Current CAS Issues and Directions
Irene BassCasualty Actuaries of the NorthwestFebruary 29, 2008
AgendaCAS Centennial GoalCAS Education Strategy and InitiativesNew AAA Qualification StandardsNew Variance JournalERM InitiativesPrinciples Re-write
CAS Centennial GoalMarch 2003 CAS Board adopted the Centennial Goal.November 2006LRPC presented its annual report to the Board; Board agreed to revisit the goal.March 2007Board reaffirmed the long-term vision for CAS; approved refreshed wording for the Goal.
CAS Centennial GoalThe CAS will be recognized globally as a leading resource in educating casualty actuaries and conducting research in casualty actuarial science. CAS members will advance their expertise in pricing, reserving, and capital modeling; and leverage their skills in risk analysis to become recognized as experts in the evaluation of enterprise risks, particularly for the property and casualty insurance industry.
Update on Education StrategyWhite Paper on CAS Education StrategyReleased in November 2006 and feedback invited via online survey through January 2007.Proposed:Optional tracks for FellowshipEnhanced continuing education programNon-exam evaluation methods
Update on Education StrategySummary of Feedback:Fellowship tracks did not garner broad support concern with impeding career mobility.Providing more rigorous continuing education offerings was strongly supported.Required workshops for basic education some support for testing knowledge and skills.Desire for improved study materials.
Update on Education StrategyBoard has discussed feedback and ideas during March, June, September 2007 meetings.Conclusions to date:Changes will be made to basic educationMinimizing transition issues is a priorityWill not pursue Fellowship tracksSupports idea of Capstone SeminarConsidering Internet-based course for topics requiring only familiarity
Update on Education StrategyNo implementation timeline has been contemplated at this point.We will not have details on implementation until we first decide on the specific strategy. Implementation will not occur for several years.Implementation plan will include a transition strategy designed to minimize disruption for candidates.
Other Education Issues - Improved Educational MaterialsBoard established the Task Force on Developing Education Materials.Task Force issued two Requests For Proposals for authors to create educational publications on (1) ratemaking and (2) reserving. Board awarded contracts following the June 2007 meeting.Ratemaking EMB AmericaReserving KPMG
Other Education Issues - Candidate Code of ConductBoard approved adoption of a Code of Professional Ethics for Candidates, and Rules of Procedure for Disciplinary Actions Involving CandidatesPurpose: to require Actuarial Candidates to adhere to the high standards of conduct, practice, and qualifications of the actuarial profession.Effective: with registration for the 2008 Spring exam sitting.
Revised Qualification Standards Who Do They Apply to?The new Qualification Standards will apply to all actuaries that issue Statements of Actuarial Opinion (SAOs). SAO is an opinion expressed by an actuary in the course of performing Actuarial Services and intended by that actuary to be relied upon by the person or organization to which the opinion is addressed.
General Qualification StandardTo satisfy the General Qualification Standard, an actuary must meet the following criteria:Be a Member of the Academy, a Fellow or Associate of the SOA or the CAS, a Fellow of the CCA, a Member or Fellow of ASPPA, or a fully qualified member of another IAA-member organization; and Have three years of responsible actuarial experience
New Continuing Education RequirementsAnnual continuing education requirements will increase to 30 hours per yearA minimum of three CE credit hours must cover professionalism topics A minimum of six must be from organized activities A credit hour is 50 minutes 2008 will be a transition year
New CAS Journalwww.VarianceJournal.org
ERM InitiativesERM Vision2008 ERM SymposiumOnline Course: Introduction to ERMMeeting and Seminar Sessions
ERM for CAS CommitteePrioritized actuarial credibility as the most important strategic risk for the CAS.Developed Crisis Communication Plan.Addressed catastrophe risk as it pertains to:CAS Office (Disaster Recovery Plan)CAS Web Site
CERAChartered Enterprise Risk Analyst
What is CERA?New Associate-level credential offered by the SOA.CAS position:In 2005, the CAS Board resolved that at this time, the Board discourages consideration of an independent ERM credential sponsored by the actuarial profession.
CERAChartered Enterprise Risk Analyst
CAS position:The CAS, in conjunction with the Risk Management Section, should focus on enhancing the role of actuaries in ERM by:Providing continuing education on ERM;Conducting research to address unanswered ERM questions (e.g., operational risks, risk aggregation)Promoting actuarial skills in addressing ERM issues; andExploring possible changes to the CAS basic education syllabus.
2007 Calendar of EventsEnterprise Risk Management and Modeling (ERM2) Limited Attendance Seminar March 4-5, 2008, Stamford, CTSeminar on Ratemaking March 17-18, 2008, BostonERM Symposium April 14-16, 2008, Chicago
I welcome your input regarding . . .CAS Centennial GoalCAS Education Strategy and InitiativesNew AAA Qualification StandardsCAS PublicationsERM InitiativesOther TopicsQuestions?
To: Users of this Presentation
The CAS Issues presentation is an overview of current CAS activities. It is intended for use by CAS leaders and others in making presentations at Regional Affiliate meetings and other venues. The presentation is comprehensive in its coverage of the various areas of the CAS. Individuals giving the presentation are encouraged to revise the presentation to suit their specific areas of interest, situation, and time allotment.
The following issues are currently considered high-priority. Please ensure that time will allow for these issues to be covered; the remaining issues may be covered at your discretion.CAS Education StrategyCentennial GoalERM Initiatives
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Acknowledgements: This presentation is constantly evolving, and its original author is unknown. The presentation benefited in 2004 from a thorough review and substantive enhancements by Ken Quintilian while he was Assistant Secretary, CAS Board of Directors.It is an important role of the CAS Leadership to visit as many regional affiliates as possible in order to:give a first-hand report on CAS activities, and get first-hand input from members and candidates.
There are several topics that I will touch on during the presentation today, as you can see here.OK, let me move now into a discussion of the Centennial Goal. As you know, the CAS will be 100 years old in 2014. In March 2003, the CAS Board adopted the Centennial Goal. For those of you who have attended recent CAS meetings, read the Actuarial Review, or volunteer on CAS Committees, you have heard or read frequent references to the Centennial Goal.
The CAS Long Range Planning Committee, which is the committee that helps determine what we want the CAS to be in the future, is overseeing our progress towards the goal. During the November 2006 meeting, the Board heard a report on the Centennial Goal from the Committee and had a very healthy discussion about the goal and whether it appropriately expresses the intent.
In March of this year, the Board heard a report from Karen Terry, chair of the Board Task Force on the Centennial Goal, which presented options for more clearly articulating the vision. The Board agreed to refresh the language of the Goal, which now readsWhile the refreshed language does not reflect a change in direction for the CAS, it does clarify that direction and reflects the evolution of the environment in which the CAS operates. The refinement to the wording also reflects concerns that had been raised by CAS members through the 2006 membership survey on the Goal conducted by the Strategic Planning Committee (formerly the Long Range Planning Committee). Members were concerned that the words in the Goal did not reflect an appropriate intent, and the language has been clarified accordingly. The first sentence of the Goal is intended to express the desire for the CAS to be a leader in the worldwide general insurance actuarial community while partnering with others to expand the actuarial resources and breadth of opportunities within the worldwide general insurance industry. The second sentence is intended to express the vision that CAS members will advance their expertise in pricing, reserving, and modeling, and leverage their skills in risk analysis to expand into broader areas. We will retain and strengthen our current skills in pricing, reserving, and modeling while positioning CAS members to take leading roles in enterprise risk management.
As for next steps, the Strategic Planning Committee will be reviewing the CASs Significant, Attainable, and Measurable (SAM) goals. These goals are specific objectives meant to help measure progress towards the Centennial Goal. The SAM goals will guide CAS actions through 2014. Before I leave this topic, let me say that the CAS has benefited tremendously from member input in determining what we want the CAS to be in the future. Your continued participation and comments are welcome. One of th