Current CAS Issues and Directions Bob Miccolis, FCAS, MAAA Midwestern Actuarial Forum March 7, 2008...

Current CAS Issues Current CAS Issues and Directions and Directions

Bob Miccolis, FCAS, MAAAMidwestern Actuarial Forum

March 7, 2008Chicago

2

AgendaAgenda CAS Centennial GoalCAS Centennial Goal CAS Education Strategy and CAS Education Strategy and

InitiativesInitiatives New Actuarial Qualification New Actuarial Qualification

StandardsStandards ERM InitiativesERM Initiatives Academy UpdateAcademy Update Upcoming CAS EventsUpcoming CAS Events CUSPCUSP Your InputYour Input

3

CAS Centennial GoalCAS Centennial Goal

The CAS will be recognized The CAS will be recognized globallyglobally as as a a leading resourceleading resource in in educatingeducating casualty casualty actuaries and conducting actuaries and conducting researchresearch in 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 leverage their skills in risk analysisskills in risk analysis to to become recognized as experts in the become recognized as experts in the evaluation of evaluation of enterprise risksenterprise risks, particularly for , particularly for the property and casualty insurance industrythe property and casualty insurance industry..

4

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

Status of CAS Associate Status of CAS Associate

5


Summary of Feedback:Summary of Feedback: Elective Fellowship Tracks – no real Elective Fellowship Tracks – no real

support –career mobility issues.support –career mobility issues. ““Deep dive” continuing education Deep dive” continuing education

offerings – overwhelming support – offerings – overwhelming support – “boot camps”, etc.“boot camps”, etc.

Possible exams plus workshops for Possible exams plus workshops for basic education – some support/some basic education – some support/some concerns.concerns.

Improved study materials – YES.Improved study materials – YES.

6


Board extensively discussed feedback Board extensively discussed feedback and ideas during its 2007 meetings.and ideas during its 2007 meetings.

Conclusions to date:Conclusions to date: Board not satisfied with basic education Board not satisfied with basic education

status quostatus quo Minimize transition issuesMinimize transition issues Elective Fellowship tracks – dropped ideaElective Fellowship tracks – dropped idea Capstone Seminar after last exam – still Capstone Seminar after last exam – still

possiblepossible Internet course/exam for topics actuaries Internet course/exam for topics actuaries

“should be familiar with”“should be familiar with”

7


No decisions yet on the specific strategy No decisions yet on the specific strategy

Implementation - probably not for Implementation - probably not for

severalseveral years. years.

Transition strategy will be designed to Transition strategy will be designed to

minimize disruption for candidates.minimize disruption for candidates.

8

Other Education Issues - Other Education Issues -

Improved Educational Improved Educational MaterialsMaterials

Task Force on Developing Education Task Force on Developing Education

Materials.Materials.

Two Proposals accepted (June 2007) for Two Proposals accepted (June 2007) for

authors to create educational publications authors to create educational publications

on on

(1) ratemaking and (1) ratemaking and

(2) reserving. (2) reserving.

9

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.

10

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

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

allall actuaries who performing actuaries who performing Actuarial Actuarial ServicesServices which include opinions, which include opinions, intended by that actuary intended by that actuary to be relied to be relied uponupon by the person or organization to by the person or organization to which the opinions are provided.which the opinions are provided.

Such opinions are now considered to be Such opinions are now considered to be Statements of Actuarial Opinion (SAO’s)Statements of Actuarial Opinion (SAO’s) – basically any professional opinion – basically any professional opinion expressed by an actuary in the course of expressed by an actuary in the course of performing Actuarial Services. performing Actuarial Services.

11

General Qualification General Qualification StandardStandard

(Who is a Qualified Actuary)(Who is a Qualified Actuary)

An actuary who meets the following criteria: Member of the Academy, or Fellow or Associate of the SOA or the CAS, Fellow of the CCA, or Member or Fellow of ASPPA, or Fully qualified member of another IAA-

member organization; and Three years of responsible actuarial

experience

12

General Qualification General Qualification StandardStandard

(Specialty Track Requirements)(Specialty Track Requirements)

An actuary is also required to:

Have Responsible Actuarial Experience in

Specific Area of Actuarial Practice

Relevant to the subject of Actuarial

Opinion

Depending on the Actuary’s Credentials

13

New Continuing New Continuing Education RequirementsEducation Requirements

Annual continuing education requirements Annual continuing education requirements

will increase to 30 hours per yearwill increase to 30 hours per year

Minimum three hours on professionalism Minimum three hours on professionalism

topics topics

Minimum six hours from “organized” Minimum six hours from “organized”

activities 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

14

CAS ERM InitiativesCAS ERM Initiatives

CAS ERM Vision – Actuaries are CAS ERM Vision – Actuaries are

qualifiedqualified

2008 ERM Symposium (SOA/CAS)2008 ERM Symposium (SOA/CAS)

Online Course: Introduction to ERM Online Course: Introduction to ERM

[Sold Out][Sold Out]

Sessions @ CAS Meetings and Seminar Sessions @ CAS Meetings and Seminar

15

The ERM ActuaryThe ERM Actuary CAS is focused on enhancing the role of CAS is focused on enhancing the role of

actuaries in ERM by:actuaries in ERM by: Providing continuing education on ERM;Providing continuing education on ERM; Conducting research to address unanswered Conducting research to address unanswered

ERM questions (e.g., operational risks, risk ERM questions (e.g., operational risks, risk

aggregation)aggregation) Promoting actuarial skills in addressing ERM Promoting actuarial skills in addressing ERM

issues; issues; Exploring changes to the CAS syllabus.Exploring changes to the CAS syllabus.

CAS is not creating an actuarial ERM CAS is not creating an actuarial ERM designation (like the CERA created by the SOA)designation (like the CERA created by the SOA)

16

2008 Upcoming 2008 Upcoming EventsEvents

Seminar on Ratemaking - March 17-18 Seminar on Ratemaking - March 17-18 BostonBoston

Practical Solutions to Predictive Model Practical Solutions to Predictive Model Design Challenges Webinar - March 20 CAS Design Challenges Webinar - March 20 CAS Web Site Web Site

ERM Symposium - April 14-16 ChicagoERM Symposium - April 14-16 Chicago Testing Loss Reserve AssumptionsTesting Loss Reserve Assumptions

May 5 ChicagoMay 5 Chicago Reserve Variability Limited Attendance Reserve Variability Limited Attendance

Seminar - May 6-8 ChicagoSeminar - May 6-8 Chicago CAS Spring Meeting - June 16-18 Quebec CAS Spring Meeting - June 16-18 Quebec

CityCity



FOCUS OF THE ACADEMY

• U.S. Public Policy Issues & U.S. Actuarial

Profession

• Relationships among all U.S. Actuarial

Organizations

• Professionalism for all U.S. Actuaries

• Support for Actuarial Standards (ASB) and

Counseling & Discipline (ABCD)



NEW STRATEGIC PLAN

• Meeting the Actuarial Needs of the U.S. Public

• Taking Proactive Positions on Actuarial Issues

affecting the Public

• Board Committee and Casualty Task Force

Formed



CASUALTY PRACTICE COUNCIL

• Arm of Academy that works on P & C Issues

• E.G., Financial Reporting, Terrorism, RBC, Cats, etc.

• Closely follow Federal Government and NAIC

• Looks to CAS for Input & Supporting Research

Work

• New Casualty Task Force on Emerging P & C Issue– Possible Network of Actuaries

– Identify Issues & Initial Triage for possible Academy involvement



COUNCIL OF U.S. PRESIDENTS (CUSP)

• Academy Board Committee

• Response to some CRUSAP recommendations

• Fostering of increased co-operation and co-

sponsorship

• Alternative to merger of U.S. Actuarial

Organizations

• Defining appropriate roles & oversight of U.S.

profession

22

We welcome your We welcome your input regarding . . .input regarding . . .

Catastrophe availability and cost issues – How are these actuarial issues? Coverage where it was not intended (Katrina).

Communications Skills – More crucial than EVER for actuaries. Should the CAS provide communication training?

Rapid Advance of Technology and Science – How does the actuary keep up the tempered by an equal skill for analysis and judgment? (More information/less data)

Outsourcing/offshoring – Competition from lower cost and more highly trained “offshore “ actuaries – threat or expansion?

Merge the North American Actuarial Organizations? WHAT ELSE?

Thank You!Thank You!

Current CAS Issues and Directions Bob Miccolis, FCAS, MAAA Midwestern Actuarial Forum March 7, 2008...

Documents

Transcript of Current CAS Issues and Directions Bob Miccolis, FCAS, MAAA Midwestern Actuarial Forum March 7, 2008...