Where We’ve Been, Where We Are and Where We’re Going

 CAS Centennial Goal
 Educational Process
 Two Important Task Forces
 Research Working Parties
 Getting Involved in CAS
 CAS Web Site
 Your input

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Core Ideology
 Core purpose
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A concise statement of the organization’s reason for being
 Core values
 Essential and enduring tenets of the organization
10-30 Years: Envisioned Future
 Big audacious goal
5-10 Years: Critical Factors
3-5 Years: Strategic Planning
1-2 Years: Action Planning

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.

 Historically, CAS predominantly North American
 95% of members live and practice in North America
 Many papers and syllabus materials use U.S. examples
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 Major meetings and seminars
“Preeminent 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)
 Participation in international actuarial community

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Aspects of risk addressed by a multitude of professions
 Financial, Operational, Hazard , Strategic
Actuaries can be uniquely positioned to integrate the risks
 Tools in our Education Process
 Professionalism
Coordinating activities with the SOA
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Joint ERM Seminar summer ’03 (CAS led)
 ERM and RCMS merge in ’04 under CAS leadership
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In conjunction in ’04 with GA State Bowles Research
Symposium

 Traditionally Vice Presidents and Committee Chairs have annual goals
 To do list
 Only occasionally connected to long range plans
 LRPC working with other CAS leaders to change our short- and medium-term planning processes
 Does my goal support the Centennial Goal?
 What does my committee need to be doing in the next three years to support the Goal?

 FACT – Travel time is too long!
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Partitioning
Syllabus “Creep”
Number of Sittings to Designation
Year
Achieving
Designation
ACAS FCAS
1980-1984 9.1
13.2
 BOARD GUIDANCE TO
ADMISSIONS
COMMITTEES:
 Expect 5 to 7 years as median time from first actuarial employment to
FCAS
1985-1989
1990-1994
1995-1999
11.0
11.7
13.2
14.2
14.7
16.9
2000-2002 14.4
18.4

Pass Ratios
11/00 05/01 11/01 05/02 11/02 05/03 11/03
CAS Exam 3 44%
Overall 36% 43% 42% 42% 40% 40% 34%
CAS Workers 20% 33% 34% 33% 35% 39% 24%
SOA Workers 26%
Non-CAS Workers 31% 38% 36% 36% 31% 35% 27%
Students 54% 60% 54% 57% 55% 50% 47%

 Current
 Prerequisites: Linear Algebra and Statistics
 Exam 1: Calculus and Probability (4 hours)
 Exam 2: Interest, Economics, Finance (4 hours)
 Exam 3: Actuarial Models– NOT JOINT (4 hours)
 Exam 4: Actuarial Modeling (including applied stats) (4 hours)

Approved March 2004 Board Meeting
 Starting Spring 2005
 Prerequisites: Linear Algebra and Calculus
 Exam 1: Probability with Calculus (3 hours)
 Exam 2: Interest (2 hours)
 Exam 3: Actuarial Models & Statistics (4 hours)
 Exam 4: Actuarial Modeling (4 hours)
 Verification by Educational Experience: Economics, Finance,
Applied Stats

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Option 1: Submit a grade of B- or better and the college catalog
 Intermediate Micro and Macroeconomics
 Intermediate Corporate Finance
 Regression and Time Series (could be separate courses)
Option 2: Pass an appropriate exam, such as the AP exams for
Micro and Macroeconomics, CFA exams, etc.
Option 3: Pass college-level exams offered by the CAS (may be joint with the SOA). CAS committed to at least 2 years
Option 4: Other experiences
 College correspondence courses
 Courses/seminars designed specifically for VEE credit

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2000 Syllabus
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Exam 1
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Exam 1
Exam 2
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Exam 2 + VEE for Econ & Finance
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Exam 3  Exam 3
Exam 4  Exam 4 + VEE for Applied Stats
Pre-2000 Syllabus
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Part 3A  VEE for Applied Stats
Part 4A  Exam 2
Part 4B
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Exam 4
Part 5A
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VEE for Economics
Part 5B
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VEE for Finance

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Most candidates take Econ and/or Finance
 No need to examine topics that require background but not mastery
 But verification is needed to meet international standards
Test questions for Applied Stats stress memorization rather than application
 Our candidates need to learn how to appropriately apply regression and time series models to real data
 This competency cannot easily be validated in a timed paper-and-pencil exam

 Actuarial Science majors currently graduate with two or more exams
 Unlikely to have much effect on these candidates
 Other majors who take VEE courses in school benefit
 Candidates who did not have VEE courses in school
 Can tackle VEE while studying for interest exam
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Or between exam “seasons”
 VEE pass rates on first attempt should be very high
 Increases predictability of travel time

 Computer Based Testing
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 Early exams
 Targeting Spring 2005 – Exam 1
 Candidate will receive results immediately
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More than two exam “windows” per year
RFP responses currently being evaluated

 Hired Education Consultant to help:
 Construct appropriate learning objectives
 Train to develop good thinking questions
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 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.

 Classes of membership
 How many classes should the CAS have?
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 How should these classes be defined?
What governance rights should ACAS’s have in the
CAS?
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Vote? All ACAS’s? After N Years?
 Chair committees? Which ones?
 Serve as a VP?
 Serve on the Board?

 This is where policy is made
 Board meets 4 times per year
 May and November at the CAS meetings
 March and September
 Board meetings are open to the membership!
 Come and see how decisions are made in the CAS
 May Board meeting
 Sunday, May 16 – Colorado Springs
 Task Forces on Membership Classes and ACAS Rights

 Traditional CAS Approach
 Focused on individual research
 Call paper programs
 No interaction among researchers
 Working Parties
 Focused topic
 Collaborative, interactive process
 Short (1 year) time frame with report at next meeting
 First parties formed at CLRS ‘03

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Why:
 Learn
 Make useful contacts
 Contribute to your profession
How:
 Pick committees/topic(s) that interest you most
 Respond to Participation Survey or contact committee chair directly
 Join a working party
 Write papers
 Give presentations
 Regional Affiliate involvement

 WWW.CASACT.ORG
 Syllabus, study materials, past exams, study notes
 All PCAS (1914), CAS Forums (1987) and
Discussion paper programs (1979), ASTIN Journals
 ASOPs, Casualty Reserve Practice Note
 Discussion forum
 Member Services:
 Membership Directory
 CAS Board Q&A
 Board minutes

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Centennial Goal
CAS role internationally
CAS role outside traditional p/c insurance
Exams and Education Process
Travel time
Membership
Research working parties
What’s on your mind?
Questions?