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

Canadian Institute of Actuaries/Institut canadien des actuaires

May 2013
Your Institute

By Simon Curtis, FCIA
CIA President


The most recent CIA Board meeting included a discussion of "reserved roles" in Canada, and whether we should as a profession be looking to engage with regulatory bodies and governments to expand the number and scope of such roles for actuaries. Reserved roles are where work is required by statute/law/regulation to be signed or certified by an appropriately qualified FCIA. This discussion arose in the context of how to expand the profession in Canada and ultimately increase the employment opportunities for our members.

In Canada there are a significant number of reserved roles for actuaries. The most prominent are the Appointed Actuary role for insurance companies and the valuation role for defined benefit pension plans, but they extend to areas such as other insurance programs (workers’ compensation), the federal criminal code (criminal rate of interest), and rate certification (personal auto rates in Ontario), to name a few.

On the surface an increase in the number and scope of reserved roles would seem to be a straightforward win for the profession from a number of perspectives. Most fundamentally, the direct impact of reserved roles is to protect certain roles for actuaries and increase (and certainly not diminish) job opportunities. Reserved roles also buttress our position as the preferred experts and professionals most able to provide certain types of service/advice in a world where we increasingly compete with non-actuaries on the basis that they have similar skills. These roles also enhance our reputation and profile with our external stakeholders by providing recognition of the skills and professionalism we bring to the table as a profession.


There is, therefore, great appeal in pushing for new reserved roles, particularly if they allow us to access and cement roles in new or emerging practice areas where we believe we have an attractive skill set. In this context, a good example would be the concept of a Medicare actuary at the provincial or federal level to report annually on healthcare funding, similar in concept to the Canada Pension Plan actuary that currently exists federally.


However, a good argument can also be made that reserved roles—or too strong an emphasis on them—is not good for the vitality of our profession (or any profession). Indeed, at a recent discussion at the International Actuarial Association, there was significant reticence against encouraging member organizations to emphasize reserved roles as a means to grow the actuarial profession. At its most basic level, we want people to use our services because they value them—not because they are forced to. A profession that ultimately relies too strongly on protectionist roles or barriers to entry or competition will ultimately stagnate and the result will be the exact opposite of what was intended (history is littered with examples of this).


My personal belief is that the development of the CIA over the last 20–30 years has been significantly influenced by a strong focus on reserved roles—indeed, in my opinion, most of the creative energy of the CIA volunteer base has been focused on initiatives to support our reserved roles rather than more fundamentally focused on growing or re-inventing the profession through research, education, and similar activities.


At a practical level reserved roles also come with a number of issues. They require significant deployment of resources from the professional body, both initially and an ongoing basis. This inevitably means fewer resources to deploy on other activities and simply less focus on these potential activities. Reserved roles also come with significant risk, potentially, to the actuary and profession. For example, several of the opinions appointed actuaries must provide for par and adjustable policies are fairness opinions (i.e., requiring actuaries to opine that practices or actions are "fair")—opinions that I have heard many lawyers say they would flatly refuse to provide if asked (they consider them too subjective). As another example, some actuaries have raised concern with the auto rate filing opinions actuaries must give in Ontario.


So, as in most areas that impact our profession and professional work, there is no straightforward answer, and as is often the case, a balanced perspective is likely best. Reserved roles can be good for the profession—especially when we are "pulled" to provide them because we are strongly recognized as having value to add. However, we should be very cautious about "pushing" for reserved roles as a way to grow the profession when no strong "pull" exists from the other side—in this instance, we are better focused showing first the value we can have. We should also be cautious to make sure the reserved roles we are asked to fulfil are ones we can reasonably carry out.


Simon Curtis, FCIA, is President of the CIA.


 
Spotlight

By Dave Pelletier, FCIA

This article is an update of activity of the Actuarial Standards Board (ASB) since my last report for the (e)Bulletin in January. We’ve had two meetings since then.

Final Standards Approved

In that last article, I mentioned several standards that were on the verge of approval at our meeting taking place the very day that the article was being published. I’m glad to report that all were in fact approved, although publication of two has been delayed.

One in particular is the updated part 6000 of the Standards of Practice, dealing with post-employment benefit plans other than pensions. It was approved, but some touch-ups not requiring further full ASB approval have taken an inordinately long time to be finalized. However, they should be published by the time this article is out, with an effective date of June 30.

Another revision to standards that was approved is in the area of insurance policyholder dividends. In this case, the revisions are indeed final, but we’re delaying publication until the CIA’s educational note supporting this new standard, including—among other matters—some of the material from the former "Recommendations" not incorporated in the new standard, is complete. The effective date of these changes will be later in 2013, following publication of both documents.

The revision to standards regarding the narrowing of the range of practice in certain areas of insurance company valuation (this does not include the economic reinvestment assumptions, which is the subject of a separate process discussed below) was indeed approved and published, with an effective date of March 15.

Finally, we approved standard wording for Appointed Actuary opinions with respect to internal models used in determining required capital for segregated fund guarantees, with an effective date of February 7.

Exposure Drafts

As reported previously, the ASB published a notice of intent in October regarding changes to part 3000 dealing with assumptions used for hypothetical wind-up and solvency valuations, in conjunction with proposed changes by the Committee on Pension Plan Financial Reporting to its educational note on this subject. Based on the recommendation of the designated group (DG) chaired by Michael Banks, the ASB published its exposure draft of the revised standard on April 3, with a comment deadline of June 3. We are hoping to approve the final standard by September with an effective date shortly thereafter.

Notices of Intent

Pensioner mortality is an area that has been receiving increasing attention. In keeping with the "principles-based" nature of our standards, the ASB does not specify a table per se for use in going concern valuations. We do specify the table for use in the pension commuted value standard, given that it determines benefits payable to individuals where actuarial judgement should not be a consideration. However, given that the solvency and hypothetical wind-up valuation calculations for pension plans make use of the commuted value basis for those assumed to take their commuted values, the mortality basis used in the commuted value standard does impact funding requirements.

The CIA has been researching the area of pensioner mortality for some time, and the ASB expects to make use of that research in specifying a revised mortality table for the pension commuted value standard in the coming months. However, unlike other instances in the standards where specific tables or factors are set by a promulgation process (with a two-step rather than the usual three-step due process), the name of the mortality table is currently "hard-coded" in the pension commuted value standard. We published a notice of intent in March to change that to the more normal promulgation process, and we expect to be publishing an exposure draft shortly (in fact, perhaps before this article is published). It should be noted that at this point, it’s only the process of specifying the table that is being changed; the change in the table itself will come only after receipt of the CIA research, deliberation by the ASB, and publication of our "Initial Communication" with our intent in the coming months. Conrad Ferguson is leading our DG in this area.

Other Activity on Standards

As reported previously, a DG chaired by Nancy Yake has been carrying out a rewrite of most of part 4000 of the Standards of Practice, dealing with actuarial evidence work. It has conducted an extensive consultation process, and we look forward to considering its proposed final standard at our June meeting.

Another major ASB initiative involves proposed changes to the economic reinvestment assumptions utilized in the Canadian asset liability method (CALM) for life insurer valuations. Ty Faulds is chairing this DG, which has been having weekly or twice-weekly meetings over the last few months, as well as sponsoring a webcast and carrying out an impact study with participating life insurers. The aspects covered include the use of non-fixed-income assets in liability valuation, the determination of the ultimate interest rate (URR), and achieving greater consistency in the results obtained through applying stochastic versus deterministic approaches. The comment deadline for the notice of intent was March 15, and the DG’s objective is to get an exposure draft to the ASB for its consideration at its June meeting, publication shortly thereafter, and production of a final standard by year-end. While it was originally intended that these changes be effective this year, the DG may well recommend to the ASB an effective date one year later (by year-end 2014), which will give insurers and their stakeholders additional time to deal with the complexity and implications of the revisions.

The ASB published a notice of intent with respect to a standard on modelling in September 2011. A previous DG along with the ASB had some difficulty in dealing with the range of comments received and determining the best way forward. A new group has been formed with Bob Howard as chair, and the ASB is expecting to receive a revised notice of intent for consideration at its June meeting.

An article in the February (e)Bulletin discussed the recent and upcoming activity of the International Actuarial Association (IAA) in the development of International Standards of Actuarial Practice. The IAA approved its first one (ISAP 1, on General Actuarial Practice) in November. As described in that article and consistent with the long-run goal of international convergence of actuarial standards, the ASB would like to be able to state that the Canadian profession’s standards are "substantially consistent" with ISAP 1. A DG chaired by Michael Banks has outlined the very few areas where ISAP 1 potentially goes beyond our standards, and is in the process of preparing a notice of intent for the ASB’s June meeting regarding proposed changes to our standards to deal with those areas. This group is also proposing changes to achieve greater consistency, where appropriate, in external user reporting requirements across practice areas.

The ASB will also be considering the insertion of a brief reminder in the practice-specific standards that the general standards apply equally to all work (in the absence of a notwithstanding clause). At times, external users referring to just the portion of our standards dealing with one practice area have not been aware of the importance and relevance of the general standards, and sometimes actuaries can use a reminder as well. Jay Jeffery is leading this minor change, which will be carried out under the portion of our due process dealing with minor changes.

Other Activity

At our March meeting, we approved a revised policy and process manual for our standards. We were assisted in this effort by the Head Office (Lynn Blackburn, Kelly-Anne Maddox, and editor Andrew Melvin) and the Standards of Practice Editing Committee (better known as SPEC), led by its chair Paul Della Penna. Some of the changes are intended to enhance the efficiency of the drafting process; others (including the introduction of bullets!) are meant to improve the readability of the standards.

We’ve also had some interesting discussions on the pension area, arising in part from the need to deal with improving pensioner mortality discussed above but also from issues raised regarding the role of the actuary and actuarial standards as compared to that played by the regulator. This will continue in the coming months.

ASB Membership

Two additional members for the ASB have been appointed by the Actuarial Standards Oversight Council. Edward Gibson, a life practitioner and until recently chair of the Committee on Life Insurance Financial Reporting, comes on board on July 1. Tony Williams, primarily a pension and investment consultant and until recently chair of the Committee on Investment Practice, will be joining effective January 1. We’re very pleased to have Edward and Tony as part of the ASB.

Three of us are rolling off the ASB effective June 30. Jacques Tremblay has served for four years and Steve Haist three. Both have chaired various DGs during their time on the ASB and made useful contributions, which have been appreciated. My own three-year period as chair comes to an end as well on June 30. While at times a bit frustrating, it’s been fun as well, and I’m grateful to the other members of the ASB, to the members and particularly the chairs of the DGs, to the members of ASOC, to the CIA leadership, to the Head Office, and to those who have submitted comments on our notices of intent and exposure drafts, all helping to make for a better set of standards and a better process for getting there. I know that incoming chair Jim Christie will be able to count on the same support going forward, and enjoy it as much as I have.

Dave Pelletier, FCIA, is Chair of the Actuarial Standards Board.
 
MOVERS AND SHAKERS
Many professionals can attest to the fact that after years in the same position or the same career, it can be all too easy to become stuck in a rut. Doing routine tasks or completing annual projects can become frustrating, and given today’s high-pressure work environment it may be difficult to think of fresh ideas or new approaches.

However, various solutions are online for those keen to hear about groundbreaking and creative answers to today’s problems, and possible ways of succeeding in the future.



Co.Exist aims to provide "world-changing ideas and innovation" that might open visitors’ minds to changing business practices and events shaping various industries.

An offshoot of FastCompany magazine, it includes articles on such topics as:
  • The gap between what consumers say and do about green brands;
  • Three reasons why your predictions of the future will go wrong, which looks at the animal metaphors of the dragon, the black swan, and the mule;
  • The "wearable, implantable, personalized future of medicine" and what genome sequencing and scanning devices might mean for healthcare systems;
  • Investment expert Margo Alexander’s philanthropy; and
  • The energy efficiency of Fortune 500 companies’ websites.

Conference Bites is a website designed to provide interesting thoughts from leading speakers, or, as the site says, "big ideas for short attention spans".


It gathers the highlights of events from around the world and distils them into one- or two-sentence quotes that might encourage you to think in new ways or gain fresh understanding. The quotes are categorized under such headings as Entrepreneurship and Marketing, and are added almost daily.


For example, Entrepreneurship includes these quotes from this year’s SXSW Interactive conference:

  • "While you cannot plan ahead, we are all connected. If you need it to happen, it will."
  • "The moment one definitely commits oneself, then providence moves too."
  • "You have the same relationship that the faucet has to the water . . . be generous with your ideas."

Springwise assembles what it calls "your essential fix of entrepreneurial ideas", bring together more than 4,700 innovative business techniques from various industries in an easy-to-read format.


Its extensive database involves a subscription, but recent articles can be browsed free of charge. The financial services section covers such creative ideas as the free software that allows banks to create customized tools for customers, and the online trading platform that examines Twitter to assess the market’s sentiment.


Pros: the design of each site is very clear; updates are frequent.

Cons: Springwise’s subscription can cost up to $400 U.S., although it has a free newsletter.

Addresses:

Co.Exist: http://www.fastcoexist.com/
Conference Bites: http://www.conferencebites.com/
Springwise: http://www.springwise.com/
 
Institute News
On May 2 the Elections Committee announced a discussion with the candidates that took place from May 2–15 in the 2013 CIA Election Candidate Discussion Forum on the CIA’s website. Although the discussion period has ended (candidates will no longer post responses), the forum will remain online for members to view during the voting period. To access it, click here. (Note: members must be logged into the Members Site to view these pages.)

The electronic ballot is now available. Voting members (Fellows and Associates with voting rights) must either have an account or create one in the Members Site. Once you have logged in, the link to the ballot will be available under Elections on the Members’ menu. Systems are in place to ensure that the process is confidential and only one vote per member is counted.

The deadline for submitting your ballot is 3:00 p.m. EDT on June 4, 2013.

Voting will only be available electronically.
 


After a career of 40 years filled with opportunities and new experiences, former CIA President David Oakden is tackling a fresh challenge: retirement.

He has stepped away from full-time actuarial work, and recently said goodbye to his colleagues at the Office of the Superintendent of Financial Institutions (OSFI), where he had spent the last seven years and served as managing director of the actuarial division.

Mr. Oakden said: "Retiring feels strange; every day you go into the office and suddenly you’re not doing that. I worked on many challenging assignments, and now I’m trying to keep my mind active. Actuaries talk a lot about retirement planning, and then your interest in it becomes more personal."


His involvement in actuarial science dates back to a summer job in 1967 while he was still attending university, where he earned a doctorate. Having started full-time work with Excelsior Life, he moved to a sister company, Aetna Casualty Company of Canada, in 1975 and started a property and casualty (P&C) career at a time when there were only four P&C actuaries employed in Canada.


He said: "P&C companies had never used actuaries, and when they started employing them they realised that understanding the data coming in would give them a competitive advantage—now the largest companies have more than 30 actuaries. I started in life insurance but moved to P&C as it was a new field and it was a chance to try out new ideas and build from the ground up. Working in life, I was a junior person, but I became the chief P&C actuary for my company. People today would never have that opportunity."


Retirement has focused Mr. Oakden’s attention on other areas of actuarial practice. "For instance, there are now new challenges in the pension area. People are cancelling defined benefit [DB] pensions and going to defined contribution [DC], so pension practitioners have to evolve. DB plans are vehicles that are needed; planning for retirement, even for somebody like myself who has worked in this profession, is difficult. If you are relying on insufficient investments, or a DC plan, you are probably not going to be putting enough money aside; if you have a DB plan, you end up getting a certain amount, which is easier to understand. I am concerned that a large number of Canadians will not have adequate income when they retire."


In 2000, he became President of the CIA, which he described as the highlight of his career: "I had a chance to participate in international discussions and steer the Institute. There were a lot of things to be done; I was President when we went from the old Council to the Board and introduced our three councils. I spent a lot of time trying to make things work correctly, and I was also involved in mutual recognition agreements with the British, Irish, and Australians."


Having spent most of his life at Towers Perrin (now Towers Watson), Mr. Oakden first retired at the age of 60. He said: "I had been consulting, which takes a physical toll, and I wanted something less demanding. But then I realized that I liked to do something meaningful, and I thought that at OSFI I would make a contribution and make a difference. It delivered beyond my expectations.


"In my first six years at OSFI I did traditional actuarial work but in my final year I concentrated on mortgage insurance, which was really interesting. It was very different from life or P&C insurance, as a lot of aspects of it were like banking. It was good experience, and broadened my horizons."


The 67-year-old, who is still partially involved in the profession thanks to "volunteering and a little bit of consulting", said: "I’m glad to be away but at the same time I’m missing the office, where I had a lot of friends. Up until a year ago I was the Canadian representative to the International Association of Insurance Supervisors. I did a lot of work following the financial crisis, and went to meetings all over the world.


"I can’t imagine having a better career than I’ve had, and working at OSFI was a very rewarding way in which to end it."

 

By Marcia Gallos, FCIA

A new monthly feature in the (e)Bulletin, Volunteers’ Corner has been created to provide some information about volunteering in the CIA—past, present, and future.
  • Past: we will highlight the previous contributions of our distinguished volunteers.
  • Present: current vacancies in committees are listed, including any necessary qualifications (if applicable).
  • Future: tips and tricks for being an effective committee member, and instructions for enrolling in the Volunteer Applicant Registry (a tool used by committee chairs for recruiting new members).

Feature Profile: Allan Edwards


A 2011 recipient of the gold award for volunteer service in the CIA, Allan Edwards (pictured above) chose his time working specifically on Minimum Continuing Capital and Surplus Requirements as a highlight of his volunteering. He said it was an initiative that made a significant contribution to the life insurance industry: "It resulted in: a) building a positive relationship with the regulators of both the actuarial profession and the life insurance industry; and b) improved the risk management and financial strength of the industry. I feel good about the results."

Mr. Edwards has volunteered for a broad range of important roles throughout his career, including:
  • The Actuarial Foundation of Canada, director (2009–present);
  • Committee on the Appointed/Valuation Actuary (2001–2009);
  • Task Force on Institute Priorities (1995–1998);
  • Committee on Dividend Principles and Practices, Chair (1987–1991), Vice-Chair (1986–1987), Member (1982–1986); and
  • Younger Actuaries Committee (1977–1980).
Like all volunteers, he was once a beginner. His advice? "You can always find an excuse not to. But do it now: go ahead, raise your hand, and volunteer. I built a lot of relationships with a number of people that I would not have known or met otherwise. Very rewarding and well worth the time it took."

He added: "Your help is needed at the CIA and you will grow as a professional as a result of your volunteer activities."

I couldn’t agree more. Thanks for your contributions, Al!

Current Vacancies

Committee on Volunteer Initiatives (CVI) (log in to Members Site first)
With the ongoing support of the CIA Head Office, the CVI works with the volunteer services department and the Member Services Council to promote and coordinate the CIA’s volunteer initiatives in accordance with the CIA Volunteer Policy. Goals include identifying, measuring, and fulfilling the CIA’s overall volunteer needs, ensuring matching of interests and balanced representation, and celebrating and rewarding volunteer service.

Current vacancies
The CVI is currently looking for two members to begin work immediately.

Qualifications
Although no specific industry experience is required, prospective members should be enthusiastic about the value proposition of volunteering in the CIA. Members should expect to be engaged in a monthly hour-long teleconference and should be willing to share ideas on promoting volunteering. Candidates interested in a leadership opportunity are strongly encouraged to volunteer for the CVI, as succession planning is currently underway – this committee represents an excellent opportunity to get involved and to influence change at any experience level.

New Members Committee (NMC) (log in to Members Site first)
The NMC’s mandate is to promote education, networking, and volunteering opportunities specifically targeted to new Fellows and Associates. This committee will be responsible for ongoing measurement and monitoring of the value of Associate status in the Institute.

Current vacancies
The NMC is currently looking for three members to begin work immediately.

Qualifications
Although no specific industry experience is required, prospective members should be enthusiastic about the value proposition of the new ACIA designation and should expect to be engaged in a monthly hour-long teleconference. Current vacancies are designated for 2 ACIAs and 1 FCIA (membership year of 2010 or later).

For information on these or any other council/committee/task force, please contact Carmelina Santamaria or the council/committee/task force chair.

Tips and Tricks: Know Your Voice!

The majority of committee work is done over the phone. We try to reach consensus and express our ideas with only our voice. E-mails help, but sometimes do us a disservice.

A pleasing telephone personality is not always natural, but with attention and effort anyone (even the most technical and introverted of us) can develop a professional phone voice.

Here are some basic tips to help improve your business telephone voice. With practice, your voice can be an asset to you at all times and under all circumstances:
  1. Sit up straight: good posture helps you breathe and deliver a clear, projected voice. Find yourself slouching? Your voice (and attitude) may come across as lazy or disinterested.
  2. Speak up, but don’t yell: talk directly into the transmitter. If using a hands-free device, make sure it is positioned so that your caller can hear you. Use a normal tone of voice, neither too loud nor too soft.
  3. Speak clearly and distinctly: give every word and every syllable its proper form and value. Remember that a person cannot read lips over the telephone.
  4. Sell it: concentrate on vitality, enthusiasm, and alertness. Variation in tone helps bring out the meaning of sentences and adds color to what is said.
  5. Mirror, mirror on the wall: position a mirror nearby. Although at face value this seems somewhat ridiculous, when you look at your own reflection, you just may feel like smiling and may be less likely to frown, both of which transfer to your voice and are interpreted by the other callers as happy or annoyed.
Most of all: practice patience—with yourself and others. We are all in this national organization together, sparing our free time to advance the needs of our profession. With many cultural, generational, and industry differences celebrated among us, it can make for tricky conversations and awkward silences. Help steer conversations if it is a strength, but don’t dominate. Be sure to allow others to practice this skill.

Getting Started: All You Have to Do is Say Yes!
  1. Go to the CIA website. Log in to the Members Site. On the left-hand-side navigation panel, click on My Profile > My Volunteer Profile > Update Volunteer Profile. Once you’ve completed the Update Volunteer Profile form to indicate your skills, experience, and general interests, go to the Modify My Committee and Task Force Interests form to indicate specific volunteer committees that you are interested in joining.
  2. Press your case. If you have a strong interest in a specific committee, contact the CIA or committee chair. They will be happy to provide you with more information or to invite you to a meeting. You can also gain a feel for what each committee does by visiting the Volunteer Booth at many CIA meetings, including next month’s Annual Meeting in Montréal.
  3. Make it a priority. Understand the time commitment required for the volunteer position and set aside time in your schedule. Communicate any concerns to the committee chair and allow them to help you in assessing whether the opportunity is right for you.
  4. Get your employer on board. In many cases, volunteering can actually bring value to your employer. Many committees might overlap with your work or provide you with valuable training and experience. In many cases, you may be able to designate work time towards volunteering.
  5. Stay tuned. Keep reading the Volunteers’ Corner articles in the (e)Bulletin.
  6. Check out the resources for volunteers in the new Volunteer Centre on the CIA website.
Marcia Gallos, FCIA, is Chair of the New Members Committee, former chair of the Committee on Volunteer Initiatives, and a member of the Member Services Council.

 
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 Head Office is also closed on July 1 for Canada Day.

We wish all our members a wonderful summer.
 
Ellis Flinn, who was born in 1934 in Iowa, served in the U.S. Army and earned a BSc in Actuarial Science from Drake University before becoming the youngest officer that Berkshire Life Insurance Company ever had.

He later worked as a life insurance actuary with the Wyatt Company, where one of his major clients was the Knights of Columbus. In 1982, he became Deputy Supreme Knight of the Knights of Columbus and chief operating officer of their insurance program. His service with the Knights earned him the Equestrian Order of St. Gregory the Great from the Pope for conspicuous service to the Catholic Church.


Salim Kanji, who has died at the age of 58, graduated with a BSc from McGill University and began his career by spending seven years in the actuarial department of the Montréal Life Insurance Company. He earned his Fellowship in 1987 while at Logisil Consulting in Montréal, where he served as partner. His last role was as part of the management team of b-dev, a business development company. Its website said his realm of interest was "innovative investment models in biotechnology where he’s active in the creation of several business ventures".

Jean-François Leroux died earlier this year aged 54 following a battle against illness. He joined the CIA while working as assistant vice-president and valuation actuary at the Compagnie canadienne de réassurance in Sherbrooke, QC. The holder of a BSc in Actuarial Science from Université Laval, and an MBA, he later became vice-president of management information at Swiss Re Life & Health and then moved into the same position at Manulife.

Richard Miles’ years of volunteering with the CIA earned him the Silver Award, capping a career that involved more than 35 years’ service with one company: Canada Life.

Mr. Miles, who has died of cancer at the age of 66, graduated from the University of Manitoba before moving to Toronto, where he earned his actuarial certification and went to work for Canada Life.

During his time with the company, he rose to various senior roles including vice-president of group pensions, but he was also busy volunteering for CIA groups including the Morbidity, Program, Actuarial Careers, and Younger Actuaries committees.

 
Domenico Barbiero, Marie-Andrée Boucher, Philip Churchill, Faisal Hamid, Kiersten Johnston, Josephine Marks, and Ellen Whelan have been named as principals at Eckler. Meanwhile Richard Brown has joined the company's pension practice.

Sophie Ouellet has been appointed regional vice-president, Québec and eastern Ontario region, group benefits, at Sun Life Financial. She has been with the company since 2011, after working at a major consulting firm
for around 15 years. The company has also appointed Larry Madge as senior vice-president and chief actuary. He was formerly senior vice-president and chief financial officer for Sun Life Financial U.S.

Michel Trudeau has joined international insurer EGI Financial as chief actuary. He has spent more than 30 years in the profession, and his previous roles include serving as chief actuary for two other major Canadian insurers and as Appointed Actuary for several others as the property and casualty practice leader of a Canadian actuarial consulting firm.


Doug Andrews has returned from England to become director of the Master of Actuarial Science Program at the University of Waterloo. He would like to be contacted by actuaries who would be interested in presenting to or interviewing enthusiastic students approaching the Associate level of qualification, and who are able to communicate effectively. He can be e-mailed at dwa007@hotmail.com.
______________________________________

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 professionals—whether 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@cia-ica.ca and we will aim to include it in the next issue of the (e)Bulletin.

For more news of CIA members and their activities, follow the CIA on Twitter.
 
THIS MONTH'S PUBLICATIONS
Notice of Annual Dues for 2013–2014
 

It is time again to renew your CIA membership. Your dues invoice will be sent to you by e-mail in the next couple of weeks.

At its meeting on March 21, 2013, the Board of Directors approved the following fee structure for the coming 2013–2014 year.
  • FCIA: $1,190
  • ACIA ≥ 5 years: $1,010
  • ACIA < 5 years, Affiliates, Correspondents: $350
The fee increase for FCIAs is less than 1 percent and the fee for Associates with less than five years remains the same as in 2012–2013.

Your membership dues ensure you, the members, continue to receive a high level of service from the CIA in the following areas:
  • 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 its members meet extremely high professional standards;
  • Promoting self-regulation and enforcing rules of professional conduct;
  • Advocating for the profession with governments and the public in the development of public policy;
  • Adding two new positions (education actuary and marketing coordinator) at the CIA Head Office;
  • Planning for the CIA’s 50th anniversary in 2015; and
  • Modernizing the Institute’s outdated database systems to move towards a member relationship management platform.
Please make sure to visit your new website at www.cia-ica.ca, and we hope to see you all in June at the Annual Meeting in Montréal!

Sincerely,

Martin Roy
Secretary-Treasurer


Contact with Questions: Jacques Leduc, director, operations, finance, and administration, at jacques.leduc@cia-ica.ca

Webinar: The Indalex Supreme Court Decision and Implications for Actuaries

Tuesday, May 7, 2013
Noon to 1:30 p.m. (EDT)

Speakers:

Kenneth Burns, partner, Lawson Lundell
Hugh O'Reilly, head of the pension benefits and insolvency practice group, Cavalluzzo Hayes Shilton McIntyre & Cornish

What implications does the Indalex Supreme Court decision have on actuarial practice? In this CIA pension webcast, lawyers Kenneth Burns and Hugh O'Reilly—leading experts on pension benefits and insolvency—will share their valuable insights on the Indalex decision with respect to the following key issues:
  • Fiduciary duty;
  • Representative counsel and independent actuarial advice for pension beneficiaries;
  • Deemed trust and super-priority;
  • Considerations of pension impacts before Companies' Creditors Arrangement Act (CCAA) or Bankruptcy and Insolvency Act (BIA) filing; and
  • Best practice for pension actuaries dealing with insolvent clients.
This webcast is one that no pension actuaries can afford to miss.

To learn more about this webinar and the CIA’s other online events, click here.

Contact with Questions: Roxanne Vézina, assistant, membership and education, at roxanne.vezina@cia-ica.ca

Webcast – The Real Retirement

Thursday, May 9, 2013
Noon to 1:30 p.m. (EDT)

Speaker:

Fred Vettese, chief actuary, Morneau Shepell, and author of The Real Retirement: Why You Could Be Better Off Than You Think, and How to Make That Happen

There is a strong perception that Canada is undergoing a retirement crisis. While this is a natural conclusion due to low pension plan coverage, Fred Vettese believes it is largely erroneous since we have overestimated the retirement income target we think we need and underestimated the assets at our disposal. While increasing longevity, slower growth in housing wealth, and lower returns on investable assets may point to a bleaker future, other developments suggest we may yet avoid an outright crisis. In this webcast he describes the key conclusions in his book The Real Retirement, and the implications for public pension policy.

Link: c
lick here

Contact with Questions: Roxanne Vézina, assistant, membership and education, at roxanne.vezina@cia-ica.ca

Join the 100+ Volunteers in the Member Listening Group
 

Well over 100 members are playing a part in the development of the profession thanks to the CIA Member Listening Group (MLG). However, more recruits are needed to join the MLG and deliver their opinions on topics of importance to the CIA Board, Head Office, councils, and committees through the timely completion of short online surveys.

The group has already helped in the development of various projects, and now we are seeking extra volunteers to ensure that the views of the broadest spectrum of members are represented. Only a small time commitment is required, and we encourage you to click on the link and sign up today.

Link: http://app.fluidsurveys.com/s/mlg-signup/

Contact with Questions: Josée Racette, project manager, communications and public affairs, at josee.racette@cia-ica.ca

Submission to OSFI: Draft Guideline E-19 – Own Risk and Solvency Assessment
 

The Canadian Institute of Actuaries has offered comments on the Office of the Superintendent of Financial Institutions’ Draft Guideline E-19 – Own Risk and Solvency Assessment.

To read the submission, please access the link below.

Link: http://www.cia-ica.ca/docs/default-source/2013/213022e.pdf

Contact with Questions: Bruce Langstroth, Chair, Practice Council, at bruce.langstroth@rbc.com

New CIA Website Launch

We are proud to announce that as of today, April 19, the new CIA website is now live, complete with a new bilingual domain name and address:


The site has a completely new look and feel; unparalleled search capabilities; new sections; a news service on the public site; e-commerce facilities to allow easy payments for meetings, membership dues, and webcasts; and effective displays of the most popular areas: Standards of Practice and Guidance Material.

As well, the e-mail addresses for CIA Head Office staff will change. The new model is:

firstname.lastname@cia-ica.ca

Here is some information on what’s new, what’s not, and what to expect:

Publications Search Tool

All CIA publications are now stored in a content management system (database), which is fully searchable (including the content of the documents). Check out Search Publications to find any document posted, or check out the other pages in the Publications section, where different publication types are already displayed without you having to search (e.g., the Bylaws, reports, and policies).

All CIA documents from 2004 onwards are in the database and more are being uploaded every day, working our way back in time. In addition to the digital versions of CIA documents in the database, the Institute has scanned older documents from earlier decades and these will be added to the database in due course.

Standards of Practice

Standards are now displayed in a new format, which also links to past versions of each part of the Standards of Practice (archives). Check out Standards of Practice.

Guidance Material

Guidance Material is now displayed in a much more user-friendly format, grouping all guidance by area of practice. Check out Guidance Material.

Research

A new Research section has been added, which will provide members with information regarding current and past CIA research projects, requests for proposals that are underway, and a place to share ideas on potential research topics.

Members Only

A fully integrated Members Site has been developed that restricts access to certain content. The members’ menu only appears once you’ve logged in to the site—to log in, simply use your existing CIA membership account username and password. Most of the tools that were available to members under Toolkit on the old site are now found under My Profile on the members’ menu.

You will undoubtedly recognize the layout of some of these member tools. The CPD Tracking Tool and the Member Directory Search Tool, for example, remain in their old format. They are currently being reviewed and redeveloped for the new site and will be integrated as part of a Phase 2 redevelopment in 2013–2014.

Other New Information
  • We have created a page that shows the Most Viewed Publications on the site, and another showing the Most Recent Publications posted. Both are accessible in the Publications section, and also in Quick Links. It will obviously take a little while before they become useful tools, particularly the Most Viewed. But over time, they will be interesting.
  • When you click on the title of a document, you will view the document’s properties and details, which include its related documents and also previous versions. The previous version details are particularly helpful as an archive tool for documents such as the Bylaws and Rules of Professional Conduct.
  • Professional Development (formerly Events) is the one section, other than the Publications Search Tool, that has undergone the largest facelift in terms of functionality. It will be fully integrated with the built-in e-commerce module, which will provide a much more seamless registration process.
  • A new Volunteer Centre has been developed that provides all CIA volunteers, and those members looking to volunteer, with helpful orientation and training material that will hopefully improve their volunteer experience.
  • Under What we do, where we practice, new pages have been added to provide the public with more detail about the various practice areas in which actuaries work (e.g., life insurance, pension, ERM, actuarial evidence).
Please explore the site and send any questions or feedback that you may have to webmaster@cia-ica.ca

Link:
www.cia-ica.ca

Contact with Questions: Lynn Blackburn, director, professional practice and volunteer services, at lynn.blackburn@cia-ica.ca

Notice to the CIA Membership: Situation Involving a Former Member of the Canadian Institute of Actuaries – Mr. Clifford Oliver

The CIA Board is hereby informing the membership of a situation involving a former member of the Institute, Mr. Clifford Oliver. Following a review of this situation, it was decided that the best way to proceed was to enter into an agreement with Mr. Oliver.

For more information, please access the link below.

Link: http://www.cia-ica.ca/docs/default-source/2013/213021e.pdf

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

Webinar: International Comparison of Social Security Scheme Economic and Demographic Assumptions

Tuesday, April 23, 2013
Noon to 1:30 p.m. (EDT)
Speaker: Yves Guérard, actuary and international consultant

In a context of demographic aging and increasing pressure on public budgets, social security schemes face difficult challenges and entail high risks in many countries. These schemes can boost the well-being of society as a whole only if there is proper governance, clarity about the objectives, and transparency in their financing. This webinar aims to enhance actuaries’ capacity to conduct a critical review of the quality and adequacy of the public information made available in various countries, especially concerning actuarial assumptions, the validity of the underlying data, and the schemes’ impact on socio-economic development.

Although only a limited number of actuaries will sign a social security actuarial report, all are uniquely qualified to promote the public interest by helping people play an active role in defining optimal national policy options.

To learn more about this webinar and the CIA’s other online events, click on the link below.

Link: http://cia-ica.ca/professional-development/webcasts

Contact with Questions: Roxanne Vézina, assistant, membership and education, at roxanne.vezina@cia-ica.ca

Discipline Notice – Notice of Decision

A Discipline Notice has been prepared by the Committee on Professional Conduct to inform CIA members of the decision in the matter of charges laid against Mr. Ashley B. Crozier.
 

Link: http://www.cia-ica.ca/docs/default-source/2013/213020e.pdf

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

30th International Congress of Actuaries: Registration Open

Registration is now open for the 30th International Congress of Actuaries, which will take place in Washington, DC, from March 30–April 4, 2014. Work is well underway on organizing the event—hosted by the five actuarial organizations in the U.S.—and hundreds of actuaries will be attending to enjoy presentations, seminars, and other activities based on a theme of "Learn, Interact, Grow".

For more details of the sessions, tours, and dinners already included in the program, and to register, click on the link below.

Link: http://www.ica2014.org/

Contact with Questions: e-mail info@ica2014.org

2013 CIA Meeting and Seminar Sponsorship Program

The new Sponsorship Program for the CIA’s 2013 Annual Meeting and specialty seminars is now available at the Institute’s website. As always, the CIA’s events feature a wide range of opportunities for companies and organizations to demonstrate their support for the actuarial profession and its members while boosting their own image and reputation.

Luncheons, internet kiosks, folios, key tags, and much more can be sponsored. Prices start at just $500.

To view the program and discover all the benefits that sponsorship can offer, click on the link below.

Link: http://www.cia-ica.ca/docs/default-source/2013/sb2013e.pdf

Contact with Questions: Jacques Leduc, director of operations, finance, and administration, at 613-236-8196 ext. 103 or jacques.leduc@cia-ica.ca

Memorandum: Mortality Research Results and Distribution of Standards and Guidance Material

This memo provides information about the anticipated timeline for the completion and communication of research results relating to Canadian pensioner mortality and mortality improvement, and subsequent distribution of standards and guidance material based on that research.


The first of the two research projects, the Canadian Pensioners Mortality Table, saw its final phase (the third) published on March 6. The second, the Registered Pension Plan Mortality Study, is expected to be approved for publication in exposure draft form in June.

The Committee on Pension Plan Financial Reporting will consider this research in determining the need for additional guidance material. It is anticipated that the Actuarial Standards Board will begin consideration of promulgating new assumptions for the commuted value standard once the mortality study results are released in exposure draft form.

If you have any questions regarding the research, contact Marc-André Belzil (Chair of the Research Committee) at mbelzil@rgare.ca or Kim Young (Chair of the Pension Experience Subcommittee of the Research Committee) at kim-young@shaw.ca.


Exposure Draft: Revisions to the Practice-Specific Standards for Pension Plans – Assumptions for Hypothetical Wind-Up and Solvency Valuations

The attached exposure draft was approved by the Actuarial Standards Board (ASB) on March 27, 2013. It proposes revising subsections 3240 and 3260 of the practice-specific standards for pension plans with respect to the selection of assumptions for hypothetical wind-up and solvency valuations to better accommodate alternative settlement methods.


Parties wishing to comment on this exposure draft should direct those comments to Michael Banks at michael.banks@mercer.com by June 3, 2013. A copy should also be sent to CIA resident actuary Chris Fievoli at chris.fievoli@cia-ica.ca.

Link: http://www.cia-ica.ca/docs/default-source/2013/213018e.pdf

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

Highlights from the March 21, 2013, Board Meeting

The highlights from the most recent Board meeting, held on March 21, 2013, are now available. To view the document, please access the link below.

Link: http://www.cia-ica.ca/docs/default-source/2013/213017e.pdf

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

Thank You, Volunteers!


From April 21-27, Canadian volunteers step into the spotlight as organizations across the country celebrate National Volunteer Week.

Please join the Canadian Institute of Actuaries and its Committee on Volunteer Initiatives in celebrating the efforts of our most valuable resource—our volunteers—by extending a heartfelt thank you to friends or colleagues who volunteer for their commitment to the profession.

If you would like more information about volunteering at the CIA please contact Carmelina Santamaria, coordinator of volunteer services, at 613-236-8196 ext. 126 or carmelina.santamaria@cia-ica.ca.

Together we can accomplish great things!

Links:
National Volunteer Week
Committee on Volunteer Initiatives

Canadian Standard Ordinary Individual Life Mortality Experience Between the 2004 and 2010 Anniversaries Using 86–92 and 97–04 Tables: Databases from Seriatim Data

The CIA Individual Life Experience Subcommittee of the Research Committee publishes industry mortality experience reports on an annual basis. Early in 2011, the subcommittee decided to proceed with the Mortality Database Project in order to create detailed data files that represent the data underlying the recent annual mortality experience studies.


To read the project, please access these links:


Contact with Questions: Nikolai Serykh, Chair, Individual Life Experience Subcommittee, at nserykh@munichre.ca
 
Calendar of Events
June 7, 2013
Bylaw Amendments
Webcast
N/A
June 19, 2013
Professionalism Workshop Hilton Montreal Bonaventure Montréal,
QC
June 20-21,
2013
Annual Meeting
Hilton Montreal Bonaventure Montréal,
QC
September 20-21, 2013
Actuarial Evidence Seminar
ITHQ – Québec Tourism and Hotel Institute
Montréal,
QC
September 25, 2013
Professionalism Workshop Hilton Montreal Bonaventure Montréal,
QC
September 26-27, 2013
Seminar for the Appointed Actuary
Hilton Montreal Bonaventure Montréal,
QC
November 12, 2013
Pension Seminar
Metro Toronto Convention Centre
Toronto, ON
November 13, 2013
Investment
Seminar
St Andrew’s Club & Conference Centre
Toronto, ON
June 18-19, 2014
Annual Meeting
Hyatt Regency Hotel
Vancouver, BC
June 17-18, 2015
Annual Meeting
Westin Ottawa
Ottawa, ON

Additional information on all CIA meetings can be obtained here, or by contacting Nancy Jenkinson at 613-236-8196, ext.104, or nancy.jenkinson@cia-ica.ca.

For information on CIA webcasts, click here.


 
Board and Council Updates
Member Services Council

The council has approved the creation of the Task Force on Genetic Testing, consisting of Jacques Boudreau (Chair), Étienne Brodeur, Rob Brown, Greg Cerar, Maurice Germain, Bernard Naumann, Patrick Thompson, and Kyle Wu. Frank Grossman will be the council’s liaison. The task force has the following objectives:
  • Consider issues and recent developments on the topic of genetic testing.
  • Review the previous statement issued by the CIA on the topic.
  • If necessary, prepare a revised public position for the profession.

Practice Council

The following people have been appointed to the committees named below:

  • Investment Practice (CIP): Ross Dunlop (Chair) and Patrick Chamberland (Vice-chair).
  • Property and Casualty Insurance Financial Reporting (PCFRC): Yves Boissonnault-Francoeur.
  • P&C Insurance Pricing: Flora Chan and Justin Pursaga.

For information only:

Tony Williams has resigned as Chair of the CIP, and Kevin Lee has resigned from the PCFRC.