SA1 changes for 2019

Discussion in 'SA1' started by Sarah Byrne, Oct 30, 2018.

  1. Sarah Byrne

    Sarah Byrne ActEd Tutor Staff Member

    As you are probably aware, there will be some changes to the Subject SA1 Course for the 2019 exams. Below is a summary of these changes, primarily for use by those retaking the examinations, however, all students may be interested in where there have been more significant changes or new material added.

    General comments


    Subject SA1 is no longer a UK specific examination. Examples from a wide range of countries are included within the Core Reading and the Course Notes more generally. It should be noted that in the past, the Subject SA1 exam often contained questions set in countries other than the UK.

    Course Notes

    Subject SA1 is still composed of 6 parts, although which part certain material falls in has changed in places.

    Part 1
    • Chapter 1 is largely unchanged.
    • Chapters 2 and 3 are new chapters outlining the long-term and short-term products. In particular, Chapter 3 introduces major medical expense insurance as the US definition (more similar to the UK definition of PMI).
    • Chapter 4 covers the details of other stakeholders needs (this material was previously covered across Chapters 2, 3 and 4). There is no longer any specific details of UK State benefits.
    • Chapters 5 and 6 on the general business environment contain similar material but without the UK specific focus.

    Part 2

    • Chapters 7 and 8 are now in Part 2 of the course. As for the previous chapters, the material is similar but without the UK specific focus.
    • Taxation is now covered in a single chapter, Chapter 9. The details of the UK regime are still considered in this chapter. However, the material on long-term tax has significantly reduced with less detail on I-E taxation (and no mention of BLAGAB at all!). The material on short-term tax that was previously in Chapter 10 is largely unchanged and included in Section 3.

    Part 3
    • Chapter 10 is a new chapter on approaches to regulation. It outlines the overall aims and responsibilities of regulation. It also includes suggestions of other guidance that health and care actuaries may have to consider in their role (this still includes reference to the APSs and more general suggestions about equality legislation and TCF guidance). The final section of this chapter includes an outline of the structure of regulation in various jurisdictions around the world.
    • Chapters 11 and 12 contain the details of Solvency II legislation and are largely unchanged from the previous Chapters 12 and 13.
    • Chapter 13 is a new chapter on other approaches to solvency regulation and contains details of solvency regimes from around the world. The Core Reading states that ‘Students are not expected to know the detail in this chapter but the principles highlighted could be examinable.’
    • Chapter 14 is called ‘Profit reporting’ and contains much of the material from the old Chapter 14 on IFRS, US GAAP and EV reporting. There is new material on IFRS 17. UK GAAP is no longer covered.
    • Chapter 15 on professional standards and guidance is similar to the old Chapter 15 and still includes details on the Actuaries’ Code, APSs and TASs. Section 3 contains new material on international actuarial professional standards.

    Part 4
    • Chapter 16 is a new chapter on capital management. It includes information on the types of capital a health and care insurer would hold, reasons for projecting solvency, available capital, assessments of ongoing solvency, the relationships between risk, capital and value and ways to manage capital.
    • Chapter 17 on reinsurance is largely unchanged from the previous Chapter 16, although with no UK specific references.
    • Chapter 18 (Asset-liability management) has some similarities with the previous Chapter 17 (asset-liability matching). There is new material on the aims of ALM. Section 3 discusses in more detail than previously how the types of liabilities (introduced in SP1) would affect asset selection. Section 4 discusses the ALM process in more detail including ESGs. Derivatives are now covered in Section 5. The section on Modelling has been deleted, as has the ActEd material on asset suitability.
    • Chapter 19 is largely the same as the old Chapter 18, but with fewer UK specific examples.

    Part 5
    • Chapter 20 has largely the same material as the old Chapter 19 on analysing profit and surplus.
    • Chapter 21 on assessing strategies is largely unchanged from the old Chapter 20. It includes new non-UK examples.

    Part 6
    • Chapters 22, 23 and 24 are largely unchanged from the old Chapters 21, 22 and 23.
    • Chapter 25 has been renamed ‘Best Practice’ to remove the UK reference. The material is similar but UK specific examples have been deleted and there are examples included from other jurisdictions (particularly in Section 2), although many examples are still from the UK.
    • Chapter 26 is largely unchanged from the old Chapter 25.
     
  2. arnie_d12

    arnie_d12 Member

    Thanks for this Sarah. It sounds like a fair amount has changed - do you know why there is no CMP upgrade for this subject?
     
  3. Sarah Byrne

    Sarah Byrne ActEd Tutor Staff Member

    For exactly the reason you say, there were a lot of changes between 2018 and 2019. In the upgrade we list every Core Reading change (and significant ActEd text changes) so students can update the previous year's material. This just isn't possible given the level of changes for 2019. There were no upgrades produced for any of the SA level subjects for 2018-2019.

    The information in this post should help students re-sitting identify the new material.

    :)
     
  4. ARUNIMA SINHA

    ARUNIMA SINHA Made first post

    HI Sarah, Given that there were significant amount of changes, what do you suggest, retakes do ? Given that 2020 course is again suppose to change? Thanks.
     
  5. Sarah Byrne

    Sarah Byrne ActEd Tutor Staff Member

    If you are sitting the exam this sitting (ie 2019) you should purchase the 2019 version of the SA1 Course Notes (if you are a retaker this can be purchased at a reduced price). There are not as many changes for 2020 and so we will be producing a CMP Upgrade. This will allow you to make all the required changes to the 2019 version of the notes to make them relevant for the 2020 exams.

    If you're not sitting the exam until next April then you could wait and purchase the 2020 version when it becomes available later in the year. Or, purchase the 2019 version if you're keen to get started and use the upgrade to make the required changes :)
     
  6. Ahalai

    Ahalai Made first post

    Hi Sarah,
    Is there an acronyms or a Mnemonics list that you or anyone else may have for SA1 that you could share please? Thank you.
     
  7. Sarah Byrne

    Sarah Byrne ActEd Tutor Staff Member

    I don't have an SA1 list of these I'm afraid. Any you may have used for SP1 could be useful, as could some CP1 acronyms (for example issues with overseas investment - MTV CATERPILLAR - for a question about setting up a new health and care insurer overseas). You can find CP1 acronyms in the ActEd Acronym App:
    http://actedacronymapp.co.uk/

    Making your own up is always a good idea too - they tend to stick better in your mind and you can make them more personal.

    Sarah
     
  8. Amit_P

    Amit_P Member

    This app website no more functioning. Can you share working one, if any?
     
  9. Sarah Byrne

    Sarah Byrne ActEd Tutor Staff Member

    Amit_P likes this.

Share This Page