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

Canadian Institute of Actuaries/Institut canadien des actuaires

May 2012
Your Institute

By Jim Christie, FCIA

CIA President

During the last month I have had the pleasure of attending several international actuarial meetings.

Firstly, at the annual meeting of the North American Actuarial Council held in Niagara-on-the-Lake, I hosted the presidents, presidents-elect, and executive directors of five U.S.-based and three Mexican actuarial organizations:
  • Society of Actuaries;
  • Casualty Actuarial Society;
  • American Academy of Actuaries;
  • Conference of Consulting Actuaries;
  • American Society of Pension Professionals & Actuaries (ASPPA) College of Pension Actuaries;
  • Colegio Nacional de Actuarios;
  • Asociación Mexicana de Actuarios; and
  • Asociación Mexicana de Actuarios Consultores.
I then attended the Casualty Actuarial Society’s Spring Meeting in Phoenix, AZ, together with representatives of several other actuarial bodies, including:
  • Institute of Actuaries of Australia;
  • Institute and Faculty of Actuaries; and
  • Society of Actuaries.
Finally, I attended the semi-annual meeting of the International Actuarial Association in Los Angeles, together with representatives of most of its 63 full member and 26 associate member actuarial associations.

What struck me most during these meetings was the commonality of issues and concerns facing most actuarial organizations, coupled with a tremendous diversity in approaches to addressing such themes as developing standards of practice, educating or credentialing new actuaries, continuing education of existing members, and professionalism.

It soon becomes apparent that there is no single approach to these issues that will work for every actuarial association or country. However, I have been impressed by the genuine goodwill among all the organizations to cooperate, share insights, and learn from each other on all these issues.

For me it was especially valuable to participate in informal one-on-one dialogues with leaders of other actuarial organizations to compare notes on issues of mutual interest.

If you have any questions or comments, please feel free to write to me at

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

By Marc-André Melançon, FCIA

 As we are slowly approaching the 2012 CIA Annual Meeting and the ensuing summer period, let me share with you some recent developments at the Member Services Council (MSC) and its various subcommittees.

Member Listening Group

The CIA director of communications and public affairs, Les Dandridge, has written very eloquently in these pages about this new volunteer group that will play a uniquely important role in providing invaluable and very timely feedback to the CIA. I would urge you to read the article to learn more about it.

Communication Developments

As indicated in my last report on the MSC activities, there are a number of ideas being developed to improve—modernize!—some of our approaches for communicating with you, the members.

At a recent meeting in November 2011, the Board gave the MSC the mandate of proposing a strategy for communicating to various groups of stakeholders; for example: actuarial university students, regulators, employers of actuaries, and pension consultants. The communication strategy had to be looked at from the standpoint of both the message (e.g., "How are we relevant to investment consultants?") and the preferred approach we could use to reach each type of stakeholder (newsletters, social media, or e-mail?).

The MSC submitted its report to the Board in March 2012 and it has been well received, generating very good discussions. The Board has mandated the MSC to develop further the approaches for "new entrants to" (future members of) the CIA, more specifically the university actuarial students. We invite you to share your ideas on this topic.

Social Media

As the modes of communication are changing and diversifying, the CIA is mindful of the need to adapt to these new tools—and the electronic toys coming with them. You may have noticed that the CIA is now active on Twitter and its number of followers has been increasing very steadily since its inception in March. It is noteworthy that a very significant number of them are non-CIA members.

CIA Website Modernization

Since the website project was launched about two years ago, the MSC and the Secretariat have faced a number of challenges in moving it forward. In light of the budget allocated, we are trying to build a new, robust, and modern website on a not-as-current IT infrastructure. The project requires significant resources: page layout development, improvement to the search engine, creation of search indexes for the multitude of CIA documents, etc.

The project manager and the Secretariat are reviewing the working plan as well as the IT infrastructure. While we cannot provide you with a definite answer on what we can expect as a result, we sincerely hope to be make further progress again soon.

Research Projects

I am pleased to report progress on the following research projects:
  • Annuitant mortality experience studies: the study covering the years 2007–2009 is expected to be published in the second quarter of 2012, while the 2010 study would follow in the third quarter.
  • Individual life mortality study 2009–2010: the report has suffered slight delays but should be released in the third quarter of 2012.
  • Individual life term lapse study: this project is on track and should be published around year end 2012. Nine insurance companies have already provided experience data for the study, with two more to come.
  • Critical Illness Research-Based Morbidity Study: this project has been tackled exclusively by CIA members, who volunteered their time to move forward this complex project, a first for the CIA (and maybe in North America?). Based broadly on medical statistics from the general population, this project is expected to come to a conclusion with a research paper due by the end of June 2012.
  • Private Pension Mortality Study: the findings on this study will be presented at the next June 2012 CIA Annual Meeting. The actual report will follow in the third quarter of 2012.
The CIA is always listening to its members. Please share with us any good, pertinent research project ideas!

Actuarial Networking Group

This new group has now been formed to encourage exchanges among university students and other individuals who do not meet the eligibility criteria for membership, but who are interested in maintaining good contact with the CIA.
Marc-André Melançon, FCIA, is Chair of the Member Services Council.

Given the constant fluctuations in the economy, it is essential to be aware of the key issues affecting the markets today. But, as experts in forecasting and minimizing risk, actuaries also have to keep an eye on the future.

The website of the Conference Board of Canada aims to make it a little easier to remain on top of current and forthcoming economic trends, thanks to extensive research.
Describing itself as "the foremost independent, not-for-profit applied research organization in Canada", the board says its mission is to "build leadership capacity for a better Canada by creating and sharing insights on economic trends, public policy and organizational performance".
To achieve that goal, its website offers a range of research papers and analysis—some free, some paid-for—aimed at financial professionals. Recent topics include:
  • Thought leadership in risk and governance;
  • A quarterly index of business confidence, the result of sending 10 qualitative questions to senior officers of around 1,500 Canadian business organizations;
  • The importance of measuring patient experience and outcomes when integrating health systems;
  • A study of the U.S. economy;
  • Senior management compensation; and
  • De-risking for long-term success.
 The research is divided into subject areas. For example, the papers and webinars in the Risk Management category include:
  • Re-Thinking Risk: How to Proactively Approach Large External Risks;
  • The Role of the Board in Fraud Risk Management; and
  • The Adoption and Diffusion of Risk Governance Structures and Practices.
 Although most reports are in English, hundreds are available in French, along with Québec-focused analysis and studies.
Besides the paid-for material, the site also includes free studies, speeches, and commentaries, on subjects like:
  • Women in senior management;
  • The case for regionalism;
  • Whether Cuba could be the next China; and
  • The federal budget.
 The organization also offers conferences and access to e-data, plus a free e-magazine, Inside Edge, which currently features articles on such issues as tax reform, leadership, and workplace mental health.

Pros: the diversity of information; the clear layout.
Con: the cost of certain material may be prohibitive to some.
Institute News

By Jason Vary, FCIA

It gives me great pleasure to remind everyone that starting on June 1, 2012, CIA Associates who have met the new eligibility requirements can use the letters ACIA after their names.

The CIA is proud to recognize the achievement of Associate status in the Institute and the hard work and dedication it represents.

Associates are tomorrow’s Fellows; the CIA needs their input and involvement to help the Institute to continually evolve as the voice of the actuarial profession in Canada.

Voting rights are now extended to Associates five full years after they obtain Associate status with the Institute, acknowledging that they have been an active part of the Institute for a significant amount of time and should therefore have a say in decisions that are made by a vote of the membership.

The CIA is working harder than ever to create programs and services that will engage Associates and appreciates their feedback. The New Members Committee has been established to help further this initiative. Associates are strongly encouraged to volunteer for this committee or any other committees and task forces, as their input is valued in all areas. Council and committee chairs are being encouraged to reach out to Associates to get them involved.

If you are an Associate, I encourage you to take the time right now to update your volunteer profile (remember to log in to the CIA Members Site first) to indicate your areas of interest so that you’re matched with a fulfilling volunteer assignment.

This is an exciting time for the CIA: the Institute’s 10-year vision and education strategy are being developed and implementation is about to get under way. Associates have an excellent opportunity to help shape the actuarial profession in Canada. I urge you to make a difference by becoming involved early in your career.

Finally, I would like to remind Associates of the special offer you received from CIA President Jim Christie to attend a portion of this year’s annual meeting at a very special price. This information was sent to you by the Secretariat in May. Please consider attending the CIA’s premier event of 2012, and be sure to register by the June 8 deadline!

Congratulations to all newly-minted ACIAs and future bearers of this contemporary Canadian designation!

Jason Vary, FCIA, is Vice-chair of the Eligibility and Education Council and Chair of the Task Force on Associateship Implementation.


By Dave Dickson, FCIA

Recently, the Eligibility and Education Council (EEC) adopted a guidance document relating to the changes that were made to Rule 13 last year. The document, which can be found here, helps the EEC and, more specifically, the Practice Council and its committees to be consistent in how they respond to inquiries from members.

This article provides an overview of Rule 13 and the process that is followed when a member becomes aware of a material noncompliance by another member.

What is Rule 13?

Rule 13 is part of the Rules of Professional Conduct of the CIA. It deals with situations where a member becomes aware of apparent material noncompliance with one of our rules or standards of practice by another member.

What has changed?

The new version is more straightforward and written as a statement of principles instead of a detailed procedure. Although the new version strongly encourages discussion and resolution between actuaries before resorting to the Committee on Professional Conduct (CPC), this no longer constitutes an absolute requirement. The new version also ensures confidentiality of the consultation process when a member wishes to discuss particular situations with the chairs of a practice committee.

What does it require?

If you become aware of material noncompliance by another member, Rule 13 requires that you attempt to discuss the situation with that member and try to resolve it. If you cannot resolve the issue you are then required to report the apparent noncompliance to the Committee on Professional Conduct. There are exceptions, such as when the reporting would be contrary to law or when the member is acting in an adversarial situation.

The other exception is that a member can contact a chair or vice-chair of the appropriate practice committee and discuss potential non-compliance with a standard; in those situations the chair or vice-chair is not allowed to bring the matter to the CPC. Note this does not apply if the discussion relates to the non-compliance with a rule or if the non-compliance with a standard could be assimilated to gross negligence; in those situations the chair or vice-chair would be required to discuss the situation with the member and to bring the matter to the CPC if it is not satisfactorily resolved.

What does "resolution" of the noncompliance look like?

Resolution of the noncompliance can take different forms. For example, after discussion between the members it may be determined that the noncompliance was not real or material, or the member may admit to the noncompliance, correct the work, and notify the affected users.

Are there any exceptions?

Yes, the CIA Board can designate positions that are exempt from Rule 13. As an example, the members of a pension review task force established to review pension plan valuation reports are exempt, as well as members working for regulators.

Can a member who has a question about a standard seek advice?

Yes, a member with a question about a standard can discuss it with the chair or vice-chair of the Practice Council or the appropriate practice committee. The discussion is confidential and the chair or vice-chair cannot report the matter to the Committee on Professional Conduct.

Please provide a few examples.

  • A member working for a pension consultant has taken on a new client, one transferred from another consulting firm. In reviewing the previous valuation, the member discovers an apparent material error in the work. Once corrected, there would be a significant change to the required future contributions of the client. Under Rule 13, the member would be required to attempt to discuss the situation with the previous consulting actuary. If it could not be resolved, the member would be required to report the matter to the Committee on Professional Conduct.
  • A member doing some work for a small insurance company reviews the previous Appointed Actuary’s report and discovers that some recent standards had been applied to the work incorrectly. If the standards had been applied correctly there would have been a significant change to the amount of surplus. Under Rule 13 the member would be required to attempt to discuss the situation with the member who signed the report. If it could not be resolved the member would be required to report the matter to the Committee on Professional Conduct.
  • A member working for a life insurance company joins the company’s pension committee. In reviewing some past work, the member discovers that another member, working as a consultant to the committee, had recommended an investment firm the committee could use. The committee decided to use that firm. The member knows the other member regularly does work for the investment firm that was recommended. Also, the other member did not apparently report this potential conflict of interest to the committee when making the recommendation. Our Rule 5 does not allow us to perform work involving an apparent or actual conflict of interest, with some exceptions, such as if the conflict had been properly disclosed and documented. Under Rule 13 the member would be required to attempt to discuss the situation with the other member. If it could not be resolved the member would be required to report the matter to the Committee on Professional Conduct.

Rule 13 is an important rule which promotes the profession’s duty to the public above the needs of the profession and its members. Members should be knowledgeable of all of the Rules of Professional Conduct, including Rule 13.

It is important to also understand that Rule 13 does not require members to search out possible violations with our rules or standards. Rule 13 only applies if members become aware of situations but there is no requirement to go looking for them.

Members are encouraged to review the guidance document referred to in the opening paragraph.


Part of the EEC’s mandate is to provide interpretative opinions on the Rules of Professional Conduct, and present recommendations to the Board concerning the repeal, re-enactment, alteration, or addition of rules. Questions about this article may be directed to the Secretariat or the chair of the EEC.

Dave Dickson, FCIA, is Chair of the Eligibility and Education Council (EEC).

As members read in the last (e)Bulletin, the Board asked the Member Services Council (MSC) to create a representative survey group for the CIA. The Communications Committee took the lead on the work and as you read, the planning was well under way last month.

As the saying goes, this month we will add some meat to the bones, with more details about what is expected of the MLG, how members can be involved, what volunteers can expect in terms of workload and recognition, and more information about terms of service.


1. The MLG is expected to deliver its opinions and thinking on topics of importance to the CIA Board, Secretariat, councils, and committees through the timely completion (within 24 hours of survey distribution) of short online surveys.

2. Many of the topics that the MLG will be queried about could be controversial or in early stages of development, and not ready for exposure to the full membership. The expectation is that MLG members will keep the content and subject matter of the surveys absolutely confidential.

3. The identity of MLG members will be kept confidential. They will be grouped by categories such as geographic location, membership category and practice area.

4. It is expected that the annual time commitment for the MLG will be 10 hours or less.

5. MLG members will be considered to be serving on a committee in order to accumulate volunteer terms of service.

6. As members sign up to become part of the MLG, the first 50 percent of volunteers for a particular category will be assigned a two-year term and the remaining 50 percent a one-year term. Future members will all be given a standard two-year term. This initial sign-up design serves a couple of purposes:
  • It creates an incentive for signing up early (two-year term vs. one-year term); and
  • It allows a natural annual churn of 50 percent of the members and their opinions for the CIA.
7. The CIA’s Education and Professional Development Department will be responsible for programming and distributing the surveys. In addition, department staff will ensure that all survey data generated by the MLG will be edited to remove any information that could lead to the identification of individual respondents, before the data is shared with the body which ordered the survey.

8. The Communications Committee will oversee the development of the MLG, the integration of the MLG into the CIA environment, and communicating the availability of this exciting new resource to all council, committee, and task force chairs. In addition, the Communications Committee will consult on questionnaire design.

9. All surveys will be conducted in English and French.

10. All Board, council, committee, and task force members are eligible to volunteer for the MLG.

Next Steps

Today, May 31, is launch day for the MLG! Members who are interested in joining this new communications facility can do so easily by simply clicking on the link below and answering a few questions which will help us place them in appropriate categories to ensure that the MLG is truly a representative pool of members.

Over the course of the summer, the Communications Committee will be analyzing the MLG’s composition and recruiting in specific groups to ensure that any major demographic gaps are filled. As soon as these issues are ironed out, the first survey will be distributed.

The MLG represents a real opportunity to have your opinion heard on issues of vital importance to the profession. We encourage you to take the plunge, click on the link, and sign up today.

Click here to apply.


By Kelley McKeating, FCIA

Most actuaries understand the gist of what their actuarial evidence (AE) colleagues do for a living. However, the details of AE practice may be somewhat unclear to some actuaries in other practice areas. Here are some facts about AE practitioners (from the CIA database and a survey of the practice area conducted in 2011):
  • About 3 percent of Canadian actuaries list AE as a primary area of practice—78 in total as of August 2011.
  • Only about a dozen of these are full-time AE actuaries.
  • Almost 50 percent combine AE with a pension consulting practice.
  • AE is almost always a second career for actuaries. The vast majority enter the practice area after achieving Fellowship (more than half after the age of 40).
  • About 60 percent of AE actuaries have a pension background and about 30 percent come to AE from life insurance work.
  • AE actuaries are generally older than other FCIAs (median year of birth in AE: 1955; all CIA: 1967) and they have been Fellows longer (median year of FCIA in AE: 1986; all CIA: 1999).
AE practice can be broadly divided into three categories:
  • Family law (marriage breakdown pension valuations, spousal support buyouts, etc.);
  • Civil litigation (economic loss valuations related to personal injury, fatality, or wrongful dismissal; valuation of interests in estate disputes, etc.); and
  • Non-traditional (pension or insurance litigation, for example).
Although the typical client is a lawyer, AE actuaries also often work directly for individuals in family law (marriage breakdown) situations. Most AE actuaries focus on either family law or civil litigation, but also do some work in one of the other areas. The "non-traditional" AE actuaries form the smallest subset of the practice area, and are least likely to work outside their niche.

Until recently, the AE practice area was quite evenly divided between family law and civil litigation practitioners. However, recent legislative changes in Ontario have significantly reduced the number of marriage breakdown pension valuations being performed by independent actuaries.

Of interest (and of concern) is evidence that suggests that the majority of AE work, particularly in the civil litigation area, is being performed by non-actuaries—usually accountants or economists. This is particularly true in western Canada and Ontario. In Québec and Atlantic Canada, actuaries continue to provide most AE services.


As noted above, AE tends to be a practice area of middle-aged and older actuaries. According to the 2011 survey, 40 percent of AE actuaries expect to retire in the next five years and a further 20 percent within five to 10 years.

As many senior members of our practice area begin to retire, there are exciting opportunities for new entrants to AE. New blood in AE is key if actuaries are to play a continuing role in legal proceedings in Canada.


Of course, a career in AE poses some challenges; some are unique, others are common to all practice areas.

AE actuaries usually work as sole practitioners, alone in a home office. Some have one or two employees. A small number have partnered with another actuary. Working alone or in a very small office is not for everyone. As a small business person, you must be able to motivate yourself to meet deadlines and to do what it takes to grow and sustain your practice.

Also, as with any practice area, AE actuaries must adapt to external factors over which they have no control. For example, the recent changes to family law in Ontario have had (and will continue to have) a negative impact on the income of many Ontario-based AE actuaries as they realign their practices to the new reality. These short-term challenges may make AE unappealing for the next year or two, particularly if you live in Ontario.

However, there is much AE work being done by accountants and economists. And there are all those AE actuaries who are preparing to retire . . . In the medium and long term, there are exciting opportunities for any actuary with the right skill set and a yearning to build their own business.


You are comfortable with the concept of being an entrepreneur, of growing and sustaining a small business? You believe you’d enjoy the flexibility and work-life balance that comes from being at the heart of a small, unstructured enterprise? You may wish to investigate opportunities in actuarial evidence.

To find out more about the AE practice area:
  • The Committee on Actuarial Evidence web page contains links to material of interest such as the AE Skills and Knowledge Inventory (SKI) and an audio file of the "Actuarial Evidence for Non-AE Actuaries" session from the 2011 CIA annual meeting. Log into the CIA Members Site and then click here.
  • Attend the session entitled "The Non-traditional Actuary – Building a Full-Time Practice that Includes Actuarial Evidence" at the 2012 CIA Annual Meeting.
  • Consider attending the AE Seminar, which will be held September 14–15, 2012, at the Waterside Inn in Port Credit, Mississauga, ON.
Kelley McKeating, FCIA, is Chair of the Committee on Actuarial Evidence.

Bruce Paterson, FCIA, FCAS, MAAA, has spent his entire career in enterprise risk management (ERM) for, as he sees it, "the whole actuarial profession is in the business of ERM".

He explained: "Actuaries’ training and education are geared in this direction and they naturally think about it. As an actuary it defines you, and as such I’ve always been in ERM at some level. Pricing, reinsurance, portfolio management: each has a greater or lesser degree of risk management associated with it."

Extensive Experience

For the last nine years, Mr. Paterson and a colleague—also named Paterson, but no relation—have run their own boutique insurance/reinsurance advisory firm, Paterson2, and his current client base includes companies in the U.S., Barbados, Bermuda, Europe, the Middle East, and elsewhere. However, his career has included acting as an actuarial consultant, as chief actuary with Aon Re, chief actuary at an insurance firm, product manager, and chief operating officer.

He said: "My first actuarial job was in life insurance, constructing mortality tables, but I went into general insurance right away. I spent 10 years in the U.S., in consulting and reinsurance, and I became the first general insurance actuary hired by Aon Re in Chicago. I think their attitude was: ‘Our major competitors have one, we should too.’"

Subsequent work has involved tasks such as serving as a consultant to medical malpractice captives, as Appointed Actuary for private and public insurance entities, a developer of applications for catastrophe models, raising capital for start-ups such as LaSalle Re, serving on insurance/reinsurance company boards, among other roles. At one time or another, he has touched all lines of business in the non-life insurance field.

Staying Relevant

But now he is often focused on reinsurance/capital management. He said: "I spend half my time consulting and advising, and half on transactions designed to meet objectives created through the advisory process. People want to transfer their risk in a more efficient and effective manner, and we ask them to first imagine the reinsurance market is perfectly efficient (which usually brings some laughter) and then posit in this perfect world, ‘What would you like to buy?’ They are in many cases insurance entities, not necessarily a ‘pure’ insurance company—in one specific situation an industry mutual with $700 million to $800 million in surplus/net equity, and they came to us and asked: ‘Are we relevant today?’

"For example, for a few years prior to 2000 utilities companies around the globe were in a ‘froth’ over Y2K, and worried about the possible effects it could have on operations, could it lead to a possible meltdown of the industry. They turned to their various industry captives insurance entities for support/guidance and these entities in turn asked themselves: ‘If things like this happen, how are we supposed to behave? What can we do?’ The ‘regular’ insurance/reinsurance industry wasn’t as supportive as the industry captives had hoped at the time. As a result various non-traditional transactions were designed, created, and implemented to allow these entities to both continue to support their members and trade through during this difficult period. Shortly after the crisis passed the ‘regular’ insurance market returned to a more normal state and prices fell and coverage returned, but then Enron happened—it is a given that various crises/disruptions will occur over time but realistically how prepared are you or can you be?

"Chief executive officers and chief financial officers of insurance entities are well aware of their fiduciary responsibilities. They might have a couple of hundred million in portfolio/premium income, but they spend $60 million to $70 million of this to buy reinsurance or protection—usually their single largest expenditure. In reality the probabilities of various adverse outcomes are unknowable, but we try to give them a framework through which to evaluate the inevitable trade-offs between cost and risk transfer over time subject to their operating constraints both ‘real’ and ‘perceived’. Of course, there are situations where people take on much less risk than we have suggested in our framework. People are naturally risk averse and don’t like downside risk; they realize when something goes wrong there is a tendency in many places to look for people to blame even if these adverse outcomes were known and even if in the long run it is very inefficient/costly to do so."

Insurance Engineering

"There are many so-called ‘unmodellable’ situations, and forecasting is a ‘dark’ art, but we can attempt to grapple with unlikely situations and say: ‘How will we respond?’ Solvency II says you have to look at the one-in-200 year events, that event which doesn’t have a name but will happen. You have to assume that you cannot reinsure or transfer the risk of everything, so you calculate how much capital you will need to support these scenarios."

Actuaries have a unique set of skills and they are well suited to ERM, added Mr. Paterson, the holder of an engineering degree. "They are like insurance engineers; they design things that are on paper, and then have to look ahead 40 to 50 years. Who knows what will happen then? But people want that security, and we are able to help them plan that far ahead."

CIA member John Hele, left, in the atrium he has named after his former teacher, Bruce White, right. Below, a view of the atrium. Pictures: Chris Hughes and Amy Aldous.

A high school teacher's lessons proved an inspiration to CIA member John Hele—so much so that Mr. Hele has thanked him with an unusual tribute.

John Hele, now chief financial officer and executive vice-president of Arch Capital Group in Bermuda, attended the Hon. W.C. Kennedy Collegiate Institute in Windsor,  ON, where he had an inspirational teacher named Bruce White.

Mr. Hele, FCIA, FSA, MAAA, went on to earn a bachelor's degree in mathematics at the University of Waterloo, and when his alma mater offered for sale the naming rights to the atrium in its new mathematics building, he bought them. But he chose to name the site after his favourite teacher, rather than himself.

Ian Goulden, dean of the Faculty of Mathematics at Waterloo, said: "It’s heartwarming that one of our alumni has named this space in honour of his high school math teacher. This beautiful atrium is a focal point for our whole faculty, and we’re thrilled to recognize Bruce White for inspiring generations of students to achieve excellence."

Mr. White is said to inspire his students by encouraging them to ask questions and focus on the process rather than the theory behind the problem. In addition to succeeding at competitions, his students excel once they reach university-level mathematics classes.

John Hele said: "In each of our lifetimes, there are only a few who make a truly lasting impression. Bruce White is one of those people, and has done this for thousands of students. He does not just teach mathematics; he teaches how to learn mathematics."

Mr. White has taught more than 8,000 people. Although he retired in 2004, he still runs math clubs for more than 200 students twice a week, and another one for a smaller group. He is a recipient of the Prime Minister’s Award for Teaching Excellence and the University of Waterloo’s Descartes Award for Outstanding Teaching in High School Mathematics. The University of Windsor awarded him an honorary doctorate for his contributions to students and learning.

He said: "I never expected this prestigious and enduring honour. It is hard for me to find the words to really show my appreciation, but I hope that John knows how grateful l am."

Donald Trump. Picture: Gage Skidmore.

A recent survey said that the job of actuary is one of the best careers in North America. However, that verdict shocked one Canadian writer, who took to his local paper to tell his readers just how poorly he rates the profession.

Writing in the Parksville Qualicum Beach News of British Columbia, ex-CBC broadcaster Arthur Black hit out at the survey by which revealed that actuary was the second-best career for 2012, behind software engineer and closely followed by financial planner. The survey looked at 200 different jobs, and ranked them based on physical demands, work environment, income, stress and hiring outlook.

In response, Mr. Black—who hosted CBC Radio One's Basic Black program from 1983 to 2002, and now writes a column syndicated in over 50 newspapers—wrote: "Actuary? Best job? Do you think the folks at CareerCast actually know what an actuary does? My dictionary defines 'actuary' as a person who compiles and analyzes statistics and uses them to calculate insurance rates and premiums.

"That's a 'best job', huh?

"Perhaps it's because I'm still carrying Grade 10 algebra, but I would rather be trapped in a stalled elevator with Donald Trump than spend a nanosecond sitting at a desk toiling as an actuary.

"As for being a financial planner, let's see now . . . would that be like filling out your income tax form forever?"

The CIA works constantly to educate people about the value and importance of actuaries, but it appears there may be some way to go until it convinces everybody . . .

Do you have an opinion on, or response to, Mr. Black's criticism of actuaries and their work? If so, send your thoughts to (e)Bulletin editor Andrew Melvin at and we will compile them for a future article.

Robin Leckie in 1975-1976, when he was President of the CIA.

A former leader of the Canadian actuarial profession who is suffering from Alzheimer’s has given a moving account of life with the disease.

Robin Leckie, one of the exclusive group of actuaries who have served as President of both the Canadian Institute of Actuaries (CIA) and Society of Actuaries (SOA), was diagnosed with the debilitating condition three years ago.

In an article published in the Globe and Mail ("How Alzheimer’s has changed my life"), he described the diagnosis as a relief, as it explained the "isolated moments of memory loss, confusion, and indecision". While medication has since helped against the disease, which he said was slow moving, he now suffers confusion, dizziness, and nightmares, but is in no pain. However, he knows of "no diet or drugs or surgery that will suddenly cure me".

Mr. Leckie was President of the CIA from 1975–1976 and SOA from 1980–1981. He also served on the CIA’s Council for many years, and committees such as Younger Actuaries, Education and Examinations, Emerging Issues, and Elections. He enjoyed a long and successful career, which included working for Manufacturers Life Insurance and later running his own insurance and actuarial consulting business in Vancouver, BC. But he chose early retirement more than 20 years ago, he wrote, "prompted by my concern even then, over my occasional lapses of memory. I knew I had not been performing at the high level I had set for myself."

Mr. Leckie, who lives in Toronto, ON, and celebrated his eightieth birthday last year, added: "I sometimes think this is my sunset time. The bright light of day is passing and darkness lies ahead. I do not know what the dawn will bring. But right now, in this moment, I am thankful my life is full."

This year the CIA Secretariat will again begin summer hours, meaning that the offices will close down on Friday afternoons during June, July and August. Staff will continue to be available Monday through Thursday from 8:30 a.m. to 5:00 p.m. (EDT), and on Friday from 8:30 a.m. to noon (EDT). Please note that the Secretariat is also closed on July 2 for Canada Day.

We wish all our members a wonderful summer.
Alain Brunet, FCIA, FSA, has been appointed to the board of directors of the IRCM Foundation, which raises money to support the biomedical research carried out by the Institut de recherches cliniques de Montréal.

The following people, all of whom are FCIA, FSA, unless otherwise stated, have been appointed as principals of Eckler: François Bissonnette (based in Québec City, QC), Dany Desgagnés (Montréal, QC), Louis-Christian Dupuis, FCIA, FCAS (Montréal), Jean-François Gariépy (Montréal), Andrew Kulyk (Winnipeg, MB), and Maurice Parent (Montréal).

Louis Doiron, FCIA, FSA, MAAA, has been named senior vice-president and chief risk officer at the Economical Insurance Group.

Pierre-Yves Julien, FCIA, FSA, has graduated from the ICD–Rotman Directors Education Program, the first step towards obtaining the Institute of Corporate Directors' ICD.D designation.

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 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.
Kimberley Harris, FCIA (1990), FSA (1990), was proprietor of Simply Benefits in London, ON. Ms. Harris, who was born in 1963 and earned a BSc (Honours) degree in Actuarial Science from the University of Western Ontario, worked for companies including London Life, Mutual Life Assurance, the Alexander Consulting Group, Aon Consulting, and the Barry Johnson Financial Group prior to opening her own business.
Viewpoint: A New Paradigm for Retirement

In a paper just released by the Montréal Economic Institute, leading actuary and former CIA President Yves Guérard warns that governments will need to overhaul their thinking concerning Old Age Security benefits.

Entitled A New Paradigm for Retirement, the paper by M. Guérard—who has been an actuary for more than 50 years—suggests that the Canadian government’s recent decision to gradually raise the age of eligibility for Old Age Security benefits from 65 to 67 will come to be seen by future generations as a timid adjustment measure. He says that instead of reforming public pension plans every generation or so, a dynamic approach stipulating that age of eligibility is to increase automatically with life expectancy might be perceived as fairer and would be easier to implement politically.

Link: click here.

Contact with Questions: Montréal Economic Institute at

Seeking CIA Member for International Natural Resource/Sustainability Group

The Society of Actuaries (SOA) has been discussing collaborating on activities related to the sustainability of natural resources. The SOA’s new International Working Group for the Actuarial Sciences and Sustainability integrates the professional expertise of individuals around the world from academia to the actuarial profession and industry to identify and analyze risks, perform research, and propose solutions related to environmental issues that threaten long-term sustainability. The group includes representatives from actuarial organizations in the United Kingdom, Australia and the United States and it is looking for a member of the CIA to join.

Contact with Questions: Jan Schuh at

Notice of CIA General Business Session

Please be advised that the 2012 General Business Session of the Canadian Institute of Actuaries will take place at the Annual Meeting, from 8:00 a.m. to 9:15 a.m. on Thursday, June 21, 2012.

Please click on the link below to access the agenda for the session.

Link: click here.

Contact with Questions: Caroline Thebault, senior administration assistant, at or 613-236-8196 ext. 134

New Research on Emerging Risks and Risk Appetite

The Joint Risk Management Section (JRMS), which is co-sponsored by the CIA, Society of Actuaries (SOA), and Casualty Actuarial Society, has published two new reports: one looks at the results of the JRMS’ 2011 Emerging Risks Survey, and the other at risk appetite and strategic planning.

The 2011 survey incorporated a set of emerging risks defined by the World Economic Forum as the basis for several of the questions, plus questions related to current risk management topics. Max J. Rudolph, FSA, CERA, MAAA, of Rudolph Financial Consulting, has now written the 2011 Emerging Risks Survey Report, which includes comparisons to the three previous surveys as well as a survey sent to members of the International Network of Actuarial Risk Managers in April 2008.

The research report Risk Appetite: Linkage to Strategic Planning explains the role of a risk appetite framework in effective risk management and how it can be used to make more informed strategic decisions. It was written by Kailan Shang, FSA, and Zhen Chen, FSA, CERA.

Contact with Questions: Steve Siegel, SOA research actuary, at

CPD Seminar on Earthquake Risk: June 13 in Toronto

Advice on enhancing earthquake actuarial models will be offered at Earthquake Risk in Canada: Past, Present and Future, a continuing professional development (CPD) seminar for actuaries which is taking place on June 13, 2012.

It will be led by Dr. Kristy Tiampo from Western University’s Department of Earth Sciences, who will present the latest research on earthquakes, and Jacqueline Friedland, FCIA, of KPMG Canada, who will discuss the best practices in Canada for managing and modelling catastrophic risks.

The seminar is being organized by Western University at the Ivey ING Direct Leadership Centre, 130 King Street West, Toronto, ON, and will run from 2:00–3:30 p.m., followed by a reception. For more information and registration details, visit

Contact with Questions:

Final Due Process Now Available

The final, revised version of the Policy on Due Process for the Adoption of Standards of Practice is now available on the CIA and Actuarial Standards Board (ASB) websites.

The policy, which has an effective date of May 15, 2012, has been amended following consultation with Institute members and committees, and with the Actuarial Standards Oversight Council. It is being published alongside a memorandum outlining the response from the Actuarial Standards Board (ASB) to the comments that came from members during that review process.

A version of the revised document indicating all the changes from the current due process has also been released.

Revised due process policy
ASB response to membership
Changes from current version

Contact with Questions: Nancy Yake of the ASB at

March 2012 Risk Management Newsletter Now Available in Both Official Languages

The CIA has just produced a French version of the Risk Management Newsletter and it is now available in both official languages on the Society of Actuaries (SOA) website. The Joint Risk Management Section is sponsored by the CIA, the Casualty Actuarial Society and the SOA to promote education and research in the area of enterprise risk management (ERM) and to establish leading risk management techniques.

Link: click here.

Contact with Questions: Les Dandridge, director, communications and public affairs, at

Submission to IASB – IASB’s tentative decisions on cash flows, discount rate, risk adjustment and disclosure

The Canadian Institute of Actuaries presented its comments concerning the International Accounting Standards Board’s (IASB) tentative decisions on cash flows, discount rate, risk adjustment, and disclosure.

Link: click here.

Contact with Questions: Micheline Dionne, Chair, Committee on International Relations, at

Submission to OSFI: Draft Revised Guideline E-15 – Appointed Actuary: Legal Requirements, Qualifications and Peer Review

The Canadian Institute of Actuaries has presented its comments to the Office of the Superintendent of Financial Institutions (OSFI) on OSFI’s draft revised guideline E-15 – Appointed Actuary: Legal Requirements, Qualifications and Peer Review.

Link: click here.

Contact with Questions: Phil Rivard, Chair, Practice Council, at

ERM Webcast

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: click here.

Contact with Questions: Leona Campbell at; telephone: 613-236-8196 ext. 124

Notice of Annual Dues for 2012–2013

Spring is in the air again and with this season comes a time of renewal and change. It is also time to renew your CIA membership, and your dues invoice will be sent to you by e-mail in the next couple of weeks.

The CIA is making some important changes, effective June 1, 2012: the eligibility requirements to become an Associate of the CIA are altering. The changes bring the Institute’s requirements in line with those of the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). Therefore, candidates who have completed the requirements for the ASA, ACAS, or CERA credential may qualify to become an Associate of the CIA. In addition, as of June 1, 2012, Associates of the CIA will be able to use the designation ACIA, which was previously not permitted. Associates will also gain voting rights five full years after they obtain Associate status with the Institute. Please consult the CIA website for further details about these changes.

At its meeting on March 27, 2012, the Board of Directors approved the following fee structure for the coming 2012–2013 year.

FCIA: $1,180
ACIA > 5 years: $1,000
ACIA <= 5 years, Affiliates, Correspondents: $350

The CIA’s Committee on Finance as well as the Secretariat staff have worked diligently to prepare a balanced budget for 2012–2013. The fee increase for FCIAs is less than 1 percent, which is below the national inflation rate.

Your membership dues ensure that you, the members, continue to receive a high level of service from the CIA, and they help support some of the following initiatives:
  • Promoting the advancement of actuarial science through research;
  • Providing programs for the education, qualification, and continuing professional development of Canadian actuaries;
  • Ensuring that actuarial services provided by CIA members meet extremely high professional standards;
  • Promoting self-regulation and enforcing rules of professional conduct; and
  • Advocating on behalf of the profession with governments and the public in the development of public policy.
We hope to see you all in June at the Annual Meeting in Toronto!


Martin Roy

Contact with Questions: Jacques Leduc, director, operations, finance and administration, at

The CIA’s Twitter Feed is Growing Fast

More than 100 actuaries, organizations and members of the public are now following the CIA’s English and French Twitter accounts. Why not join them?

Our tweets 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.


Contact with Questions: Les Dandridge, director, communications and public affairs, at

CIA Annual Meeting: June 21–22, 2012 – Toronto, Ontario – Registration Now Open

Registration is now open for the CIA Annual Meeting being held on June 21–22, 2012, at the DoubleTree By Hilton Hotel Toronto Airport.

Please see the CIA website at the link below for program details and other pertinent information.

Link: click here.

Contact with Questions: Nancy Jenkinson at; telephone: 613-236-8196 ext. 104; fax: 613-233-4552

Response to Notice of Intent – Amendment to the Practice-Specific Standards for Pension Plans – Assumptions for Hypothetical Wind-Up and Solvency Valuations

The Actuarial Standards Board (ASB) published a notice of intent, Amendment to the Practice-Specific Standards for Pension Plans – Assumptions for Hypothetical Wind-Up and Solvency Valuations, on June 6, 2011. This memorandum provides an update on the status of this project.

Considering the comments received, the ASB has concluded that amending the Standards of Practice to incorporate standardized assumptions for the valuation of benefits, other than those assumed to be settled by payment of commuted values, for purposes of hypothetical wind-up and solvency valuations is not appropriate at this time.

The CIA’s Committee on Pension Plan Financial Reporting is considering the development of additional guidance in this area and has indicated that it may recommend some limited changes to the Standards of Practice to complement such guidance. In that event, the ASB will consider issuing a new notice of intent in regard to such changes.

Link: click here.

Contact with Questions: Michael Banks, Chair, Designated Group, at

Notice of Intent to Revise the Practice-Specific Standards on Insurance Contract Valuation (Sections 2100 to 2300) to Narrow the Range of Practice on Certain Elements

The objective of this notice of intent is to improve the Standards of Practice in the following areas relating to life and health insurance contract valuation (section 2300): assumptions for non-fixed income asset classes where reliable historical data is not available; considerations where regulatory approval is required on adjustable products; and policyholder behaviour assumptions.

The Actuarial Standards Board is targeting a timeline culminating in adoption of final standards of practice by early December 2012. In order to meet that target date, an exposure draft is targeted for publication in late August 2012, with a comment period ending mid-October 2012.

Parties wishing to comment on this notice of intent should direct those comments to Ty Faulds at by May 31, 2012. A copy should also be sent to CIA resident actuary Chris Fievoli at

Link: click here.

Contact with Questions: Ty Faulds, Chair, Designated Group, at
Calendar of Events
June 21-22,
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,
November 16,
Professionalism Workshop InterContinental Hotel
Toronto, Ontario
December 6, 2012 Professionalism Workshop Hilton Montreal Bonaventure Montréal,
June 20-21,
Annual Meeting
Hilton Montreal Bonaventure Montréal,
June 2014
Annual Meeting
Vancouver, BC

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
Eligibility and Education Council (EEC)

Lyna Gendron, René Norena, and Erin Crump have been appointed members of the Group Organizing Committee for the 2012 Practice Education Course, effective immediately.

Emily Tryssenaar has been appointed a member of the Pension Subcommittee of the Committee on Continuing Education, retroactive to October 27, 2011.

The Bilingualism Subcommittee of the Committee on Continuing Education has been renamed the Committee on Exam Translation, effective immediately. Reporting directly to the EEC, it comprises Annie Blais, Maxime Gélinas, Chantal Guillemette, Stéphane McGee, and Isabelle Morin.

The Task Force on Canadian Eligibility Requirements has been created with Angelita Graham as Chair and Mathieu Boudreault as a member.

The Task Force on Mentoring has been formed with Sharon Giffen as Chair. It has the following mandate: to develop mentoring program criteria and run a pilot mentorship project for the Institute. Once the program criteria is established, the task force’s role is to choose and match mentors with mentees. It is also responsible for ongoing communication with mentor partners, monitoring, and program evaluation. Based on outcomes of the pilot project, the task force may recommend the establishment of a permanent program and the formation of a Committee on Mentorship, under the oversight of the EEC.

Keith Sharp has been appointed a member of the Accreditation Committee, retroactive to March 19, 2012.

Claire Bilodeau has been appointed a member of the Committee on Continuing Education, retroactive to 2011.

For information only:

Maxime Brochu-Leclair, Élyse Morin, Stella-Ann Ménard, Pierre Lavigne, Michel Rapin, Rachel Dutil, Louis Durocher, Sylvain Renaud, and Véronique Bouchard have resigned from the Bilingualism Subcommittee of the Committee on Continuing Education and leave with the subcommittee’s thanks.

Claire Bilodeau has completed her term as a member of the "old Continuing Education Committee", retroactive to 2010.

The Organizing Committee for the Joint Appointed Actuary Seminar has been disbanded with thanks, retroactive to September 2010.

Practice Council

Tim Cavallin and Ivy Lee have been appointed members of the Committee on Investment Practice.

Maja Dos Santos has been appointed a member of the Committee on Property and Casualty Insurance Financial Reporting.

For information only:

Jonathan Hede, Riley St.Jacques, Nadine Gorsky, Sylvain St-Georges, and David Walsh have completed their terms of service on the Committee on Investment Practice, and leave with the committee’s thanks.