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

Canadian Institute of Actuaries/Institut canadien des actuaires

April 2012
Your Institute


By Jim Christie, FCIA

CIA President

Over the last year the Board of Directors has spent considerable energy articulating a clear and succinct vision of what we want the Institute’s future to be. At the June 2012 Board meeting we expect to put the finishing touches on that vision. Even before it is finalized there is sufficient consensus to allow the Institute to better align and coordinate our extensive and diverse volunteer efforts. In particular there was clear agreement on two directions for the Institute, namely:
  1. Being a member of CIA is regarded as essential for all actuaries practising in Canada. All actuaries practising in Canada are active members of the CIA and view the CIA as their primary actuarial affiliation and the body with which they are most engaged.
  2. The CIA is viewed as an educational body, not just an accreditation body. It takes full accountability for the educational path to FCIA (which may involve outsourcing) with the FCIA recognized as being a high quality stand-alone educational designation (i.e., not having to be aligned to another designation).
This consensus in turn has helped to focus the Institute on a number of initiatives designed to increase the emphasis on attracting members and actuarial candidates much earlier in their actuarial careers. To that end we have launched the following initiatives:
  • The University Accreditation Program (UAP) gets underway in September 2012, and will provide an exciting new alternative approach for candidates to earn credits for certain of the early actuarial examinations by achieving superior grades in specific university courses offered by Canadian universities with very strong actuarial programs. The Institute will be responsible for ongoing monitoring of the high standards set during the initial accreditation process. One additional benefit of candidates applying directly to the Institute to receive UAP credits will be much earlier recognition of the role the CIA plays in the careers of all Canadian actuaries.
  • A new concept for Associates comes into force in June 2012. Dues have been lowered for new Associates and the initial qualification criteria aligned with other actuarial career milestones to encourage qualified individuals to become members of the Institute. The new ACIA designation will allow actuarial individuals to become members of the Institute much sooner and will help make the Institute more relevant during the formative stages of their actuarial careers.
  • The chairs of all committees and task forces have been asked to intensify their efforts to recruit younger members where and when appropriate.
  • We have created a new electronic forum, the CIA Network, to allow those interested in pursuing actuarial careers to establish a formal link to the Institute before they qualify as members, and particularly while they are still in university.
  • The CIA is now on Twitter, so that members will be able to follow the Institute through a familiar social network.
  • This year the Institute conducted its first full membership survey since 2005. The information gathered was valuable in assessing both member satisfaction and identifying where additional efforts are most needed. We now intend to conduct full member surveys every five years.
  • For more immediate and regular feedback the Member Services Council will be establishing the Member Listening Group, consisting of a cross-spectrum of members who will be asked via short electronic polls to provide a sense of what the membership feels about topical issues. We expect to roll this initiative out in the coming month.
  • To better understand what actuarial employers want from the Institute and from the actuarial education system, the Past President, President-elect, Executive Director, and I have undertaken a series of interviews with a cross-section of Canadian-based actuarial employers.
If you have any questions or comments, please feel free to write to me at president@actuaries.ca.

Jim Christie, FCIA, is President of the Canadian Institute of Actuaries.
 
Spotlight


By Dave Dickson, FCIA

The changes to the CIA’s eligibility requirements are fast approaching. These modifications, which become effective June 1, 2012, will provide CIA Associates with more value for their membership. There are also changes to the Fellowship eligibility requirements that should be noted.

For Associates, the eligibility requirements to become an Associate of the CIA will now be similar to the requirements to become an Associate of the Society of Actuaries (SOA) and of the Casualty Actuarial Society (CAS). As of June 1, 2012, Associates of the CIA must have:
  • Credit for exams P/1*, FM/2, MFE/3F, MLC/3L and C/4 (*CIA university course exemptions are not available for exam P/1);
  • VEE credit from the SOA or CAS, or the equivalent exams through another recognized actuarial association;
  • Completed the SOA Fundamentals of Actuarial Practice e-learning course or CAS Online Courses 1 and 2;
  • Passed CAS Exam 5 and 6 (property and casualty candidates only); and
  • Completed the CIA Professionalism Workshop or approved CAS Course on Professionalism when offered in Canada.
Therefore, candidates who have completed the requirements for the ASA, ACAS, or CERA credential will likely automatically qualify to become an Associate of the CIA.

Existing Associates of the CIA who meet these new eligibility requirements as of June 1, 2012, will be able to continue as Associates of the Institute, and they will be able to use the designation ACIA (Associate of the Canadian Institute of Actuaries), which was previously not permitted. New Associates enrolling with the CIA after June 1, 2012, will also be able to use the designation as long as they meet the new requirements.

Associates who have been enrolled for five or more years as of June 1, 2012, will be able to vote on CIA business issues at general meetings and will be able to vote in Board elections.

Dues for Associates are also changing. For the membership year beginning June 1, 2012, dues for new Associates will be lowered to 30 percent of Fellow dues for the first five years. For Associates enrolled for five or more years, dues will be 85 percent of Fellow dues.

Some existing Associates may not meet the new requirements, and have been contacted to ensure that the CIA has the most up-to-date information on file regarding their qualifications. Associates who do not meet the new requirements will not be able to continue as Associates, and will not be able to use the ACIA designation. However, the CIA wants to ensure that there is still a way for these individuals to remain connected to the Institute. As a result, the Member Services Committee has created an actuarial networking group, called CIANet, which will allow individuals to remain involved in the CIA by receiving announcements and having access to the website. The fee for subscribing to CIANet will only be $100 per year. The CIA plans to open this group up to students studying actuarial science, who will not be required to pay the annual subscription fee as long as they remain enrolled in full-time studies.

Candidates considering becoming a Fellow of the CIA should be aware that as of June 1, 2013, to become an FCIA, a candidate must have been enrolled with the CIA as an Associate for a minimum of 12 months while obtaining their Canadian work experience. Therefore, anyone planning to attend the Practice Education Course beyond June 2012 should consider enrolling as an Associate of the CIA this year.

And finally, a brief reminder that while the CIA has no official authority over the term "actuary", the Institute considers only Fellows to be fully qualified actuaries, and therefore reserves "actuary" for FCIAs only.

Questions regarding the upcoming changes for Associates can be directed to Associatechanges@actuaries.ca.

Dave Dickson, FCIA, is Chair of the Eligibility and Education Council and a member of the Committee on Professional Conduct.
 
MOVERS AND SHAKERS

The complexities of modern business life can be difficult and time-consuming to overcome. Every day, the office throws up new challenges concerning time management, leadership, problem solving and more.

Some people sign up for courses to learn how to tackle these situations and work better. But every year millions of others turn instead to the advice from Mind Tools.

Launched in 1996 as a free skills training site, Mind Tools now offers a "toolkit" totaling 600 "mind tools" (some of which are available only to members, who pay a monthly fee of up to $27 USD). The kit covers such categories as:
Within each category are various resources designed to support everyone from managers who want to get ahead by learning new techniques to young professionals eager to gain the skills that might make them a candidate for promotion. Those searching in the Time Management category, for instance, will discover a quiz to help them target the techniques that will help them most; information on prioritization tools like paired comparison analysis and the action priority matrix; and a description of the five golden rules of goal setting.

The free and paid-for (members-only) lessons are clearly indicated, and offer both high-level and practical advice. Visitors willing to pay for more intensive training can obtain in-depth courses; join the Career Café to learn from fellow members; participate in 80-plus coach-led discussions on personal development; 70 expert interviews; podcasts; and 60-plus one-hour courses.

Those in management roles can also enlist their company in a corporate section, which gives them access to 1,000 resources, customized training, activity reports and more.

So far, the training has gained many followers: Mind Tools says its site is visited by 15 million people a year, and its regular electronic newsletter now reaches more than 300,000 subscribers.

The organization believes its lessons, when used together, "can help you become exceptionally effective, be a great manager and leader, be more successful in your career—and even become happier at work".

Pros: the variety of advice available; the clarity of writing.

Con: the repeated promotions for the paid-for sections or other sign-up resources.

Address: www.mindtools.com

 
Institute News

The Elections Committee is pleased to present its slate of candidates for election to the CIA Board for terms beginning in 2012. There are eight candidates for Director 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 as well as any members who put their names forward.

Position statements and biographical data for all of the candidates for 2012 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 2012 CIA Election Campaign Discussion Forum, with all discussion ending at noon (EDT) on May 3, 2012. 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 3, 2012.

President-elect


Jacques Lafrance
David J. Congram

Director


Jamie Jocsak
Angela Jonkhans
Joseph F. Nunes
Jean-Yves Rioux
Robert H. Stapleford
Daniel G. Doyle
Sharon Giffen
Michel Giguère
 


The nation is once again suffering Stanley Cup fever, with the play-offs putting countless hockey fans on the edge of their seats.

Like millions of others, actuary Alan Ryder will be analyzing the games and hoping to predict the outcome. However, unlike those millions, he will be using statistical and actuarial expertise that led to him being approached by NHL teams eager to benefit from his knowledge.

The CEO of Aurigen Reinsurance, Mr. Ryder, FCIA, FSA, MAAA, is renowned for his website hockeyanalytics.com, which attracts hockey lovers keen to discover the numbers behind the scorelines.


Thanks to his background in statistics and a career as an actuary, Mr. Ryder has been able to produce detailed calculations that can reveal the most important players on a team and much more. His site covers such topics as the applications of the Poisson distribution, win probabilities, the "five laws of hockeynomics", and the impact of puck possession.


All this is a long way from 2002, when he was inspired by the book Win Shares. Written by Bill James, the grandfather of baseball analytics, it set out to allocate team wins to individual players. A lifelong hockey fan who enjoyed recording such data as line combinations and the location of shots on goal, Mr. Ryder devised Player Contribution, his own system for determining the contribution of individuals to a team’s wins.


His model of shot quality was groundbreaking work. About it he said: "A simple model for the allocation of goal prevention accountability is that ‘defense prevents shots’ whereas ‘goaltending stops shots’. But all shots are not the same. There are significant variations in quality. So I set out to improve on this simple model by building a predictive model for goals based on observable shot quality factors such as distance and shot type. This shot quality model assessed the factors and produced the probability of a goal.


"As a good actuary I wanted the model to be ‘reproducing’—the model’s expected goals should equal the actual goals while even-handed, on the power play, and while short-handed, and across all shot types. When you sum up the shot probabilities for each shot in a game you get the expected goals in that game. This thinking ought to be familiar to any actuary. And this thinking is now used by several NHL teams to better assess team and individual performance, as the number of goals actually scored has a significant random element."


Hockeyanalytics.com has become so well regarded that Mr. Ryder has been offered consulting assignments by NHL teams, and has enjoyed one-on-one sessions with some of their senior managers. However, he prefers to treat the site as "an enjoyable hobby".


Years of analysis have meant that he now views games differently. "When I was younger I used to follow the offense. But now I watch the defence a lot more. Defence is the least understood part of the game because there are no readily available statistics that describe it. That’s not the case with forwards—conventional statistics help us there. How does a fan know whether a defenseman is playing well? They really don’t have any guidance.


"Actuarial science has given me a very specific framework to think about problems. One of the things that you need to study hockey through an analytic lens is an understanding of randomness. The puck bounces around a lot. Sometimes it finds its way into the net. Without an understanding of probability, you may not know what the numbers mean."


The baseball-centred book Moneyball, which was the basis of a hit film starring Brad Pitt, has brought the area of sport-related analytics to wider public attention. Mr. Ryder said: "It popularized the notion that you could get somewhere with this thinking. And as a business book Moneyball is excellent, as it has a clear message: there is something to be gained in the identification and acquisition of undervalued assets.


"Hockey is a difficult game to measure. You could easily model baseball on a computer, as it has so many discrete events. But hockey is the most fluid team sport. And so much of it is a function of energy and passion."


The passions surrounding hockey have brought Mr. Ryder into conflict with some fellow fans. During the three seasons he spent writing an analytical column for GlobeSports.com, which was open to readers’ comments, he had to develop a "very thick" skin. "Many fans do not believe that statistics can be useful, and most people want to believe their eyes, not the numbers. But, for instance, the difference between average and marginal goaltending might be only one goal every three or four games. You have to watch a lot of hockey to see that with your eyes. There is, however, a thoughtful community out there of other hockey analysts, sports writers, bloggers, and teams. Those people are really interested."


Like every other supporter, Mr. Ryder has an opinion on this year’s Stanley Cup. Describing himself as "a Leafs fan, unfortunately" ("I believe you should pick a team and keep supporting it"), he said: "At the end of the regular season I thought the best team was the Pittsburgh Penguins, but they are gone. Hockey is full of random events and the best team does not always win a period, a game or a series. I think St Louis could really surprise people. They are exceptionally disciplined and they win games with defence. They keep games under their control. Their goaltending is hot, which can carry you through the play-offs."


However, he added a note of caution: "There are so many ways it can go wrong."

 


Actuaries play essential roles in many organizations, working to minimize risks of all kinds. But one actuarial project has resulted in a different achievement: making sure the world always has a supply of maple syrup.

The Federation of Québec Maple Syrup Producers has just completed the acquisition of a factory warehouse that will allow for the packaging and storage of more than 220,000 barrels of maple syrup, thereby ensuring a continuous market supply, regardless of nature’s generosity. And the federation—plus maple syrup lovers—have an actuarial report to thank for this important development.

In 2008, after four years of poor harvests, demand was growing and syrup stocks were drying up. Consequently, prices soared.

Inventory support is central to controlling risk with maple syrup production, and ensuring a continual supply is essential for developing markets for maple products. So, to keep that supply flowing, Québec’s producers created a solution: a strategic maple syrup reserve.

In 2008, the federation acquired its first warehouse, in Saint-Antoine-de-Tilly, QC; that building is now filled with 15 million pounds of syrup in 23,000 barrels. Another 21 million pounds is stored elsewhere, and last year the organization had to rent extra space to cater for the harvest surplus.

However, according to a 2010 actuarial study, that is not enough. Actuarial analysis determined that, on average, the strategic reserve would have to total 40 million pounds in order to prevent stock shortfalls due to poor harvests.

Hence the recent acquisition of the 234,000 square foot warehouse in Laurierville, Centre-du-Québec. With this extra capacity, the federation now has enough space to fulfil the global strategic reserve.

The organization, which was founded in 1966 to protect and develop the interests of 7,400 producers, said markets would be able to receive a continuous supply of syrup, regardless of the harvest. Furthermore, the reserve will help to prevent discounted sales and price fluctuations, and provide stability. It will also ensure there is a secure supply in optimal storage conditions, and by planning around market requirements, Québec’s producers—whose properties are responsible for almost 80 per cent of the world’s maple syrup—can relieve some of the pressure on agricultural risk management programs run by the state.

Federation president Serge Beaulieu said: "In the long term, supply instability has a negative effect on everyone and harms development and innovation. Maple producers are eager to invest and show support for the global strategic maple syrup reserve. It’s the best strategy for managing risk in our industry, supporting its long-term development and reducing our dependence on governmental programs."


 

Kathryn Hyland, ERMAC and RMC member, addresses the CIA breakfast.


At the recent Enterprise Risk Management (ERM) Symposium in Washington, D.C., the CIA sponsored a breakfast for Canadians registered for the conference. About 30 actuaries and non-actuaries attended the event, which was aimed at helping Canadians establish relationships with other ERM practitioners and opening professional communication channels among participants.

In an effort to spend as much time on these two objectives, little space was left for lengthy speeches. CIA Executive Director Michel Simard hosted the formal part of the program. CIA President Jim Christie highlighted ERM’s increasing importance within the profession, while Jean-Yves Rioux, Chair of the Enterprise Risk Management Applications Committee (ERMAC), explained the committee’s role and projects it had undertaken.

Finally, Kathryn Hyland, a member of ERMAC and the Risk Management Committee (RMC), and the CIA’s representative with the Global Risk Institute in Financial Services (GRIFS), discussed the GRIF’s plans and work.

 

A section of a typical online poll.

In November the CIA Board asked the Communications Committee, through the Member Services Council (MSC), to look into the possibility of creating a member listening group (MLG).
 

It would be similar to the Member Advisory Panel (MA
 P) created by t he Casualty Actuarial Society (CAS) several years ago. The MAP i s an on-call survey team composed of more than 100 volunteers who are polled regu larly on a v ariety of  issues of importance to the CAS Board and various committees.

After reviewing information on this type of group and meeting twice with Mike Boa, the CAS director of communications and marketing, the Communications Committee has recommended that the MSC create a similar team in Canada.


The MLG would consist of a representative group of between 100 and 150 CIA members who would volunteer on a confidential basis to be consulted on a variety of issues by the CIA Board, Secretariat, councils, committees or task forces.

Communications Committee Chair Stephen Cheng explained: "The committee will oversee the administration of the MLG, from recruiting members and maintaining a consistent member profile to consulting with CIA groups looking to survey the MLG.

"Part of our role will be to communicate with other parts of the Institute to inform them to the existence of the MLG and to encourage its use as a resource for their work. We will also touch base with the CIA membership to inform them of the creation of the MLG, to create awareness of its role for the Institute, and to foster the development of the MLG as a voice of the membership."

At its meeting in March, the MSC approved the plan to create the MLG, and adopted changes to the mandate of the Communications Committee to accommodate this new responsibility.

The plan for the next few months is to:
  1. Create the online sign-up facility for members to use to register for the MLG;
  2. Integrate this new process into the CIA environment; and
  3. Communicate the availability of this exciting new resource to all council, committee and task force chairs.
More detailed information will be made available to members in the next issue of the (e)Bulletin.

 
Peter G. Grant, FCIA (1965), FSA (1965), who died this month at the age of 74, graduated in actuarial science from the University of Western Ontario in 1959.

He first worked as an actuarial assistant at Manufacturers Life in Toronto, but in 1965, having obtained his CIA and SoA Fellowships, he turned to pension consulting at Towers, Perrin, Forster & Crosby (later Towers Perrin, now Towers Watson), also in Toronto. In the early 1970s he transferred to the company's office in London, England, but later returned to North America, remaining at Towers' Chicago office until his retirement.

An avid golfer, he spent his retirement years in Ponte Vedra Beach, FL, and Kenilworth, IL.

Raymond L. Whaley, FCIA (1965), FSA (1957), was born in Mount Hope, ON, in 1929. He graduated from the University of Toronto in 1950 with a degree in Mathematics and Physics, before beginning a long career which involved 40 years at the Prudential Insurance Company Canada. He retired from the Prudential as senior vice-president.

Mr. Whaley remained active in his retirement, including become President of Living and Learning in Retirement - the oldest Third Age learning program in Canada - at York University's Glendon College.

A former member of the CIA's Council and committees including Publications and Morbidity, and an ex-member of the International Actuarial Association, he died at the age of 82 at St. Michael's Hospital in Toronto.
 
Christian Dufour, FCIA, FSA, has been named vice-president of administration and client services for the individual insurance and financial services sector at La Capitale. He joined the company in 1991, and has since held several management positions.

Kiersten Johnston, FCIA, FSA, a consulting actuary with more than 12 years' pension consulting experience, has joined Eckler in Toronto, ON, where she will provide strategic advice on the design, funding, administration and financial management of pension and other retirement benefits programs. She will also work with clients on plan implementation and more.

Éric Marcoux, FCIA, FSA, has become executive vice-president, group insurance, at La Capitale Insurance and Financial Services. Since joining La Capitale in 1995, he has held various management positions.

Anne Vincent, FCIA, FSA, has been named vice-president, corporate actuarial at SCOR Global Life Canada, based in Montréal, QC. She previously worked as a consultant at Eckler.

_______________________________________

 Networking is a key part of any successful professional's career, and the CIA is offering you a fresh opportunity to inform your peers about your achievements and progress.

Our (e)Bulletin section, Actuaries on the Move, is a chance for you to publicize your new job, title, credentials or other information. This is an opportunity to tell thousands of fellow actuaries and financial professionalswhether they are ex-colleagues, former college friends, potential employers, future clients, etc.about, for example:

  • Your new job;
  • A change of title or area of responsibility;
  • Your new qualifications;
  • A change of contact details;
  • Awards or other recognition; or
  • Publication of academic papers or articles.
Simply send an e-mailone line of information can be enough, but feel free to add more if you so wishto the CIA's English Editor at andrew.melvin@actuaries.ca and we will aim to include it in the next issue of the (e)Bulletin.

Please include a daytime telephone number and, whenever possible, a colour hi-res photograph. Information must be received at least a week before the final working day of the month to be considered for inclusion in the next issue.
 
THIS MONTH'S PUBLICATIONS
The CIA is on Twitter

Actuaries and the public can now follow the Institute on Twitter, at @CIA_Actuaries.

Tweets will highlight forthcoming events, publicize new documents, and pass on important information, and Twitter buttons have been added to the CIA's public website and Members Site to allow anybody to follow the CIA's English or French accounts.

We encourage all members to click on the appropriate button here or directly at our Twitter page. By following the CIA, and retweeting any posts you feel would be of interest, you help ensure that the work of the Institute and its members can reach the widest possible audience, constantly raising the profile of the Canadian actuarial profession.

Link: http://twitter.com/cia_actuaries

Contact with Questions: Les Dandridge, director, communications and public affairs, at les.dandridge@actuaries.ca


ERM Webcasts
 
The 10 Key ERM Criteria

Wednesday, March 28, 2012
12:15 p.m. to 1:15 p.m. (EDT)

Speaker: Sim Segal, president, SimErgy Consulting LLC

This webcast presents the 10 key criteria that define best practices for an ERM program, and which can be used to benchmark the robustness of any ERM program. We will discuss common industry practices and evaluate them against each of these 10 criteria, and discuss the advantages and disadvantages for each key criterion.

Five Keys to Successful Risk Identification

Wednesday, April 25, 2012
12:15 p.m. to 1:15 p.m. (EDT)

Speaker: Sim Segal, president, SimErgy Consulting LLC

Since risk identification is the first step in the ERM process cycle, most assume that by now standard practice must be best practice, but this is not the case. This webcast discusses the critical mistakes commonly made in risk identification that can derail an ERM process, and the five keys to successfully avoiding them.
 
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

Notice of Intent – Amendment to the Practice-Specific Standards for Pension Plans – Reporting of Incremental Cost and Sensitivity Information on a Hypothetical Wind-up or Solvency Basis

The Actuarial Standards Board (ASB) is proposing to amend paragraph 3260.06 of the Standards of Practice to exempt its application to the types of report described above and, possibly, other comparable types of report.

In view of the expected benefits and limited scope of this proposed change, the ASB plans to proceed with this proposal on an expedited basis with shorter than normal comment periods, with an objective of adopting the revised Standards of Practice by June 30, 2012.

The ASB is soliciting feedback on this notice of intent from members of the CIA and other stakeholders. Comments on the proposed changes are invited by April 16, 2012. Please send them to Michael Banks at michael.banks@mercer.com, with a copy to Chris Fievoli at chris.fievoli@actuaries.ca.

Link: http://www.actuaries.ca/members/publications/2012/212014e.pdf

Contact with Questions: Michael Banks, Chair, Designated Group, at michael.banks@mercer.com

Exposure Draft to Revise the Practice-Specific Standards for Post Employment Benefit Plans

The attached exposure draft was approved by the Actuarial Standards Board on January 31, 2012. It represents a complete rewrite of part 6000 – the Practice Specific Standards of Practice for Post-Employment Benefit Plans.

Comments on this exposure draft are invited by May 15, 2012. Please send them, preferably in an electronic format, to Ellen Whelan at ewhelan@eckler.ca, with a copy to Chris Fievoli at chris.fievoli@actuaries.ca.

It is anticipated that the effective date of the final standard of practice will be January 31, 2013.
 
Link: http://www.actuaries.ca/members/publications/2012/212013e.pdf

Contact with Questions: Ellen Whelan, Chair, Designated Group, at ewhelan@eckler.ca

A New Opportunity for Continuing Professional Development (CPD) in 2012

The CIA Investment Seminar has been added to the line-up of CPD opportunities for 2012. The seminar will be held on September 27 at the St. Andrews Club & Conference Centre on King Street West in Toronto, Ontario.

Add it to the following opportunities to network with your peers and accumulate structured CPD hours:
  • CIA Annual Meeting—June 21–22, 2012, at the Doubletree by Hilton Hotel Toronto Airport;
  • CIA Actuarial Evidence Seminar—September 14–15, 2012, at the Waterside Inn in Port Credit, Ontario;
  • CIA Seminar for the Appointed Actuary—September 20–21, 2012, at the Fairmont Royal York Hotel in Toronto, Ontario; and
  • CIA Pension Seminar—November 5, 2012, at the Hilton Montreal Bonaventure Hotel in Montréal, Québec.
Contact with Questions: Nancy Jenkinson at nancy.jenkinson@actuaries.ca; telephone: 613-236-8196 ext. 104; fax: 613-233-4552

CPD Compliance Statements are Past Due

All Fellows, Affiliates and Associates of the Institute must submit an annual compliance or exemption statement, in accordance with the Policy on Monitoring Compliance with the Continuing Professional Development (CPD) Qualification Standard, by February 28 each year.
 
The ONLY exception to the policy is for members whose dues are waived under Category 1A – Retirement of the CIA Waiver of Dues Policy. As a reminder, Category 1A is for members whose age plus number of years of enrolment in the CIA total 75 or more, and the person is no longer practising as an actuary for financial gain.

CPD compliance statements were due on February 29, 2012. If you have not filed, please do so immediately.

If you qualify for an exemption from CPD compliance, you must still file a compliance statement.

If you have not met the requirements of the CPD Qualification Standard and as a result are unable to file a statement, you must submit an Application to Remedy CPD Deficiency. This form is available from the Secretariat upon request.
 
Links:
Policy on monitoring compliance (please remember to log in to the Members Site first)

CPD filing (please remember to log in to the Members Site first):

Contact with Questions: Leona Campbell at leona.campbell@actuaries.ca; telephone: 613-236-8196 ext. 124

Thousandth Chartered Enterprise Risk Actuary Named

Global risk management has achieved a milestone: 1,000 people have earned the prestigious Chartered Enterprise Risk Actuary (CERA) credential.

The latest recipient of a CERA credential, of which the CIA is an award signatory, is Karl Schriek, a Fellow of the Actuarial Society of South Africa who works as an actuary at General Reinsurance Africa. He said: "I am excited about what the CERA qualification has to offer. It is a truly robust risk management credential and CERAs are well positioned to play a leading role in the future of risk management."

The CERA was established in the U.S. by the Society of Actuaries (SOA) in 2007, and two years later 14 national associations—including the CIA—joined to create the global CERA credential, which addresses the growing need for highly qualified risk professionals, especially in the finance sector. There are four variants of the initials which are used by members of the CERA Global Association: Chartered Enterprise Risk Actuary, Chartered Enterprise Risk Analyst (the award given by the CIA and SOA), Certified Enterprise Risk Actuary and Certified Enterprise Risk Analyst.

Fred Rowley, chair of the association, said CERAs were held to professional standards of conduct that identified the responsibilities they had to the public, their clients and their employers, and to the actuarial profession. He added: "Organizations that rely on CERAs can make smarter, more confident decisions related to complex risk management challenges affecting business and society.

Link: click here.

Contact with Questions: Alicia Rollo, CIA director of education and professional development, at alicia.rollo@actuaries.ca

Online Directory Has Been Enhanced

The Online Directory of Actuarial Memberships, which includes members of the CIA, American Academy of Actuaries, American Society of Pension Professionals & Actuaries, Casualty Actuarial Society, Conference of Consulting Actuaries, and Society of Actuaries, has been enhanced. Actuaries can now add a professional bio and photo to their directory listing, and link to a company or personal website, LinkedIn profile, Twitter feed and Facebook account.

If you choose not to share this information, no additional changes are needed. To explore these enhancements or update your listing, visit the link below.

Link: https://www.actuarialdirectory.org/

Contact with Questions
: CustomerService@actuarialdirectory.org

Educational Note – Valuation of Universal Life Insurance Contract Liabilities

The Committee on Life Insurance Financial Reporting has developed the attached Educational Note – Valuation of Universal Life Insurance Contract Liabilities. This educational note presents considerations and examples of the application of the Standards of Practice to the valuation of universal life insurance contract liabilities in Canadian financial statements prepared in accordance with Generally Accepted Accounting Principles (GAAP).

Link: http://www.actuaries.ca/members/publications/2012/212012e.pdf

Contact with Questions: Edward Gibson, Chair, Committee on Life Insurance Financial Reporting, at edward.gibson@empire.ca

Notice of Charges and Referral to a Disciplinary Tribunal

The Committee on Professional Conduct has filed charges against a member of the Canadian Institute of Actuaries (CIA). These charges have been referred to a disciplinary tribunal.

Pursuant to the new Bylaw 20.04(3.1) (in force since July 1, 2005), a notice of the filing of charges and their referral to a CIA disciplinary tribunal is hereby provided to inform Institute members and the public about a current disciplinary case involving a member.

In accordance with the bylaw, this notice includes the charges, the name and the principal practice address of the member in question, and the specialty area in which they practise, if any. The notice also includes a statement advising that the member has been charged, but that the disciplinary tribunal hearing has not yet been held and its decision not yet rendered.

To read the notice, please access the link below.

Link: http://www.actuaries.ca/members/publications/2012/212010.pdf

Contact with Questions: Wayne Berney, Chair, Committee on Professional Conduct, at wberney@shaw.ca

ALM 101 Webcast

Tuesday, March 6, 2012
Noon to 1:30 p.m. (EST)
Presenter: Charles Gilbert, president, Nexus Risk Management

Recent history has highlighted the importance of sound asset liability management (ALM); many of the large losses and failures suffered by insurance companies, as well as the entire pension crisis, could have been easily avoided. Pension plans, insurers and their stakeholders learned the lessons painfully as financial markets ruthlessly punished those with inadequate ALM discipline. More education for decision-makers is needed. Simplistic yet popular duration-matching strategies are not enough to protect pension plans and insurance companies from the multiple dimensions of the interest rate risk exposure they face.

The webcast will provide an overview of the evolution of ALM, present fundamental concepts and discuss the uses and limitations of common risk metrics. ALM 101 is aimed at ACIAs and new FCIAs and is designed to be at the basic/intermediate level. It will be followed by a question-and-answer period.

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
 
Calendar of Events

May 30, 2012
Webcast
Creating and Delivering Effective PowerPoint Presentations N/A
June 3-6, 2012 Practice Education Course Delta Ottawa Ottawa,
Ontario
June 20, 2012
Professionalism Workshop  DoubleTree by
Hilton Hotel Toronto Airport
Toronto, Ontario
June 21-22,
2012
Annual Meeting DoubleTree by
Hilton Hotel Toronto Airport
Toronto, Ontario
September 14-15, 2012
Actuarial Evidence Seminar
The Waterside Inn Port Credit, Ontario
September 20-21, 2012
Seminar for the Appointed Actuary
Fairmont Royal York Hotel Toronto, Ontario
September 27, 2012
Investment Seminar
St. Andrew's Club
Toronto, Ontario
November 5, 2012 Pension Seminar Hilton Montreal Bonaventure Montréal,
Québec
November 16,
2012
Professionalism Workshop InterContinental Hotel
Toronto, Ontario
December 6, 2012 Professionalism Workshop Hilton Montreal Bonaventure Montréal,
Québec
June 20-21,
2013
Annual Meeting
Hilton Montreal Bonaventure Montréal,
Québec
June 2014
Annual Meeting
TBC
Vancouver, BC

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

Mathieu Boudreault and Thomas Hinton have been appointed members of the Eligibility and Education Council (EEC), effective immediately.

The Education Task Force and the Task Force on Governance have been disbanded with thanks from the Board.

Chris Townsend has been appointed a member of the Committee on International Relations, effective immediately.

Anne Vincent and Dave Dickson have been made responsible for answering inquiries on the proposed bylaw amendments related to the removal of a Board member from office.

A 50th Anniversary Task Force—focusing on ways of promoting the anniversary—has been created with the following members: Richard Bisson, Martin Roy, Gary Walters, and John Have, plus one member from each council (to be announced). The 50th Anniversary Task Force established by the EEC, and consisting of Gary Walters (Chair), Claire Bilodeau, Dave Dickson, Angelita Graham, John Have, and Christina Lambie, has been renamed the Task Force on the 50th Anniversary Annual Meeting Celebration.

A CIA Policies Task Force has been created, effective immediately, with the following members: Simon Curtis, Chris Townsend, Michel Simard, and Lynn Blackburn.


Member Services Council

Brian Pelly has been appointed a member of the Committee on P&C Insurance Pricing, effective immediately.

Eric Trudel and Mark Pawziuk have been appointed members of the Group Insurance Committee, effective immediately.

Shannon Patershuk has been appointed a member of the Enterprise Risk Management Applications Committee.

The Communications Committee has recommended that the MSC create a Member Listening Group (MLG), consisting of a representative group of between 100 and 150 CIA members who volunteer, on a confidential basis, to be consulted on a variety of issues by the CIA Board, Secretariat, councils, committees or task forces. The Communications Committee will be responsible for oversight of the MLG and its projects and will consult on questionnaire design.

For Information Only:

Nikolai Serykh and Janice Moorley have completed their terms as members of the Annuitant Experience Subcommittee of the Research Committee, effective immediately, and leave with thanks from the subcommittee.

Marie-Pierre Ouedraogo has completed her term as a member of the Committee on Volunteer Initiatives, effective September 14, 2010, and leaves with thanks from the committee.

Normand Frenette has completed his term as a member of the Communications Committee, effective immediately, and leaves with thanks from the committee.

Kathy Thompson has completed her term as a member of the Group Insurance Committee, effective immediately, and leaves with thanks from the committee.

Practice Council

Jeffrey Muller has been appointed a regulatory representative on the Committee on Risk Management and Capital Requirements.

Tony Williams has been appointed Chair, and Ross Dunlop Vice-chair, of the Committee on Investment Practice.

Gordon Lang has been appointed a member of the Task Force on Fair Market Value (FMV) of Life Insurance Policies for Ownership Transfer and Related Purposes.

Michèle Boivin has been appointed a member of the Committee on Post-employment Benefit Plans.