CIA (e)Bulletin/(e)Bulletin de l'ICA

Canadian Institute of Actuaries/Institut canadien des actuaires

October 2010
Your Institute

By Micheline Dionne, FCIA
CIA President

On September 22, your Board of Directors held its first meeting for 2010–2011. After welcoming five new members, namely President-elect Jim Christie, Steve Bonnar, Sylvie Charest, Bill Chinery and Jacques Lafrance, Daniel Lapointe gave an orientation session on the CIA structure and the way the Board operates. The aim was to help the new members get off on the right foot and refresh the memories of the returning members. It was a good introduction to the governance report that followed. We had asked a task force to examine the Board’s mode of operation, since it hadn’t been reviewed for several years. The task force’s key recommendations included creating a committee to manage the risks facing the Institute, preparing a code of conduct for Board members, providing for a quarterly review of finances and reviewing the relevance of existing committees and their respective mandates. Other recommendations will be taken up in our next meeting, as will a plan to implement them.

The Pension Advisory Task Force reported on its activities, chief among them its responses to the Ontario government concerning pension plan reform and the pre-budget consultations by the federal government; a joint venture with the C.D. Howe Institute for an upcoming conference on retirement (Canada Retirement 20/20); and the creation of a task force on individual savings and financial education. As you can see, we are looking at retirement one component at a time, given the wide range of subjects.

The Actuarial Standards Board (ASB) and the Actuarial Standards Oversight Council (ASOC) provided an overview of their work, focusing in particular on standards of practice relating to marriage breakdown, a file that the Board is following with much interest. They also discussed their concerns regarding the ability to respond to needs, given the already high demand on our volunteers. In this regard the CIA, ASB and ASOC will join forces to find partners willing to provide us with financial support, which will allow us to be more proactive than reactive.

You will be happy to know that the CIA intends to apply by year’s end to become an award signatory of the CERA (Chartered Enterprise Risk Analyst) designation.

We also had an in-depth look at the Accreditation Committee’s report on education reform, which has just been released. I encourage you to read the report and submit your comments to the committee. The report can be found at the following link:

Amendments to Rules of Professional Conduct 6 and 13 are in full swing. The Task Force to Review Rule of Professional Conduct #13 has taken your comments into account and reviewed its position on exemption in situations of conflict.

We ended the meeting by thanking Daniel Lapointe for his contribution to the Institute’s development. (Our recruitment efforts to find a new executive director are well underway, and a number of worthy candidates have come forward. I’d like to remind you that if the position interests you, I invite you to send your résumé to

International Actuarial Association

We had some excellent discussions last week at the biannual meeting of the International Actuarial Association (IAA). The actuarial associations have agreed to develop general standards of practice that can be used by associations that don’t have any standards, and believe me, there are quite a few that don’t. They also agreed to develop standards pertaining specifically to the International Financial Reporting Standards (IFRS). These standards will be accompanied by educational notes, but it is too early to know to what extent these standards will cover technical aspects. They must be based on principles, but certain jurisdictions could define these principles so generally that a large gap will remain between possible practices. Another challenge will lie in the necessary delays to finalize these standards, in view of the costs inherent in such an undertaking. Still, it is encouraging that an agreement in principle has been reached.

On the same subject, it is worth noting that the IAA presented a report on convergence in an effort to determine to what extent the standards should be the same from one country to another, and what level of divergence could be acceptable. The report recommends a medium level of convergence, which is to say that standards should be developed in the form of model standards and approved in each jurisdiction, not by using the same wording but by adapting the standards to the specific set of circumstances in each jurisdiction. The IAA also delved into the question of efficiency and speed of implementation, and is looking into creating a new structure within the IAA or creating an independent standards board.

Have a great November, et à bientôt!

If you have any questions or comments that you would like to share, please contact me at
Micheline Dionne, FCIA, is President of the Canadian Institute of Actuaries.


By Dave Pelletier, FCIA

This is my first report as Chair of the Actuarial Standards Board to the CIA membership, and I’ll provide an update on the ASB’s activity since Charles McLeod’s last report through the (e)Bulletin in May. I’d be remiss, however, in first not thanking Charles and the other ASB members (Nick Bauer, Malcolm Hamilton, and David Short) who retired from the Board in June after several years of dedication and hard work for the profession. Their contributions were impressive, and they’ll be missed.

The other rookies on the Board this year, along with myself, are Michael Banks and Steve Haist. We look forward to working with the continuing members John Brierley, Stephen Butterfield, Richard Gauthier, Normand Gendron, and Nancy Yake, as well as Ty Faulds, who, as Chair of the Practice Council, has an important ex officio role in keeping vital lines of communication open.

Approved final standards

As Charles anticipated in his May report, the revised pension standards were indeed approved at the June meeting of the ASB, the culmination of many years of effort. They will take effect as of December 31, 2010. Early implementation is not being permitted, given that certain aspects of the revised standards conflict with the existing standards.

Also approved as final were revisions to the standards for life insurance valuation, dealing with stochastic modeling and segregated fund valuation. These additions essentially brought into the standards some of the existing guidance material in this area. These revisions call for promulgated calibration criteria for stochastic models, for which the initial communication required by our due process is being published shortly.

Exposure drafts

Three exposure drafts have been approved for publication as well since May. One is a revision of the standard dealing with Dynamic Capital Adequacy Testing (DCAT) for insurers. The comment deadline was September 10, and indeed many comments were received, particularly from P&C practitioners. Jacques Tremblay’s designated group is now working through the issues raised, which may well lead to a revised exposure draft rather than directly to a final standard.

An exposure draft dealing with the use of mortality improvement in insurers’ valuations of life insurance and annuity products was published as well. For this revision of the insurer standards, the Committee on Life Insurance Financial Reporting, chaired by Dale Mathews, is serving as the designated group. They look forward to receiving comments by December 1, and we are aiming at an eventual effective date of October 15, 2011. Also associated with this standard is the promulgation of a table of mortality improvement rates, the initial communication of which was also published. Coincident with the publishing of these documents, CLIFR published a research paper on this area, which CLIFR drew extensively upon in recommending the proposed standard.

The third exposure draft published since May deals with revisions to the General Standards of Practice. John Brierley chairs this designated group, which is to receive comments by December 1. An effective date at some point in 2011 is intended.

Notices of intent

Readers will recall that in times past, standards went through a discussion draft and then an exposure draft before getting to a final standard. With the creation of the ASB several years ago, its due process eliminated the discussion draft stage, but replaced it with a notice of intent that is intended to clearly communicate the rationale for an upcoming new or revised standard, the principles to be reflected, and any issues on which input is particularly sought to assist the ASB as it drafts the standard. It’s important that the ASB outlines its intent clearly in these notices, so that guidance from interested parties is received and can be reflected as we move to the drafting phase. It’s equally important that CIA members read and respond to notices of intent for the same reason—in this way the exposure draft is likely to be a much better document than otherwise.

Since May, we’ve issued two such notices of intent. The first dealt with amendments to the standards dealing with post-employment benefit plans. The designated group’s work is now underway, chaired by Ellen Whelan. We plan to publish an exposure draft reasonably early in 2011, aiming for an effective date in 2012.

A second one dealt with margins for adverse deviations for P&C insurance, to allow for margins below the low end of the usual range where appropriate in unusual situations. This is not expected to be controversial, and we’re making an effort to get this through the exposure draft stage and then on to final approval by year-end. Jacqueline Friedland chairs this designated group.

Other work underway

At its October meeting, the ASB discussed two other standards nearing their next phase. The Standard of Practice on Capitalized Value of Pension Plan Benefits for a Marriage Breakdown has undergone considerable discussion over the last several years, and has gone through three exposure drafts. This has been a controversial area, with an enormous amount of time and effort expended by some practitioners in this area and by members of the designated group and the ASB. The ASB expects to approve and publish the final standard shortly. It will also approve and publish shortly a revised exposure draft of a new standard dealing with ratemaking in P&C insurance, with a comment deadline of December 31.

Other projects in various phases of completion include:

  • Treatment of "subsequent events", an exposure draft of which the ASB expects to deal with in December;
  • Revisions to the standard dealing with public personal injury compensation plans (essentially workers’ compensation plans and the Société de l'assurance automobile du Québec—SAAQ). An exposure draft was issued in May, and the many comments received are now under consideration by the designated group, chaired by Nick Bauer;
  • Revisions to the actuarial evidence standards, other than those dealing with marriage breakdown. Nancy Yake will be chairing this designated group, and conducted a session gathering input (and recruiting members for her designated group) at the recent Actuarial Evidence Seminar;
  • Standards relating to Bill C-57, which, while passed by the federal Parliament several years ago, is expected to come into force in early 2011. It deals with disclosures associated with participating and adjustable policies. Nick Bauer chairs the designated group, and we expect to be publishing a notice of intent by year-end; and
  • A review of our due process. Potential areas for improvement were discussed at our October meeting, and if proceeded with will be finalized in 2011.

As Charles anticipated in May, the International Accounting Standards Board issued in July an exposure draft of a significantly revised IFRS dealing with insurance contracts (so-called IFRS 4—Phase II), for which a final standard is expected to be effective in 2013 or 2014. The impact of these changes on insurers (and at least some PPICPs) will dwarf the impact of IFRS’s arrival in Canada in 2011, and will have significant impact on our standards. To oversee the process of determining changes to our standards, the ASB has established a working group chaired by Mike Hale, and consisting of John Brierley, René Chabot, Simon Curtis, Richard Gauthier, Wendy Harrison, and myself. Another overriding issue is, given that this is an international financial reporting standard, shouldn’t it be an international actuarial standard, rather than a local one, that supports it. The working group is currently working through both what kind of international actuarial guidance can be expected (and supporting its development) and what the resulting regulatory financial framework will look like in Canada, for which we’d be expected to provide support through actuarial standards.

This will be a challenging period for the ASB, and we look forward to the active involvement of many CIA members through commenting on our notices of intent and exposure drafts, and through involvement in our various designated groups.

Dave Pelletier, FCIA, is Chair of the Actuarial Standards Board.

The air we breathe is an important factor in our quality of life, and Canadians rank air pollution issues among their main environmental concerns. Although we enjoy good air quality when compared to many other countries, evidence gathered over the last 10 years has increased concerns about the health effects of air pollutants.

Outdoor air contaminants come from both natural and human pollution sources. Nevertheless, air pollution is primarily associated with everyday human activities that include industrial processes and residential activities.

As individuals, we both directly and indirectly use energy, which has the by-product of creating significant air pollution. For instance, residential wood heating is the greatest single source of particulate matter in Canada, and pollutants from thousands of vehicles on the road are responsible for air concerns such as smog.

Although some hazardous contaminants in the air, such as lead, have declined in recent years, others remain and continue to become more problematic. The most commonly measured outdoor air pollutants in Canada include ground-level ozone, particulate matter, carbon monoxide, sulphur dioxide and nitrogen oxides. These substances are the principal ingredients or precursors of smog, and some also contribute to acid rain.

How does air quality affect me?

The human health issues related to poor air quality are far reaching, but principally affect the body's respiratory and cardiovascular systems. Individual reactions to air pollutants depend on the type of pollutant a person is exposed to, the degree of exposure, the individual's health status and genetics.

The health effects caused by air pollutants include difficulty breathing, wheezing, coughing and aggravation of existing respiratory and cardiac conditions. These effects can result in increased medication use, increased doctor or emergency room visits, more hospital admissions and even premature death. In analyzing air pollution and mortality data from eight Canadian cities, Health Canada estimates 5,900 deaths per year in those cities can be attributed to air pollution.

How does air quality affect the environment?

A wide variety of air pollutants and air issues affect Canada’s ecosystems: the quality of the soil and water are significantly affected by acid rain and its contributing pollutants; the health of wildlife is compromised by pollutants such as mercury that affect habitat and food quality; and vegetation health and productivity are harmed by a variety of pollutants, including ground-level ozone. Damage from air pollution is not always localized; the long range transport of pollutants can mean that soil, water, plants and animals can be affected by far away sources of pollutants.

How can I make a difference?

Conserving energy and making better consumer decisions can reduce the amount of emissions that you and your family emit at home, on the road, at work and at play.

There are many easy-to-do tips to help you take action against air pollution. Take advantage of the participation initiatives and resources that exist to help you reduce your emissions and energy use and save money at the same time, including:

You can also help by donating your time or resources to help a non-governmental clean air group, such as:

This article is based on material from Environment Canada's website: 
Institute News

By Denis Plouffe, FCIA

At the end of April 2010, the International Accounting Standards Board (IASB) issued an exposure draft on proposed changes to International Accounting Standard 19 (IAS19 Employee Benefits) in order to improve the recognition, presentation and disclosure related to defined benefit plans by mid-2011. The proposed changes presented in this exposure draft are an interim step in a long-term process with a fundamental review of pension accounting issues to be addressed after mid-2011. This exposure draft was opened for public comments until September 6, 2010.

In essence, proposed changes to IAS 19 include:
  • Removal of the corridor approach to recognize actuarial gains and losses. Companies would need to recognize actuarial gains and losses immediately through Other Comprehensive Income (OCI);
  • A new presentation approach providing more visibility among the different components of the net periodic cost, including:
  • The service cost as part of profit and loss;
  • The interest cost as part of the finance cost component of profit and loss; and
  • Any cost impact due to remeasurement into OCI;
  • Improved disclosure requirements to promote a risk-based approach, focusing on the characteristics and risks inherent in the defined benefit plans.
The exposure draft did not address measurement of defined benefit plans or the accounting for contribution-based benefit promises. The IASB will consider after 2011 whether to address these topics.

Comments on the exposure draft were requested by the IASB in the form of questions and answers. In general, the Canadian Institute of Actuaries (CIA) supports the proposals improving transparency, provided the disclosure requirements are more clearly defined.

Highlights of the CIA comments and suggestions submitted to the IASB are:

  • Proposals that change practices that are currently essentially uniform between the Financial Accounting Standards Board (FASB)/Canadian Institute of Chartered Accountants (CICA) and IASB are counterproductive. Even if the IASB believes that the current accounting is problematic, it should not be causing consistent practice to diverge when its goal is convergence.
  • A well-defined rationale or objective to disaggregation of the net periodic pension cost components would help avoid manipulation of assumptions to divert costs to OCI rather than profit and loss. For example, assumptions regarding future benefit improvements may be set low for the purpose of calculating the service cost and obligation and to the extent that actual improvements are greater than expected, the difference would be treated as an actuarial loss and would be recognized through OCI.
  • The proposed presentation approach, with curtailments included in profit and loss and settlements included in the remeasurement component, also requires additional guidance when accounting for a single event leading to both a curtailment and a settlement, in order to avoid manipulation in the accounting treatment.
  • A risk-based disclosure approach focusing on the most significant risks should also incorporate appropriate examples of disclosures, including when and what additional disclosure is required on interim periods.
  • The accounting treatment for a multi-employer plan (MEP) should reflect the employer’s liability as a result of its participation in the MEP and not be determined based on the ability to allocate assets and liabilities among participating employers. MEP accounting should be revisited and subject to a more comprehensive review related to the employer’s obligations and risk.
  • Appropriate disclosure on post-retirement medical plans reflecting the main risks inherent to these types of plans should also be elaborated since the current proposals provide very little guidance specific to these types of plans.
  • A simplified and common approach should be promoted for certain short-term benefits. In particular, having different accounting methods between compensated absences that accumulate and those that do not is cumbersome and difficult to apply in practice.
  • In Canada, for non-registered funded plans (RCAs) where the trust is subject to a 50 percent refundable tax, the proposal that the finance cost component be based on interest calculated on the net defined benefit liability (asset) must be examined more closely to determine proper accounting for tax during the accumulation phase and the payout phase.

The IASB and the IAS19 working group met in London towards the end of September to review submitted comments. Changes of Board members are also taking place at the IASB and the trustees of the IFRS foundation, the oversight body of the IASB, have just appointed a new IASB chair to succeed Sir David Tweedie upon his retirement at the end of June 2011. A new vice-chair was also appointed. The actual kick-off date for the fundamental review originally scheduled for mid-2011 remains speculative until the new Board is in place and has framed its priorities.

Denis Plouffe, FCIA, is Chair of the Task Force on International Pension and Employee Benefits Standards.


Family, friends and the actuarial profession this month paid tribute to CIA Secretary-Treasurer Hugh White, FCIA, FCAS, who died suddenly at the age of 64.

Hugh—who is survived by his wife Pam and three children—lived in Erin, near Toronto, and worked as principal for Eckler Ltd., which he joined in 1999. This was only the latest role in a highly respected career that involved 31 years with a major global insurance company, where his positions included head of underwriting and risk management, chief financial officer, chief actuary and business unit head.

But despite his busy work and family life, Hugh still made time to contribute his wisdom and experience to the CIA. After earning his fellowship in 1970, he served as a long-time volunteer on numerous committees and held senior roles such as vice-president. Demonstrating his great willingness to help the profession evolve and improve, and his commitment to the Institute’s ethos of volunteering, the lengthy list of committees that benefited from his expertise included:

  • Property and Casualty Insurance Financial Reporting;
  • Life Insurance Financial Reporting;
  • Review;
  • Emerging Issues;
  • Editorial;
  • Public Policy;
  • Appointed Actuary;
  • Finance;
  • Legal Liability; and
  • Budget.

A member of the Practice Standards Council and recipient of the President's Award, he also served on numerous task forces and other groups, including:

  • The Investigation Team;
  • Task Force on Automobile Insurance Issues;
  • Joint Task Force to Review the Organization of the Actuarial Profession;
  • Task Force on the Future of the CIA in the North American Context; and
  • The Crawford Task Force.

Tributes poured forth following his shocking passing, with friends and colleagues remembering his wit, dignity, strength of character and great warmth. CIA President Micheline Dionne joined those mourning a dedicated actuary whose counsel will be greatly missed. She said: "The profession has lost an excellent leader; the Institute has lost an incredible volunteer, and the CIA Board has lost a great friend." 

Tamiko Bratuhin, FCIA (2006)
Hugh White, FCIA (1970)
Exposure Draft regarding changes to the General Standards of Practice – Part 1000
The attached exposure draft was approved by the Actuarial Standards Board on August 24, 2010. The changes that have been made are compared and highlighted against the current Standards of Practice are highlighted, as amended by changes to be effective at the end of this year and already approved and published. 

The changes being made and the comments received are intended to improve wording, remove inconsistencies or correct some minor inaccuracies in the current Standards of Practice.

Comments on this exposure draft are invited by December 1, 2010. Please send your comments, preferably in electronic format, to John F. Brierley at, with a copy to Chris Fievoli at
Contact with Questions: John F. Brierley, Chair, Designated Group, at

Mortality Improvement Research Paper

The Committee on Life Insurance Financial Reporting has drafted this paper to provide support for an updated promulgation for mortality improvement with respect to the valuation of insurance and annuity business, and for changes in the range of margins in the Standards of Practice. The proposed revised Standards of Practice include alterations to subsection 2350, concerning insurance mortality and annuity mortality, and the paper explains the reasoning behind these planned changes.
The paper includes a summary of recent research on mortality improvement and guidance on future expected mortality improvement. It also outlines revised levels of margins for adverse deviations for insurance and annuity policy liabilities.
If you have any questions or comments regarding this research paper, please contact Edward Gibson, Chair, Designated Group, at his CIA Online Directory address,
Contact with Questions: Edward Gibson, Chair, Designated Group, at

Initial Communication of a Promulgation of Prescribed Mortality Improvement Rates Referenced in the Standards of Practice for the Valuation of Policy Liabilities: Life and Health (Accident and Sickness) Insurance (Subsection 2350)

The Actuarial Standards Board proposes to promulgate the use of the mortality improvement rates described in the appendix, effective October 15, 2011. It is proposed that the new mortality improvement tables would be used for valuations on or after October 15, 2011. Early implementation is likely to be permitted, but comments are welcome on this issue. Comments on the proposed changes are invited by December 1, 2010. Please send them, preferably in an electronic form, to Chris Fievoli at, with copies to B. Dale Mathews at and Edward Gibson at

It is hoped that the promulgation of the final mortality improvement rates will occur in late 2010 or early 2011.

Contact with Questions: A. David Pelletier, Chair, Actuarial Standards Board, at
Exposure Draft for Revised Standards of Practice for the Valuation of Policy Liabilities: Life and Health (Accident and Sickness) Insurance (Subsection 2350) Relating to Mortality Improvement
The attached exposure draft was approved by the Actuarial Standards Board on August 24, 2010. Changes are highlighted against the current Standards of Practice, as amended by changes to be effective at the end of this year and already approved and published (see and The opportunity has been taken to make some small drafting changes to the current Standards of Practice.
Comments on the proposed exposure draft are invited by December 1, 2010. Please send your comments, preferably in an electronic form, to B. Dale Mathews at, Edward Gibson at and Chris Fievoli at
Contact with Questions: B. Dale Mathews, Chair, Committee on Life Insurance Financial Reporting, at
Webcast: Defined Contribution (DC) Plans
November 23, 2010 from noon to 1:30 p.m. (ET)
Defined Contribution (DC) Plans
This webcast will be an introduction to defined contribution plans from a financial point of view, and how they are being affected by current developments in pension reform.
Speakers: Neil Duffy, FCIA, Manulife Financial, and Randy Colwell, regional vice-president, group retirement services, Sun Life Financial.
Contact with Questions: Alicia Rollo, CHRP, director, education and professional development, at 
CIA Pension Seminar
Why? How? What?
Answering these questions in the right way could transform your life, according to Simon Sinek, the guest speaker at the 2010 CIA Pension Seminar.
A renowned expert in leadership, he wants people to do only the things that inspire them. The most efficient way to achieve this, he says, is by helping organizations understand their why so everyone who works for them goes home every night feeling inspired and fulfilled.
A trained ethnographer and the author of Start With Why: How Great Leaders Inspire Everyone to Take Action, he has studied leaders and companies that make the greatest impact in the world. The result is the Golden Circle, his theory involving analysis of:
  • What a company does;
  • How it does it; and
  • Why it does it.
You can read his full biography and watch sample videos at: 
The CIA Pension Seminar will take place at the Hilton Montréal Bonaventure Hotel on November 3.
You can register by fax, by mail, or online with our secure transaction registration form.
You will find information on the sessions, registration, accommodation and transportation at the link below.
Contact with Questions: Nancy Jenkinson, Meeting Services, at Tel: 613-236-8196 ext. 104; fax: 613-233-4552

Call for Presentations – 2011 Enterprise Risk Management Symposium

The 2011 Enterprise Risk Management (ERM) Symposium Program Committee is soliciting presentations for the 2011 ERM Symposium, scheduled for March 13–16, 2011 at the Swissotel Chicago, located in downtown Chicago, IL. The committee will give preference to the following types of presentations, but others will be considered:

  • Case studies; 
  • Technical/quantitative presentations of a practical nature; and
  • Presentations of a more theoretical nature.

Those that address the challenges of ERM in a changing world are particularly encouraged. The following list provides examples of the topics but it is not exhaustive, and other presentations of interest to ERM professionals will be considered.

  • Many organizations face significant challenges in embedding ERM into the organizational culture. Are there best practices for meeting these challenges and fostering partnership between management, revenue producers and risk professionals? Can the experience of the recent crisis be used to instill a more risk-sensitive organizational culture?
  • How does one meet the specific challenges of designing models to quantify/evaluate risk, and how does one interpret the results of such models? How should unexpected events in the recent past be factored into next-generation models?
  • Increased scrutiny from regulatory bodies and rating agencies can have a direct impact on an organization’s ERM framework. Furthermore, there are significant risks from non-compliance or ignorance of these changes. How should organizations respond to these new regulatory and rating agency challenges? Can they be levered to achieve better risk-adjusted performance?
  • How does/can ERM help a firm meet its strategic challenges?
  • Are there new macroeconomic challenges facing organizations? If so, how should ERM reflect and meet these challenges? What about systemic risk?
  • What are the best practices of ERM? Do they exist? Which of them are applicable to all organizations? Should the risk management community promulgate and enforce them? If so, how?

Please submit your proposed session title, description, presenter(s) and other requested information using the online submission form by October 8, 2010. Invitations to participate in the program will be extended by October 29, 2010.

Links: Symposium:
Call for presentations:

Contact with Questions: Steve Siegel, SOA Research Actuary,
Discipline Notice – Notice of Decision on Costs
A Discipline Notice is being provided to inform all Institute members about the notice of decision on costs in the matter of charges laid against a member and the Disciplinary Tribunal’s decision.
Contact with Questions: William Weiland, Chair, Committee on Professional Conduct, at

The need for a revised approach to the financing of the EI system

The Canadian Institute of Actuaries renewed its call for a revised approach to the financing of Canada’s Employment Insurance (EI) system, in light of the recent announcement that the two-year freeze on EI premiums is about to be lifted.

Global Risk Institute in Financial Services (GRi)
On September 13, the Government of Canada announced the launch of the Global Risk Institute in Financial Services (GRi), which will be located in Toronto.
GRi will perform five key functions: (i) developing leading-edge thinking and practical, policy-relevant applied research in the area of financial risk management; (ii) providing consulting and advisory services to governments, regulators and industry; (iii) providing professional risk education to senior industry practitioners; (iv) partnering with academic institutions and professional organizations to train new graduates; and (v) hosting international forums and conferences.
Funding is provided by the federal and the provincial government. The Canadian Institute of Actuaries is among the private donors also contributing to this project.
Contact with Questions: Les Dandridge, director, communications and public affairs, at
Final Standard of Practice – Practice-Specific Standards for Insurers – Section 2300 Valuation of Policy Liabilities: Life Insurance regarding Stochastic Modeling and Segregated Fund Valuation
The attached final Standard of Practice was approved by the Actuarial Standards Board on August 24, 2010. There have been some editing modifications; however, there have been no significant changes made from the exposure draft.
The effective date of the final Standards of Practice is January 1, 2011. Early implementation is permitted, as the changes are not intended to alter the meaning of the current guidance.
Links: Final Standards – Practice-Specific Standards for Insurers, Section 2300 – Valuation of Policy Liabilities: Life and Health (Accident and Sickness) Insurance:
Contact with Questions: John F. Brierley, Chair, Designated Group, at 
Submission to the House of Commons Standing Committee on Finance
The Canadian Institute of Actuaries provided input to the 2010 pre-Budget consultations being undertaken by the House of Commons Standing Committee on Finance.
Contact with Questions: Les Dandridge, director, communications and public affairs, at 
CIA Actuaries Appointed to CPP Review Panel
Actuaries with the CIA have been appointed by the Office of the Chief Actuary to review the 25th Actuarial Report on the Canada Pension Plan (CPP).
Produced every three years, the report is considered by federal and provincial finance ministers when reviewing and making recommendations on the CPP, and the external peer review has generated valuable recommendations.
The panel members are all actuaries with the CIA and Fellows of the Society of Actuaries (SOA):
  • It will be chaired by Rob Brown, Chair of the International Actuarial Association’s Social Security Committee, member of the SOA Social Security Committee, former CIA President and previous reviewer of the CPP Actuarial Report;
  • Doug Andrews, council member, IAA Pension Benefits and Social Security Section, Chartered Financial Analyst and CIA Silver Award recipient for volunteer service; and
  • Warren McGillivray, member of the SOA Social Security Committee, policy associate with the Caledon Institute of Social Policy and member of the National Academy of Social Insurance.
Between them, the panel members have written more than 200 technical reports, research papers and books on pensions, health care and social security. Their work will be assessed by the United Kingdom Government Actuary’s Department (GAD), recognized for its social security expertise.
Parliamentary tabling of the Actuarial Report is expected to take place before year end. The panel will then have three months to perform the review and prepare a report. Once the GAD has responded, the panel’s report and GAD’s opinion will be made public.
Previous CPP Actuarial Reports, independent reviews and GAD opinions are available at:
June 2010 Risk Management Newsletter Now Available in Both Official Languages
The CIA has just produced a French version of the Risk Management Newsletter, and the newsletter is now available in both official languages on the Society of Actuaries (SOA) website. The risk management section is sponsored by the CIA, Casualty Actuarial Society and SOA to promote education and research in enterprise risk management (ERM) and establish leading risk management techniques.
Mortality Study – Canadian Standard Ordinary Life Experience 2007-2008
This is the 59th annual report submitted by the Individual Life Experience Subcommittee of the Research Committee detailing the intercompany mortality experience for Canadian standard ordinary life insurance policies. This is the 15th year that the subcommittee has collected data in a seriatim format. It calculated exposure using the actuarial exposure method, in which a full year of exposure is credited in the year of death.
Contact with Questions: Marc-André Belzil, Chair, Individual Life Experience Subcommittee, at 
Mortality Study – Canadian Standard Ordinary Life Experience 2006-2007
This is the 58th annual report submitted by the Individual Life Experience Subcommittee of the Research Committee detailing the intercompany mortality experience for Canadian standard ordinary life insurance policies. This is the 14th year that the subcommittee has collected data in a seriatim format. It calculated exposure using the actuarial exposure method, in which a full year of exposure is credited in the year of death.
Contact with Questions: Marc-André Belzil, Chair, Individual Life Experience Subcommittee, at
Notice of Intent (NOI) to revise the Standards of Practice – Practice-Specific Standards for Insurers (P&C Insurance) – Subsection 2260 Margin for Adverse Deviations – Deterministic Analysis and Subsection 2270 Margin for Adverse Deviations – Stochastic Analysis
It is proposed to revise subsections 2260 and 2270, which address margin for adverse deviations for property and casualty insurance, to address the issue of selecting a margin below the low end of the range.
The desired outcome is to make it clearer to members that selection below the low margin may be acceptable in unique circumstances. While such exceptions could be supported without changing subsections 2260 and 2270 because of the guidance in 1120 Interpretations, we believe a direct change in subsections 2260 and 2270 will provide greater clarity to the actuaries who routinely turn to Section 2200 for guidance on the valuation of policy liabilities for property and casualty insurance.
Comments on the proposed changes are invited by October 15, 2010. Please send your comments, preferably in an electronic format, to Jacqueline Friedland at with a copy to Chris Fievoli at
Contact with Questions: Jacqueline Friedland, Chair, Designated Group, at
Calendar of Events
November 3, 2010 CIA Pension Seminar Montréal Bonaventure Hilton Hotel Montréal, QC
November 16, 2010
IAA Audiocast
Stochastic Modeling for Health Care Actuaries
9:00 a.m. and 6:00 p.m. (EST)
November 23, 2010
CIA Webcast
Defined Contribution (DC) Plans Noon to
1.30 p.m.
December 8, 2010
CIA Webcast
International Financial Reporting Standards Series: Canadian Standards Noon to
1.30 p.m.
June 29-30, 2011 CIA Annual Meeting The Westin Ottawa Ottawa, ON
22-23, 2011
CIA Seminar for the Appointed Actuary
Doubletree by Hilton - Toronto Airport Hotel
Toronto, ON

Additional information on all CIA meetings can be obtained at:, or by contacting Nancy Jenkinson at 613-236-8196, ext.104, or

For information on CIA webcasts, visit
Board and Council Updates
Mike Lombardi has been appointed CIA liaison representative on the IAA Insurance Accounting Committee, effective the close of the IAA meeting on October 13, 2010.
Jacques Tremblay has been appointed CIA liaison representative on the IAA Insurance Regulation Committee, effective the close of the IAA meeting on October 13, 2010.
Bob McKay has been appointed CIA liaison representative on the IAA Professionalism Committee, effective the close of the IAA meeting on October 2, 2011.
Réjean Besner has been appointed CIA liaison representative on the IAA Accreditation Committee, effective the close of the IAA meeting on October 2, 2011.
Bruce Langstroth has been appointed CIA liaison representative on the IAA Enterprise and Financial Risk Committee, effective the close of the IAA meeting on October 13, 2010.
Anne Vincent has been appointed a member of the Eligibility and Education Council effective September 3, 2010.
Jacques Lafrance has been appointed a member of the Practice Council, effective September 3, 2010.
Member Services Council
Kim Girard has been appointed a member of the Individual Life Experience Subcommittee of the Research Committee, effective August 1, 2010. Scott Spencer has also been appointed a member of the subcommittee, effective June 1, 2010.
Isabelle Bouchard has been appointed Chair, and Bruce Langstroth Vice-chair, of the Group Insurance Committee, effective immediately. Gary Walters has resigned as Chair and member of the committee, effective immediately.
Jason Alleyne has been appointed Chair of the Op-Ed Team, effective immediately. Gary Walters has resigned as Chair, and Philippe Trahan as a member, of the team.
Kevin Vantil and Fiana Kwok have been appointed members of the Committee on Volunteer Initiatives, effective immediately. Ian Rozon has resigned as a member of the committee, effective immediately.
Irawati Chen has been appointed a member of the Annuitant Experience Subcommittee of the Research Committee, effective immediately.
Walton Achoy, Brent Chambers, Carol Moellers, Shriram Mulgund, Jean-François Poitras, Faisal Siddiqi, Levente Tolnai and Raymond Tsang have been appointed members of the Editorial Committee, effective immediately. Michael Correa and Trevor Howes have resigned as members of the committee.
Practice Council
Thane Mackay and Michael Williams have been appointed members, and Stan Warawa Vice-chair, of the Committee on Workers’ Compensation.
Denis Plouffe has been appointed Chair of the Task Force on International Pension and Employee Benefits Standards.
Pat Johnston has been appointed a member of the Committee on Actuarial Evidence.
Lynda Jeffs has been appointed a member of the Committee on Life Insurance Financial Reporting.
Jeremy Bell, Shemin Chatur, Natalie Thompson and Harindra Sebastian have been appointed members of the Committee on Post-employment Benefit Plans.
Shams Munir has been appointed Chair of the Committee on Property & Casualty Insurance Pricing.