1. B. Professionalism

Question 1

Three main strands common to most definitions of a profession

Answer 1

• Cognitive
• Normative
• Organisational

Question 2

Cognitive strand (professionalism)

Answer 2

Involving a specialised skill based on theoretical knowledge, requiring extensive training and passing of a test.

Question 3

Normative strand (professionalism)

Answer 3

Includes maintaining ethical standards and integrity and having a commitment to provide a service of the public good.

Question 4

Organisational strand (professionalism)

Answer 4

Includes being organised by a national association with disciplinary powers.

Question 5

Common characteristics of a profession (4)

Answer 5

• Professionals have an orientation towards public service rather than personal profit
• Members are often well-paid
• Members are loyal to colleagues
• Professions are often self-regulated

Question 6

2 models explaining how professions develop:

Answer 6

1. Functionalist model.

2. Conflict model.

Question 7

Functionalist model:

Answer 7

Professions are seen as a positive force in social development. The association would lobby government to secure a monopoly on their areas of work and public interest would be protected from unskilled practitioners.

Question 8

Conflict model

Answer 8

Professions have developed more through monopolistic self-interest with occupational groups attempting to shape the market in their favor.

Question 9

2 recent changes that have had an important impact on the role played by actuaries:

Answer 9

• unitised life insurance business is increasing in importance, while conventional with-profits business is dying.
• defined contribution retirement funds are replacing defined benefit funds.

Question 10

What is a profession’s ideology?

Answer 10

The set of beliefs which characterize it.

Question 11

Continuing Professional Development (CPD)

Answer 11

The maintenance, improvement and broadening of knowledge and skill and the development of the personal qualities necessary for the execution of the professional and associated duties throughout actuary’s working lifetime.

Question 12

How does the maintaining of the skills of actuaries take place?

Answer 12

• ASSA’s organisational structure
• Qualification standards
• Issuing Practice Certificates
• Continuing Professional Development
• Non-technical skills

Question 13

10 issues to enable the profession to meet the demands ahead:

Answer 13

1. Reaffirm the profession’s public role.
2. Attract appropriate students and improve diversity of membership
3. Improve the image and awareness of the profession
4. Meet consumers’ and clients’ needs.
5. Communication
6. Encourage interdisciplinary work
7. Focus education on principles
8. Provide appropriate specialised education
9. Ensure members continue to develop appropriate skills
10. Develop members’ professionalism