CIA (e)Bulletin/(e)Bulletin de l'ICA
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January 2017
 
 

An Update from the International Relations Council

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By Dave Pelletier, FCIA

As I mentioned in our last (e)Bulletin IRC update in June 2016, our mandate was expanded by the Board to include "To actively develop and maintain an international strategy for the CIA . . .". What do we want to accomplish through our international activities? And why? Jacques Tremblay led an IRC task force in developing a strategy document, with the objectives of promoting a strong actuarial profession worldwide, developing mutually beneficial relationships for the CIA with our sister organizations, strengthening the FCIA brand, and supporting FCIAs involved in work internationally, including those living and working abroad. This strategy document will help guide our activity going forward.

Our last update also mentioned our bid to host the 2026 International Congress of Actuaries in Vancouver. We lost out to a strong bid from the Institute of Actuaries of Japan; one contributing factor was that there hasn’t been a congress held in Asia since 1976! We wish the Japanese well and a strong attendance; this should provide many Canadians with a good reason to visit Japan.

A New Position

A few years ago, two of our sister organizations in the U.S., the American Academy of Actuaries (AAA) and the Casualty Actuarial Society (CAS), each appointed an international ambassador to be the lead on the increasingly important issues involving international matters and relationships. As part of the international strategy development process, we concluded that having an international ambassador would be worthwhile for the CIA as well. This role would include being the CIA delegate to the International Actuarial Association (IAA) Council, participating in bilateral meetings with other actuarial organizations and the North American Actuarial Council (NAAC), and taking part in other events internationally where CIA participation would be of strategic benefit to the CIA.

Given her extensive international experience over the last few years in several roles with the IAA, with the International Financial Reporting Standards (IFRS) Advisory Council, and with the other North American organizations on the NAAC while serving as CIA President, the IRC recommended, and the Board approved, Micheline Dionne as the first holder of this role, for a three-year term.

IAA Participation

The regular semi-annual IAA council and committee meetings took place in November in Cape Town. In a separate article in this (e)Bulletin, Chris Fievoli deals with one of the key topics covered during the meetings and a special seminar immediately afterwards: the role of actuaries in banking, something in which the South Africans have been particularly successful. A few of us got together for dinner with three of those banking actuaries and the president of the Actuarial Society of South Africa, and learned a lot about what they do and how they got there; we’ve passed this along to the CIA’s new Emerging Practices Committee as it looks at growth areas for the profession in Canada.

Other topics on which there was plenty of discussion and some progress at these meetings included the following:

  • Approval of two additional International Standards of Actuarial Practice (ISAPs) on modelling and insurer enterprise risk models, intended as models for consideration by local standard setters to adopt or adapt;
  • Development of a model ISAP and international actuarial notes (IANs, analogous to the CIA’s educational notes) supporting IFRS 17 on insurance contract financial reporting;
  • Release of an exposure draft of the risk adjustment monograph, dealing with the calculation of the risk adjustment portion of insurance contract liabilities as called for by IFRS 17;
  • Development of a model ISAP supporting the International Association of Insurance Supervisors’ (IAIS’s) proposed global Insurance Capital Standard (ICS), to be applicable to Internationally Active Insurance Groups;
  • A revised IAA education syllabus, and definition of its role with respect to member associations (which gets at the questions of IAA governance and its role);
  • Guidelines on the meaning of professionalism and international (cross-border) actuarial work;
  • Getting the IAA’s new General Insurance Committee off and running; and
  • Promotion of the Chartered Enterprise Risk Analyst (CERA) designation not merely within the actuarial profession, but also to employers, clients, and regulators.

At any given time, we have 15–20 FCIAs involved as either CIA delegates to the various IAA committees, where all associations have the right to appoint a delegate, or in leadership positions within the IAA, as well as positions on important limited-membership committees. We continue to publicize these positions as they come open to ensure timely rotation of incumbents and strong CIA representation. CIA members who have participated in the past have found the interaction with their international colleagues highly interesting and rewarding.

Committee Work

Two of our committees have been particularly busy over the last few months. The International Insurance Regulation Committee provided a detailed submission to the IAIS on its consultation on the proposed ICS, and also provided comments to the IAA on its near-final drafts of the ISAPs on modelling and insurer enterprise risk models. Meanwhile, the International Insurance Accounting Committee has developed a detailed work plan on how it will be dealing with proposed standards and guidance coming from the International Accounting Standards Board (IASB) and the IAA on insurance contract accounting, to provide support to CIA members as they grapple with the new requirements. In particular, in the next month, it will be drafting comments on behalf of the CIA on that draft monograph on risk adjustment under IFRS 17.

Dave Pelletier, FCIA, is Chair of the International Relations Council.

 

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