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Practice Council Update

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By Bruce Langstroth, FCIA

Phil Rivard last shared happenings within the Practice Council about six months ago. This note will update you on key guidance material (research papers and educational notes) published since that time and some important work in progress, and highlight a need for volunteers.

Published in the Last Six Months

Guidance material published over the last six months includes:
Work in Progress

As we look at our desktops today (or consider work that we expect to be there in the near future), three particular projects stand out:
  • Work is well advanced on updating the 2009 educational note Calibration of Stochastic Interest Rate Models to provide guidance on the calibration of models projecting short-term interest rates and credit spreads (as well as the original long-term interest rates). This project has been affected by the Actuarial Standards Board’s (ASB) work on economic reinvestment assumptions—publication of the update will be delayed until the completion of the ASB’s work and evaluation of the nature of and need for further guidance.
  • Changes to the Standards of Practice in relation to mortality improvement assumed in the valuation of life insurance and annuity contracts were implemented in 2010 and work is under way to consider the application of those standards to the valuation of disabled life reserves (disabled life annuities).
  • Development of an educational note addressing dividend determination for participating policies intended to accompany streamlining of the Standards of Practice is expected later in the year.
  • The Committee on Risk Management and Capital Requirements is planning to work on research papers addressing capital for operational risk and risk appetite and limits.
Enterprise Risk Management Members

In the Practice Council’s last update, Phil Rivard spoke to the desire to obtain a diverse range of experience and practice within the council’s membership. Enterprise risk management (ERM) as a practice area is not well represented (at least by those whose principal area of practice is ERM) on the council. ERM practitioners who are interested in participating on the Practice Council should contact me at bruce.langstroth@rbc.com.

Bruce Langstroth, FCIA, is Chair of the CIA Practice Council.
 

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