor:
I would like to respond to the article entitled "The Market Relevance of the Actuarial Profession" submitted by Donald Mango and Thomas Struppeck (The Actuarial Review, November 2000). I'm an associate actuary currently enrolled to take the first of the CFA exams in June 2001. My decision to abandon the CAS exam process in favor of the CFA track was in response to many of the same concerns raised by Sholom Feldblum in his recent opinion article (The Actuarial Review, August 2000). One particular concern is the inordinate amount of study time required to pass CAS exams successfully, relative to the benefits to the student or employer. It is not unusual now for a student to spend 500-600 hours studying for a Fellowship exam in order to achieve a passing score. Students who fail their first attempt may ultimately spend over 1,000 hours in an effort to pass any given exam.
That is an extraordinary time requirement for most people. Mango and Struppeck note in their opinion piece that students "work hard towards the designation because it is so valuable." I do not believe this to be the case. Students receive only nominal pay raises for successful exam sittings. But salaries for actuaries have not risen to anywhere near the level of those achieved by their counterparts in the financial services industry. Why? Because actuaries still confine their efforts to the liability estimation and pricing. What do employers receive in return for their investment in time and money? Are their actuaries that much more valuable to them after passing exams? I think not. Employers do not want to pay more for an employee who passes exams but offers no additional talent to the company.
Mango and Struppeck go on to state, "If your interests lie in the capital market, please look elsewhere." What do they think actuaries should do when banks buy insurance companies or vice versa? Should we bury our heads in the sand in response to convergence in financial markets? I, for one, believe that the capital markets represent the next sphere of influence for actuaries qualified in the field of mathematics and finance. Only when actuaries step out into the capital markets will they recognize their true potential and become more broadly useful to their employers, as well.
Christopher Allan, ACAS
Kudos for CAS Staffer Dear Editor:
As a member of the Finance Committee, as chair of the Finance Committee, and as Assistant Treasurer, I would like to thank CAS staffer Todd Rogers for all his assistance. Having been involved in this committee since before he came to the CAS, I have been in a good position to observe his implementation of many improvements to the budget preparation process and budget and expense tracking packages, regular assumption of additional responsibilities, and responsiveness to all of my inquiries, audit comments, and suggestions. By continually making my role easier to handle, he contributed to my longevity on this committee. As a CAS member, I had a "front row seat" in observing his contributions to the CAS. Thanks again, Todd, for all of your assistance.
Michael P. Blivess, FCAS