Good article from the IAI magazine :-
Mindset 4: UK pass rates are much higher that IAI’s pass rates
Whilst as much as we would all want to see IAI’s pass rates at UK levels unfortunately that is not the reality. Borrowing from the point made above, suitable entry barriers not only serve to drive homogeneity of results across exam diets they also serve to make sure that the absolute pass rates are respectable. A very stylized example would be that of an Olympics 100 meter dash event. Participants go through several rounds of qualifiers and heats to reach the finals. The result being that if one were to set a ‘pass mark’ criterion of ‘12 seconds’ then perhaps everyone would be a PASS. Imagine the same race being participated in by people like me and the pass rate is sure to take a pounding. [Note I am nowhere suggesting that IAI exams are as tough or as competitive as the Olympics. I am just trying to be more illustrative]
Continuing on the point made above, entry barriers are not always academic; they could take other subtle shapes or forms such as monetary incentives/disincentives, number of attempt restrictions that force the students to be doubly sure before they decide to enroll for an examination. My belief is that UK exam fee is definitely in a range that it serves to act as one such barrier. This results in a self selection effect resulting in better pass rates. We have gone back and checked extensive IAI exam data and even we were pretty amazed to realize that across last 5- 6 IAI exam diets and across all CT examinations almost 50% to 70% of the registered candidates either do not end up appearing in the exam or score an FC or a FD. Those familiar with working of life insurance companies would do good to associate this with the phenomenon of markedly higher lapse rates of low premium size policies compared to the higher case sized ones. A good comparison point would be to compare results of same students who appeared in UK as well as India in the same diet and frankly I do not know what the answer is. What I am more concerned is the apparent variation in pass rates in India across exam diets and we are trying our best to address these issues in a structural manner
Mindset 4: UK pass rates are much higher that IAI’s pass rates
Whilst as much as we would all want to see IAI’s pass rates at UK levels unfortunately that is not the reality. Borrowing from the point made above, suitable entry barriers not only serve to drive homogeneity of results across exam diets they also serve to make sure that the absolute pass rates are respectable. A very stylized example would be that of an Olympics 100 meter dash event. Participants go through several rounds of qualifiers and heats to reach the finals. The result being that if one were to set a ‘pass mark’ criterion of ‘12 seconds’ then perhaps everyone would be a PASS. Imagine the same race being participated in by people like me and the pass rate is sure to take a pounding. [Note I am nowhere suggesting that IAI exams are as tough or as competitive as the Olympics. I am just trying to be more illustrative]
Continuing on the point made above, entry barriers are not always academic; they could take other subtle shapes or forms such as monetary incentives/disincentives, number of attempt restrictions that force the students to be doubly sure before they decide to enroll for an examination. My belief is that UK exam fee is definitely in a range that it serves to act as one such barrier. This results in a self selection effect resulting in better pass rates. We have gone back and checked extensive IAI exam data and even we were pretty amazed to realize that across last 5- 6 IAI exam diets and across all CT examinations almost 50% to 70% of the registered candidates either do not end up appearing in the exam or score an FC or a FD. Those familiar with working of life insurance companies would do good to associate this with the phenomenon of markedly higher lapse rates of low premium size policies compared to the higher case sized ones. A good comparison point would be to compare results of same students who appeared in UK as well as India in the same diet and frankly I do not know what the answer is. What I am more concerned is the apparent variation in pass rates in India across exam diets and we are trying our best to address these issues in a structural manner
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