IAA COUNCIL MEETING

CAPE TOWN, SOUTH AFRICA POST MEETING

SLIDESNOVEMBER 21, 2016

Malcolm CampbellPresident

Tom TerryPresident-Elect

Fred RowleyImmediate Past

President

Nicole SéguinExecutive Director

Seated at the head table…1. WELCOME AND INTRODUCTIONS

Total Voting Rights: 73.8%

124/168

Council

Delegates present: 71.4%

120/168

3 Ballots: 1.8% 3/168

Proxies: 0.6%1/168

*Status of

voting rights at

November 21,

2016

2. VOTING ARRANGEMENT AND

PROCEDURES

• 39 out of 68Full Members

• 4 out of 29Associate Members

• 7 out of 7Sections

• 1 out of 5Partners

• 0 out of 3Patrons

• 257 Delegates

• 62Accompanying Persons

Time slots• Cape Town: 86

• St Petersburg: 92

Groups • Cape Town: 52

• St Petersburg: 54

TOTAL ATTENDANCE

Items on the Consent Agenda either:

• have been discussed or exposed previously, or are items for which no controversy is expected

They are:

• not discussed during Council meeting and are approved as part of one motion

Items on Business Agenda are for discussion

The agenda was approved with the removal of item B9a) and its motion

3. APPROVAL OF THE AGENDA

Motion: (simple majority vote required)

That the minutes of the Council meeting held on May 28, 2016 in St. Petersburg be adopted as presented.

Carried unanimously

4. APPROVAL OF PREVIOUS COUNCIL MINUTES

The work of the IAA is not restricted to our twice a year face-to-face meetings

• Thank you to our 800+ volunteers

• At November 18: 182 conference call meetings since St. Petersburg

5. REPORT OF PRESIDENT AND EXECUTIVE COMMITTEE (EC)

EC Strategic Goals for 2016

Replacement of Executive Director

Mathieu Langelier

January 3, 2017Will be at meetings in Budapest

EC Strategic Goals for 2016

5. REPORT OF PRESIDENT AND EC

Launch of “Accessible Intellectual Capital” project

Adoption of a new core syllabus and CPD requirements

Later on agenda:• Syllabus

Further enhancement of branding initiatives

Later on agenda: • Brand Policy and Statement

FMA stakeholder communication and engagement programs

• EC and SPS sought informal feedback on strategy through direct contact with one individual in each FMA – these are not official FMA views

Implementation of risk management proposals

• Risk register developed by Audit and Finance Committee and Secretariat• Being finalized and will come to Council• Many tools and policies already in place to ensure mitigation of risk

Supranational Activity

• International Capital Standard: provided input• Inclusive insurance project: meeting earlier this week• Risk Book• ISAPs 6 (ERM models) and 7 (Current Estimates)• Private meeting with new Chair next month

Supranational Activity

5. REPORT OF PRESIDENT AND EC

• Micheline Dionne reappointed as IAA representative on IFRS Advisory Council

• Health Committee discussing health related topics

• Geneva Discussion Forum

• Updating Joint Memorandum of Understanding

Educational events (Colloquia/webinars)

In the pipeline

• Strategy Review

• AAE relationship

EC agreed concept of MOU

To avoid duplication and establish more formal line of communication

• Work on development of Sections

Hillevi Mannonen, Member, Audit & Finance Committee

Motion: (simple majority vote required)

That, on the recommendation of the Audit and Finance Committee, Council appoint the firm of BDO Canada LLP

as the IAA auditors for 2017 for the audit of the financial statements at December 31, 2016.

6. FINANCE AND ADMINISTRATION

a. Auditors for 2017

Fred Rowley, Treasurer

Was discussed in St. Petersburg Council. More detailed proposal presented at October 19 webcast

Motion: (simple majority vote required)

That, on the recommendation of the Executive Committee, Council approve the proposed budget and dues for

2017, as presented.

Carried unanimously

b. 2017 Budget

electronic ballot to be issued post Cape Town Council

ROLE OF TREASURER PROPOSAL

Ensures that the Audit and Finance committee’s terms of reference are clear

and continually updated to reflect the strategic objectives of the IAA, utilizing

the model terms of reference.

A&F, approval by Council

Ensures that the committee follows the IAA’s goals, implements a plan of action

and stays on focus.

Council

Attends meetings as required. Not required

Reviews and signs off on hotel contracts and all other contracts over

$ 100,000.

President

Reviews the investment portfolio to ensure the safeguarding of assets and

compliance with the investment policy

A&F, EC, Council

Reviews the financial statements A&F, EC, Council

Oversees the preparation of the annual budget, for approval by the EC. Director of Operations

and Finance, EC, Council

Considers succession planning issues and discusses them with the Nominations

Committee.

NC, Officers

Compensation Policy

Market salary data will be reviewed by the ED in consultation with the

Treasurer to ensure that pay rates remain competitive

The salary ranges will be reviewed annually by the Treasurer

On an annual basis the ED, in consultation with the Treasurer, will

determine the overall annual budget for salaries

Officers

c.Treasurer Role

Proposal presented by Audit and Finance Committee during October

19 webcast to abolish Treasurer role

Motion: (simple majority vote required)

That Council ratify the appointments and re-appointments approved by the Executive Committee at its

September 13 meeting with respect to leadership of Committees and Working Groups, and of IAA

Delegates to Sections, as indicated in the attached deployment charts.

C8. RESULTS OF ELECTRONIC COUNCIL BALLOTS SINCE ST. PETERSBURG

• Revised Section Rules

• Revised Nominations Committee Terms of Reference

• Updated Strategic Plan for ISAPs

C7. CONSENT AGENDA

ASSOCIATION

SIZE

ASSOCIATION

SIZEBY SIZE TOTAL % BY FQA %

S (<200) 63 22% 25 11% 50 22% S (<200) 10 11% 10 10% 11 10% S (<200) 3 16% S (<200) 36 53% 2,794 3%

M (201-1000) 90 31% 61 28% 49 22% M (201-1000) 23 24% 20 20% 24 22% M (201-1000) 2 11% M (201-1000) 18 26% 12,513 14%

L (1001-

10,000)79 27% 76 35% 78 35%

L (1001-

10,000)28 30%

36 37% 39 36%

L (1001-

10,000)10 53%

L (1001-

10,000)11 16%

20,814 22%

EL (>10,001) 61 21% 56 26% 49 22% EL (>10,001) 33 35% 32 33% 33 31% EL (>10,001) 4 21% EL (>10,001) 3 4% 56,510 61%

293 100%218 100% 226 100%

94 100%98 100% 107 100%

note: 1 was a

Section chair19 100%

68 100% 92,631 100%

REGION REGION REGION BY REGION BY REGION %

ROW 68 23% 60 28% 61 27% ROW 27 29% 29 30% 32 30% ROW 6 30% ROW 35 51% 11,707 13%

USC 72 25% 84 39% 66 29% USC 33 35% 35 36% 37 35% USC 7 35% USC 6 9% 53,953 58%

EUR 153 52% 74 34% 99 44% EUR 34 36% 34 35% 38 36% EUR 7 35% EUR 27 40% 26,971 29%

293 100% 218 100% 226 100% 94 100% 98 100% 107 100% 20 100% 68 100% 92,631 100%

NUMBER OF

COUNTRIES

NUMBER OF

COUNTRIES

NUMBER OF

COUNTRIES

NUMBER OF

COUNTRIES61

GENDER GENDER GENDER

FEMALE 60 20% 34 16% 40 18% FEMALE 14 15% 14 14% 17 16% FEMALE 2 10%

MALE 233 80% 184 84% 186 82% MALE 80 85% 84 86% 90 84% MALE 18 90%

293 100% 218 100% 226 100% 94 100% 98 100% 107 100% 20 100%

NON NATIVE

ENGLISH

SPEAKER

NON NATIVE

ENGLISH

SPEAKER

NON NATIVE

ENGLISH

SPEAKER

YES 173 59% 104 48% 123 54% YES 40 43% 41 42% 44 41% YES 9 45%

NO 120 41% 114 52% 103 46% NO 54 57% 57 58% 63 59% NO 11 55%

293 100% 218 100% 226 100% 94 100% 98 100% 107 100% 20 100%

MEETING ATTENDANCE RECOMMENDATIONS FROM NC NO. FQAsNO. ASSOCIATIONS

NOMINATIONS COMMITTEE - REPORT ON DIVERSITY - OCTOBER 2016

PRESIDENTS

1998-2018

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2017

ASSOCIATION

SIZE

Ken Hohman, Chair, Accreditation

Motions: (two-thirds majority vote required)

b. That Council admit the Actuarial Society of Turkey as a Full Member Carried unanimously

c. That Council admit the Asociación Centroamericana de Actuarios (Central America) as a Full Member Withdrawn

B9. MEMBERSHIP

Fred Rowley, Chair, Syllabus Governance Task Force

B10. EDUCATION

Question 1 (of 5)

Does the IAA want an

"IAA Global Education Syllabus"

that defines an FQA to the international public?

(disregarding which syllabus we have for that purpose)

Question 2 (of 5)To what extent/level should the IAA regulate adherence to that syllabus (after admission as an FMA)?

A. Not at all

B. Complete self-assessment

C. Self-assessment, with review of process

D. Self-assessment, with full disclosure of own syllabus and mapping to the IAA syllabus

E. rigorous policing to high conformity

Question 3 (of 5)

How much flexibility of content should we want in that syllabus?

(i.e. To what extent are we comfortable in substituting parts of the syllabus for other topics that are more relevant

to a particular association?)

Question 4 (of 5)

What additional considerations apply for the accreditation of new and/or existing FMAs whose needs are specialised but nonetheless seen as legitimate?

(permanent or temporary?)

Question 5 (of 5)

To what degree should such a syllabus be used or supported by the IAA in establishing a quality

benchmark?

Online survey being finalized to be sent to Council in December for response in January

Peter Doyle, Chair, Branding and Communications Subcommittee

IAA Branding Project

B11. BRAND POLICY

• How did we get here?

Brand Task Force report approved by Council

Brand & Communications Sub-com established

Changes to SO #6 approved by Council

Brand workplan approved by EC

Publications Policy approved by Council

Developed a brand message for the profession

Consultation with FMAs through 2016

Proposals now being presented to Council

High-level Proposals

1. Draft IAA Brand Policy

1. Draft Actuarial Profession Brand Statement (only for use by the IAA)

1. Incorporate the profession’s brand messages into all IAA activities

1. Produce a branding toolkit for the free and voluntary use of small/medium sized FMAs

IAA Brand Policy

• Policy covers:

• IAA Brand Specifications.

• Decision-making authority and procedures relating to the use of the IAA brand.

• Actuarial Profession Brand Statement (only for use by the IAA).

• Council will be ask to vote on the approval of the policy after the Cape Town meeting.

Actuarial Profession Brand Statement (for use by the IAA)

Actuaries apply unique skills and a professional approach to solving complex

problems, advising on future risks, opportunities and options across diverse fields

and industries.

To enable the future financial wellbeing of people, organizations, economies and

society.

Peter Doyle, Chair, Branding and Communications Subcommittee

IAA Branding Project (contd)

B11. BRAND POLICY

Incorporating the profession’s brand message into IAA activities

Supranational engagement

Publications

Committees, Sections, Working groups

Supporting smaller FMAs to develop their own marketing & communications plan

Supporting member associations developing into new geographies and new fields

What are the next steps?

Council will be asked to approve the Brand Policy and Actuarial Profession Brand

Statements.

EC via the BCS will implement actions required to implement the Brand Policy

a. ISAP 1A – Governance of Models

Motion: (four-fifths majority vote required)

That, on the recommendation of the Executive Committee, Council approve the adoption of ISAP

1A – Governance of Models and associated glossary Carried

b. ISAP 5 – Insurer Enterprise Risk Models

Motion: (four-fifths majority vote required)

That, on the recommendation of the Executive Committee, Council approve the adoption of ISAP 5

– Insurer Enterprise Risk Models and associated glossary Carried

B12. ACTUARIAL STANDARDS COMMITTEE

B13. STRATEGIC PLANNING – IAA STRATEGY REVIEW 2016-2017Process

• Informal FMA feedback on the IAA

• Day-long working session – last Thursday

– Executive Committee (EC)

– Strategic Planning Subcommittee (SPS)

– Externally facilitated

– Started with a “blank piece of paper”

• Council discussion and reactions

• Further FMA input

Informal Feedback about the IAA

• Many good things

• However, much room for improvement

Strong Agreement that:

• What’s good: IAA’s mission and objectives

• What needs improvement:

– How we’re organized

– How we do our work

Key Conclusions

Strategy Organization Execution

Strong agreement: IAA’s strategic objectives (SO’s) are correct

We should rationalize our structure

We should improve focus and efficiency

We should re-write SO’s to be more clear

We should improve collaboration with our FMAs

We should direct energies toward most important strategies and initiatives

Rationalize our Structure – Possible Changes

• Fewer committees, subcommittees, working groups, etc.

• From 65 to XX?

• Align committee structure with strategy

• More use of time-limited or project-limited task forces

• Other ideas?

B13. STRATEGIC PLANNING – IAA STRATEGY REVIEW 2016-2017

Improve Collaboration with FMAs – possible ideas:

• Seek input on significant new initiatives

• Seek involvement where relevant

• Solicit ideas and reactions

• Other ideas?

Improve Focus and Efficiency – possible ideas:

• Develop process for critically screening new projects

– Screen for “fit” with our objectives and priorities

• Ensure energy is directed at the most important initiatives (resources are limited)

• Be willing to turn down new project ideas

• Other ideas?

Direct our energy toward most important strategies and initiatives – possible ideas:

• Strengthen our focus on key, relevant supranationals - enhance specific collaborations

• Ensure that our organization and execution fully support our most important objectives

• Other ideas?

a. Recommendation for ICA 2026

Presentation by Kikuo Asano, Chairman

Motion (simple majority vote required)

That, on the recommendation of the Executive Committee, the 33rd International Congress of Actuaries take

place in Tokyo, Japan in November 2026 to be organized by the Institute of Actuaries of Japan.

Carried unanimously

b. Update on ICA 2018 – Berlin – Rainer Fürhaupter

B14. INTERNATIONAL CONGRESSES OF ACTUARIES

Online survey being finalized to be sent to Council in December for response in

January

a. Change of Officers In Camera Votes

Motions: (simple majority vote required)

That Council elect:

• Tom Terry as President for the year 2017 Carried unanimously

• Masaaki Yoshimura as President-Elect for the year 2017 Carried unanimously

B15. CHANGE OF OFFICERS AND STATUTORY APPOINTMENTS

b. Ex-officio Appointments

Motion: (simple majority vote required) Carried unanimously

That Masaaki Yoshimura become Chairperson of the Strategic Planning Subcommittee as President-Elect, to

replace Tom Terry.

That Tom Terry become ex officio member of the Strategic Planning Subcommittee as President, to replace

Malcolm Campbell.

That Malcolm Campbell become ex officio member of the Strategic Planning Subcommittee as Immediate Past

President, to replace Fred Rowley.

That Malcolm Campbell become the Treasurer, to replace Fred Rowley.

That these appointments become effective at the beginning of the fiscal year, January 1, 2017. The terms are for

a one-year period.

c. Motion: (simple majority vote required) Carried unanimously

That, on the recommendation of the Nominations Committee, Council approve the appointments and

re-appointments to the statutory and limited membership committees, as indicated in the attached deployment

chart.

B16. NEXT MEETINGS: BUDAPEST, HUNGARY – APRIL 19-23, 2017

Location: Budapest Marriott Hotel

B17. OTHER BUSINESS

a. PBSS Colloquium – June 2017, Cancun Mexico, PBSS Section Chair, Abraham Hernández Pacheco

b. Executive Director Farewell

B18. ADJOURNMENT

Thank you to our hosts!!!