Current CAS Issues
and Directions
Sheldon Rosenberg
CAGNY Meeting
Dec. 6, 2004, New York City
Agenda
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CAS Centennial Goal
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Two Important Task Forces
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Task Force on ACAS Vote
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Task Force on Classes of Membership
CAS Centennial Goal
The CAS will be globally recognized as the
preeminent resource in educating casualty
actuaries and conducting research in casualty
actuarial science. CAS members will be
recognized as the leading experts in the
evaluation of hazard risk and the
integration of hazard risk with strategic,
financial and operational risk
Implementing the
Centennial Goal
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Centennial Goal Implementation Task Force
Subcommittee of Long Range Planning Committee
 Working with Vice Presidents and Committee
Chairs in setting goals.
 How does my committee and its goals support the
Centennial Goal?
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SAM Goals
Significant, Attainable, Measurable
 Interim milestones to help gauge progress towards
the Centennial Goal.
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Two Important
Task Forces
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Task Force on the ACAS Vote
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Should Associates have voting rights?
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All ACAS? After N Years as an ACAS?
Stand for election to the Board?
 Hold officer positions, e.g., Vice President?
 Serve on and chair committees? Which ones?
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Task Force on Classes of Membership
How many classes should the CAS have?
 How should these classes be defined?
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Historical Perspective
of Associates
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Since 1914, two classes of membership.
Associate and Fellow designations have changed
over the years:
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Initially, based on company responsibilities.
Fellows: Department heads.
 Associates: Actuaries who worked within departments.
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Beginning in 1915, based on exams:
Number and content of exams has varied.
 Currently a two-exam educational difference.
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Where is the ACAS Now?
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Educational difference is limited.
Both FCAS and ACAS are MAAA.
Continuing ed requirements are the same.
Generally little distinction in U.S. (AAA, NAIC)
between FCAS and ACAS license to perform
professional actuarial services.
Most nations have one class of membership.
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Already an issue in Canada (CIA).
Complicates mutual recognition agreements.
IAA educational requirements also an issue.
Task Force on ACAS Vote
Why are we considering this issue?
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Voting rights unchanged since 1914; reflect a time when
there was a greater difference between classes.
Associates are an important part of the Society:
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25-30% of Associates no longer take exams.
Many Associates contribute extensively to the profession: as
volunteers, on committees, as speakers and authors, etc.
Their contribution as practitioners is undeniable.
Associates pay full dues, but cannot vote.
Mutual Recognition issues.
Task Force on ACAS Vote
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Right to vote should be granted upon earlier of:
Fellowship or five years after Associateship. Right to
vote should be unrestricted.
All voting members should be allowed to stand for
election to the Board of Directors.
Voting Associates may hold all officer positions, with
the exception of:
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President / President Elect
Vice President - Admissions
Committee membership is to remain restricted to
Fellows for Discipline, Education Policy, Syllabus,
Fellowship Exam Committees.
Task Force on
Classes of Membership
Why are we considering this issue?
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In the U.S., two classes of membership looks like a
distinction without a difference.
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AAA confers full rights on both classes.
Associate designation connotes lesser standing, even though
the ACAS is fully qualified to sign statements of opinion.
Two designations for “fully qualified actuary” are confusing.
Not considered qualified outside the U.S.
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Fails IAA “fully qualified actuary” criteria.
Inadequate Finance, though other areas well beyond minimum.
Can create Mutual Recognition issues.
Can complicate efforts to export our educational system.
Task Force on
Classes of Membership
The Task Force recommended (May):
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Only one class of membership - Fellow.
Certificate of Achievement in Casualty Actuarial Science.
All candidates under the Code of Professional Conduct.
ACAS continue to be awarded for a limited time.
Existing ACAS’s awarded FCAS after completing exams
or after five additional years have passed.
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Task Force was split on this issue.
Ideal number of exams for Fellowship is eight;
necessary material can be reorganized to fit.
Task Force on
Classes of Membership
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In May 2004, the Board discussed the various
transition options in the Task Force Report.
Options ranged from
Immediately granting FCAS to ACAS and
discontinuing ACAS
 Completion of additional requirements
 Discontinuing ACAS after a transition period and
putting the ACAS into run-off.
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Under no circumstances would current Associates
lose their status as members of the CAS.
Classes of Membership
Follow-up
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Additional information was collected for the
Board’s subsequent consideration during its
September 2004 meeting.
Survey of the Membership Advisory Panel (MAP).
 Feedback from Regional Affiliate Presentations.
 Interviews with recruiters on the effects of one class
of membership on attracting candidates.
 Interviews with actuarial science professors.
 Feedback submitted by members.
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Classes of Membership
Feedback
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Summary of additional feedback received:
Over two-thirds (70%) of the MAP agreed with TF
recommendation of one class.
 More than three-fourths (77%) disagreed with the
TF recommendation to grant all ACAS the FCAS
designation without additional requirements.
 Most of the feedback has indicated that one class of
membership will not create a competitive
disadvantage for students.
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Actuarial Science professors may disagree.
Board Findings on
Classes of Membership
Board Motions at September Board Meeting:
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That the Board instruct the Executive Council to
establish a TF to propose within the next year a set of
learning objectives by which FCAS can be attained:
 with less material than the current exams,
 with fewer than the current 9 exams,
 while meeting the requirements of the IAA,
 while being consistent with the Centennial Goal.
It is the Board’s sense that this can be accomplished
with eight exams (or seven exams with a workshop or
seminar).
Board Findings on
Classes of Membership
Board Motions at September Board Meeting:
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Inform the CAS membership of the foregoing action,
with an indication that the Board supports a move to an
eventual single class of credentialed membership, with
no more new Associates, concurrent with the
movement to a shorter syllabus; and will seek
membership reaction to this plan. (It is expected that
the then-current Associates will either complete their
remaining exams and become Fellows, or remain
Associates until they cease their membership in the
CAS.)
Membership Involvement
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Board is committed to obtaining member input.
Granting voting rights requires an amendment to
the Constitution approved by Fellows, however,
the Board agreed to postpone further action on
the ACAS Vote, pending resolution of the
Classes of Membership issue.
Moving to one class of credentialed member may
not require a change to the Constitution, but
there will be a thorough exchange of ideas.
Thank You!