Download ppt - Current CAS Issues and Directions

Current CAS Issues Current CAS Issues and Directions and Directions

Irene BassCasualty Actuaries of the Northwest

February 29, 2008

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AgendaAgenda CAS Centennial GoalCAS Centennial Goal

CAS Education Strategy and CAS Education Strategy and InitiativesInitiatives

New AAA Qualification StandardsNew AAA Qualification Standards

New New Variance Variance JournalJournal

ERM InitiativesERM Initiatives

Principles Re-writePrinciples Re-write

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CAS Centennial GoalCAS Centennial Goal

March 2003 March 2003 CAS Board adopted the Centennial Goal.CAS Board adopted the Centennial Goal.

November 2006November 2006 LRPC presented its annual report to the LRPC presented its annual report to the

Board; Board agreed to revisit the goal.Board; Board agreed to revisit the goal. March 2007March 2007

Board reaffirmed the long-term vision for Board reaffirmed the long-term vision for CAS; approved refreshed wording for the CAS; approved refreshed wording for the Goal.Goal.

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The CAS will be recognized globally as a The CAS will be recognized globally as a leading resource in educating casualty leading resource in educating casualty actuaries and conducting research in actuaries and conducting research in casualty actuarial science. CAS members casualty actuarial science. CAS members will advance their expertise in pricing, will advance their expertise in pricing, reserving, and capital modeling; and reserving, and capital modeling; and leverage their skills in risk analysis to leverage their skills in risk analysis to become recognized as experts in the become recognized as experts in the evaluation of enterprise risks, particularly for evaluation of enterprise risks, particularly for the property and casualty insurance industrythe property and casualty insurance industry..

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Update on Update on Education StrategyEducation Strategy

White Paper on CAS Education StrategyWhite Paper on CAS Education Strategy Released in November 2006 and Released in November 2006 and

feedback invited via online survey feedback invited via online survey through January 2007.through January 2007.

Proposed:Proposed: Optional tracks for FellowshipOptional tracks for Fellowship Enhanced continuing education programEnhanced continuing education program Non-exam evaluation methodsNon-exam evaluation methods

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Summary of Feedback:Summary of Feedback: Fellowship tracks did not garner broad Fellowship tracks did not garner broad

support – concern with impeding career support – concern with impeding career mobility.mobility.

Providing more rigorous continuing Providing more rigorous continuing education offerings was strongly education offerings was strongly supported.supported.

Required workshops for basic education – Required workshops for basic education – some support for testing knowledge and some support for testing knowledge and skills.skills.

Desire for improved study materials.Desire for improved study materials.

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Board has discussed feedback and Board has discussed feedback and ideas during March, June, September ideas during March, June, September 2007 meetings.2007 meetings.

Conclusions to date:Conclusions to date: Changes will be made to basic educationChanges will be made to basic education Minimizing transition issues is a priorityMinimizing transition issues is a priority Will not pursue Fellowship tracksWill not pursue Fellowship tracks Supports idea of Capstone SeminarSupports idea of Capstone Seminar Considering Internet-based course for Considering Internet-based course for

topics requiring only familiaritytopics requiring only familiarity

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No implementation timeline has been No implementation timeline has been contemplated at this point.contemplated at this point.

We will not have details on We will not have details on implementation until we first decide implementation until we first decide on the specific strategy. on the specific strategy.

Implementation will not occur for Implementation will not occur for severalseveral years. years.

Implementation plan will include a Implementation plan will include a transition strategy designed to transition strategy designed to minimize disruption for candidates.minimize disruption for candidates.

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Other Education Issues - Other Education Issues -

Improved Educational Improved Educational MaterialsMaterials

Board established the Task Force on Board established the Task Force on Developing Education Materials.Developing Education Materials.

Task Force issued two Requests For Task Force issued two Requests For Proposals for authors to create Proposals for authors to create educational publications on educational publications on (1) ratemaking and (2) reserving. (1) ratemaking and (2) reserving.

Board awarded contracts following the Board awarded contracts following the June 2007 meeting.June 2007 meeting. Ratemaking – EMB AmericaRatemaking – EMB America Reserving – KPMG Reserving – KPMG

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Other Education Issues - Other Education Issues -

Candidate Code of Candidate Code of ConductConduct

Board approved adoption of a Code of Board approved adoption of a Code of Professional Ethics for Candidates, and Professional Ethics for Candidates, and Rules of Procedure for Disciplinary Rules of Procedure for Disciplinary Actions Involving CandidatesActions Involving Candidates

Purpose: to require Actuarial Candidates Purpose: to require Actuarial Candidates to adhere to the high standards of to adhere to the high standards of conduct, practice, and qualifications of the conduct, practice, and qualifications of the actuarial profession.actuarial profession.

Effective: with registration for the 2008 Effective: with registration for the 2008 Spring exam sitting.Spring exam sitting.

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Revised Qualification Revised Qualification Standards – Who Do Standards – Who Do

They Apply to?They Apply to? The new Qualification Standards will The new Qualification Standards will

apply to apply to allall actuaries that issue actuaries that issue Statements of Actuarial Opinion Statements of Actuarial Opinion (SAO’s).(SAO’s).

SAO is an opinion expressed by an SAO is an opinion expressed by an actuary in the course of performing actuary in the course of performing Actuarial Services and intended by that Actuarial Services and intended by that actuary to be relied upon by the person actuary to be relied upon by the person or organization to which the opinion is or organization to which the opinion is addressed. addressed.

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General Qualification General Qualification StandardStandard

To 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

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New Continuing New Continuing Education RequirementsEducation Requirements

Annual continuing education Annual continuing education requirements will increase to 30 hours requirements will increase to 30 hours per yearper year

A minimum of three CE credit hours A minimum of three CE credit hours must cover professionalism topics must cover professionalism topics

A minimum of six must be from A minimum of six must be from “organized” activities “organized” activities

A credit hour is 50 minutes A credit hour is 50 minutes 2008 will be a transition year 2008 will be a transition year

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New CAS JournalNew CAS Journal

www.VarianceJournal.org

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ERM VisionERM Vision 2008 ERM Symposium2008 ERM Symposium Online Course: Introduction to ERMOnline Course: Introduction to ERM Meeting and Seminar SessionsMeeting and Seminar Sessions

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ERM for CAS ERM for CAS CommitteeCommittee

Prioritized actuarial credibility as the Prioritized actuarial credibility as the most important strategic risk for the most important strategic risk for the CAS.CAS.

Developed Crisis Communication Developed Crisis Communication Plan.Plan.

Addressed catastrophe risk as it Addressed catastrophe risk as it pertains to:pertains to: CAS Office (Disaster Recovery Plan)CAS Office (Disaster Recovery Plan) CAS Web SiteCAS Web Site

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CERACERAChartered Enterprise Risk Chartered Enterprise Risk

AnalystAnalyst What is CERA?What is CERA?

New Associate-level credential offered New Associate-level credential offered by the SOA.by the SOA.

CAS position:CAS position: In 2005, the CAS Board resolved that at In 2005, the CAS Board resolved that at

this time, the Board discourages this time, the Board discourages consideration of an independent ERM consideration of an independent ERM credential sponsored by the actuarial credential sponsored by the actuarial profession.profession.

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CERACERAChartered Enterprise Risk Chartered Enterprise Risk

AnalystAnalyst CAS position:CAS position:

The CAS, in conjunction with the Risk The CAS, in conjunction with the Risk Management Section, should focus on Management Section, should focus on enhancing the role of actuaries in ERM by:enhancing the role of actuaries in ERM by: Providing continuing education on ERM;Providing continuing education on ERM; Conducting research to address Conducting research to address

unanswered ERM questions (e.g., unanswered ERM questions (e.g., operational risks, risk aggregation)operational risks, risk aggregation)

Promoting actuarial skills in addressing Promoting actuarial skills in addressing ERM issues; andERM issues; and

Exploring possible changes to the CAS Exploring possible changes to the CAS basic education syllabus.basic education syllabus.

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2007 Calendar of 2007 Calendar of EventsEvents

Enterprise Risk Management and Enterprise Risk Management and Modeling (ERMModeling (ERM22) Limited ) Limited Attendance SeminarAttendance SeminarMarch 4-5, 2008, Stamford, CTMarch 4-5, 2008, Stamford, CT

Seminar on RatemakingSeminar on RatemakingMarch 17-18, 2008, BostonMarch 17-18, 2008, Boston

ERM SymposiumERM SymposiumApril 14-16, 2008, ChicagoApril 14-16, 2008, Chicago

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I welcome your I welcome your input regarding . . .input regarding . . .


CAS Education Strategy and InitiativesCAS Education Strategy and Initiatives

New AAA Qualification StandardsNew AAA Qualification Standards

CAS PublicationsCAS Publications


Other TopicsOther Topics

Questions?Questions?

Thank You!Thank You!