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

Canadian Institute of Actuaries/Institut canadien des actuaires

April 2011
Your Institute


By Micheline Dionne, FCIA
CIA President

It’s amazing how time flies. My mandate comes to an end in just two months. On the one hand, I’m looking forward to taking a vacation, playing some sports and decompressing at the cottage, far from the hustle and bustle of civilization. But on the other hand, I’m worried that I’ll run out of time before I can accomplish what I set out to do.
 
April in particular has just flown by. Shortly after the latest Board meeting, the CIA delegation attended the biannual working meeting of the International Actuarial Association, held in Sydney, Australia. I was eager to hear about the progress made in developing model standards and the new due process for their adoption. Tremendous strides have been made in developing general standards, thanks in no small part to the efforts of CIA member Jacqueline Friedland. The excellent preliminary version, which I had the chance to read, gives me hope that an exposure draft will be ready in the coming weeks.

However, the difficulty coming to an agreement on the consultation and adoption process is cause for concern. The challenge lies in reassuring all the associations that the process will take account of each party’s realities while allowing progress to be made quickly enough to remain relevant. With the meetings slated to take place every six months, it is now clear that discussions at the Board level must continue between the official meetings if people are uncomfortable with the process put forward. I have therefore suggested that a teleconference be held as soon as possible to discuss the various points of view and to come to a decision quickly, even if it will have to be ratified in six months during the next official meeting.

Like many Canadian actuaries, I am convinced that time is not on our side, and that we must adopt model standards as quickly as possible, before others do it for us. You may recall that I was optimistic at the close of the meeting in Vienna last October. Well, I came back down to earth in Sydney, but I remain hopeful: it will take more consultations than I had thought, and we will need to convey a greater sense of urgency about the situation to some of the more hesitant members.

While in Sydney I took the opportunity to attend the convention held by the Institute of Actuaries of Australia (IAA), to which I had been invited as your representative. The IAA has many things in common with us: its membership is essentially the same size as ours; it is the only association in the country that represents actuaries, and Australia’s actuaries are convinced of the need for a voice in public debates. Needless to say, they are concerned about challenges arising from natural disasters—particularly floods, which affected them very directly this past year. But they are also concerned about the growing costs associated with an aging population, the need to revisit the normal retirement age (and retirement itself, for that matter—an evolving concept that is not as cut and dried as in the past), and the need for pension plan reform. Sound familiar? Interestingly, Australian actuaries are more involved in environmental issues; the ozone layer being thinner over Australia, their sense of urgency is greater. Could this foretell the types of issues that their Canadian counterparts will soon be grappling with, over and above such questions as retirement and health? Overall I saw an opportunity to share ideas as we develop public positions.

Back in Canada, meanwhile, preparations for the federal election are in full swing. The communications team prepared a letter addressed to the political parties on issues affecting actuaries and sent them a questionnaire to ascertain their positions on pension plan reform and health expenditure planning. I invite you to read both documents, available here.

In closing, I would also urge you to read the document on enhancing Associate status in the Institute. By June you will be asked to vote on the recommendations contained in this report, and you now have the opportunity to provide feedback so as to improve the proposal that will be advanced. Don’t miss this chance to make your views known! These recommendations seek to recognize the important contribution of our Associate members by allowing them to use the ACIA designation; they also seek to let them participate more fully in the CIA’s growth and to eventually give them the right to vote, as is the case in several other actuarial associations.

If you have any questions or comments, please feel free to write me at president@actuaires.ca. 
 
Micheline Dionne, FCIA, is President of the Canadian Institute of Actuaries.
 
Spotlight


By Ty Faulds, FCIA

We are aware how major stress events can impact relationships with our partners. It has now been roughly two and a half years since the financial crisis and we are still experiencing aftershocks. Has this major stress caused any changes in our relationships, and what should we be doing about it?

While these relationships are far-reaching, I would like to concentrate on those of the CIA Practice Council and its practice committees with regulators of our practice areas.
There have been signs of changes, such as the updated supervisory framework announcement from OSFI indicating it is changing focus from "relying on the actuary" to "using the work of the actuary".

The CIA strives to maintain a good working relationship with regulators overseeing financial services that require actuarial work. The Practice Council and its committees have been engaged on a number of fronts in this regard over the past year. One of the most important initiatives is to ensure we are communicating enough, and we have increased the frequency of these interactions. A few examples:

  • We have formalized the CIA representation on the MCCSR Advisory Committee (thanks to Alexis Gerbeau for taking on this role).
  • We have set up monthly priority project review meetings with the Actuarial Standards Board, Practice Council, Committee on Life Insurance Financial Reporting, Committee on Risk Management and Capital Requirements (CRMCR), and OSFI.
  • Regulator input is also being actively sought in the development of pension standards and guidance material.
Have these efforts paid off? It is still early but I am optimistic our relationships are emerging from this stress relatively intact and possibly, in some instances, even stronger:
  • In response to our discussions with the Canadian Association of Pension Supervisory Authorities (CAPSA), the CIA Task Force on the Determination of Provisions for Adverse Deviations in Going Concern Valuations will develop a research paper which should help pension regulators address the level of provisions they would like reflected in going concern valuations.
  • We responded to OSFI’s discussion paper on proposed changes to the minimum capital test/branch adequacy of assets test (MCT/BAAT), issuing a submission late in 2010.
  • OSFI has released a draft guideline addressing stress testing for plans with defined benefit provisions. The Practice Council is reviewing the guideline’s content and was planning to provide a submission to OSFI by the end of April.
  • The leaders of the CRMCR and I met with Assuris, AMF and OSFI on their discussion paper on the principles of new MCCSR insurance components. We are considering where we could assist OSFI with this important initiative.
  • Bill C-57 (passed in 2005 with accompanying regulations approved last November) creates additional responsibilities for actuaries related to governance of participating and adjustable insurance products. The ASB has started work on any required changes to standards, but additional guidance will need to be provided by the Practice Council. Nick Bauer is leading a group to address this item and review any related guidelines produced by OSFI. 
  • The CRMCR has completed a research paper recommending a capital requirement framework for critical illness business. This was in response to a request from OSFI, which was concerned about the clarity of the existing guidelines, and the consistency of their application. It is expected that OSFI will include these changes in its new solvency framework.
The CIA and ASB continue open communications with CAPSA, with a formal meeting each spring and ad hoc interactions on an as-needed basis.

Turning to legislation, the CIA issued a submission in November related to the federal review of the Insurance Companies Act. It focused on three areas: protection for actuaries from civil liability, the treatment of foreign business of Canadian companies, and International Financial Reporting Standards. Submissions can be found on the CIA website.


In March, the Government of Ontario issued draft regulations related to Bill 133, which was passed in 2009. They affect the division of pension benefits on marriage breakdown, of interest to actuaries in the actuarial evidence area. A submission has been prepared to reflect the profession’s comments.


Also in March, the Financial Services Commission of Ontario released a consultation document concerning a risk-based regulation framework for pensions. The Member Services Council responded to this document, and issued a submission earlier in April.


As Chair of the Practice Council, I thank council members and other volunteers who have contributed to the above initiatives. As a result, the profession is in a good position to interact effectively with regulators on issues of interest to members.


Ty Faulds, FCIA, is Chair of the Practice Council.



 
MOVERS AND SHAKERS


Hundreds of CIA members regularly volunteer for the Institute's committees and task forces. Setting aside some of your time can have enormous benefits, both for you and the actuarial profession in general.

 
But there are many other groups that can benefit from the volunteering spirit of those willing to give up their spare time to help others. Among them are those organizations working to help the environment in Canada and around the world.
 
According to Environment Canada, volunteers can do a great deal:
 
  • Rehabilitate and protect habitats;
  • Engage in clean-up activities;
  • Spread the word about the state of the environment to others;
  • Educate others about various aspects of the environment; and
  • Raise and donate money for environmental projects.
 
One survey found that 46 percent of the Canadian population aged 15 or over volunteered during one 12-month period, equivalent to close to 1.1 million full-time jobs. Many of those who took part in voluntary activities said they wanted to make a contribution to the community, use skills and experiences, explore strengths, or network with or meet people. The most common benefits were said to be the development of interpersonal skills, communications skills and organizational or managerial skills.
 
If you do want to join the ranks of environmental volunteers, where can you go? There are many online resources to point the way to green groups seeking support:
 
  • Volunteer/Bénévoles Canada features a network of volunteer centres across the country which is searchable by province or territory. Such centres encourage volunteerism across the board, and they can also connect would-be volunteers with community agencies.
  • The Canadian Environmental Network hosts hundreds of volunteer opportunities, such as the Kids' World of Energy Festival in Toronto and helping at an eco resort in the Bahamas.
  • The Nature Conservancy Canada's Conservation Volunteers urge people to sign up for a list of frequent green events.
  • PlanetVolunteer.net is packed with opportunities in Canada and elsewhere.
  • Ontario Nature's Volunteer for Nature program allows people to play a part in protecting the province's wild spaces and wild species. Although it has no events scheduled yet for 2011, volunteers can stay up to date via an e-newsletter.
  • Those keen to get their hands dirty are invited to become WWOOFers: volunteers with Worldwide Opportunities on Organic Farms. The organization arranges for volunteers to stay with families while working on their hosts' organic farms. Participants need a genuine interest in learning about organic growing, country living or ecologically sound lifestyles, and must be willing to help their hosts with daily tasks for an agreed number of hours.
 
Institute News

The Elections Committee is pleased to present its slate of candidates for election to the CIA Board for terms beginning in 2011. There are 11 candidates for Director, two candidates for Secretary-Treasurer and two candidates for the office of President-elect. This slate of candidates was developed through the election process adopted by the CIA in 2007, and includes candidates identified by the committee and those who put their names forward.


Position statements and biographical data for all of the candidates for 2011 can be found below. The order in which the statements and data appear has been randomly selected. Candidates are prepared to respond to questions and comments posted to the 2011 CIA Election Campaign Discussion Forum, with all discussion ending at 12:00 p.m. (EDT) on May 5, 2011. The ballot will be made available to members at that time.

Please note that all Fellows will be able to cast their votes electronically in the Members Section of the CIA website beginning May 5, 2011.

President-elect

Simon R. Curtis
Minaz H. Lalani

Secretary-Treasurer

Steven W. Easson
Martin Roy

Director

Kevin A. Lee
Michael N. Smith
Michel St-Germain
Christopher J. Townsend
A. Kim Young
Jeremy P. Bell
Joshua P. Bue
Lorne F. Cohen
Claude A. Ferguson
Jacqueline B. Friedland
Bruce F.O. Langstroth
 







By Bruce Langstroth, FCIA


European insurers, regulators and various stakeholders (and actuaries and others who work for them) have been and continue to be engrossed in Solvency II. Some of you may not be familiar with Solvency II and others who have at least heard of it may have dismissed it as having no relevance for practice in Canada. The purpose of this article is to provide you with an overview of Solvency II and why it may warrant greater attention.

Solvency II is the label applied to the European regulatory framework for insurance oversight and solvency assessment. Solvency II was formally born in 2004 with publication of the European Commission’s Framework for Consultation but has its roots in the prior growing perception that Solvency I (its predecessor) was not all that it should be.


The architecture underlying Solvency II is very similar to the Basel II (and III) architecture for banks. The three pillars that make up Solvency II are as follows:

  • Demonstration of adequate financial resources (Pillar I);
  • Definition of an adequate system of governance (Pillar II); and
  • Public disclosure and reporting (Pillar III).
Pillar I considers key quantitative requirements relating to available capital, Minimum Capital Requirements, Solvency Capital Requirements and technical provisions (reserves). In determining capital requirements, insurers have the option of using the standard model set by the supervisor or internal models, which are subject to regulatory approval and must meet a series of tests.

Pillar II involves a self-assessment of insurers’ risk management systems and prospective risk identification (Own Risk and Solvency Assessment or ORSA). The ORSA is expected to be quite robust and in the event that it falls short of requirements, regulators have the power to impose additional capital requirements. The substance of the topics covered by the ORSA effectively requires changes to insurers’ risk management systems and culture.

Pillar III requires two reports. The Report to Supervisor will contain quantitative and qualitative information to be provided to the supervisory authority and kept confidential. The more significant change is the second report, the Solvency and Financial Condition Report, which is expected to be made publicly available.


The overall framework principles (Solvency II Directive) were adopted by the European Commission in 2009 with an anticipated effective date of 2013. Significant work (quantitative impact studies) has been conducted in an effort to define and articulate detailed requirements. It is expected that these detailed requirements will begin to be finalized and published in 2011.


Why is Solvency II important to you?

  • It marks another important step in the ongoing global trend towards principles-based regulation and oversight. Even actuaries practicing in seemingly unrelated areas such as pensions may want to consider the implications of movement towards a principles-based regulatory framework.
  • It provides insights into the potential direction of Canadian insurance regulation.
  • It will affect European units within your organization and/or Canadian subsidiaries of European insurers.
  • It will affect business partners subject to Solvency II.
  • It will present potential opportunities for organizations as insurers affected by Solvency II evaluate their businesses and make decisions such as which businesses and product lines they may no longer want to be involved in and risks they may want to reinsure.
Many answers are still unknown. But the preceding headings represent some of the areas in which changes may occur and greatly broaden the potential influence of Solvency II.

Bruce Langstroth, FCIA, is a member of the Committee on International Relations.
 


By Jason Vary, FCIA

Over the past year and a half I have had the pleasure of leading a group of dedicated volunteers looking at potential ways to enhance the perceived and actual value of acquiring Associate status in the Institute. Here is an update on our activities.

Background


Since the mid-1990s, there has been a constant decline in the number of Associates in the CIA. Based on our research, the primary reason for this decline is the low value of the benefits of being an Associate as compared to the level of dues. In addition, we were surprised by the pervasive lack of awareness on the part of actuarial students as to the ability to become a member of the Institute prior to Fellowship. For example, at the 2010 Practice Education Course—typically one of the final steps before becoming an FCIA—less than 20 percent of the candidates were enrolled as Associates in the CIA.

Future Fellows

Associates are very important to the Institute, as many will go on to become tomorrow’s Fellows. Increased participation by Associates at earlier stages of their careers will strengthen the CIA as an organization and provide Associates with the critical professional framework that will help shape their future.

Enhancements for Associates


A number of changes are now in the process of being implemented (most with an effective date of June 1, 2012) in order to enhance the value for Associates, including:
  • An official ACIA designation for Associates—subject to confirmation by members on June 29, 2011;
  • Voting rights for Associates who have been enrolled for five or more years—subject to confirmation by members on June 29;
  • Harmonized eligibility criteria with the SOA and CAS—if you qualify to be a ASA, ACAS or CERA, you will now qualify to be an Associate in the CIA assuming you have the appropriate Canadian professionalism course;
  • Lower dues for the first five years as an Associate;
  • A requirement to be enrolled as an Associate while obtaining the Canadian experience required to become a Fellow; however, the period is reduced to 12 months from the current 18-month requirement; and
  • More services specifically targeted for Associates, as championed by a new committee reporting to the Member Services Council.
Actuarial Networking Group

There is a clear need for the CIA to carry out additional marketing and communication programs to counteract the lack of awareness among university students and exam-writing candidates regarding Associateship and the CIA in general.

One key element of this initiative will be the establishment of an actuarial networking group. This group would have an e-mail listserver created for it to facilitate regular communication. University students, and other individuals interested in becoming or remaining connected to the Institute, would be invited to join this group.


For More Information


The first two enhancements for Associates outlined above require changes to the CIA Bylaws and a membership vote. Please refer to our March 30, 2011 memo for further details.

More information will follow, including official notice of the proposed bylaw changes, an article in next month’s (e)Bulletin and a webcast, as we approach the Annual Meeting on June 29–30, 2011.


Feedback Requested


We encourage you to provide feedback on the above enhancements for Associates to associatechanges@actuaries.ca.

Jason Vary, FCIA, is Chair of the Associateship Implementation Task Force.



 


As anybody who has had anything to do with actuarial science will know, it is a profession full of technical terms. To the outsider, listening to a conversation between two or more actuaries can be a bewildering experience thanks to such terms as accumulation factor with benefit of survival, DCAT, implicit crash value, long-tail liability and many more. Perfectly logical to those in the profession, they can mean little to those not in the know.


So it is no surprise that occasionally non-actuaries make errors when attempting to transcribe such terminology. Several such mistakes were uncovered by retired actuary Mark Campbell, who recently posted the following to the CIA’s General Listserver:

I have had occasion to review raw transcripts, freshly produced before editing, of a court case involving actuarial matters. The court recorder used a stenotype device with keys, somewhat similar to a typewriter. However, the keys do not cover the whole alphabet and are pressed in various combinations to represent phonetic sounds. The device then compares the results to a glossary and selects the word that seems closest. The initial results can be well off the mark and so the court recorder edits the raw transcripts later to clean up any problems and to improve the glossary (e.g., by adding new words unique to the actuarial field).

In reviewing the raw transcripts, I came across some amusing misunderstandings of actuarial terminology. Though they didn’t all occur in one long sentence, I have concatenated them below for your reading pleasure.

What the court recorder produced What was actually said
Members of the acupuncture aerial profession Members of the actuarial profession
use a criminal ball use a crystal ball
and make arthritic calculations and make arithmetic calculations
to determine unfounded liabilities to determine unfunded liabilities
and numb sum values and lump sum values
in order to give accurate rarely evidence in order to give actuarial evidence
Of course, you have to remove the out liars Of course, you have to remove the outliers

To join the General Listserver, go to the CIA Members Site >> Toolkit >> Update List Subscriptions (make sure you have logged in). Then click on Show list subscriptions, followed by the relevant button.


 
J. Peter Marks, FCIA(1965)
 
THIS MONTH'S PUBLICATIONS
SimErgy ERM Boot Camp, New York, June 6–8, 2011

SimErgy, in affiliation with the Canadian Institute of Actuaries and the Society of Actuaries, is proud to offer this practical hands-on training program designed to give participants tangible skills that can be applied immediately to successfully implement enterprise risk management (ERM). This unique program uses a stimulating and dynamic combination of lectures, individual exercises, large and small group exercises, and case studies. Limited space is available.

Link: http://www.simergy.com/seminars

Contact with Questions: Alicia Rollo, CHRP, director, education and professional development; alicia.rollo@actuaries.ca

CIA Secretariat to no longer accept payments by American Express

The Committee on Finance met on February 9, 2011 to discuss, among other items, the proposed 2011–2012 budget. Credit card transaction fees were examined during the course of this review. Given the very high American Express transaction fees, it was decided that the Institute would no longer accept American Express as a method of payment as of April 1, 2011. This decision will reduce the Institute’s overall expenditures.


The Institute will continue to accept Visa, MasterCard and cheques.

Contact with Questions: Jacques Leduc, director, operations, finance and administration, jacques.leduc@actuaries.ca
 

CPD Compliance Reviews – Are your records up to date?

In 2008, the CIA approved the Policy on Monitoring Compliance with the Continuing Professional Development (CPD) Qualification Standard, requiring that the Eligibility and Education Council establish a formal process to monitor and verify compliance and outline the nature of review or audit that would be performed.

As indicated in the CIA Qualification Standard in sections 2.2 and 2.4, members are required to retain personal records of their CPD activities for a period of five years and should be able to support claims that the activities are relevant and appropriate.


The CPD Compliance review process will begin in early May 2011. A stratified sample of one percent of each CPD filing category will be selected for the review. If a member is selected for a CPD Compliance Review, the individual will be notified in writing by e-mail or by mail no later than May 30. CPD records will be due from the member within four weeks of the notification date. The review will be conducted by the Secretariat and the Subcommittee on CPD Compliance.


The June 2010 (e)Bulletin article by Roger Allen contains further information on the topic.

Link: http://www.naylornetwork.com/cia-nwl/articles/?aid=71996&projid=4598
 
Contact with Questions: Alicia Rollo, CHRP, director, education and professional development; alicia.rollo@actuaries.ca
 

Discipline Notice – Notice of Disciplinary Tribunal Hearing

A discipline notice has been prepared by the Committee on Professional Conduct to inform CIA members about an upcoming Disciplinary Tribunal hearing.

In accordance with the Bylaws, a notice of a hearing before a CIA Disciplinary Tribunal is hereby provided to inform members of the Institute and the public about a current case. This notice includes the date, time and place of the hearing of the Disciplinary Tribunal and a summary of the charge.

Link: http://www.actuaries.ca/members/publications/2011/211032.pdf
 
Contact with Questions: Bill Weiland, Chair, Committee on Professional Conduct at bweiland@eckler.ca
 

Webcast – Reinsurance 101

May 11, 2011, noon to 1:30 p.m.

Concepts from risk pooling to individual insurance underwriting trends will be covered in this introductory look at reinsurance from Mark Lombardo, FSA, director of individual life pricing at Munich Re in Toronto.

Aimed at actuarial associates (ASAs and new FSAs) and designed to be at the basic/intermediate level, the webcast will look at fundamental reinsurance concepts such as the purpose of reinsurance, terminology, and treaties.

Mark will also address what he describes as slightly more complicated topics, including the reserve and capital impact of reinsurance, and trends in the individual reinsurance marketplace, including retentions and capacity.

To register, click on the link below.

Link: http://www.actuaries.ca/webcasts/index_e.cfm
 
Contact with Questions: Leona Campbell at leona.campbell@actuaries.ca; telephone: 613-236-8196 ext. 124; fax: 613-233-4552
 

Reserve a room now for the CIA Annual Meeting on June 29–30, 2011

We encourage anybody who is planning to attend the CIA Annual Meeting on June 29–30 to book a room as soon as possible, given the high demand for accommodations in the city on the dates surrounding the July 1 visit of Prince William and Kate Middleton. The CIA has reserved a block of rooms at the Westin Ottawa—the meeting’s venue—at a special rate, but it may fill up quickly. Information on the rates can be found here.

To make your reservation visit here, or call the hotel on (613) 560-7000 and be sure to mention that you are booking within the Canadian Institute of Actuaries Annual Meeting room block. Reservations may be cancelled without charge up until 4 p.m. on the day of your arrival.

Those interested in extending their stay to include the royal visit on Canada Day should check here nearer July 1 for details of the day’s events.

See you in Ottawa!


Contact with Questions: Nancy Jenkinson, manager, meeting services, at nancy.jenkinson@actuaries.ca; telephone: 613-236-8196 ext. 104; fax: 613-233-4552

The Hugh G. White Memorial Scholarship

In memory of Hugh G. White, his family, friends and colleagues have established an endowment fund with the Actuarial Foundation of Canada to provide two annual scholarships of $1,000 each to high school students entering an actuarial science or mathematics program at a Canadian university. The first scholarships will be available for the 2011-2012 academic year.

Hugh was a prominent actuary with Eckler Ltd. which he joined in 1999. Hugh consulted in the Property & Casualty practice, was Head of the Financial Services group, and served on Eckler’s Board of Directors. Prior to joining Eckler, Hugh spent 31 years with Zurich where his positions included Head of Underwriting and Risk Management, Chief Financial Officer, and Chief Actuary.

Throughout this career, Hugh devoted a great deal of time and energy as a volunteer in the work of the actuarial community. At the time of his death, he was the Secretary-Treasurer of the Canadian Institute of Actuaries and a Director Emeritus of the Actuarial Foundation of Canada. These were only two in a long list of volunteer positions Hugh undertook demonstrating his great willingness to help the profession evolve and improve.

Donations, qualifying for tax-deductible receipts, are welcome and may be made through the Actuarial Foundation of Canada’s website.

To read more on the Hugh G. White Memorial Scholarship, please visit  here.

Links:
Donation form: http://www.actuaries.ca/meetings/contribution_form_e.cfm
.

Memorial Scholarship Description: www.actuaries.ca/afc/hugh_memorial_e.cfm
 
Contact with Questions: Ronald J. Harasym, director, board of directors, Actuarial Foundation of Canada, at ronald_j_harasym@newyorklife.com
 

Canadian Individual Annuitant Mortality Experience – Policy Years 1996 to 2006

This document contains summary results for the Canadian Individual Annuitant Mortality Experience for Policy Years 1996 to 2006. There are a number of tables referenced in section 6, which will be available online at http://actuaries.ca or by requesting paper copies through the CIA Secretariat.


Contact with Questions: Julie Chambers, Chair, Annuitant Experience Subcommittee, at julie.chambers@londonlife.com
 

General Meeting

Results of Membership Confirmation - Changes to the Rules of Professional Conduct

A General Meeting of the Members of the CIA was held in Ottawa to formally confirm the Board’s decisions to adopt Amending Bylaw 2010-1 and Amending Bylaw 2010-2, and thereby confirm the proposed changes to Rule 6 and Rule 13 of the Rules of Professional Conduct. The meeting was also webcast to all Members.

Micheline Dionne, President, and Bob Howard, Immediate Past President, were present at the Secretariat offices in Ottawa and Daniel Pellerin, Board member, and Martin Roy, Secretary-Treasurer, joined the meeting via teleconference. No other members were present at the Secretariat offices, but over 50 members participated via webcast.

The motions to adopt the Amending Bylaws were both carried by a majority of voting members. The results of the votes (all received by proxy) were as follows:

Amending Bylaw 2010-1 (Rule 6)
Total Votes received: 386
Votes FOR: 303
Votes AGAINST: 74
ABSTENTIONS: 9

Amending Bylaw 2010-2 (Rule 13)
Total Votes received: 386
Votes FOR: 207
Votes AGAINST: 175
ABSTENTIONS: 4

It was also noted, during the meeting, that Daniel Pellerin has been asked, by Micheline Dionne, to organize information sessions to ensure a common understanding and uniform application of the new Rules. Daniel will also prepare a broader communication plan and to look at the usefulness of providing an Educational Note on Rule 13.

Contact with Questions: Michel Simard, CIA Executive Director, at executive.director@actuaries.ca
 

Continuing Professional Development (CPD) Opportunities

Mark your calendars with the following opportunities to network with your peers and accumulate structured CPD hours in 2011:

  • CIA Annual Meeting – June 29–30, 2011 at the Westin Hotel in Ottawa, Ontario;
  • CIA Actuarial Evidence Seminar – September 9–10, 2011 at the Institut de tourisme et d’hôtellerie du Québec (Québec Tourism and Hotel Institute) in Montréal, Québec;
  • CIA Seminar for the Appointed Actuary – September 22–23, 2011 at the Hilton Doubletree Hotel in Toronto, Ontario;
  • CIA Pension Seminar – November 2, 2011 at the Hilton Doubletree Hotel in Toronto; and
  • CIA Investment Seminar – November 3, 2011 at the Hilton Doubletree Hotel in Toronto.
Contact with Questions: Nancy Jenkinson at nancy.jenkinson@actuaries.ca; telephone: 613-236-8196 ext. 104; fax: 613-233-4552
 

Educational Note – Investment Return Assumptions for Non-Fixed Income Assets for Life Insurers

This educational note presents considerations and examples of the application of the Standards of Practice to the valuation of insurance liabilities that are matched in part or in whole by non-fixed income assets. It also describes considerations for selecting best estimate investment return assumptions and margins for adverse deviations for non-fixed income assets when used in deterministic scenarios for the valuation of policy liabilities of life insurers.

To read the educational note, please access the link below.

Link: http://www.actuaries.ca/members/publications/2011/211027e.pdf
 
Contact with Questions: Edward Gibson, Chair, Committee on Life Insurance Financial Reporting, at edward.gibson@empire.ca
 

Exposure Draft to Revise the Standards of Practice – General Standards – Recognizing Events in Work

This exposure draft was approved by the Actuarial Standards Board on February 1, 2011. It introduces the new subsection 1515 to the Standards of Practice – General Standards and amends subsection 1520 Subsequent Events and subsection 1820 Reporting: External User Report. The primary focus of the exposure draft is to replace the current table in paragraph 1520.17 with an event decision tree in a new subsection 1515. Other changes have been made to the definition of subsequent event and to subsection 1520 and subsection 1820 to clarify intent.

Comments on this exposure draft are invited by May 31, 2011. Please send them, preferably in an electronic format, to Stephen J. Butterfield, with a copy to Chris Fievoli. It is hoped that the effective date of the final Standard of Practice will be established before the end of 2011.

Link: http://www.actuaries.ca/members/publications/2011/211026e.pdf
 
Contact with Questions: Stephen Butterfield, Co-chair, Designated Group, at stephen.butterfield@towerswatson.com
 

Webcast: Risk Adjustment – Lessons Learned

March 30, 2011: 4 p.m. EDT
March 31, 2011: 4 a.m. EDT

The International Actuarial Association’s Health Section (IAAHS) is inviting CIA members to register for a webcast, Risk Adjustment – Lessons Learned: Featuring Three Countries’ Experience in Voluntary Health Insurance Markets. It will be of interest to health actuaries in countries that have or will soon be implementing risk adjustment (or risk equalization) in a mandatory or voluntary health insurance market. In particular, in addition to the historically wealthier countries of Western Europe which have mandatory health insurance markets (e.g., Germany, the Netherlands), this includes countries that have moved or are moving from a centralized economic model to a more market-driven model of the financing of healthcare (e.g., China, Slovenia). Furthermore, the topic is becoming increasingly important in countries with a large voluntary health insurance market where health reforms have been proposed to reduce incentives for risk-rating and risk-selection (e.g., the United States).

The webcast will include a general review of risk adjustment and its uses around the globe. John Armstrong, Heather McLeod and Dr. Francesco Paolucci, three of the authors of the Health Policy paper Risk Equalisation in Voluntary Health Insurance Markets: A Three Country Comparison, will be speakers on the webcast. Further information about the papers is available at: http://bit.ly/gWtdwT.

The 105-minute webcast—which will include a look at the global experience plus special consideration of the situation in Ireland, South Africa and Australia, and a question-and-answer session—will be offered free of charge to IAAHS members. If you have not yet renewed your membership for 2011, please contact your local actuarial association or join via the IAA website. It is being offered at different times on two days to accommodate listeners in different time zones.

To register, go here. You will subsequently receive an internet link allowing you to access the event and its audio and slide presentation. Non-IAAHS members are welcome to participate but they must pay a registration fee of CAD $50, equivalent to the IAAHS annual membership fee. This fee will also give them access to the webcast offered by the IAAHS in 2011 - we plan to have at least one more webcast during the year, which will also be provided free of charge to all IAAHS members.

Link: http://www.actuaries.org/IAAHS/Webcast/RiskAdjustment/webcast_registration.cfm

Contact with Questions: Christian Levac, IAA staff support for the IAAHS, at christian.levac@actuaries.org
 
Calendar of Events
May 11, 2011
Webcast - Reinsurance 101
N/A N/A
June 3, 2011
Professionalism Workshop
Royal York Hotel
Toronto, ON
June 5-8, 2011
Practice Education Course
Delta Ottawa
Ottawa, ON
June 29-30, 2011 Annual Meeting The Westin Ottawa Ottawa, ON
September 9-10, 2011
Actuarial Evidence Seminar
ITHQ - Québec Tourism and Hotel Institute
Montréal, QC
September 22-23, 2011
Seminar for the Appointed Actuary
Doubletree by Hilton - Toronto Airport Hotel Toronto, ON
November 2, 2011
Pension Seminar
Doubletree by Hilton - Toronto Airport Hotel
Toronto, ON
November 3, 2011
Investment Seminar
Doubletree by Hilton - Toronto Airport Hotel
Toronto, ON

Additional information on all CIA meetings can be obtained at:
www.actuaries.ca/meetings/calendar_of_meetings_e.cfm, or by contacting Nancy Jenkinson at 613-236-8196, ext.104, or nancy.jenkinson@actuaries.ca.

For information on CIA webcasts, visit http://www.actuaries.ca/webcasts/index_e.cfm.
 
 
 
Board and Council Updates
Board

Kathryn Hyland, Diane Gosselin, Mariève Tétreault, Hélène Pouliot, Rheia Khalaf and Patrick De Roy have been appointed members of the Risk Management Committee, effective immediately.

Mike Lombardi (Chair), Jim Doherty (Vice-chair), Dave Pelletier, Denis Plouffe, Mo Chambers, Jacques Tremblay, Jean-Claude Ménard, Ben Marshall, Bruce Langstroth, Lesley Thomson, David Congram, Micheline Dionne, Bob McKay and Réjean Besner have been appointed members of the Committee on International Relations, effective immediately.

Jason Vary has been appointed Vice-chair of the Eligibility and Education Council, effective immediately.

Marc-André Melançon has been appointed Vice-chair of the Member Services Council, effective immediately.

Bill Chinery, Jim Christie, Sylvie Charest, Dave Dickson and Michel Simard have been appointed to the Board Orientation Session Task Force, a new task force, effective immediately.


Eligibility and Education Council


Bruno Gagnon, Isabelle Larouche and Mathieu Boudreault have been appointed members of the Accreditation Committee.

The CPD Newsletter Subcommittee of the Committee on Continuing Education has been created with Jean Roy as chair.

Claude Paré has resigned from the Committee on Co-sponsorship on Exams.

Malcolm Kern has resigned as Chair of the Retirement Benefits Subcommittee of the Committee on Education and Examinations.

The Task Force on the Delivery of CPD has been disbanded with thanks.

Member Services Council

Jean-Pierre Cormier has been appointed a member of the Individual Life Experience Subcommittee of the Research Committee, effective immediately.


Leonard Pressey has been appointed a member of the Research Committee and Chair of the committee’s Segregated Fund Experience Subcommittee, both effective immediately.

The Op-Ed Team’s mandate has been revised as follows: "The Member Services Council (MSC) has established a team to seek out and respond to opportunities for op-ed articles and, if possible, provide a regular column to suitable publications. The Op-ed Team is responsible for drafting immediate responses to news articles and pre-planned opinion or informational pieces in appropriate media."

For information only:

The following have resigned as members of the Research Committee: Maxime Carrier, effective February 9, 2009; Denis Garand, effective March 1, 2009; Lloyd Milani, effective February 9, 2009; Janice Moorley, effective June 8, 2010; Peter Muirhead, effective August 14, 2008, and Penny Teddiman, effective April 13, 2009.