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

Canadian Institute of Actuaries/Institut canadien des actuaires

June 2012
Your Institute
Congratulations to the CIA members who were elected to the Board in the 2012 Elections:

     
  President-elect
Jacques Lafrance
 
 
     
Director
Sharon Giffen

Director
Michel Giguère
Director
Joseph F. Nunes
     
Director
Robert H. Stapleford

Director
Jean-Yves Rioux
(will serve the balance of Jacques Lafrance's term on the Board as a Director—
until 2013)


The President-elect will serve a one-year term in that position, followed by a year as President and a further year as Past President. Directors are elected for three-year terms.

These elected members commenced their terms of office following the close of the Annual Meeting on June 22, 2012.

On behalf of all members, thank you to those candidates who let their names stand for election but were unsuccessful.
 
Spotlight


By Dave Pelletier, FCIA

This article is an update of activity of the Actuarial Standards Board (ASB) since my previous report for the (e)Bulletin in February.

Exposure Drafts

Two exposure drafts have been published since February. One that I’d mentioned in February as almost ready deals with a substantial revision of part 6000 on post-employment benefit plans. The designated group, chaired by Ellen Whelan, is now reviewing the comments received.

The other exposure draft arose from a notice of intent (NOI) also published since February, thanks to some fast work by Michael Banks’ designated group and some helpful comments received in response to that NOI. The proposed revisions would provide exemptions for certain external user reporting requirements for pension valuations where the hypothetical wind-up valuation or solvency valuation is based on an extrapolation of results disclosed in a previous external user report. The comment deadline for this exposure draft is June 30, and our intent is to approve the final standard in August, with early implementation permitted for any report not yet completed.

Notices of Intent

We’ve issued three other notices of intent since February. One that affects all practice areas would result in greater consistency in external user reporting requirements across practice areas and additional disclosure of certain items. The general standards dealing with this area would be expanded, while each of the practice-specific standards would be amended to remove duplication with the revised general standards, while retaining any necessary practice-specific differentiations. The designated group, chaired by Michael Banks, has already received some useful comments on certain aspects of the proposals, and looks forward to more, by the comment deadline of July 31.

In the pension area, we’ve issued an NOI to tackle certain issues in dealing with the pension standards revised two years ago that practitioners have brought to the attention of the Committee on Pension Plan Financial Reporting (PPFRC) and the ASB. Comments are due by July 31. Former ASB member Stephen Butterfield chairs this designated group.

A designated group chaired by Ty Faulds prepared an NOI regarding the narrowing of the range of practice in certain areas of insurance company valuation. It was approved by the ASB in March and published with a comment deadline of May 31. Several comments have been received, including some suggesting a look at certain other issues not anticipated in the NOI.

Other Activity on Standards

An NOI previously issued dealt with a proposed standard on life insurance costing, analogous to the ratemaking standard recently approved for the property and casualty insurance area and drawing on a 2008 research paper on this topic. Based on the points made in the comments received, the designated group recommended that the ASB not proceed with a standard in this area, and instead additional support for actuaries through webcasts, educational notes, and research should be recommended to the CIA. Based on the group’s findings, the ASB agreed and published its decision in June.

A similar decision was taken in the pension area, regarding an earlier notice of intent regarding assumptions used for hypothetical windup and solvency valuations. On the designated group’s recommendation based on the comments received, the ASB agreed, in its decision published in April, to not proceed with a revised standard at this time, although as the PPFRC considers possible additional guidance in this area, there may be a further notice of intent with more limited changes if deemed necessary.

The relevant designated groups continue working on standards arising from previously published notices of intent, and we expect to be considering and publishing exposure drafts in the upcoming months on the actuarial evidence standards (other than marriage breakdown), on insurance dividends, and on modelling. We will soon publish a promulgation of a revised set of calibration criteria for models used in the valuation of insurers’ segregated fund guarantees, as discussed in our "initial communication" earlier this year.

Other Activity

Taking into account the comments received on the draft revisions to our due process published in October, as well as input from the Actuarial Standards Oversight Council, we’ve approved an enhanced due process. It, along with a memo to the CIA membership detailing how the various comments were dealt with, was published in April.

We have also developed internal guidelines on the effective operation of our designated groups and on when re-exposure of proposed revisions to standards should be considered.

In a joint session with the Actuarial Standards Oversight Council, the ASB considered its future strategic direction and the environmental issues that will drive it. This was very useful input for the ASB as it now goes through its annual process of strategic plan development.

ASB Membership

Both Richard Gauthier and Normand Gendron attended their final meeting as ASB members on May 31. Richard was "the lonely P&C guy" for two of his years on the ASB until we found another to keep him company, and Normand was eagle-eyed in catching inconsistencies in our work, particularly but not only between English and French versions. Both have been excellent contributors, and we thank them for that.

We’re pleased to welcome Conrad Ferguson onto the ASB, effective July 1; the wide range of practice experience that Conrad brings will be very valuable to us.

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


"Provocative and timely debates". That is the promise from a website that puts leading minds together to discuss a broad range of thought-provoking topics.


But Intelligence Squared U.S. (IQ2US), part of an international network of Intelligence Squared sites, offers a lot more besides giving visitors an opportunity to hear expert thinking concerning such issues as:
  • How commitments to seniors could affect tomorrow's economy;
  • Whether investment in the clean energy sector could create millions of jobs across North America; and
  • Is global warming a crisis or not?
The site hosts complete video footage of 50 debates that follow the traditional Oxford-style format: one side proposes a sharply-framed motion and the other side opposes, using opening and closing arguments and answering questions from the audience. The debaters cover a cross-section of society, and previous participants have included:
  • Malcolm Gladwell, author of The Tipping Point;
  • Peter Schiff, CEO and chief global strategist of Euro Pacific Capital, who forecast the bursting of the U.S. housing market;
  • Peter Thiel, co-founder of PayPal;
  • Michael Hayden, former director of the Central Intelligence Agency; and
  • Arianna Huffington, co-founder of the Huffington Post.
Besides the videos, IQ2US also offers transcripts plus "research in depth"; for instance, a debate on the question of whether aid to Africa is doing more harm than good is accompanied by essays from Africa experts, journalists, charities, and non-governmental organizations, giving visitors to the site detailed insight into what could be a complex and contentious subject.

 Visitors can search for debates by category, sign up for a newsletter, and even attend a debate in person, all part of the founders' plan to "provide a new forum for intelligent discussion, grounded in facts and informed by reasoned analysis; to transcend the toxically emotional and the reflexively ideological; and to encourage recognition that the opposing side has intellectually respectable views."

Pros: the high level of discussion from leading minds; the extra in-depth analysis.
Con: several clicks are required to find the full videos, which can be time-consuming.
 
Address: http://intelligencesquaredus.org/
 
Institute News


Bill Chinery being interviewed on the Business News Network.

Actuaries have a reputation for being introverted and for keeping a low profile. However, one CIA member has been making regular appearances on national TV—and now he is urging other actuaries to step before the cameras.

Bill Chinery, FCIA, FSA, a Director of the Institute and CEO of BlackRock Canada, is a frequent guest on the Business News Network (BNN), where he comments on important financial issues of the day, such as Fed announcements.

He made his debut appearance around 18 months ago when BlackRock, a regular advertiser on BNN, was approached for somebody to appear on screen. Mr. Chinery said: "Lots of people were hesitant, so I stepped up. I did the show and they liked it a lot, and I came back two months later and then more frequently. Now it's one or two times a month.

"The first time I did it was unnerving, and a bit different, but I had had media training. I think one reason they liked it was I appeared with their in-house economist, who made a comment about the Fed. I said I disagreed, and the Fed would be concerned about inflation and unemployment. As it turned out, I was right on every count and she was wrong.

"Now, a day before I appear I generally get an idea of what they want to talk about: a downgrade in Ontario, for example. I give my opinion, or the firm's opinion, and it's all done in about 15 minutes. Sometimes there is another guest speaker, which is the format I prefer as we can go back and forth and agree or disagree."

As head of BlackRock Canada, Mr. Chinery, who comes from a traditional pension actuary background, leads one of the country's largest institutional investment management companies. He said it is a pleasant surprise when somebody comments about his TV appearances: "I'll do the show, and then I'll be standing in an elevator or in Subway and someone will say, 'Oh, I saw you on BNN.'"

That exposure is something that other actuaries should enjoy, he added. "We are introverted, but we are knowledgeable. I don't mind doing a bit of public speaking when I am confident of the subject matter. We (actuaries) should explain things more, and get more people out there doing that.

"We are a bright, intelligent profession and we have good views on a lot of things. For instance, funding of pension plans is a big issue. We have a lot of expertise in this area, and we should be out there being the spokespeople, explaining why things are happening.

"We should be at the forefront of discussions."

 


Most actuaries are used to working for pension plans, insurers, and similar organizations. However, CIA member Jason Alleyne, pictured, is helping to promote the profession's expertise to a new audience: house builders.


Mr. Alleyne, FCIA, FSA, FIA, vice-president and chief pricing actuary at BMO Life Assurance, is featured in a story in Green Building and Sustainable Strategies magazine, discussing the development of his own sustainable home and how actuaries can advise people planning similar work.

Mr. Alleyne and his wife Paula, a fellow actuary, had decided they needed to replace their "poorly constructed" house in Toronto, ON, with a home that "should work as well today as it will 100 years from now". Inspired by a David Suzuki documentary, they interviewed architects and decided on a plan that involved no ducting or venting in the building, plus breathable walls and LED lighting.

Their decisions were based on an integrated design philosophy, said Mr. Alleyne, and the house will have triple-pane windows, grey-water recycling, polished concrete floors and an earth plaster finish that will allow it to breathe better.

However, he tells the magazine's readers that there are challenges to overcome. "To build green you need an architect who can design the holistic approach to the structure. You need to find a qualified contractor who understands how to put these pieces together. But the core component of green that actually might stop someone is the value proposition."

He adds that if the question of value is the problem, an actuary could solve it by crunching the necessary numbers: "Our architect has picked up on that. Clients are stumbling on the most important pillar can I actually afford to do this? If we can get people past that hurdle sustainable living and building green is attainable for the masses."


 


Rob Hinrichs has enjoyed a number of achievements in the 33 years since he became a Fellow of the CIA. But now, in his retirement, he is working on a new goal: improving his golf game.

He can return to the course more often following the end of a career that was dominated by periods at KPMG—where he enjoyed 13 busy years—and the Workplace Safety and Insurance Board of Ontario (WSIB), from which he retired in May after 10 years. He said he enjoyed a variety of actuarial challenges in both organizations, and is leaving the workplace with many happy memories.

Mr. Hinrichs, who lives in Burlington, ON, and also served at North American Life Assurance and CUMIS Life Insurance Company, said: "When I joined KPMG I developed a pension valuation system from scratch as I had a fair bit of computing knowledge and wanted to learn the pension business. Later, due to my insurance experience, KPMG asked me to join the team in the wind-up of Confederation Life. This was a challenging time for everyone involved, but in the end every policyholder received full value for his or her policy or benefits. As the work was rewarding, another highlight was setting up the life insurance actuarial practice at KPMG, which provided actuarial consulting, valuation work and audit assistance for the KPMG auditors. "

Time spent assisting KPMG auditors and advisors for several workers’ compensation boards later led to a significant career move: "A project at the WSIB gave me considerable insight into the Ontario Board. Three years before I left KPMG I was asked to write a job description for the chief actuary at the WSIB. Eventually, when the chief actuary position became vacant and I applied for it, the job description that they gave me had three pages out of four that I had written myself."

"The transition from KPMG was very smooth, but the hardest part was not the actuarial work; it was conveying important financial information to WSIB stakeholders. Sometimes you had to bend over backwards to accommodate stakeholder concerns, and then do it again for another set of stakeholders."

"The most satisfying part of my work at the WSIB was knowing that what the actuaries did was helping in some way to improve the lives of injured workers and their families. Even showing people the dynamics of what drove the unfunded liability up and down helped to further the understanding of the real sources of costs and revenues. Current WSIB president and CEO David Marshall fully understood these sources and added considerable credibility to the explanations to stakeholders.."

One of Mr. Hinrichs’s last projects at the WSIB was also one of the most important: being a major contributor to the report from Harry Arthurs,
Funding Fairness: A Report on Ontario's Workplace Safety and Insurance System. "Now that it has been made public, stakeholders are seeing what the WSIB needs to do to move forward. The work the report recommends will likely take two to three years to come into being, stretching well beyond my retirement date. Its recommendations will have a major impact on the WSIB in such areas as classifying employers, setting premium rates and how it achieves full funding."

He has now stepped away from the office full-time, but Mr. Hinrichs—a Fellow of the Society of Actuaries and member of the American Academy of Actuaries—said he would probably still continue to look for "the odd job where I think I can add value. I was very happy with being a member of the designated group that re-wrote the standard of practice for actuaries practising in the workers’ compensation field, and will continue to be a member of Mike Hale’s subgroup on the Committee on International Relations looking at international accounting standards. I’ll stay involved in the profession. But my next major project is my golf game. I have a lot of work yet to do!"

 


By Micheline Dionne, FCIA

The Committee on International Relations (CIR) has made structural improvements to better deal with the challenges of globalization with respect to accounting standards and regulation.

But before we talk structure, let’s have a look at the current situation.

Accounting in Canada is currently governed by international standards. In insurance, international standards still allow for the use of local accounting standards, given the complexity of establishing a common standard. Insurance standards have been on the drawing board for more than a decade, but standards differ so greatly from country to country that arriving at a common approach still represents a real challenge, 10 years into the process. Fortunately, Canada has a leg up on most other countries, and the CIA would like nothing more than to help the rest of the world rise up to this standard. It is in our own interest to do so: because of our size, we must follow the international direction. It would be a shame for this new direction to favour countries with lower standards, because Canadians would demand more from us, and these higher demands would undercut our global competitiveness.

For a greater and more effective presence during international talks, the CIR decided, with the Board’s support, to adopt the tools it needs to monitor developments in more files while increasing its governance.


The CIR will now have four subcommittees.


The first will be geared to CIA participation in the proceedings of the International Actuarial Association (IAA), of which the CIA is a member. We have been an active participant for a number of years, but our involvement will now be concentrated in a separate group reporting to the CIR. Each delegate to the IAA is already chosen through a process of interviews following a call for candidates issued to all CIA members. The delegates’ mandate will be limited to a three-to-five-year term, to take into account the learning curve they will experience when it comes to the habits and customs underlying the international discussions. A report will be required of each of the delegates, who must not only attend and take part in the discussions, but also identify and follow up on the issues for the CIA and the measures to be taken, be it within the CIR or with a council.


A second subcommittee will follow up on accounting and actuarial insurance standards with organizations like the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), and will be charged with making comments on proposals submitted by these groups. A third subcommittee will do likewise for the pension plan and benefits sector. Both subcommittees exist already, having been consolidated within the CIR last year. The new structure will make for a more rigorous process of adopting the submissions made by both subcommittees.


A fourth subcommittee was struck to monitor the work of international regulatory and solvency bodies such as the International Association of Insurance Supervisors (IAIS), the National Association of Insurance Commissioners (NAIC), and the European Insurance and Occupational Pensions Authority (EIOPA). We are currently seeking volunteers for this subcommittee.


As for governance, the CIR will henceforth report on its activities to the Board on a quarterly basis, and its chair will be invited to Board meetings, just like the chairs of the three existing councils. It will also recruit at least two of its members from among the Board members. The CIA President and President-Elect are already invited to all meetings as ex officio members.


I invite you to keep abreast of the CIR’s activities through communications to members, sessions held during the Annual Meeting and webcasts, or—better yet—by becoming volunteers.


Micheline Dionne, FCIA, is Chair of the Committee on International Relations.

 

Many CIA members have come forward to join the new Member Listening Group (MLG), but there are still vacancies available for those keen to help influence the direction of the Institute and the actuarial profession in Canada.


As mentioned in previous editions of the (e)Bulletin, 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 in English and French.

It is expected that the annual time commitment for the group will be 10 hours or less, and its members will be considered to be serving on a committee in order to accumulate volunteer terms of service.

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.

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.

Click here to apply.


 

By S. Michael McLaughlin

In 1912, the Japanese government, in a gesture of friendship, donated 3,000 cherry trees to the United States. Every year, the beautiful pink flowers burst into bloom, announcing the beginning of spring. Before you know it, the cherry blossoms of spring 2014 will be here. So mark your calendars for March 30–April 4, 2014—the perfect time to enjoy the spectacular cherry blossom display—and join more than 2,000 actuaries and their guests in Washington, D.C., for the 30th International Congress of Actuaries (ICA).

The ICA is held every four years and in 2014 it will be hosted by the five actuarial organizations in the United States. The previous Congress was held in 2010 in Cape Town, South Africa, and was a resounding success. Over 85 percent of attendees rated it highly, with value placed on both the scientific content and the social and networking opportunities. Based on personal experience, anecdotes, and surveys, the Congress is among the most valuable of all actuarial meetings that attendees have experienced. We expect ICA 2014 will maintain the tradition of excellence.

The technical content will follow the main tracks of the actuarial discipline, namely life, health, pension, general insurance, risk management, consulting, and professionalism. The scientific content is projected to be technically strong. Many sessions will consist of presentations by authors on papers submitted specifically to the Congress. Papers are refereed to ensure high quality. Some of the world’s most eminent actuaries will give presentations, and discussions will be particularly valuable because of the wide-ranging insights from actuaries in different countries.


Behind the scenes, a small army of volunteers and staff is already busy planning the event. At least eight committees are hard at work, focusing on the scientific program, hospitality, logistics, sponsorships, marketing, special events, finance and risk management, and more.


Of course, it also takes funding to pull this off. The Marriott Wardman Park promises to be an excellent venue, but the cost of dinners, receptions, lunches, and breaks adds up fast, not to mention planning costs, meeting space, equipment rental, and more. Delegate and guest registration fees cover approximately 65 percent of total costs. Sponsors and exhibitors are needed to make up the rest. The Sponsorship Committee has already recruited a number of sponsors but needs more support. We are delighted that Swiss Re, D. W. Simpson, Milliman, Towers Watson, and RGA are supporting ICA 2014 as Platinum sponsors.


ICA 2014 offers four sponsorship packages—Platinum, Gold, Silver, and Bronze—to accommodate a variety of marketing budgets. Each sponsorship level will accept a limited number of sponsors, with Platinum already sold out. Sponsors receive benefits commensurate with their investment.


Why sponsor at ICA 2014?

  • Sponsorship is a unique opportunity available to a limited number of companies who will enhance their stature through visibility and exposure at the Congress.
  • Build and reinforce name recognition for your company and your products among 1,500 to 2,000 delegates from all actuarial disciplines and from around the world, as well as with visitors to the ICA 2014 website before, during, and after the Congress.
  • Demonstrate your support for the actuarial community and commitment to education.
  • Meet with your prospective customers and clients at your exhibit booth. Many of the delegates hold high-level management positions in their companies and are a major buying influence, and ICA 2014 sponsors can participate in the exhibit hall as part of their sponsorship package.
For more information, download the sponsorship prospectus at www.ICA2014.org/sponsors or contact Mike McLaughlin at smichaelmclaughlin@gmail.com to discuss sponsorship opportunities.

Please visit the ICA 2014 website at www.ica2014.org for much more information about the event.

Your hosts—the American Academy of Actuaries, American Society of Pension Professionals and Actuaries, Casualty Actuarial Society, Conference of Consulting Actuaries, and Society of Actuaries—invite you to attend the 30th International Congress of Actuaries.

Prizes to be Awarded for Best Papers and Presentations

The ICA 2014 Scientific Committee has issued a Call for Papers and Presentations, which is available through the ICA 2014 website at www.ICA2014.org/callforpapers. Actuaries and non-actuaries interested in presenting a paper or making a presentation are invited to submit an abstract of their proposed paper/presentation to the Scientific Committee by September 30, 2012.

The Scientific Committee has announced that it will award prizes for the one or two best paper(s) and/or best presentation(s) in each of the subject matter tracks:
  • Life Insurance;
  • Health Insurance and Related Topics;
  • Non-Life Insurance (General Insurance; Property/Casualty Insurance);
  • Pensions, Employee Benefits, and Social Insurance;
  • Enterprise Risk Management and Financial Risks;
  • Professionalism and Education; and
  • Consulting.
The committee will determine the number of prizes and cash amounts up to a total of $2,000 U.S. per track. Consideration will be given in the selection of prizes to both traditional papers and less formal presentations. Additional prize opportunities will be announced later.

The theme of the Congress is "Learn, Interact, Grow", and the committee's goal is to provide an environment where attendees can learn new ideas by sharing concepts and approaches with other professionals from around the globe, while growing the body of actuarial knowledge and improving the tools used in an actuary's daily practice.
 

View the complete Call for Papers and Presentations on the ICA 2014 website for proposal submission procedures and requirements. Please contact David Core (dcore@casact.org) of the ICA 2014 Secretariat with any questions about the Call for Papers and Presentations.

S. Michael McLaughlin is Chair of the ICA 2014 Sponsorship Committee.
 


Jill Wagman, FCIA, FSA, has been named the new managing principal at Eckler.

As a principal in the company's employee benefits consulting practice, Ms. Wagman, who has more than 20 years' experience in pension consulting, has advised corporations, boards of directors and trustees, and government agencies on pension and employee benefits. In her new role, she will continue to serve these clients, but her expanded capacity will also involve assuming direct responsibility for preserving Eckler's history as a consultant and employer of choice, while helping to drive innovation and exciting strategies.


Cara Low, FCIA, FCAS, has been appointed corporate actuary for the Portage la Prairie Mutual Insurance Company (Portage Mutual) of Manitoba. Ms. Low is a Fellow Chartered Institute Professional and a holder of the Certified Risk Manager 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-mail—one line of information can be enough, but feel free to add more if you so wish—to 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
Exposure Draft for Standards of Practice – Reporting of Incremental Cost and Sensitivity Information on a Hypothetical Wind-up or Solvency Basis

The exposure draft for Standards of Practice – Revisions to the Practice-Specific Standards for Pension Plans – Reporting of Incremental Cost and Sensitivity Information on a Hypothetical Wind-up or Solvency Basis was approved for distribution by the Actuarial Standards Board (ASB) on May 31, 2012. The proposed revisions from the requirements of paragraph 3260.06 of the Standards of Practice would exempt reports that are based on valuation results extrapolated from an earlier report.

The ASB is soliciting comments on the exposure draft from members of the CIA and other stakeholders by June 30, 2012. Please send your comments, preferably in an electronic format, to Michael Banks at michael.banks@mercer.com, with a copy to Chris Fievoli at chris.fievoli@actuaries.ca.

Link: click here.

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

Member Listening Group Launched Today

Today, May 31, is launch day for the CIA Member Listening Group (MLG). The group of volunteers, designed to be a representative pool of members, will be 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.

It represents a real opportunity to have your opinion heard on issues of vital importance to the profession, and CIA 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.

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 gaps are filled. As soon as these issues are ironed out, the first survey will be distributed.

We encourage you to take the plunge, click on the link, and sign up today.

Link: click here.

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

Major Developments for Associates Tomorrow

From tomorrow, June 1, CIA Associates who have met the new eligibility requirements can use the letters ACIA after their names. Also, 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 CIA 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 proud to recognize the achievement of Associate status in the Institute and the hard work and dedication it represents.

Associates are reminded of the special offer they received from CIA President Jim Christie to attend a portion of this year’s annual meeting at a very special price. Be sure to register by the June 8 deadline!

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

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

CPD Compliance Reviews – Are Your Records Up to Date?

The annual CPD Compliance review process begins on Friday, June 1. A stratified sample of 1 percent of each CPD filing category will be selected. If a member is selected for a CPD Compliance Review, the individual will be notified by e-mail no later than June 6. CPD records will be due from the member within four weeks of the notification date. The review will be conducted by the Secretariat and the chair of the Committee on Eligibility, who will report to the Eligibility and Education Council (EEC).

In 2008, the Policy on Monitoring Compliance with the Continuing Professional Development (CPD) Qualification Standard was approved, requiring that the EEC establish a formal process to monitor and verify compliance and outline the nature of review or audit that would be performed. The process was established and conducted for the first time in 2011.

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

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

Link: click here.

Contact with Questions: Leona Campbell, coordinator, education and professional conduct, at leona.campbell@actuaries.ca

Changes to the Bylaws: Removal of a Board Member from Office

On May 28, 2012, the Board approved changes to the Bylaws which will allow the removal of a Board member from office under certain circumstances. The membership was consulted on these changes in November 2011, prior to Board approval. These changes will now be put before the members for confirmation at the Annual Meeting that will be held in Toronto on June 21–22, 2012.

This announcement provides links to several documents that outline the changes and the rationale behind them, along with details regarding the process that will be followed leading up to members’ confirmation of the changes.

Also approved by the Board, pursuant to bylaw 10.04, was the use of electronic proxy voting to confirm these rules changes. In accordance with the proxy voting procedures, a timetable has been established and it can be accessed from link #6 below.

As of the delivery of this announcement, the discussion of the proposed changes begins and the Amendments Listserver is now open to all members who would like to share their opinions and engage in thoughtful deliberations on the changes. To participate in the listserver discussions, members must opt in. (If you opted in to discuss the last set of bylaw changes in 2011, you are likely still on the listserver.) Link #6 below will take you to the simple instructions for joining and leaving the Amendments Listserver.

Members wishing to attend the Annual Meeting must register for the event in advance. The links to the registration pages can be found in link #7 below.

A reminder: as of June 1, 2012, those who have been Associates for over five years have voting rights and will be permitted to vote on these proposed bylaw amendments.

1. Memorandum to Members: Proposed Bylaw Amendments—Removal of a Board Member from Office

2. Amending Bylaw No. 2012-1: Removal of a Board Member from Office
Amending Bylaw
Appendix A

3. Code of Conduct for Members of the Board (Member confirmation not required—for information only)

4. Procedure for Review of Board Member Conduct (Member confirmation not required—for information only)

5. Report of the Task Force on Governance (September 2010)

6. Instructions for Voting (Electronic Proxy and Live) and Use of the Amendments Listserver—Timetable for the Next 25 Days

7. Annual Meeting Registration

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

Educational Note: Health Care Trend Rate

This educational note is intended to assist actuaries in determining assumptions for health care trend rates, which are required under current actuarial Standards of Practice, when providing advice on the financial condition of a post-retirement benefit plan. The note starts with a definition of a health care trend rate, discusses its development, considerations and limitations for use in performing a valuation, and provides more specific information on the types of claims trend rates that apply in health care benefits.

Link:
click here.

Contact with Questions: Jeremy Bell, Chair, Committee on Post-Employment Benefit Plans, at jeremy@bellactuarial.com

Educational Note: Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates Between December 31, 2011, and December 30, 2012

This document has been prepared by the Committee on Pension Plan Financial Reporting (PPFRC) and is intended to provide actuaries with guidance in selecting appropriate assumptions for hypothetical wind-up and solvency valuations in respect of benefit entitlements that are assumed to be settled by purchase of annuities or by lump sum transfer with effective dates on or after December 31, 2011, and prior to or on December 30, 2012. For greater clarity, this document does not provide detailed guidance on selecting appropriate assumptions for hypothetical wind-up and solvency valuations in respect of benefit entitlements that are assumed to be settled in a manner other than the purchase of annuities or lump sum transfer.

Link: click here.

Contact with Questions: Gavin Benjamin, Chair, Committee on Pension Plan Financial Reporting, at gavin.benjamin@towerswatson.com

Submission to the Financial Services Commission of Ontario

The Canadian Institute of Actuaries has offered a response to the Pension Consultation draft of Actuarial Guidance Note #2—Determination of the Solvency Liability Adjustment.

To read the submission, please click here.

Contact with Questions: Phil Rivard, Chair, Practice Council at privard@segalco.com

PRMIA Event Sponsored by the CIA

The CIA is pleased to sponsor an upcoming event of the Professional Risk Managers’ International Association (PRMIA):

Edmonton Chapter (September 26, 2012)

This half-day event on Asset & Risk Allocation is organized in collaboration with CFA Edmonton and the Canadian Pension Benefits Institute (CPBI) and co-sponsored by the CIA.

PRMIA members can register here. Non-members can join PRMIA for free by clicking here.

For more information click here.

Contact with Questions: PRMIA at 612-605-5370 or support@prmia.org

Webinar: Creating and Delivering Effective PowerPoint Presentations

Wednesday, May 30, 2012
Noon to 1:30 p.m. (EDT)

Speaker: Dave Paradi, author, The Visual Slide Revolution and 102 Tips to Communicate More Effectively Using PowerPoint

"Death by PowerPoint" is a term that has been used to describe too many financial presentations. It doesn’t have to be this way; you can create displays that are engaging and informative. In this 90-minute webinar, PowerPoint presentation expert Dave Paradi will show you how to create a clear plan for your presentation that focuses you and your information. You will also learn how to select colors, fonts, and layouts to enhance your slides even if your organization has a template you must use. And Dave will show you ways to present financial information more effectively, using graphs and summary tables instead of copying Excel spreadsheets onto your slides.

When you register, you have an opportunity to send Dave some of your slides and he will select examples for slide makeovers that we can all learn from.

Note: The link to the webinar will be sent directly from the presenter.

Link: click here.

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

New E-Book: Risk Metrics for Decision Making and ORSA

The Joint Risk Management Section of the Canadian Institute of Actuaries, Society of Actuaries, and Casualty Actuarial Society, in collaboration with the International Network of Actuaries in Risk Management, is pleased to release its third essay e-book, entitled Risk Metrics for Decision Making and ORSA.

The insurance regulatory framework is evolving around the world, and the intent of these 18 essays is to generate discussion and debate surrounding the principles and ideas underpinning the Own Risk Solvency Assessment initiative and the risk metrics used for decision making. Different points of view are presented, and the organizers hope the essays will provide thought-provoking discussion and commentary in the months and years to come.

The English version of the essays is available now, and the process of translating them into French has begun. A further announcement will be made when the French version is available.

For more details and to read the English e-book, click here.

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

IAA Colloquia in Mexico City: Registration Underway

Registration is now underway for the forthcoming colloquia in Mexico City organised by three sections of the International Actuarial Association (IAA): Actuarial Studies in Non-life Insurance (ASTIN), Actuarial Approach for Financial Risks/Enterprise Risk Management (AFIR/ERM), and Life (IAALS).

The event will run from October 1–4, 2012, and its objective is to promote the publication of papers that contribute to the betterment and enhancement of the actuarial profession.

The early-bird registration period is now open until July 31, 2012. CIA members are invited to attend and to present papers (abstracts will be accepted until July 31), and for more details, visit the colloquia website.

Contact with Questions
: Emma Izquierdo at eiviajes@prodigy.net.mx

Educational Note: Reflection of Hedging in Segregated Fund Valuation

The educational note entitled Reflection of Hedging in Segregated Fund Valuation was recently published. Its objective is to provide guidance for the use of approximation methods to account for hedging in the calculation of insurance contract liabilities, and provide guidance with respect to potential hedging weaknesses that would be reflected in insurance contract liabilities.

To read the note, please click here.

Contact with Questions: Mike Schofield, Chair, Working Group on the Reflection of Hedging in Segregated Fund Valuation, at Mike.Schofield@sunlife.com

Promote Your Business by Supporting Canadian Actuaries

Four key events for 2012 will bring together hundreds of actuaries eager to develop their careers through informative seminars, experts’ presentations, and networking. The Canadian Institute of Actuaries is presenting its Annual Meeting, Seminar for the Appointed Actuary, Pension Seminar, and Investment Seminar, and would like to invite you to consider a range of valuable sponsorship opportunities.

As our sponsorship program demonstrates, sponsors can enjoy various benefits while supporting the continued success of actuaries across North America. These landmark occasions involve professionals from some of Canada’s most successful companies, all interested in learning more about their profession and the organizations that play such an important role in the country’s economy.

In addition, for the very first time and on a limited basis, the 2012 Annual Meeting in Toronto provides you with the opportunity to exhibit your company’s products and services for the low fee of $750. These spaces will be sold on a first-come, first-served basis. Don’t delay!

Sponsorship helps fund high-quality professional development while giving businesses a chance to demonstrate their commitment to the profession plus an unparalleled opportunity to meet numerous Canadian actuaries. Programs for the meeting and seminars feature a broad variety of topics and special events, all designed to promote new ideas and approaches in the field of actuarial science and capitalize on CIA members’ experience, initiative and creativity.

Sponsorship opportunities are available for all budgets, starting at just $500, with extra benefits for those willing to become Benefactors, Patrons, or Grand Patrons. For example, Grand Patrons (a sponsorship level of $15,000+) enjoy:
  • Recognition of their name or logo on signage and screens throughout all four events;
  • Acknowledgement as a sponsor in the Meeting Programs (4) distributed to every delegate, during the CIA President’s address in the Annual Meeting, and on the CIA website before, during, and after the meetings;
  • Two complimentary delegate registrations;
  • Two Meeting Supporter Recognition ribbons; and
  • A complimentary full-page advertisement in the final program of each event (4).
Proposals for sponsorship are negotiated on a first-come, first-served basis, and demand is already strong. So please take a look at what is on offer in the program, and consider a level of support appropriate for your organization.

These outstanding opportunities to align your business with key industry figures should not be missed. We hope we can count on your support to make them even more successful. We look forward to discussing these opportunities with you.

For details about sponsorship, please see the program. If you have any questions regarding sponsorship, please contact Jacques Leduc at the CIA Secretariat at 613-236-8196 ext. 103 or at jacques.leduc@actuaries.ca.

Contact with Questions: Jacques Leduc at 613-236-8196 ext. 103 or jacques.leduc@actuaries.ca

2012 ERM Symposium: Recordings Now Online

The organizers of the 2012 Enterprise Risk Management Symposium, which took place in Washington, DC, last month and was co-presented by the CIA, have released downloadable recordings of numerous sessions from the event. They are in MP3 format, and can be heard via iTunes or other audio players.

To listen to them online or download them, click here.

Contact with Questions: The Casualty Actuarial Society at meetings@casact.org

Join Us on Twitter!

The CIA’s Twitter accounts have almost doubled in size in little more than a month, with close to 200 people now receiving our updates of Institute events and activities, links to articles of value, and news of people in the actuarial profession and beyond. Many of your peers and industry leaders have already signed up, and we encourage anybody not already following us on Twitter to do so in order to stay as up to date as possible.

While it may be some time before we overtake the likes of Lady Gaga (23,921,673 followers) or, closer to home, Stephen Harper (218,387), our Twitter feed is already proving a highly effective way of promoting the Institute and Canadian actuaries. Our followers are passing on our updates to their own followers, helping to distribute news of our members to a diverse range of people and organizations, and we are attracting interest from around the world.

However, the strength of any social media initiative depends on the size of its network, and so we urge all CIA members to sign up to follow our English or French Twitter accounts. You can click on the appropriate button on the CIA’s website, or directly at our Twitter page: English or French. 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
: click here.

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

Highlights from the March 27, 2012 Board Meeting

The highlights from the most recent Board meeting, held on March 27, are now available. To view the document, please access the link below.

Link: click here.

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

Report on Canadian Economic Statistics 1924–2011: Final Release

The final version of the Report on Canadian Economic Statistics 1924–2011 is available on the CIA website.

This document is only available to CIA members. It can be found in the Members Site on the webpage of the Committee on Investment Practice (Organization>>Committees and Task Forces>>Committee on Investment Practice>> Reports and Documents).

Link: click here.


Contact with Questions:
Tony Williams, Chair, Committee on Investment Practice, at: tony.williams@pbiactuarial.ca

Ross Dunlop, Vice-chair, Committee on Investment Practice, at: rdunlop@cardinal.ca

Submission to the Casualty Actuarial Society: Objectives for Preliminary Education Content and Process

The Canadian Institute of Actuaries (CIA) responded to the Casualty Actuarial Society’s invitation to comment on objectives for preliminary education content and process.

To read the submission, please click here.

Contact with Questions: Dave Dickson, Chair, Eligibility and Education Council, at DicksonDave@hotmail.com

Request for Proposal—Liabilities for Long-Latency Occupational Diseases

Recent changes to part 5000 of the Standards of Practice require members valuing public personal injury compensation plans to include an allowance for all occupational disease claims with a long latency period expected to arise after the calculation date, effective December 31, 2014. To assist members in implementing this requirement, the Practice Council (through the Committee on Workers’ Compensation) wishes to produce guidance on this topic. A research project will be conducted to develop guidance around methodology and assumptions, and to produce a list of occupational diseases which may be considered long-latency diseases.

Link: click here.


Contact with Questions: Thane MacKay (tmackay@morneaushepell.com) or Paul Duxbury (pduxbury@rogers.com)


 
Calendar of Events
July 24, 2012
Webcast
The International Actuarial Association and International Standards- Setting Initiatives
N/A
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

The memberships of the councils, committee, and panel named below have been approved as follows, effective July 1, 2012:
  • Member Services Council—Marc-André Melançon (Chair), Claire Bilodeau, Julie Chambers, Sylvie Charest, John Dark, Marcia Gallos, Frank Grossman, Marcus Robertson, Catherine Shum-Adams (Vice-chair);
  • Eligibility and Education Council—Jason Vary (Chair), Stephen Bonnar, Mathieu Boudreault, Trevor Cartlidge, Alana Farrell, Angelita Graham (Vice-chair), Lynn Grenier-Lew, John Have, Thomas Hinton, Rémi Villeneuve, Anne Vincent, and Simon Curtis (ex officio);
  • Committee on Professional Conduct—Wayne Berney (Chair), François Boulanger, Douglas Brooks, Stephen Butterfield, Dave Dickson, Luc Dionne, Jim Christie (ex officio), Stephen Eadie, Luc Farmer, Ian Karp, Danielle Lamarche, Maryse Larouche, Claude Lockhead, Bonnie Lysyk, Liam McFarlane (Vice-chair) and Jim Murta;
  • Tribunal Panel—Martin J. K. Brown, David Congram, Gilles Dufresne, Brian FitzGerald, Neville Henderson, Christopher Moore, Daniel E. Murphy, J. Edward Nixon (Chair), James G. Paterson, Philip J. Pothier, Allan H. Shapira, David A. Short, William Solomon, Monique Tremblay and Nancy A. Yake;
  • Practice Council—Phil Rivard (Chair), Alan Exley, Pierre Dionne, Bruce Langstroth (Vice-chair), Richard Larouche, Dale Mathews, Hélène Pouliot and Les Rehbeli.
The Task Force on Associateship Implementation has been disbanded, with thanks from the Board.

The Board has approved the appointment of:
  • David Congram, Micheline Dionne (Chair), Jim Doherty (Vice-chair), Jacqueline Friedland, Mike Hale, Bob McKay, Geoffrey Melbourne, Denis Plouffe, Chris Townsend, Jacques Tremblay, and Stan Warawa as members of the Committee on International Relations, effective immediately;
  • Kathleen Thompson as a member of the Risk Management Committee, effective July 1, 2012;
  • Katie Suljak to the Finance Committee, effective July 1, 2012; and
  • Elizabeth Boulanger to the 2012 Committee on Elections, retroactive to February 7, 2012.
The Board has approved the composition of the CIA’s 50th Anniversary Task Force, effective immediately, as follows: Jacques Lafrance (Chair), Lynn Grenier-Lew (EEC representative), Claire Bilodeau (MSC representative), Les Rehbeli (PC representative), Nicholas Bauer, Richard Bisson, John Have, Martin Roy, and Gary Walters.

Rob Stapleford and Jean-Yves Rioux have been appointed to the Member Services Council, Michel St-Germain and Joe Nunes to the Practice Council, Sharon Giffen to the Eligibility and Education Council, and Jacqueline Friedland to the Committee on International Relations, effective July 1, 2012.

Member Services Council (MSC)

The people named below have been appointed to the following subcommittees of the Research Committee, effective immediately:
  • Group Life and Health Experience—François Cloutier, Erin Crump, Élise Desrosiers, Alain Dagneault, and Debra Shelley;
  • Individual Life Experience—Scott Spencer and Mark Andrews;
  • Segregated Fund Experience—André Veilleux (at Industrial Alliance);
  • Individual Living Benefits Experience—Charles Philbrook, Debra Shelley, Dominic Hains, Martin Vézina, Alethea Lyn, and Geoffrey Macdonell; and
  • Pension Experience—Hrvoje Lakota, Paul Burnell, Catherine Robertson, Assia Billig, Scott McManus, and Gavin Benjamin.
The MSC has approve the following mandate of the Editorial Committee, presented in the CIA Editorial Committee Modus Operandi Review and Proposal Document created by Peter Snyder for the MSC meeting on May 29, 2012: "The Editorial Committee is responsible for determining, carrying out and regularly reviewing a process that will generate published versions of sessions that are satisfactory to the membership and respectful of the needs and reputation of the actuarial profession."

The MSC has also approved the creation of the Task Force on Retirement Age with the following mandate: "The Task Force on Retirement Age will prepare background information in order to assist the CIA in taking a position on this issue. Such CIA position may be limited to a view on how the issue should be presented and what are the consequences of raising retirement age." The task force comprises: Rob Brown (Chair), Assia Billig, Claire Bilodeau, Malcolm Hamilton, Denis Latulippe, Warren McGillivray, and Dave McLellan.

For Information Only:

Those named below have completed their terms as members of the following committees or subcommittees, and leave with the (sub)committees’ thanks:
  • Committee on Volunteer Initiatives—Marisa Chan, effective April 27, 2012;
  • Group Life and Health Experience Subcommittee of the Research Committee—Joel Cornberg, Réjean Dion, Nathalie Laporte, Cindy Lau, Stéphane Levert, and Wayne Morris, effective immediately;
  • Segregated Fund Experience Subcommittee of the Research Committee—Jason Daigle, effective immediately; and
  • Individual Living Benefits Experience Subcommittee of the Research Committee—Saul Gercowsky, Cathy Shum-Adams and Scott Spencer, effective immediately.