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Exposure Draft regarding changes to the General Standards of Practice – Part 1000
 
The attached exposure draft was approved by the Actuarial Standards Board on August 24, 2010. The changes that have been made are compared and highlighted against the current Standards of Practice are highlighted, as amended by changes to be effective at the end of this year and already approved and published. 

The changes being made and the comments received are intended to improve wording, remove inconsistencies or correct some minor inaccuracies in the current Standards of Practice.

Comments on this exposure draft are invited by December 1, 2010. Please send your comments, preferably in electronic format, to John F. Brierley at jfbrierley@sympatico.ca, with a copy to Chris Fievoli at chris.fievoli@actuaries.ca.
 
 
Contact with Questions: John F. Brierley, Chair, Designated Group, at jfbrierley@sympatico.ca
 

Mortality Improvement Research Paper

The Committee on Life Insurance Financial Reporting has drafted this paper to provide support for an updated promulgation for mortality improvement with respect to the valuation of insurance and annuity business, and for changes in the range of margins in the Standards of Practice. The proposed revised Standards of Practice include alterations to subsection 2350, concerning insurance mortality and annuity mortality, and the paper explains the reasoning behind these planned changes.
 
The paper includes a summary of recent research on mortality improvement and guidance on future expected mortality improvement. It also outlines revised levels of margins for adverse deviations for insurance and annuity policy liabilities.
 
If you have any questions or comments regarding this research paper, please contact Edward Gibson, Chair, Designated Group, at his CIA Online Directory address, edward.gibson@empire.ca.
 
 
Contact with Questions: Edward Gibson, Chair, Designated Group, at edward.gibson@empire.ca
 

Initial Communication of a Promulgation of Prescribed Mortality Improvement Rates Referenced in the Standards of Practice for the Valuation of Policy Liabilities: Life and Health (Accident and Sickness) Insurance (Subsection 2350)

The Actuarial Standards Board proposes to promulgate the use of the mortality improvement rates described in the appendix, effective October 15, 2011. It is proposed that the new mortality improvement tables would be used for valuations on or after October 15, 2011. Early implementation is likely to be permitted, but comments are welcome on this issue. Comments on the proposed changes are invited by December 1, 2010. Please send them, preferably in an electronic form, to Chris Fievoli at chris.fievoli@actuaries.ca, with copies to B. Dale Mathews at dale_mathews@manulife.com and Edward Gibson at edward.gibson@empire.ca.

It is hoped that the promulgation of the final mortality improvement rates will occur in late 2010 or early 2011.

 
Contact with Questions: A. David Pelletier, Chair, Actuarial Standards Board, at dave@davep.ca
 
Exposure Draft for Revised Standards of Practice for the Valuation of Policy Liabilities: Life and Health (Accident and Sickness) Insurance (Subsection 2350) Relating to Mortality Improvement
 
The attached exposure draft was approved by the Actuarial Standards Board on August 24, 2010. Changes are highlighted against the current Standards of Practice, as amended by changes to be effective at the end of this year and already approved and published (see http://www.actuaries.ca/members/publications/2009/209117e.pdf and http://www.actuaries.ca/members/publications/2010/210059e.pdf). The opportunity has been taken to make some small drafting changes to the current Standards of Practice.
 
Comments on the proposed exposure draft are invited by December 1, 2010. Please send your comments, preferably in an electronic form, to B. Dale Mathews at dale_mathews@manulife.com, Edward Gibson at edward.gibson@empire.ca and Chris Fievoli at chris.fievoli@actuaries.ca.
 
 
Contact with Questions: B. Dale Mathews, Chair, Committee on Life Insurance Financial Reporting, at dale_mathews@manulife.com
 
Webcast: Defined Contribution (DC) Plans
 
November 23, 2010 from noon to 1:30 p.m. (ET)
 
Defined Contribution (DC) Plans
 
This webcast will be an introduction to defined contribution plans from a financial point of view, and how they are being affected by current developments in pension reform.
 
Speakers: Neil Duffy, FCIA, Manulife Financial, and Randy Colwell, regional vice-president, group retirement services, Sun Life Financial.
 
Link: http://www.actuaires.ca/webcasts/webcast_download_e.cfm?intWebinarID=30 
 
Contact with Questions: Alicia Rollo, CHRP, director, education and professional development, at alicia.rollo@actuaries.ca 
 
CIA Pension Seminar
 
Why? How? What?
 
Answering these questions in the right way could transform your life, according to Simon Sinek, the guest speaker at the 2010 CIA Pension Seminar.
 
A renowned expert in leadership, he wants people to do only the things that inspire them. The most efficient way to achieve this, he says, is by helping organizations understand their why so everyone who works for them goes home every night feeling inspired and fulfilled.
 
A trained ethnographer and the author of Start With Why: How Great Leaders Inspire Everyone to Take Action, he has studied leaders and companies that make the greatest impact in the world. The result is the Golden Circle, his theory involving analysis of:
  • What a company does;
  • How it does it; and
  • Why it does it.
You can read his full biography and watch sample videos at: http://www.speakers.ca/sinek_simon.html 
 
The CIA Pension Seminar will take place at the Hilton Montréal Bonaventure Hotel on November 3.
 
You can register by fax, by mail, or online with our secure transaction registration form.
 
You will find information on the sessions, registration, accommodation and transportation at the link below.
 
 
Contact with Questions: Nancy Jenkinson, Meeting Services, at nancy.jenkinson@actuaries.ca. Tel: 613-236-8196 ext. 104; fax: 613-233-4552
 

Call for Presentations – 2011 Enterprise Risk Management Symposium

The 2011 Enterprise Risk Management (ERM) Symposium Program Committee is soliciting presentations for the 2011 ERM Symposium, scheduled for March 13–16, 2011 at the Swissotel Chicago, located in downtown Chicago, IL. The committee will give preference to the following types of presentations, but others will be considered:

  • Case studies; 
  • Technical/quantitative presentations of a practical nature; and
  • Presentations of a more theoretical nature.

Those that address the challenges of ERM in a changing world are particularly encouraged. The following list provides examples of the topics but it is not exhaustive, and other presentations of interest to ERM professionals will be considered.

  • Many organizations face significant challenges in embedding ERM into the organizational culture. Are there best practices for meeting these challenges and fostering partnership between management, revenue producers and risk professionals? Can the experience of the recent crisis be used to instill a more risk-sensitive organizational culture?
  • How does one meet the specific challenges of designing models to quantify/evaluate risk, and how does one interpret the results of such models? How should unexpected events in the recent past be factored into next-generation models?
  • Increased scrutiny from regulatory bodies and rating agencies can have a direct impact on an organization’s ERM framework. Furthermore, there are significant risks from non-compliance or ignorance of these changes. How should organizations respond to these new regulatory and rating agency challenges? Can they be levered to achieve better risk-adjusted performance?
  • How does/can ERM help a firm meet its strategic challenges?
  • Are there new macroeconomic challenges facing organizations? If so, how should ERM reflect and meet these challenges? What about systemic risk?
  • What are the best practices of ERM? Do they exist? Which of them are applicable to all organizations? Should the risk management community promulgate and enforce them? If so, how?

Please submit your proposed session title, description, presenter(s) and other requested information using the online submission form by October 8, 2010. Invitations to participate in the program will be extended by October 29, 2010.

Links: Symposium: http://www.ermsymposium.org/2011/index.php
Call for presentations: http://cas.confex.com/cas/erm10/cfp.cgi

Contact with Questions: Steve Siegel, SOA Research Actuary, ssiegel@soa.org
 
Discipline Notice – Notice of Decision on Costs
 
A Discipline Notice is being provided to inform all Institute members about the notice of decision on costs in the matter of charges laid against a member and the Disciplinary Tribunal’s decision.
 
 
Contact with Questions: William Weiland, Chair, Committee on Professional Conduct, at bweiland@eckler.ca
 

The need for a revised approach to the financing of the EI system

The Canadian Institute of Actuaries renewed its call for a revised approach to the financing of Canada’s Employment Insurance (EI) system, in light of the recent announcement that the two-year freeze on EI premiums is about to be lifted.

 
Global Risk Institute in Financial Services (GRi)
 
On September 13, the Government of Canada announced the launch of the Global Risk Institute in Financial Services (GRi), which will be located in Toronto.
 
GRi will perform five key functions: (i) developing leading-edge thinking and practical, policy-relevant applied research in the area of financial risk management; (ii) providing consulting and advisory services to governments, regulators and industry; (iii) providing professional risk education to senior industry practitioners; (iv) partnering with academic institutions and professional organizations to train new graduates; and (v) hosting international forums and conferences.
 
Funding is provided by the federal and the provincial government. The Canadian Institute of Actuaries is among the private donors also contributing to this project.
 
 
Contact with Questions: Les Dandridge, director, communications and public affairs, at les.dandridge@actuaries.ca
 
Final Standard of Practice – Practice-Specific Standards for Insurers – Section 2300 Valuation of Policy Liabilities: Life Insurance regarding Stochastic Modeling and Segregated Fund Valuation
 
The attached final Standard of Practice was approved by the Actuarial Standards Board on August 24, 2010. There have been some editing modifications; however, there have been no significant changes made from the exposure draft.
 
The effective date of the final Standards of Practice is January 1, 2011. Early implementation is permitted, as the changes are not intended to alter the meaning of the current guidance.
 
Links: Final Standards – Practice-Specific Standards for Insurers, Section 2300 – Valuation of Policy Liabilities: Life and Health (Accident and Sickness) Insurance: http://www.actuaries.ca/members/publications/2010/210059e.pdf
Memorandum: http://www.actuaries.ca/members/publications/2010/210060e.pdf 
 
Contact with Questions: John F. Brierley, Chair, Designated Group, at jfbrierley@sympatico.ca 
 
Submission to the House of Commons Standing Committee on Finance
 
The Canadian Institute of Actuaries provided input to the 2010 pre-Budget consultations being undertaken by the House of Commons Standing Committee on Finance.
 
 
Contact with Questions: Les Dandridge, director, communications and public affairs, at les.dandridge@actuaries.ca 
 
CIA Actuaries Appointed to CPP Review Panel
 
Actuaries with the CIA have been appointed by the Office of the Chief Actuary to review the 25th Actuarial Report on the Canada Pension Plan (CPP).
 
Produced every three years, the report is considered by federal and provincial finance ministers when reviewing and making recommendations on the CPP, and the external peer review has generated valuable recommendations.
 
The panel members are all actuaries with the CIA and Fellows of the Society of Actuaries (SOA):
  • It will be chaired by Rob Brown, Chair of the International Actuarial Association’s Social Security Committee, member of the SOA Social Security Committee, former CIA President and previous reviewer of the CPP Actuarial Report;
  • Doug Andrews, council member, IAA Pension Benefits and Social Security Section, Chartered Financial Analyst and CIA Silver Award recipient for volunteer service; and
  • Warren McGillivray, member of the SOA Social Security Committee, policy associate with the Caledon Institute of Social Policy and member of the National Academy of Social Insurance.
Between them, the panel members have written more than 200 technical reports, research papers and books on pensions, health care and social security. Their work will be assessed by the United Kingdom Government Actuary’s Department (GAD), recognized for its social security expertise.
 
Parliamentary tabling of the Actuarial Report is expected to take place before year end. The panel will then have three months to perform the review and prepare a report. Once the GAD has responded, the panel’s report and GAD’s opinion will be made public.
 
Previous CPP Actuarial Reports, independent reviews and GAD opinions are available at: http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=497.
 
 
June 2010 Risk Management Newsletter Now Available in Both Official Languages
 
The CIA has just produced a French version of the Risk Management Newsletter, and the newsletter is now available in both official languages on the Society of Actuaries (SOA) website. The risk management section is sponsored by the CIA, Casualty Actuarial Society and SOA to promote education and research in enterprise risk management (ERM) and establish leading risk management techniques.
 
 
Mortality Study – Canadian Standard Ordinary Life Experience 2007-2008
 
This is the 59th annual report submitted by the Individual Life Experience Subcommittee of the Research Committee detailing the intercompany mortality experience for Canadian standard ordinary life insurance policies. This is the 15th year that the subcommittee has collected data in a seriatim format. It calculated exposure using the actuarial exposure method, in which a full year of exposure is credited in the year of death.
 
 
Contact with Questions: Marc-André Belzil, Chair, Individual Life Experience Subcommittee, at mbelzil@rgare.ca 
 
Mortality Study – Canadian Standard Ordinary Life Experience 2006-2007
 
This is the 58th annual report submitted by the Individual Life Experience Subcommittee of the Research Committee detailing the intercompany mortality experience for Canadian standard ordinary life insurance policies. This is the 14th year that the subcommittee has collected data in a seriatim format. It calculated exposure using the actuarial exposure method, in which a full year of exposure is credited in the year of death.
 
 
Contact with Questions: Marc-André Belzil, Chair, Individual Life Experience Subcommittee, at mbelzil@rgare.ca
 
Notice of Intent (NOI) to revise the Standards of Practice – Practice-Specific Standards for Insurers (P&C Insurance) – Subsection 2260 Margin for Adverse Deviations – Deterministic Analysis and Subsection 2270 Margin for Adverse Deviations – Stochastic Analysis
 
It is proposed to revise subsections 2260 and 2270, which address margin for adverse deviations for property and casualty insurance, to address the issue of selecting a margin below the low end of the range.
 
The desired outcome is to make it clearer to members that selection below the low margin may be acceptable in unique circumstances. While such exceptions could be supported without changing subsections 2260 and 2270 because of the guidance in 1120 Interpretations, we believe a direct change in subsections 2260 and 2270 will provide greater clarity to the actuaries who routinely turn to Section 2200 for guidance on the valuation of policy liabilities for property and casualty insurance.
 
Comments on the proposed changes are invited by October 15, 2010. Please send your comments, preferably in an electronic format, to Jacqueline Friedland at jfriedland@kpmg.ca with a copy to Chris Fievoli at Chris.Fievoli@actuaries.ca.
 
 
Contact with Questions: Jacqueline Friedland, Chair, Designated Group, at jfriedland@kpmg.ca
 

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