Current CAS Issues Current CAS Issues

and Directionsand Directions

Joanne SpallaCasualty Actuaries of Greater New York

December 2, 2009

AgendaAgenda CAS Centennial GoalCAS Centennial Goal

Global ERM Designation - CERAGlobal ERM Designation - CERA

Basic Education and Basic Education and MembershipMembership

CAS Continuing Education PolicyCAS Continuing Education Policy

Upcoming EventsUpcoming Events

Your InputYour Input

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 sciencecasualty actuarial science. CAS members . 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 become recognized as experts in the recognized as experts in the evaluation ofevaluation of enterprise risksenterprise risks, particularly for , particularly for the property and casualty insurance industrythe property and casualty insurance industry..

Global ERM Global ERM DesignationDesignation

CERACERA

Why an Why an ERM Designation?ERM Designation?

The global ERM designation is a big step The global ERM designation is a big step toward fulfilling the CAS Centennial Goal.toward fulfilling the CAS Centennial Goal.

The financial crisis illustrates the growing The financial crisis illustrates the growing need for ERM and professionals trained to need for ERM and professionals trained to evaluate risk. evaluate risk.

Trained to evaluate risk, actuaries can Trained to evaluate risk, actuaries can assume a significant leadership role in the assume a significant leadership role in the ERM arena.ERM arena.

Provides an opportunity for CAS members Provides an opportunity for CAS members to compete in this marketplace.to compete in this marketplace.

What is the Global What is the Global ERM Designation?ERM Designation?

An effort to enhance the CERA An effort to enhance the CERA designation that was initiated by the designation that was initiated by the Society of Actuaries and make it the Society of Actuaries and make it the single global ERM credential for single global ERM credential for actuarial associations world-wide.actuarial associations world-wide.

It will recognize actuaries globally who It will recognize actuaries globally who meet stringent education requirements meet stringent education requirements in ERM and are governed by a strong in ERM and are governed by a strong code of professional conduct. code of professional conduct.

ERM Designation for ERM Designation for CASCAS

Recent Board Actions:Recent Board Actions: March 2009: The CAS should pursue an March 2009: The CAS should pursue an

Enterprise Risk Management (ERM) Enterprise Risk Management (ERM) designation.designation.

June 2009: CAS Board approved the June 2009: CAS Board approved the recommendation to adopt the Global recommendation to adopt the Global ERM Designation, CERA.ERM Designation, CERA.

CAS Board authorized the CAS CAS Board authorized the CAS President to sign the Global ERM President to sign the Global ERM Designation Treaty establishing the Designation Treaty establishing the credential. credential.

Signing the TreatySigning the Treaty On November 13, in conjunction with the On November 13, in conjunction with the

IAA Meetings in India, the Global IAA Meetings in India, the Global Enterprise Risk Management Designation Enterprise Risk Management Designation Treaty was signed by 14 actuarial Treaty was signed by 14 actuarial organizations:organizations: Casualty Actuarial SocietyCasualty Actuarial Society Society of ActuariesSociety of Actuaries Canadian Institute of ActuariesCanadian Institute of Actuaries Actuarial organizations in Australia, Germany, Actuarial organizations in Australia, Germany,

France, Israel, Japan, Mexico, Netherlands, France, Israel, Japan, Mexico, Netherlands, South Africa, Sweden, United KingdomSouth Africa, Sweden, United Kingdom

Basic EducationBasic Education

Future Education Future Education MethodsMethods

CAS, SOA, and CIA Presidents issued a CAS, SOA, and CIA Presidents issued a joint letter on a proposal for joint letter on a proposal for developing future education methods developing future education methods (FEM)(FEM)

Proposal for an accreditation process Proposal for an accreditation process for qualifying university actuarial for qualifying university actuarial programs in the U.S. and Canada.programs in the U.S. and Canada.

Would grant exemptions for some Would grant exemptions for some preliminary CAS/SOA examinations on preliminary CAS/SOA examinations on an exam-by-exam basis targeted to an exam-by-exam basis targeted to performance in individual actuarial performance in individual actuarial courses at accredited universities.courses at accredited universities.

FEM – Next StepsFEM – Next Steps

Survey of the CAS Member Advisory Survey of the CAS Member Advisory PanelPanel

Meeting on December 11 of the Meeting on December 11 of the FEM FEM Steering Committee, Joint Steering Committee, Joint Accreditation Committee, and Accreditation Committee, and President/President-Elect of the CAS, President/President-Elect of the CAS, CIA, and SOA. The objective of the CIA, and SOA. The objective of the meeting is to discuss the future of the meeting is to discuss the future of the initiative in light of the fall Board initiative in light of the fall Board meetings.meetings.

Course on Course on ProfessionalismProfessionalism

Current courses based on practice Current courses based on practice standards in the US and Canada.standards in the US and Canada.

Course based on East Asia standards Course based on East Asia standards currently being developed.currently being developed.

The Board has approved accepting The Board has approved accepting local association courses (e.g., UK local association courses (e.g., UK Institute) for those practicing in Institute) for those practicing in those locales, supplemented with those locales, supplemented with Internet-based module on CAS Code Internet-based module on CAS Code of Conduct.of Conduct.

Nation-Specific Nation-Specific ExamsExams

Currently two nation-specific courses:Currently two nation-specific courses:Part 7-US and Part 7-Canada.Part 7-US and Part 7-Canada.

The Actuarial Institute of Chinese Taipei The Actuarial Institute of Chinese Taipei has proposed developing a Part 7-Taipei has proposed developing a Part 7-Taipei The CAS has approved in principle. The CAS has approved in principle. Details are being developed.Details are being developed.

No additional versions are currently in No additional versions are currently in development.development.

Membership Membership SurveySurvey

Membership Survey Membership Survey RecommendationsRecommendations

That CAS enhance its That CAS enhance its communications on:communications on: International role and goals of the CASInternational role and goals of the CAS Nomination and election processNomination and election process Release of issues of the E-ForumRelease of issues of the E-Forum Sources and uses of CAS revenuesSources and uses of CAS revenues Role of the CAS in professional Role of the CAS in professional

standards standards Opportunities for involvement for Opportunities for involvement for

retired actuariesretired actuaries

Membership Survey Membership Survey RecommendationsRecommendations

That the CAS increase its focus That the CAS increase its focus on on practical applicationspractical applications particularly in the areas of particularly in the areas of Predictive modeling, Predictive modeling, Stochastic reservingStochastic reservingGeneralized linear modeling (GLM)Generalized linear modeling (GLM)Enterprise risk management Enterprise risk management

(ERM).(ERM).

Membership Survey Membership Survey RecommendationsRecommendations

That both the CAS and the regional That both the CAS and the regional affiliates seek opportunities to affiliates seek opportunities to maximize their CE offerings in the maximize their CE offerings in the most cost-effective method possible. most cost-effective method possible. Provide affordable and convenient Provide affordable and convenient

educationeducation Include the use of new and Include the use of new and

emerging technologiesemerging technologies Emphasis on teaching practical Emphasis on teaching practical

applications.applications.

Membership Survey Membership Survey RecommendationsRecommendations

Response:Response: University of CAS provides a cost-University of CAS provides a cost-

effective means for CAS members effective means for CAS members to obtain CE.to obtain CE.

Increase the number of courses Increase the number of courses offered through webinars.offered through webinars.

Communicate offerings to Communicate offerings to members through the weekly e-members through the weekly e-newsletter and CAS Web Site.newsletter and CAS Web Site.

International International RecommendationsRecommendations

Explore the feasibility of:Explore the feasibility of: Assisting emerging markets in the development Assisting emerging markets in the development

of non-life actuarial disciplines and educationof non-life actuarial disciplines and education Working to gain official recognition of the CAS Working to gain official recognition of the CAS

credential in new jurisdictions credential in new jurisdictions Developing a plan to encourage local Developing a plan to encourage local

practitioners in developing countries to become practitioners in developing countries to become members of the CASmembers of the CAS

Sending CAS leaders to participate in key Sending CAS leaders to participate in key meetings meetings

Making more CAS exam sites available around Making more CAS exam sites available around the world.the world.

Membership Survey Membership Survey RecommendationsRecommendations

No specific recommendation on No specific recommendation on Associate issues.Associate issues.

Task Force noted that there continues Task Force noted that there continues to be discontent among some to be discontent among some Associates with respect to dues, Associates with respect to dues, opportunities for involvement, and opportunities for involvement, and voting rights.voting rights.

Response: Task Force on Associates Response: Task Force on Associates Rights formed to address the issues.Rights formed to address the issues.

ContinuingContinuingEducationEducation

Continuing Education (CE) Continuing Education (CE) Requirements for CAS Requirements for CAS

MembersMembers Since Nov 2007, the Board has been Since Nov 2007, the Board has been

investigating the issue of CE investigating the issue of CE requirements for members.requirements for members.

May 2009 Board meeting:May 2009 Board meeting: The Board approved a motion stating The Board approved a motion stating

that that all CAS membersall CAS members should be should be subject to CE requirements, with subject to CE requirements, with exceptions. exceptions.

The Board charged the Executive The Board charged the Executive Council with development of an Council with development of an implementation plan for the policy.implementation plan for the policy.

Continuing Education (CE) Continuing Education (CE) Requirements for CAS Requirements for CAS

MembersMembersNovember 2009 Board meetingNovember 2009 Board meeting:: The Board authorized release of the 2The Board authorized release of the 2ndnd

exposure draft of a CAS Continuing exposure draft of a CAS Continuing Education Policy.Education Policy.

Comments will be received through Comments will be received through 12/15/09.12/15/09.

March 2010 Board meeting:March 2010 Board meeting: Board may vote to adopt the proposed Board may vote to adopt the proposed

CAS Continuing Education Policy CAS Continuing Education Policy effective 1/1/11.effective 1/1/11.

CAS Code of CAS Code of Professional ConductProfessional Conduct

PRECEPT 2. PRECEPT 2. An Actuary shall perform An Actuary shall perform Actuarial Services only when the Actuary is Actuarial Services only when the Actuary is qualified to do so on the basis of basic and qualified to do so on the basis of basic and continuing education and experience and continuing education and experience and only when the Actuary satisfies applicable only when the Actuary satisfies applicable qualification standards.qualification standards. ANNOTATION 2-1. It is the professional responsibility ANNOTATION 2-1. It is the professional responsibility

of an Actuary to observe applicable qualification of an Actuary to observe applicable qualification standards that have been promulgated by a standards that have been promulgated by a Recognized Actuarial Organization for the Recognized Actuarial Organization for the jurisdictions in which the Actuary renders Actuarial jurisdictions in which the Actuary renders Actuarial Services and to keep current regarding changes in Services and to keep current regarding changes in these standards.these standards.

How are How are CAS Members CAS Members

Affected?Affected?

All CAS members are subject to the All CAS members are subject to the Continuing Education Policy.Continuing Education Policy.

All CAS members who perform All CAS members who perform “Actuarial Services” are subject to “Actuarial Services” are subject to the continuing education the continuing education requirement.requirement.

What are Actuarial What are Actuarial Services?Services?

Policy uses the same definition as that Policy uses the same definition as that found in the CAS Code of Professional found in the CAS Code of Professional Conduct.Conduct.

““Professional Services provided to a Professional Services provided to a Principal by an individual acting in Principal by an individual acting in the capacity of an actuary. Such the capacity of an actuary. Such services include the rendering of services include the rendering of advice, recommendations, findings, or advice, recommendations, findings, or opinions based upon actuarial opinions based upon actuarial considerations.” considerations.”

Alternative Alternative ComplianceCompliance

CAS members may comply with the CAS members may comply with the Continuing Education Policy through Continuing Education Policy through Alternative Compliance, i.e., following an Alternative Compliance, i.e., following an alternative organization’s continuing alternative organization’s continuing education requirement.education requirement.

The CAS recognizes the requirements of: The CAS recognizes the requirements of: American Academy of ActuariesAmerican Academy of Actuaries Canadian Institute of ActuariesCanadian Institute of Actuaries Institute of Actuaries and Faculty of Institute of Actuaries and Faculty of

Actuaries (UK) Actuaries (UK) Institute of Actuaries of AustraliaInstitute of Actuaries of Australia

CE Policy TimelineCE Policy Timeline

December 15, 2009December 15, 2009 – Deadline for – Deadline for comments on the Exposure Draft.comments on the Exposure Draft.

March 2010March 2010 – Board may formally adopt – Board may formally adopt Policy.Policy.

January 1, 2011January 1, 2011 – Effective date of – Effective date of policy, to be applicable to Actuarial policy, to be applicable to Actuarial Services rendered on or after January 1, Services rendered on or after January 1, 2012.2012.

Read the FAQ on the CAS Web Site Read the FAQ on the CAS Web Site for more information.for more information.

University of CASUniversity of CAS

CAS is repackaging live educational sessions and provides access to these sessions online.

Accomplished by recording sessions from live events, synching the audio with the PowerPoint presentations, and providing online access through an easy-to-use interface.

CAS PublicationsCAS Publications

www.VarianceJournal.org

CAS E-Forum

CAS PublicationsCAS Publications

http://www.casact.org/pubs/forum/

Future EventsFuture Events

Economic Scenario Generation for Economic Scenario Generation for Financial Institutions Webcast , Financial Institutions Webcast , December 8December 8

Usage-Based Insurance: Changing the Usage-Based Insurance: Changing the Game Webinar, January 12Game Webinar, January 12

2010 International Congress of 2010 International Congress of Actuaries, Cape Town, South Africa, Actuaries, Cape Town, South Africa, March 7-12March 7-12

Ratemaking and Product Management Ratemaking and Product Management Seminar, Chicago, March 15-17Seminar, Chicago, March 15-17

ERM Symposium, Chicago, April 12-14ERM Symposium, Chicago, April 12-14

Seasoned Actuaries Seasoned Actuaries EventsEvents

Regional Luncheon in NYC Regional Luncheon in NYC

Date: 12/11/2009 Date: 12/11/2009

Time: 11:30a – 2:00pTime: 11:30a – 2:00p

Location: Papoo's Italian Cuisine & BarLocation: Papoo's Italian Cuisine & Bar

Seasoned Actuaries Seasoned Actuaries EventsEvents

Tours Following ICA in Cape Town Tours Following ICA in Cape Town

March 11-19, 2010March 11-19, 2010

I welcome your input I welcome your input regarding:regarding:

CAS Centennial GoalCAS Centennial Goal

ERM InitiativesERM Initiatives

CAS Basic EducationCAS Basic Education

Membership IssuesMembership Issues

CAS CE Requirements and Professional CAS CE Requirements and Professional Education OfferingsEducation Offerings

Other TopicsOther Topics

Questions?Questions?

Thank You!Thank You!