Update on CAS Activities
by Bob Conger
Casualty Actuaries of Greater New York
May 29, 2002
Outline
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Exam Issues
Continuing Education
Roles of Regional Affiliates
Expanding Practice Areas
International Issues
CAS Election Process
CAS Web Site
Getting involved in CAS
Your input
Exams - Travel Time
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Travel time (approx. # sittings)
ACAS
 1980-81
 1989-90
 1998-99
 2000-01
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9
11
14
15
FCAS
13
15
17
18
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-:
1.01 x .37 = .37
0.79 x .38 = .30
1.01 x .38 = .38
Exams 1 & 2
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Pass Ratios from first sittings
 Exam
1
 Exam 2
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May ‘00 Nov ‘00 May ‘01 Nov ‘01
23%
34%
33%
34%
27%
32%
32%
41%
Some possible causes
 Insufficient
advance information
 Required mastery of more material
 Word problems
 First time exam
Exam 3
Pass Ratios from first sittings
May ‘00
Nov ‘00
May ‘01
Nov ‘01
Overall
32%
36%
43%
42%
CAS Workers
15%
20%
33%
34%
Non-CAS Workers
29%
31%
38%
36%
Students
44%
54%
60%
54%
Exam 4
Pass Ratios from first sittings
May ‘00
Nov ‘00
May ‘01
Nov ‘01
Overall
34%
37%
41%
43%
CAS Workers
23%
30%
35%
39%
Non-CAS Workers
29%
34%
40%
38%
Students
69%
59%
54%
56%
Exam 3 and 4 Key Issues
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Most learning objectives okay, but some go beyond
what casualty actuaries need
Too much material
some pruned
Need better material
study notes commissioned
Students perform better than workers for various
reasons
more . . .
Exam 3 and 4 Key Issues (cont.)
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CAS Policy: Pass marks reflect sufficient grasp of
material. No predetermined pass mark.
CAS Policy: Achieving CAS learning objectives is
more important than having joint exams
Task Force working on development of Exams 3 and 4
that meet CAS needs. Can be joint with SOA
Exams - Other Changes
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Hired Education Consultant to help:
 Construct
appropriate learning objectives
 Train to develop good thinking questions
 Help with methods for setting pass score
 Provide input on evaluating exam length and difficulty
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
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?
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
Expanding Practice Areas
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DFA
 Concept
Theoretical tool
Practical application
 Seminar expanded to “Risk and Capital Management”
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New Advisory Committees
 Asset/Liability
Management & Investment Policy
 Enterprise Risk Management
 Securitization/Risk Financing
 Valuation of P/C Insurance Companies
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
 AAA mutual recognition not a likely solution in near
future
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November 2001 - Board creates Task Force to revisit
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)
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Always can name 1 PE, 4 Board candidates
 Change
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in the required number of signatures
Nominating Committee membership
 Will
include majority of “at large” members
CAS Election Process (cont.)
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Candidate information
 “Why
I want to serve”
 Statement on issues
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Runoff procedures
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
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
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?