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Viewpoint: A New Paradigm for Retirement

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

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

Link: click here.

Contact with Questions: Montréal Economic Institute at commentaires@iedm.org

Seeking CIA Member for International Natural Resource/Sustainability Group

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

Contact with Questions: Jan Schuh at jschuh@soa.org

Notice of CIA General Business Session

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

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

Link: click here.

Contact with Questions: Caroline Thebault, senior administration assistant, at caroline.thebault@actuaries.ca or 613-236-8196 ext. 134

New Research on Emerging Risks and Risk Appetite

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

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

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

Contact with Questions: Steve Siegel, SOA research actuary, at ssiegel@soa.org

CPD Seminar on Earthquake Risk: June 13 in Toronto

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

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

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

Contact with Questions: Stats-info@uwo.ca

Final Due Process Now Available

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

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

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

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

Contact with Questions: Nancy Yake of the ASB at nancy.yake@sympatico.ca

March 2012 Risk Management Newsletter Now Available in Both Official Languages

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

Link: click here.

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

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

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

Link: click here.

Contact with Questions: Micheline Dionne, Chair, Committee on International Relations, at mdionne@rgare.ca

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

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

Link: click here.

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

ERM Webcast

Five Keys to Successful Risk Identification

Wednesday, April 25, 2012
12:15 p.m. to 1:15 p.m. (EDT)

Speaker: Sim Segal, president, SimErgy Consulting LLC

Since risk identification is the first step in the ERM process cycle, most assume that by now standard practice must be best practice, but this is not the case. This webcast discusses the critical mistakes commonly made in risk identification that can derail an ERM process, and the five keys to successfully avoiding them.

Link: click here.

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

Notice of Annual Dues for 2012–2013

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

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

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

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

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

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

Sincerely,

Martin Roy
Secretary-Treasurer

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

The CIA’s Twitter Feed is Growing Fast

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

Our tweets highlight forthcoming events, publicize new documents, and pass on important information, and Twitter buttons have been added to the CIA's public website and Members Site to allow anybody to follow the CIA's English or French accounts.

We encourage all members to click on the appropriate button here or directly at our Twitter page. By following the CIA, and retweeting any posts you feel would be of interest, you help ensure that the work of the Institute and its members can reach the widest possible audience, constantly raising the profile of the Canadian actuarial profession.

Link: http://twitter.com/cia_actuaries

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

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

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

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

Link: click here.

Contact with Questions: Nancy Jenkinson at nancy.jenkinson@actuaries.ca; telephone: 613-236-8196 ext. 104; fax: 613-233-4552

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

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

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

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

Link: click here.

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

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

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

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

Parties wishing to comment on this notice of intent should direct those comments to Ty Faulds at ty.faulds@londonlife.com by May 31, 2012. A copy should also be sent to CIA resident actuary Chris Fievoli at chris.fievoli@actuaries.ca.

Link: click here.

Contact with Questions: Ty Faulds, Chair, Designated Group, at ty.faulds@londonlife.com
 

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