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									Current CAS Issues
  and Directions
         Alice Underwood
Casualty Actuaries of the Northwest
          March 5, 2010
                      Agenda
   Response to CAS Membership Survey
   CAS Centennial Goal
   Global ERM Designation - CERA
   Basic Education
   CAS Continuing Education Policy
   Upcoming Events
   Your Input
CAS Membership Survey

  What You Told Us and
How the CAS is Responding
                  Membership Survey
                  Recommendations
   That CAS enhance its communications on:
     International role and goals of the CAS
     Nomination and election process
     Release of issues of the E-Forum
     Sources and uses of CAS revenues
     Role of the CAS in professional standards
     Opportunities for involvement for retired actuaries

   Response: The Task Force on Improving
    Communications within the CAS formed to
    address these gaps.
                 Membership Survey
                 Recommendations
   That the CAS increase its focus on practical
    applications particularly in the areas of
    predictive modeling, stochastic reserving,
    generalized linear modeling (GLM), and
    enterprise risk management (ERM).
   Applies to CAS activities in the areas of
    publications, research, continuing education.
   Response: Vice Presidents overseeing these
    areas have been charged with following through.
                  Membership Survey
                  Recommendations
   That both the CAS and the regional affiliates
    seek opportunities to maximize their CE
    offerings in the most cost-effective method
    possible.
     Goal is to provide affordable and convenient
      education
     Might include the use of new and emerging
      technologies for communication.
     There should be a particular emphasis on teaching
      practical applications.
               Membership Survey
               Recommendations
Response:
 University of CAS provides a cost-effective
  means for CAS members to obtain CE.
 Increase the number of courses offered through
  webinars.
 Communicate these offerings to members
  through the weekly e-newsletter and CAS Web
  Site.
                      Membership Survey
                      Recommendations
   Internationally, the CAS should explore the feasibility of:
       Assisting emerging markets in the development of non-life
        actuarial disciplines and education
       Working to gain official recognition of the CAS credential in new
        jurisdictions
       Developing a plan to encourage local practitioners in developing
        countries to become members of the CAS
       Sending CAS leaders to participate in key meetings in these
        countries
       Making more CAS exam sites available around the world.
   Response: Assigned to International Leadership Team
                Membership Survey
                Recommendations
   No specific recommendation on Associate issues,
    but the Survey Task Force noted that there
    continues to be discontent among some Associates
    with respect to dues, opportunities for
    involvement, and voting rights.
   Response: Task Force on Associates Rights formed
    to address the issues.
               CAS Centennial Goal
The CAS will be recognized globally as a leading
resource in educating casualty actuaries and
conducting research in casualty actuarial science.
CAS members will advance their expertise in
pricing, reserving, and capital modeling; and
leverage their skills in risk analysis to become
recognized as experts in the evaluation of
enterprise risks, particularly for the property and
casualty insurance industry.
Global ERM Designation
        CERA
                  What is the Global
                  ERM Designation?

   An effort to recognize and promote the capabilities
    of actuaries globally to provide ERM services.
   A single global ERM credential for actuarial
    associations world-wide.
   The designation represents:
      Stringent education requirements in ERM.

      Strong code of professional conduct.
                       Why an
                   ERM Designation?
   The global ERM designation is a big step toward
    fulfilling the CAS Centennial Goal.
   The financial crisis illustrates the growing need for
    ERM and professionals trained to evaluate risk.
   Trained to evaluate risk, actuaries can assume a
    significant leadership role in the ERM arena.
   Provides an opportunity for CAS members to
    compete in this marketplace.
          ERM Designation for CAS
Recent Board Actions:
 March 2009: The CAS should pursue an Enterprise
  Risk Management (ERM) designation.
 June 2009: CAS Board approved the
  recommendation to adopt the Global ERM
  Designation, CERA.
 CAS Board authorized the CAS President to sign
  the Global ERM Designation Treaty establishing
  the credential.
                    Signing the Treaty
   On November 13, in conjunction with the IAA
    Meetings in India, the Global Enterprise Risk
    Management Designation Treaty was signed by 14
    actuarial organizations:
     Casualty Actuarial Society
     Society of Actuaries

     Canadian Institute of Actuaries

     Actuarial organizations in Australia, Germany, France,
      Israel, Japan, Mexico, Netherlands, South Africa,
      Sweden, United Kingdom
                  Next Steps for CERA
   CAS goal is to begin awarding the CERA
    designation in 2010.
   CAS is developing:
     Basic education requirements
     Transition rules for existing members

     Pathway for experienced practitioners

   Details and FAQ available on CAS Web Site
Basic Education –
 Revised System
         Developments Leading to the
               Revised System
   Board Established Task Force on FCAS
    Education in September 2004.
   White Paper on CAS Education Strategy
    released in November 2006.
   Feedback invited through January 2007.
   Board discussed feedback and ideas during
    2007 meetings.
   In March 2008, Board approved changes to
    basic education structure that will affect
    Exams 5-9.
                         Features of the
                         Revised System
   No change to
       Validation by Educational Experience (VEE)
       Preliminary Actuarial Exams –
           Probability,
           Financial Mathematics,
           Financial Economics,
           Life Contingencies and Statistics, and
           Construction and Evaluation of Actuarial Models
                        Features of the
                        Revised System
       Two-module self-paced internet based course:
         Introduction to P&C Insurance, Insurance
          Operations, Specialized Lines of Business,
          Miscellaneous Ratemaking Topics, Actuarial
          Control Cycle.
         Insurance Accounting Principles, Reinsurance,
          Background Law, Regulation of Insurance
          (Canadian and U.S. versions).
                   Features of the
                   Revised System
   A four-hour exam covering Basic
    Ratemaking and Basic Reserving.
   A four-hour (nation specific) exam covering
    Regulation and Financial Reporting.
   Course on Professionalism.

                   Associate
                 Features of the
                 Revised System
   A three-hour exam covering Advanced
    Ratemaking.
   A three-hour exam covering Advanced
    Reserving, Reinsurance and ERM.
   A three-hour exam covering Investment and
    Rate of Return.

                   Fellow
                      Changes from the
                       Current System
       Additions:
         Stochastic Reserving and Reserve Ranges to the
          Advanced Reserving Exam and
         Actuarial Control Cycle to the internet-based
          modules.
       Deletion:
         Redundant elements of the current Exam 8 which
          have been moved to the preliminary exams.
                      Changes from the
                       Current System
       Internet-based course in two modules
        consisting of parts of current Exams 5-7

       Reduction of volume of study material

       Reduction of the upper level exam hours
         Currently 5 exams x 4 hours = 20 hours
         Will be 17 hours (2 four-hour exams and 3 three-
          hour exams.)
           Rationale for the Revisions
   Significant portion of Financial Economics now
    covered in lower level exams.

   More exams of shorter duration is said to be
    pedagogically advantageous.

   Syllabus cohesion can be enhanced by covering
    related topics in the same exam.
           Rationale for the Revisions
   Delivery of educational material and testing can
    be enhanced by leveraging the use of technology.


   Testing material needing only familiarity can be
    more efficiently done online as self-paced units.

   This MAY provide for a more timely
    achievement of ACAS and FCAS designations.
                  Transition to the
                  Revised System
   Board is aware of the need to provide a transition
    process to minimize the disruption for
    candidates.
   The official conversion to the new education
    structure will occur no sooner than 2011.
   Approved options facilitate the conversion.
                  Transition to the
                  Revised System
Transition Rules:
   Current Exam 5 – Credit for Half Exam on Basic
    Ratemaking and Internet Module 1.
   Current Exam 6 – Credit for Half Exam on Basic
    Reserving and Exam on Advanced Reserving,
    Reinsurance and ERM.
   Current Exam 7 – Credit for Exam on Regulation and
    Financial Reporting and Internet Module 2.
   Current Exam 8 – Credit for Exam on Investments and
    Rate of Return.
   Current Exam 9 – Credit for Exam on Advanced
    Ratemaking.
Other Basic Education
       Issues
            Future Education Methods

   CAS, SOA, and CIA Presidents issued a joint
    letter on a proposal for developing future
    education methods (FEM).
   Proposal for an accreditation process for
    qualifying university actuarial programs in the
    U.S. and Canada.
   Would grant exemptions for some preliminary
    CAS/SOA examinations on an exam-by-exam
    basis targeted to performance in individual
    actuarial courses at accredited universities.
           FEM – Current Activity

 Survey of the CAS Member Advisory Panel and
  sample of candidate population to gather
  additional views on the issue.
 FEM will be discussed again by the CAS Board
  during the March 22-23 Board meeting.
         Course on Professionalism
 Current courses based on practice standards
  in the US and Canada.
 Course based on East Asia standards
  currently being developed.
 The Board has approved accepting local
  association courses (e.g., UK Institute) for
  those practicing in those locales,
  supplemented with Internet-based module on
  CAS Code of Conduct.
              Nation-Specific Exams
   Currently two nation-specific courses:
    Part 7-US and Part 7-Canada.
   The Actuarial Institute of Chinese Taipei has
    proposed developing a Part 7-Taipei
      The CAS has approved in principle.
      Details are being developed.
   No additional versions are currently in
    development.
Continuing
Education
               Continuing Education (CE)
             Requirements for CAS Members
   Since Nov 2007, the Board has been investigating
    the issue of CE requirements for members.
May 2009 Board meeting:
 The Board approved a motion stating that all CAS
  members should be subject to CE requirements,
  with exceptions.
 The Board charged the Executive Council with
  development of an implementation plan for the
  policy.
             Continuing Education (CE)
           Requirements for CAS Members
November 2009 Board meeting:
 The Board authorized release of the second
  exposure draft of a CAS Continuing Education
  Policy.
 Comments were invited through January 15, 2010.

March 2010 Board meeting:
 Board may vote to adopt the proposed CAS
  Continuing Education Policy effective January 1,
  2011.
                    Why a CAS CE Policy?

CAS Code of Professional Conduct states:
 PRECEPT 2. An Actuary shall perform Actuarial
  Services only when the Actuary is qualified to do so
  on the basis of basic and continuing education and
  experience and only when the Actuary satisfies
  applicable qualification standards.
      ANNOTATION 2-1. It is the professional responsibility of an
       Actuary to observe applicable qualification standards that have
       been promulgated by a Recognized Actuarial Organization for
       the jurisdictions in which the Actuary renders Actuarial Services
       and to keep current regarding changes in these standards.
                     How are
               CAS Members Affected?

   All CAS members are subject to the Continuing
    Education Policy.
   All CAS members who perform “Actuarial
    Services” are subject to the continuing education
    requirement.
             What are Actuarial Services?

   Policy uses the same definition as that found in
    the CAS Code of Professional Conduct.
   “Professional Services provided to a Principal by
    an individual acting in the capacity of an actuary.
    Such services include the rendering of advice,
    recommendations, findings, or opinions based
    upon actuarial considerations.”
                Alternative Compliance

   CAS members may comply with the Continuing
    Education Policy through Alternative
    Compliance, i.e., following an alternative
    organization’s continuing education
    requirement.
   The CAS recognizes the requirements of:
     American Academy of Actuaries
     Canadian Institute of Actuaries
     Institute of Actuaries and Faculty of Actuaries (UK)
     Institute of Actuaries of Australia
                          Timeline

   January 15, 2010 – Deadline for comments on
    the Exposure Draft.
   March 2010 – Board may formally adopt Policy.
   January 1, 2011 – Effective date of policy, to be
    applicable to Actuarial Services rendered on or
    after January 1, 2012.

        Read the FAQ on the CAS Web Site
               for more information.
                   Future Events
   ERM Symposium, Chicago, April 12-14
   Seminar on Reinsurance, New York, May 6-7
   CAS Spring Meeting, San Diego, May 23-26
   Casualty Loss Reserve Seminar, Orlando,
    September 20-21
   CAS Annual Meeting, Washington, D.C.,
    November 7-10
   Check the online Calendar of Events for details
    on Webinars and Limited Attendance Seminars
University 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 Journal




www.VarianceJournal.org
            I welcome your input regarding:

   CAS Centennial Goal
   ERM Initiatives
   CAS Basic Education
   Membership Issues
   CAS CE Requirements and Professional Education
    Offerings
   Other Topics
   Questions?
Thank You!

								
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