Current CAS Issues
and Directions
Bob Miccolis, FCAS, MAAA
Midwestern Actuarial Forum
March 7, 2008
Chicago
Agenda

CAS Centennial Goal

CAS Education Strategy and Initiatives

New Actuarial Qualification Standards

ERM Initiatives

Academy Update

Upcoming CAS Events

CUSP

Your Input
2
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.
3
Update on
Education Strategy
White Paper on CAS Education Strategy
 Released in November 2006 and feedback invited
via online survey through January 2007.
 Proposed:



Optional tracks for Fellowship
Enhanced continuing education program
Non-exam evaluation methods
Status of CAS Associate
4
Update on
Education Strategy
Summary of Feedback:
 Elective Fellowship Tracks – no real support –
career mobility issues.
 “Deep dive” continuing education offerings –
overwhelming support – “boot camps”, etc.
 Possible exams plus workshops for basic
education – some support/some concerns.
 Improved study materials – YES.
5
Update on
Education Strategy


Board extensively discussed feedback and ideas
during its 2007 meetings.
Conclusions to date:





Board not satisfied with basic education status quo
Minimize transition issues
Elective Fellowship tracks – dropped idea
Capstone Seminar after last exam – still possible
Internet course/exam for topics actuaries “should
be familiar with”
6
Update on
Education Strategy

No decisions yet on the specific strategy

Implementation - probably not for several years.

Transition strategy will be designed to minimize
disruption for candidates.
7
Other Education Issues Improved Educational Materials

Task Force on Developing Education Materials.

Two Proposals accepted (June 2007) for authors to
create educational publications on
(1) ratemaking and
(2) reserving.
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Other Education Issues Candidate Code of Conduct



Board approved adoption of a Code of
Professional Ethics for Candidates, and Rules of
Procedure for Disciplinary Actions Involving
Candidates
Purpose: to require Actuarial Candidates to adhere
to the high standards of conduct, practice, and
qualifications of the actuarial profession.
Effective: with registration for the 2008 Spring
exam sitting.
9
Revised Qualification Standards
– Who Do They Apply to?


The new Qualification Standards apply to all
actuaries who performing Actuarial Services
which include opinions, intended by that actuary
to be relied upon by the person or organization
to which the opinions are provided.
Such opinions are now considered to be
Statements of Actuarial Opinion (SAO’s) –
basically any professional opinion expressed by
an actuary in the course of performing Actuarial
Services.
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General Qualification Standard
(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 IAAmember organization; and
 Three years of responsible actuarial experience
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General Qualification Standard
(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
12
New Continuing Education
Requirements

Annual continuing education requirements will
increase to 30 hours per year

Minimum three hours on professionalism topics

Minimum six hours from “organized” activities

A credit hour is 50 minutes

2008 will be a transition year
13
CAS ERM Initiatives

CAS ERM Vision – Actuaries are qualified

2008 ERM Symposium (SOA/CAS)

Online Course: Introduction to ERM [Sold Out]

Sessions @ CAS Meetings and Seminar
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The ERM Actuary

CAS is focused on enhancing the role of actuaries
in ERM by:
 Providing
continuing education on ERM;
 Conducting
research to address unanswered ERM
questions (e.g., operational risks, risk aggregation)
 Promoting
 Exploring

actuarial skills in addressing ERM issues;
changes to the CAS syllabus.
CAS is not creating an actuarial ERM designation
(like the CERA created by the SOA)
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2008 Upcoming Events

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Seminar on Ratemaking - March 17-18 Boston
Practical Solutions to Predictive Model Design
Challenges Webinar - March 20 CAS Web Site
ERM Symposium - April 14-16 Chicago
Testing Loss Reserve Assumptions
May 5 Chicago
Reserve Variability Limited Attendance
Seminar - May 6-8 Chicago
CAS Spring Meeting - June 16-18 Quebec City
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American Academy of Actuaries
Academy Update
&
Some Recent
Developments
Copyright © 2008 by the
American Academy of Actuaries
American Academy of Actuaries
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)
Copyright © 2008 by the
American Academy of Actuaries
American Academy of Actuaries
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
Copyright © 2008 by the
American Academy of Actuaries
American Academy of Actuaries
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
Copyright © 2008 by the
American Academy of Actuaries
American Academy of Actuaries
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
Copyright © 2008 by the
American Academy of Actuaries
We welcome your 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?
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Thank You!