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Invitation to the 2011 ERM Symposium

Taking place from March 14-16, 2011, at the Swissôtel, Chicago, IL, the ninth annual ERM Symposium brings together enterprise risk management (ERM) knowledge from a variety of industries, and aims to build a strong cross-disciplinary framework for senior management to create systematic value and competitive advantage through effective managing of risk and capital.

This year’s premier global conference on ERM will offer:
  • Three general sessions and more than 30 concurrent sessions featuring top risk management experts;
  • Seminars on hot ERM issues;
  • Networking opportunities to renew and expand your list of ERM contacts;
  • A scientific program showcasing top brainpower in new applied research in ERM;
  • A track of sessions featuring academics presenting ERM research from leading universities; and
  • Exhibitors demonstrating their ERM services and knowledge.

Online registration is now open at: http://www.ermsymposium.org/2011/index.php

Link: http://www.ermsymposium.org/2011/index.php
Contact with Questions: Casualty Actuarial Society at office@casact.org

Submission to the Ontario Ministry of Finance

The Canadian Institute of Actuaries presented its comments on the document Securing Our Retirement Future: Consulting with Ontarians on Canada's Retirement Income System.

Link: http://www.actuaries.ca/members/publications/2010/210093e.pdf
Contact with Questions: Michel St-Germain, Chair, Member Services Council at michel.st-germain@mercer.com

Public Position on Self-Insured LTD Plans

The CIA has established a public position on self-insured long-term disability plans.

Benefit security is of vital importance to disabled employees and the CIA’s public position outlines the profession’s thinking on this issue. We offer suggestions as to how governments can take positive steps to mitigate the impact of sponsor bankruptcy on plan members.

Plans are being drawn up to hold a webcast on the position in mid-January.

Link: http://www.actuaries.ca/advocacy/self-insured_disability_e.cfm
Contact with Questions: Chris Fievoli, resident actuary, at chris.fievoli@actuaries.ca

Report on the CIA Survey of C-1 Provisions of Life and Health Insurance Organizations in Canada – 2009 Fiscal Year-End

This report documents the results of the Canadian Institute of Actuaries (CIA) Survey of C-1 Provisions for Life and Health Insurance Organizations in Canada as at fiscal year-end 2009. Westbay Research prepared the report for the CIA’s Committee on Investment Practice using survey data collected in June/July 2010.

The report is available in the Members Section of the CIA website. To access this draft report, please log into the section and click on Organization on the top menu bar. Select Practice Council and under Committees and Task Forces select Committee on Investment Practice. The link to the draft report is under Reports and Documents near the bottom of the page.

Contact with Questions: Jonathan Hede, Chair, Committee on Investment Practice at jonathan.hede@nexusrisk.com

The Canadian Institute of Actuaries calls on all governments to provide Canadians with the pension reform they deserve

The Canadian Institute of Actuaries (CIA) regrets that expectations for today’s meeting of finance ministers in Kananaskis were not achieved. As experts in pension issues, the actuarial profession remains committed to working with provincial, territorial and federal governments to find common ground for real and meaningful reform in Canada’s pension system.

To view the entire press release, please access the link below.

Link: http://www.actuaries.ca/members/publications/2010/210096e.pdf
Contact with Questions: Les Dandridge, director, communications and public affairs at les.dandridge@actuaries.ca

Educational Note – Calculation of Incremental Cost on a Hypothetical Wind-Up or Solvency Basis

The Actuarial Standards Board published the final Standards of Practice for Revised Practice-Specific Standards for Pension Plans (Part 3000) on June 14, 2010. The revised Standards of Practice, which come into effect on December 31, 2010, require, with limited exceptions, an external user report on the funded status or funding of a pension plan to report the incremental cost on a hypothetical wind-up or solvency basis. This educational note is intended to assist actuaries in the calculation of a pension plan’s incremental cost on a hypothetical wind-up or solvency basis.

An original draft educational note on the same subject was issued on April 9, 2009 and a revised draft educational note was issued on April 12, 2010. Several changes have been incorporated in the final educational note, considering comments received.

Link: http://www.actuaires.ca/members/publications/2010/210095e.pdf
Contact with Questions: Gavin Benjamin, Chair, Committee on Pension Plan Financial Reporting, at gavin.benjamin@towerswatson.com

Educational Note – Determination of Best Estimate Discount Rates for Going Concern Funding Valuations

This educational note is intended to assist actuaries in the selection of an appropriate best estimate discount rate for a going concern funding valuation of a pension plan.

A draft educational note on the same subject was issued on June 16, 2009. Standards of Practice for Revised Practice-Specific Standards for Pension Plans (Part 3000) (the "final Standards") were published by the Actuarial Standards Board on June 14, 2010 to be effective December 31, 2010. This educational note reflects relevant changes in the final Standards and comments received on the draft educational note.

Link: http://www.actuaries.ca/members/publications/2010/210094e.pdf
Contact with Questions: Gavin Benjamin, Chair, Committee on Pension Plan Financial Reporting, at gavin.benjamin@towerswatson.com

Submission to the IASB – Exposure Draft on Insurance Contracts

The Canadian Institute of Actuaries presented its comments on the International Accounting Standards Board Exposure Draft on Insurance Contracts.

Contact with Questions: Lesley Thomson, Chair, Task Force on International Accounting and Actuarial Standards (Insurance) at lesley.thomson@sunlife.com

Appointment of New CIA Executive Director

The Board of Directors of the Canadian Institute of Actuaries (CIA) is pleased to announce the appointment of Michel C. Simard to the position of Executive Director.

A seasoned lawyer and manager, M. Simard brings to the CIA extensive experience acquired in federal ministerial offices and at a national professional association in the health sector. In addition, he spent many years at the head of a national charitable organization and a federal administrative tribunal. He has also worked in the academic field, dividing his time between consulting and teaching.

An involved citizen, he has made his mark in Québec’s Outaouais region through his work with community and sports groups, and has coordinated the Canadian Bar Association’s education program on charters of rights and freedoms aimed at secondary students in that region.

M. Simard received the Commemorative Medal of the 125th Anniversary of the Confederation of Canada for his contribution to the democratization of Canadian philanthropy, and the Citizenship and Immigration Deputy Minister’s Achievement Award for Service Excellence. He holds a Bachelor of Law degree from the Université Laval and a Postgraduate Diploma in International Administration from the École nationale d’administration publique (ENAP).

Originally from Québec City, M. Simard has lived in the National Capital Region for 30 years. He is married to Isabelle Michaud. They have two teenage children, Jacob and Raphaël.

Contact with Questions: Lynn Blackburn, Interim Executive Director, by e-mail at lynn.blackburn@actuaries.ca or by phone at (613) 236-8196, ext. 117

Submission to the Department of Finance Canada

The Canadian Institute of Actuaries presented its comments on the federal minister’s review of legislation governing federally regulated financial institutions.

Link: http://www.actuaries.ca/members/publications/2010/210087e.pdf
Contact with Questions: Tyrone Faulds, Chair, Practice Council, at Ty.Faulds@londonlife.com

International Actuarial Association Section Membership Dues

Below is a link to the 2011 IAA section dues subscription form. Please note that the CIA is collecting membership dues on behalf of all IAA sections: AFIR, ASTIN, AWB, IAAHS, IACA, Life and PBSS.

Anyone wishing to join any of the IAA sections must complete the form and submit the appropriate amount in dues. If you have already paid your section dues for this year through another association, please do not submit them again. You may contact Lidia Frassine (see below) to ensure that your payment has been recorded.

Link: http://www.actuaries.ca/members/publications/2010/IAA_Dues_Package.pdf

Contact with Questions: Lidia Frassine (613) 236-8196, ext. 102 or by e-mail at lidia.frassine@actuaries.ca

Supplementary Tables to the Special Report on the CIA9704 Tables (Canadian Standard Ordinary Life Experience 2003–2008)

Supplementary tables have been added to the special report by the Individual Life Experience Subcommittee of the Research Committee detailing the intercompany mortality experience for Canadian standard ordinary life insurance policies, which was published in October 2010.

To view the supplementary tables, please access the links below.

Mortality Study: Special report on the CIA9704
5-year Tables
Supplementary – Table 8 by size 2003–2008
Supplementary – Table 8 by size 2004
Supplementary – Table 8 by size 2005
Supplementary – Table 8 by size 2006
Supplementary – Table 8 by size 2007
Supplementary – Table 8 by size 2008

Links: See above
Contact with Questions: Nikolai Serykh, Chair, Individual Life Experience Subcommittee, at NSerykh@munichre.ca

Research Paper – IFRS Disclosure Requirements for Life Insurers

For life insurers, the two primary implications of IFRS Phase I, which is due to be implemented in Canada on January 1, 2011, are related to the classification of contracts and enhanced disclosures in financial statements.

The IFRS Life Disclosure Subgroup, at the request of the Committee on the Appointed/Valuation Actuary, has drafted this research paper to identify the actuarial disclosures that are relevant to life insurers, analyze the impact of the actuarial disclosure requirements, including a comparison to current reporting under CICA, and provide guidance for actuarial disclosure, including examples.

This research paper presents the actual IFRS disclosure requirements, followed by the subgroup’s comments and suggestions along with illustrative examples of quantitative disclosures, where appropriate.

Link: http://www.actuaries.ca/members/publications/2010/210088e.pdf
Contact with Questions: Ralph Ovsec, Chair, IFRS Life Disclosure Subgroup, at ralph_ovsec@manulife.com

Webcast – CIA University Accreditation for Actuarial Exam Exemptions

French Webcast
December 14, 2010
12:00 – 1:30 p.m. (EST)
Presenters: CIA President Micheline Dionne and Accreditation Committee members Isabelle Larouche and Mathieu Boudreault.

English Webcast
December 15, 2010
12:00 – 1:30 p.m. (EST)
Presenters: Rob Stapleford, Chair of the Accreditation Committee, committee members Neville Henderson and Bruce Jones, and John Dark, a member of the CIA Board and the Accreditation Committee.

Learn more about the CIA University Accreditation Program. The Accreditation Committee will be hosting two webcasts, one in French on December 14, 2010, and one in English on December 15, 2010. They will provide an overview of the draft university accreditation program currently under discussion. This is an excellent opportunity to gain more information and ask questions on this important topic. The webcasts are available at no charge, but you must register in advance to attend.

Link: http://www.actuaries.ca/webcasts/index_e.cfm

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

September 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 jointly sponsored by the CIA, Casualty Actuarial Society and SOA. Its purpose is to promote education and research in enterprise risk management (ERM) and establish leading risk management techniques.

Link: http://www.soa.org/library/newsletters/risk-management-newsletter/2010/september/jrm-2010-iss20.pdf

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

Educational Note: Valuation of Gross Policy Liabilities and Reinsurance Recoverables

International Financial Reporting Standards (IFRS) will be effective in Canada for interim and financial statements relating to fiscal years starting on or after January 1, 2011. IFRS 4 deals with the measurement of liabilities for insurance contracts. It is a preliminary standard (often called "Phase 1") which allows the continuation of the current accounting policy for the measurement of insurance contract liabilities, provided certain criteria are met.

The Standards of Practice do not provide guidance on the calculation method or assumptions for the gross liability and the reinsurance recoverable. This educational note describes considerations in the valuation and presentation of the gross liability and the reinsurance recoverables.

If you have any questions or comments regarding this educational note, please contact B. Dale Mathews, Chair, Committee on Life Insurance Financial Reporting, at dale_mathews@manulife.com.

Link: http://www.actuaries.ca/members/publications/2010/210086e.pdf
Contact with Questions: B. Dale Mathews, Chair, Committee on Life Insurance Financial Reporting, at dale_mathews@manulife.com

Exposure Draft for Revised Standards of Practice – Practice-Specific Standards for Insurers (P&C Insurance) – Subsections 2260 and 2270

This exposure draft was approved by the Actuarial Standards Board on December 1, 2010. Changes are highlighted relative to the Standards of Practice that will be effective on January 1, 2011. An effective date of January 31, 2011, is proposed for the final Standard of Practice.

The changes affect subsections 2260 and 2270, which address margins for adverse deviations (MfADs) for property and casualty insurance. Currently, the Standards of Practice in subsections 2260 and 2270 do not allow for MfADs which are below the low end of the prescribed range. The desired outcome is to make it more clear to members that selection below the low margin may be acceptable in unique circumstances.

Comments on the exposure draft are invited by December 31, 2010. Please send your comments, preferably in an electronic form, to Jacqueline B. Friedland at jfriedland@kpmg.ca with a copy to Chris Fievoli at chris.fievoli@actuaries.ca.

Link: http://www.actuaries.ca/members/publications/2010/210084e.pdf
Contact with Questions: Jacqueline B. Friedland, Chair, Designated Group, at jfriedland@kpmg.ca


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