CIA (e)Bulletin/(e)Bulletin de l'ICA
Past Issues | www.cia-ica.ca  
   
June 2017
 
 

An Update from the International Relations Council

Print Print this Article | Send to Colleague

By Dave Pelletier, FCIA

As I mentioned in our last (e)Bulletin IRC update in January, in accordance with our expanded mandate the IRC developed an international strategy document, which received Board approval. Objectives identified included 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.

Developing a strategy is one thing; implementing it, however, is another, and Jacques Tremblay and Alicia Rollo recently led an IRC task force that developed a detailed action plan to achieve our objectives in this area over the coming months and years.

Committee Work and International Submissions

Both of our insurance-related committees have been particularly busy over the last few months.

The International Accounting Standards Board has finally released the long-awaited revised accounting standard on insurance contracts, International Financial Reporting Standard (IFRS) 17, which replaces IFRS 4. While the standard won’t take effect until 2021, implementation will require a huge effort by insurers around the world. Our International Insurance Accounting Committee (IIAC) has been hard at work planning and preparing webcasts and guidance material for our members, to be built in part around the model International Standard of Actuarial Practice (ISAP 4) and the associated International Actuarial Notes (IANs) to come from the International Actuarial Association (IAA). The IAA is also in the process of developing a monograph on risk adjustments in the context of IFRS 17 (roughly but not precisely analogous to our “provision for adverse deviations”). On behalf of the CIA, the IIAC prepared detailed comments on the draft monograph for the IAA.

Meanwhile, on the regulatory front, in March the International Association of Insurance Supervisors (IAIS) launched a “Major Consultation Package”, dealing with several of its Insurance Core Principles (ICPs) for insurer regulation, particularly in the context of its ComFrame initiative dealing with the supervision of Internationally Active Insurance Groups (IAIGs). Our International Insurance Regulation Committee drafted the CIA’s input for that consultation process.

Another international consultation process over the last few months was carried out by the Financial Stability Board’s Task Force on Climate-related Financial Disclosures.

In this case it was the Member Services Council’s Climate Change and Sustainability Committee that drafted the comments for IRC approval prior to submission by the CIA.

IAA Involvement

The IAA is dealing with a number of interesting strategic issues this year as it looks to better define and clarify its role, and the CIA is actively involved in the discussions. We were glad to host the IAA’s President, Tom Terry, and new Executive Director Mathieu Langelier at a dinner in Toronto in March, where we had an interesting dialogue on the direction of the IAA.

Questions around the proposed new IAA education syllabus and its standing have generated further comments about the association’s governance, role, effectiveness, and strategic objectives. As well as communicating our thoughts directly to its leadership, we prepared and submitted written comments in response to two formal IAA consultations—one on education and one on its strategic direction—as well as oral comments to a task force looking at the role of IAA sections.

The semi-annual IAA council and committee meetings took place in April in Budapest, Hungary. As well as the aforementioned governance, education, and strategy issues, other matters on the various committee, task force, and working group agendas included (among many others):

  • The model ISAP, the IANs, and the monograph on risk adjustments, all supporting IFRS 17, and the challenges of achieving reasonable global consistency in applying IFRS 17;
  • The strategic direction for the CERA designation, and how to increase its visibility in the area of risk management;
  • Current developments in aging and mortality, including the recently observed levelling off of mortality improvement in some parts of the world;
  • Expanding the actuarial profession’s penetration into the fields of banking and big data;
  • Providing additional support for the IAIS, including its upcoming proposed Insurance Capital Standard for IAIGs;
  • The mentorship program of Actuaries Without Borders (which some Canadian actuaries might find of interest, as mentors for young actuaries in the developing world; more information is available for those with an account on the IAA website); and
  • The meaning of “substantially consistent”, as standard-setters around the world decide if and how to reflect the ISAPs in local standards.

International Congress of Actuaries

Just a reminder that the quadrennial International Congress of Actuaries takes place in June 2018 in Berlin. The Deutsche Aktuarvereinigung (DAV) [German Actuarial Society] has a very active organizing committee, and looks forward to welcoming actuaries from all over the world to this five-day event. I’d encourage Canadian actuaries with an interest in interacting with professionals from around the world to consider attending (more information is available here).

Signing Off

This is my last report as IRC Chair, as my term ends on June 30. It’s been great to see the increasing interest and activity level by CIA members and staff in the international matters affecting our profession and its stakeholders, and I’m sure my capable successor Jacques Tremblay will enjoy it as much as I have.

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

 

Back to CIA (e)Bulletin/(e)Bulletin de l'ICA

Share Share on Facebook Share on Twitter Share on LinkedIn