Ensuring the Actuarial Voice is Heard

By Les Dandridge, Chris Fievoli, and Kelly Fry

Policy makers and governments are making decisions and creating policy that affects the financial security of Canadians. The CIA wants to ensure the actuarial voice is heard on matters where your expertise adds great value.

Bylaw Changes

In the fall of 2016, the Board sought member input on proposed Bylaw amendments and a related Board policy on the development of CIA public statements (formerly referred to as public opinions or public positions), prior to their formal adoption.

The Board considered the comments received and adopted a final version of the proposed amendments and related policy. The amendments were confirmed by the members via proxy vote and in person at the General Business Session of the CIA Annual Meeting on June 21, 2017 in Québec City.

Members can read about the changes, the rationale behind them, and the subsequent process at the following links:

Memorandum to Members: Proposed Bylaw Amendments Related to CIA Public Statements;
Amending Bylaw No. 2016-2: Public Statements. Also, see appendix A; and
Policy on the Approval of Public Statements.

Public Statements

The Board approved three topics in 2016 to be considered for the development of level-two public statements. These three public statements are currently in development with single topic task forces serving as drafting entities.

Climate Change

The intent of this public statement is to identify areas where the CIA has a unique opportunity to contribute towards helping to assess and adapt to climate change risk, and initiatives whereby the actuarial profession can bring added value and uniquely contribute to the well-being of society as a whole by increasing the probability of meeting the agreed-upon global 2-degree Celsius target.

Members may recall seeing the notice of intent (NOI) that was issued in May 2017 for this public statement on Climate Change Risks for Life, Health, and Property and Casualty Insurance, Investments, and Pensions. Several CIA members contributed feedback, which is currently being reviewed by the drafting entity. A first draft of the statement is being developed and members will be given the opportunity to offer comments when it is released.

Retirement Age

This public statement will look at retirement age and consider the following:

Should Canadians plan to work longer, and what measures should be employed to encourage this behaviour?
Should the pensionable ages (early, normal, late) for old age security (OAS) and the Canada/Québec Pension Plan (C/QPP) be raised from their current levels?

A notice of intent will be issued soon, with an opportunity for members to share feedback on the proposed statement.

Risk Classification

In recent genetic testing legislation, personal privacy and perceived discrimination have been the central motivators for government action. Increasing amounts of information are becoming available to both the property and casualty (P&C) and life insurance industries as indicators of different risk levels.

This public statement will focus on the evolution of risk classification and how the profession sees the future path for life and P&C underwriters. Aspects of behavioural economics and determination of what is appropriate for insurers to justifiably include in risk classification will be at the core of this position.

The drafting entity has just been confirmed and work has begun on the public statement. Members can expect to see a notice of intent with further details this fall.

Submissions

The CIA regularly responds to consultations from governments and various associations, including some that are international. These are opportunities for the profession to express itself on a variety of topics where it has experience and knowledge. The following are some of the Institute’s most recent submissions:

Retraite Québec on the Draft regulation to amend the Regulation respecting supplemental pension plans – comments on funding policy, variable benefits, letters of credit, and issues not addressed in the comments we submitted in August 2016;
International Association of Insurance Supervisors (IAIS) Public Consultation on ICP 13: Reinsurance and Other Forms of Risk Transfer – overall support of ICP 13, with only a few minor edits suggested;
IAIS Public Consultation on ICPs 3, 5, 7, 8, 9, 10, 12, 25 – extensive comments on the listed revised ICPs and ComFrame material;
Ontario Ministry of Finance on Proposed Amendment to Ontario Regulation 909 – comments for clarification and revision of some elements in the proposed amendment around the superintendent’s power and also accepted actuarial practice; and
Financial Stability Board’s Task Force on Climate-related Financial Disclosures (TCFD) – extensive comments on the TCFD’s draft recommendations for helping businesses disclose climate-related financial information. (Read the TCFD’s public consultation summary.)

Don’t forget that reading submissions is a great source of continuing professional development (CPD) credits.

Volunteers

We would like to thank all of the CIA volunteers who are working so hard on these public affairs projects. Your time and expertise are greatly appreciated.

Chris Fievoli is CIA staff actuary, communications and public affairs.
Kelly Fry is CIA manager, marketing and public affairs.
Les Dandridge is CIA director, communications and public affairs.

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