Update on CAS Activities
by Gail Ross
Midwest Actuarial Forum
September 26, 2002
Outline
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Exam Issues
Continuing Education
Expanding Practice Areas
International Issues
CAS Election Process
The CAS at 100
Roles of Regional Affiliates
Getting Involved in CAS
CAS Web Site
Your input
Exams - Travel Time
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Travel time (approx. # sittings)
ACAS
 1980-81
 1989-90
 1998-99
 2000-02
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9
11
14
15
FCAS
13
15
17
18.5
Board guidance to Admissions Committees: Expect 5
to 7 years as median time from first actuarial
employment to FCAS
Exams - Progress per Sitting
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Exam Progress
= Avg. # of Exams Passed per Sitting
= Avg. # of Exams Taken X Pass Ratio
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Exam Progress on CAS Exams (excl. 1-4)
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1983-89:
1991-99:
2000-02:
1.01 x .37 = .37
0.79 x .38 = .30
1.01 x .39 = .39
Exams 1 & 2
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Pass Ratios from first sittings
May ’00 Nov ’00
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Exam 1
Exam 2
May ‘01 Nov ’01
May ‘02
23%
34%
33%
34%
43%
27%
32%
32%
41%
37%
Exam 3
Pass Ratios from first sittings
May ‘00 Nov ‘00 May ’01 Nov ’01
May ‘02
Overall
32%
36%
43%
42%
42%
CAS Workers
15%
20%
33%
34%
33%
Non-CAS Workers
29%
31%
38%
36%
36%
Students
44%
54%
60%
54%
57%
Exam 4
Pass Ratios from first sittings
May ‘00 Nov ‘00
May ’01 Nov ’01
May ‘02
Overall
34%
37%
41%
43%
44%
CAS Workers
23%
30%
35%
39%
35%
Non-CAS Workers
29%
34%
40%
38%
39%
Students
69%
59%
54%
56%
69%
Exam 3 and 4 - Update
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Board concern that Exams 3 & 4 don’t adequately meet the
needs of the CAS candidate
November 2001- Board created a Task Force charged with
designing Exams 3 & 4 that are appropriate for casualty
actuaries
September 2002 – Board accepted recommendations of Task
Force regarding materials for 3 & 4
 Will discontinue joint sponsorship of Exam 3 in Nov. 2003.
Life contingencies portion of the exam will return to old Part
4A levels
 Topics for Exam 4 are appropriate and will continue to
jointly sponsor with SoA
Exams - Education Consultant
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Hired Education Consultant to help:
 Construct
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appropriate learning objectives
 Train to develop good thinking questions
 Help with methods for setting pass score
 Provide input on evaluating exam length and difficulty
CAS Policy: Pass marks reflect sufficient grasp of
material. No predetermined pass mark.
Exams - Long Term
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Discussions with SOA, FA/IA, IAAust
 Convergence
of syllabus desirable if consistent with our
needs
 Learn from one another
 Wide interest in QRA (2005)
 CAS involved in ongoing QRA discussion
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Education Policy Committee - overall structure
 Syllabus
& learning objectives
 Educating & testing method, always keeping in focus
the education needed by casualty actuaries
Attracting New Talent
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Exam 1-4 registrations up 28%
(May 2001
May 2002)
Jobs-Rated Almanac: #2
 Technology
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job market has cooled
It’s all about job and career opportunities
Continuing Education Issues
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What is the “right” mix of basic education and
continuing education?
Should we increase the scope and magnitude of
continuing education requirements?
What delivery mechanisms will work for CAS
continuing education in the future?
Expanding Practice Areas
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DFA
 Concept
Theoretical tool
Practical application
 Seminar expanded to “Risk and Capital Management”
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Enterprise Risk Management – role of actuary going
beyond issues of just “hazard risk” to investment and
operational risk
International Issues
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Historically, CAS predominantly North American
 95%
of members live and practice in North America
 Many papers and syllabus materials use U.S. examples
 Major meetings and seminars
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Board approved international strategy
“To be pre-eminent global resource . . .”
 Support
of CAS Members working abroad
 Support basic education process in various countries
 Exam waivers and mutual recognition
 Practice rights for CAS members (Ireland, Australia,
India)
 Increase information and involvement among NA
members
 Participation in international actuarial community
International Issues Mutual Recognition
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1999 Board action
 Not
pursue bilateral agreement
 Work to ensure practice rights globally
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Subsequent developments
 CAS
members may be excluded from certain practices
in Australia, Ireland, India
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November 2001 - Board creates Task Force to revisit
September 2002 – Board considering Task Force
report
International Issues Next Steps
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More specifics
 Highly
developed actuarial organizations (IA/FA)
 Developing organizations
 Emerging markets (China)
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Prioritization
 Countries
 Activities
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Resources
 People
 Cost
CAS Election Process
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Reviewed by Task Forces – 2000 and 2002
Nomination and Petition processes continue, but . . .
 Petitioning now occurring before Nominating Committee
 Nominating Committee completes the slate ( 1 + 8)
 Always can name 1 PE, 4 Board candidates
 Change in the required number of signatures
Nominating Committee membership
 Now includes majority of “at large” members
Candidate information and Q&A
Goal in the near future – electronic voting
The CAS at 100
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LRPC is establishing Significant, Attainable and
Measurable goals for the CAS at 100 (year 2014)
Started at the Leadership Meeting in March 2002 to
get input on Core Purpose, Core Values and Big
Audacious Goals for long term that will lead to shorter
term action plans
Board discussed status of LRPC at Sept. 2002 meeting
and is interested in soliciting wider input from
members and future members
Core Purpose Examples
“The core purpose is the reason for being”
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To define and enhance the value of the casualty
actuary
To educate the actuary of today and the future
To improve society’s understanding, acceptance,
measurement and management of the risks inherent in
life
Core Value Examples
“The essential and enduring principles that guide the CAS”
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Learning
Innovation
Community
Volunteerism
Professionalism
Big Audacious Goals Examples
“A clear and compelling catalyst that serves
as a focal point for effort”
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Eighty percent of our members will volunteer in the Society
There will be 15,000 employed CAS members by 2014, with
job descriptions ranging from CEO, CFO, CRO and FE
The CAS will provide credentialing for actuaries in 25 countries
The CAS will give exams in 15 languages
Roles of Regional Affiliates
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Social and networking
Continuing education
 Leverage
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existing resources
Exam seminars
University/college relations
Entre into CAS network
 Meeting
attendance
 Involvement and leadership
Getting Involved in CAS
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Why:
 Learn
 Make
useful contacts
 Contribute to your profession
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How:
 Pick
committees/topic(s) that interest you most
 Respond to Participation Survey or contact committee
chair directly
 Write papers
 Give presentations
 Regional Affiliate involvement
CAS Web Site
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WWW.CASACT.ORG
 Syllabus,
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study materials, past exams, study notes
All PCAS (1914), CAS Forums (1987) and
Discussion paper programs (1979)
ASOPs, Casualty Reserve Practice Note
Discussion forum
Member Services:
 Membership
Directory
 CAS Board Q&A
 Board minutes
I would like your input regarding . . .
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Continuing Education requirements
Board and President-Elect nomination process
Expansion beyond ratemaking and reserving
CAS role internationally
Mutual recognition
Exams
What’s on your mind?
Questions?