Spring 2020 ERM Syllabus Changes

The SOA just posted the new FSA exam syllabi. Please see below for the changes for ERM. There were no ERM core changes but there were extension changes. Good luck to everyone taking the Spring 2020 ERM Exam!

The changes below are listed for the 3 extensions that TIA covers: ILA, Investments, Gen Corp ERM.

ERM Core

No Changes

ILA Extension

Drop
1. ERM-416: Responding to the Variable Annuity Crisis, pp. 1-14
2. ERM-417: A Natural Hedge for Equity Indexed Annuities
3. ERM-419: How Life Insurers Combat Anti-Selection
4. Global Mortality Improvement Experience and Projection Techniques, pp. 21-33 & 74-83

Add
1. ERM-420: Variable Annuity Volatility Management: An Era of Risk Control, pp. 1-27
2. ERM-421: The Specter of Antiselection
3. ERM-422: Mortality Improvement: Understanding the Past and Framing the Future
4. Hybrid Annuities: A Growth Story, Product Matters, Oct 2014

Change of Pages
1. Modeling of Policyholder Behavior for Life Insurance and Annuity Products, pp. 7-15 & 68-80

Investments Extension

Drop
1. ERM-612: Modern Investment Management: An Equilibrium Approach, Ch. 7: Beyond Equilibrium, the Black-Litterman Approach
2. ERM-614: An Asset-Liability Version of the Capital Asset Pricing Model with a Multi-Period Two-Fund Theorem (including Endnotes)
3. Strategic Asset Allocation in Asia: Optimizing Across Portfolios, Investment Newsletter, Issue 69

Add
1. The Top Ten Operational Risks: A Survival Guide for Investment Management Firms and Hedge Funds, Miller and Lawton, 2010
2. ERM-618: Chapter 9, section 6 of Managing Investment Portfolios, Maginn, John L. and Tuttle, Donald L., 3rd Edition, 2007
3. ERM-619: Correlation: Pitfalls and Alternatives

General Corp ERM Extension

Drop
1. Embedding Cyber Risk in Risk Management: An Insurer’s Perspective (although this still remains part of the ERM Core syllabus, so this doesn’t change much since you’re responsible for it anyways)

Add
1. ERM-723: Issues Paper on Climate Change Risks to the Insurance Sector, sections 2, 3 & 4, Annex A1.1, A1.2 & A1.3
2. ERM-822: Non-Financial Risk Convergence and Integration