Update on CAS Activities

by Gail Rossby Gail Ross

September 26, 2002

Midwest Actuarial Forum

Outline Exam IssuesExam Issues Continuing EducationContinuing Education Expanding Practice AreasExpanding Practice Areas International IssuesInternational Issues CAS Election ProcessCAS Election Process The CAS at 100The CAS at 100 Roles of Regional AffiliatesRoles of Regional Affiliates Getting Involved in CASGetting Involved in CAS CAS Web SiteCAS Web Site Your inputYour input

Exams - Travel Time

Travel time (approx. # sittings)Travel time (approx. # sittings)ACASACAS FCASFCAS

1980-81 1980-81 9 9 13 13 1989-901989-90 11 11 15 15 1998-991998-99 14 14 17 17 2000-022000-02 15 15 18.5 18.5

Board guidance to Admissions Committees: Expect 5 Board guidance to Admissions Committees: Expect 5 to 7 years as median time from first actuarial to 7 years as median time from first actuarial employment to FCASemployment to FCAS

Exams - Progress per Sitting

Exam ProgressExam Progress

= Avg. # of Exams Passed per Sitting= Avg. # of Exams Passed per Sitting

= Avg. # of Exams Taken X Pass Ratio= Avg. # of Exams Taken X Pass Ratio

Exam Progress on CAS Exams (excl. 1-4)Exam Progress on CAS Exams (excl. 1-4) 1983-89: 1983-89: 1.01 x .37 = 1.01 x .37 = .37.37 1991-99: 1991-99: 0.79 x .38 = 0.79 x .38 = .30.30 2000-02:2000-02: 1.01 x .39 = 1.01 x .39 = .39.39

Exams 1 & 2

Pass Ratios from first sittingsPass Ratios from first sittings

May ’00May ’00 Nov ’00Nov ’00 May ‘01May ‘01 Nov ’01Nov ’01 May ‘02May ‘02 Exam 1Exam 1 23% 34%23% 34% 33% 34% 43% 33% 34% 43% Exam 2Exam 2 27% 32%27% 32% 32% 41% 37% 32% 41% 37%

Exam 3

Pass Ratios from first sittingsPass Ratios from first sittings

May ‘00May ‘00 Nov ‘00Nov ‘00 May ’01May ’01 Nov ’01Nov ’01 May ‘02May ‘02

Overall Overall 32% 32% 36% 36% 43% 43% 42% 42% 42% 42%

CAS Workers CAS Workers 15% 20%15% 20% 33% 33% 34% 33% 34% 33%

Non-CAS Workers Non-CAS Workers 29% 31%29% 31% 38% 38% 36% 36% 36% 36%

Students Students 44% 54%44% 54% 60% 54% 57%60% 54% 57%

Exam 4

Pass Ratios from first sittingsPass Ratios from first sittings

May ‘00May ‘00 Nov ‘00Nov ‘00 May ’01May ’01 Nov ’01Nov ’01 May ‘02May ‘02

Overall Overall 34% 34% 37% 37% 41% 41% 43% 44% 43% 44%

CAS Workers CAS Workers 23% 30%23% 30% 35% 35% 39% 35% 39% 35%

Non-CAS Workers Non-CAS Workers 29% 34%29% 34% 40% 40% 38% 39% 38% 39%

Students Students 69% 59%69% 59% 54% 56% 69%54% 56% 69%

Board concern that Exams 3 & 4 don’t adequately meet the Board concern that Exams 3 & 4 don’t adequately meet the needs of the CAS candidateneeds of the CAS candidate

November 2001- Board created a Task Force charged with November 2001- Board created a Task Force charged with designing Exams 3 & 4 that are appropriate for casualty designing Exams 3 & 4 that are appropriate for casualty actuariesactuaries

September 2002 – Board accepted recommendations of Task September 2002 – Board accepted recommendations of Task Force regarding materials for 3 & 4Force regarding materials for 3 & 4 Will discontinue joint sponsorship of Exam 3 in Nov. 2003. Will discontinue joint sponsorship of Exam 3 in Nov. 2003.

Life contingencies portion of the exam will return to old Part Life contingencies portion of the exam will return to old Part 4A levels4A levels

Topics for Exam 4 are appropriate and will continue to Topics for Exam 4 are appropriate and will continue to jointly sponsor with SoAjointly sponsor with SoA

Exam 3 and 4 - Update

Exams - Education Consultant

Hired Education Consultant to help:Hired Education Consultant to help: Construct appropriate learning objectivesConstruct appropriate learning objectives Train to develop good thinking questionsTrain to develop good thinking questions Help with methods for setting pass scoreHelp with methods for setting pass score Provide input on evaluating exam length and difficultyProvide input on evaluating exam length and difficulty

CAS Policy: Pass marks reflect sufficient grasp of CAS Policy: Pass marks reflect sufficient grasp of material. No predetermined pass mark.material. No predetermined pass mark.

Exams - Long Term

Discussions with SOA, FA/IA, IAAustDiscussions with SOA, FA/IA, IAAust Convergence of syllabus desirable if consistent with Convergence of syllabus desirable if consistent with

our needsour needs Learn from one anotherLearn from one another Wide interest in QRA (2005)Wide interest in QRA (2005) CAS involved in ongoing QRA discussionCAS involved in ongoing QRA discussion

Education Policy Committee - overall structureEducation Policy Committee - overall structure Syllabus & learning objectivesSyllabus & learning objectives Educating & testing method, always keeping in focus Educating & testing method, always keeping in focus

the education needed by casualty actuariesthe education needed by casualty actuaries

Attracting New Talent

Exam 1-4 registrations up 28% Exam 1-4 registrations up 28% (May 2001 (May 2001 May 2002)May 2002)

Jobs-Rated Almanac: #2Jobs-Rated Almanac: #2 Technology job market has cooledTechnology job market has cooled

It’s all about job and career opportunitiesIt’s all about job and career opportunities

Continuing Education Issues

What is the “right” mix of basic education and What is the “right” mix of basic education and continuing education?continuing education?

Should we increase the scope and magnitude of Should we increase the scope and magnitude of continuing education requirements?continuing education requirements?

What delivery mechanisms will work for CAS What delivery mechanisms will work for CAS continuing education in the future?continuing education in the future?

Expanding Practice Areas

DFADFA ConceptConcept Theoretical toolTheoretical tool Practical Practical

applicationapplication Seminar expanded to “Risk and Capital Management”Seminar expanded to “Risk and Capital Management”

Enterprise Risk Management – role of actuary going Enterprise Risk Management – role of actuary going beyond issues of just “hazard risk” to investment and beyond issues of just “hazard risk” to investment and operational riskoperational risk

International Issues Historically, CAS predominantly North AmericanHistorically, CAS predominantly North American

95% of members live and practice in North America95% of members live and practice in North America Many papers and syllabus materials use U.S. examplesMany papers and syllabus materials use U.S. examples Major meetings and seminarsMajor meetings and seminars

Board approved international strategyBoard approved international strategy“To be pre-eminent global resource . . .”“To be pre-eminent global resource . . .” Support of CAS Members working abroadSupport of CAS Members working abroad Support basic education process in various countriesSupport basic education process in various countries Exam waivers and mutual recognitionExam waivers and mutual recognition Practice rights for CAS members (Ireland, Australia, Practice rights for CAS members (Ireland, Australia,

India)India) Increase information and involvement among NA Increase information and involvement among NA

membersmembers Participation in international actuarial communityParticipation in international actuarial community

International Issues - Mutual Recognition

1999 Board action1999 Board action Not pursue bilateral agreementNot pursue bilateral agreement Work to ensure practice rights globallyWork to ensure practice rights globally

Subsequent developmentsSubsequent developments CAS members may be excluded from certain practices CAS members may be excluded from certain practices

in Australia, Ireland, Indiain Australia, Ireland, India November 2001 - Board creates Task Force to revisitNovember 2001 - Board creates Task Force to revisit September 2002 – Board considering Task Force September 2002 – Board considering Task Force

reportreport

International Issues - Next Steps

More specificsMore specifics Highly developed actuarial organizations (IA/FA)Highly developed actuarial organizations (IA/FA) Developing organizationsDeveloping organizations Emerging markets (China)Emerging markets (China)

PrioritizationPrioritization CountriesCountries ActivitiesActivities

ResourcesResources PeoplePeople CostCost

CAS Election Process

Reviewed by Task Forces – 2000 and 2002Reviewed by Task Forces – 2000 and 2002 Nomination and Petition processes continue, but . . .Nomination and Petition processes continue, but . . .

Petitioning now occurring before Nominating CommitteePetitioning now occurring before Nominating Committee Nominating Committee completes the slate (Nominating Committee completes the slate ( 1 + 8) 1 + 8)

Always can name 1 PE, 4 Board candidatesAlways can name 1 PE, 4 Board candidates Change in the required number of signaturesChange in the required number of signatures

Nominating Committee membershipNominating Committee membership Now includes majority of “at large” membersNow includes majority of “at large” members

Candidate information and Q&ACandidate information and Q&A Goal in the near future – electronic votingGoal in the near future – electronic voting

The CAS at 100

LRPC is establishing Significant, Attainable and LRPC is establishing Significant, Attainable and Measurable goals for the CAS at 100 (year 2014)Measurable goals for the CAS at 100 (year 2014)

Started at the Leadership Meeting in March 2002 to Started at the Leadership Meeting in March 2002 to get input on Core Purpose, Core Values and Big get input on Core Purpose, Core Values and Big Audacious Goals for long term that will lead to shorter Audacious Goals for long term that will lead to shorter term action plansterm action plans

Board discussed status of LRPC at Sept. 2002 meeting Board discussed status of LRPC at Sept. 2002 meeting and is interested in soliciting wider input from and is interested in soliciting wider input from members and future membersmembers and future members

Core Purpose Examples

““The core purpose is the reason for being”The core purpose is the reason for being”

To define and enhance the value of the casualty To define and enhance the value of the casualty actuaryactuary

To educate the actuary of today and the futureTo educate the actuary of today and the future To improve society’s understanding, acceptance, To improve society’s understanding, acceptance,

measurement and management of the risks inherent in measurement and management of the risks inherent in lifelife

Core Value Examples

““The essential and enduring principles that guide the CAS”The essential and enduring principles that guide the CAS”

LearningLearning InnovationInnovation CommunityCommunity VolunteerismVolunteerism ProfessionalismProfessionalism

Big Audacious Goals Examples

““A clear and compelling catalyst that serves A clear and compelling catalyst that serves

as a focal point for effort”as a focal point for effort”

Eighty percent of our members will volunteer in the SocietyEighty percent of our members will volunteer in the Society There will be 15,000 employed CAS members by 2014, with There will be 15,000 employed CAS members by 2014, with

job descriptions ranging from CEO, CFO, CRO and FEjob descriptions ranging from CEO, CFO, CRO and FE The CAS will provide credentialing for actuaries in 25 countriesThe CAS will provide credentialing for actuaries in 25 countries The CAS will give exams in 15 languagesThe CAS will give exams in 15 languages

Roles of Regional Affiliates

Social and networkingSocial and networking Continuing educationContinuing education

Leverage existing resourcesLeverage existing resources Exam seminarsExam seminars University/college relationsUniversity/college relations Entre into CAS networkEntre into CAS network

Meeting attendanceMeeting attendance Involvement and leadershipInvolvement and leadership

Getting Involved in CAS

Why:Why: LearnLearn Make useful contactsMake useful contacts Contribute to your professionContribute to your profession

How:How: Pick committees/topic(s) that interest you mostPick committees/topic(s) that interest you most Respond to Participation Survey or contact committee chair Respond to Participation Survey or contact committee chair

directlydirectly Write papersWrite papers Give presentationsGive presentations Regional Affiliate involvementRegional Affiliate involvement

CAS Web Site

WWW.CASACT.ORGWWW.CASACT.ORG Syllabus, study materials, past exams, study notesSyllabus, study materials, past exams, study notes

All PCAS (1914), CAS Forums (1987) and Discussion All PCAS (1914), CAS Forums (1987) and Discussion paper programs (1979)paper programs (1979)

ASOPs, Casualty Reserve Practice NoteASOPs, Casualty Reserve Practice Note Discussion forumDiscussion forum Member Services:Member Services:

Membership DirectoryMembership Directory CAS Board Q&ACAS Board Q&A Board minutesBoard minutes

I would like your input regarding . . .

Continuing Education requirementsContinuing Education requirements Board and President-Elect nomination processBoard and President-Elect nomination process Expansion beyond ratemaking and reservingExpansion beyond ratemaking and reserving CAS role internationallyCAS role internationally Mutual recognitionMutual recognition ExamsExams What’s on your mind?What’s on your mind? Questions?Questions?