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

Actuarial Standards Board Update

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By Conrad Ferguson, FCIA

Member input on all documents the Actuarial Standards Board publishes is essential to the development of high-quality actuarial standards that meet the public interest. We appreciate your contribution to our process. Furthermore, those who participate in designated groups (DGs) are invaluable to our standard-setting process.

ASB Membership

Ty Faulds’ mandate as Chair ended on June 30, 2017 and I have taken over for the next two years. Josephine Marks was appointed Vice-chair for a mandate ending on December 31, 2018. Rebecca Rycroft and Elizabeth Boulanger joined the ASB on July 1, 2017.

The current membership of the ASB includes Conrad Ferguson (Chair), Josephine Marks (Vice-chair), Elizabeth Boulanger, Stephen Cheng, Alexis Gerbeau, Mario Marchand, Geoffrey Melbourne, Dave Oakden, Catherine Robertson, Rebecca Rycroft, and Tony Williams, and on an ex officio basis, Faisal Siddiqi, the Chair of the Practice Council, and Michel Simard, Executive Director of the CIA. Please feel free to approach any of us with any suggestions or questions you might have.

The ASB expresses its gratitude to Ty Faulds, Edward Gibson, and Jacqueline Friedland, whose mandates expired on June 30, 2017.

Meetings

The ASB has had three half-day teleconference meetings since July 1, 2017. The next meeting is November 21, 2017 and is a full-day, in-person meeting.

ASB Initiatives

The following table lists current ASB initiatives.

Title

Status

DG Chair

Of Interest

General Initiatives

General Standards

Standard being finalized.

Paul Della Penna

Early implementation likely permitted. Effective date probably January 1, 2018.

Peer Review and International Standards of Actuarial Practice (ISAP) 1

Notice of intent published August 31, 2017.

Jacqueline Friedland

Comment period ended. DG is reviewing comments.

Pension Initiatives

Section 3500 – Pension Commuted Values

Exposure draft published July 20, 2017.

Gavin Benjamin

Comment period ended. DG is reviewing comments.
Report to ASB at next meeting.

Subsection 3260 – Reporting: External user report

Exposure draft published June 20, 2017.

Geoffrey Melbourne

DG is reviewing comments.
Report to ASB at next meeting.

ISAP 3 – Accounting

Notice of intent published October 4, 2017.

Catherine Robertson

Comment deadline: December 8, 2017.

Calibration of stochastic models used for certification of pension plan funding requirements

Proposed amendments (new subsection 3270 stochastic modelling) are being considered.

Todd Saulnier

Under consideration.

Mortality improvement guidance for pension commuted value and marriage breakdown

ASB is considering whether to make changes to the guidance.

 

 

Assumptions underlying marriage breakdown

N/A

DG to be created soon.

 

Pension Standard

Due for its quinquennial review.

DG to be created soon.

 

Insurance Initiatives

Promulgation of Prescribed Mortality Improvement Rates and Associated Margins for Adverse Deviations within the Practice-Specific Standards on Insurance Contract Valuation: Life and Health Insurance

Published July 30, 2017.

Dominic Hains

Effective date of October 30, 2017.

Updated Promulgations of the Ultimate Reinvestment Rates and Calibration Criteria for Stochastic Risk-Free Interest Rates in the Standards of Practice for the Valuation of Insurance Contract Liabilities: Life and Health

Published July 28, 2017.

Jean-Yves Rioux

Effective date: October 28, 2017.

Promulgation of Calibration Criteria for Equity Returns Referenced in the Standards of Practice for the Valuation of Insurance Contract Liabilities: Life and Health

Published July 28, 2017.

Dean Stamp

Effective date: October 28, 2017.

LICAT

Exposure draft published July 13, 2017.

Stéphanie Fadous

Comment period ended.

IFRS 17

Active DG discussing changes to actuarial standards as a result of the final publication of IFRS 17 by the accounting profession.

TBD

Will impact section 1000 – general standards, section 2000 – insurance, and section 5000 – public personal injury compensation plans.

Public Personal Injury Compensation Plans

Practice-specific standards under part 5000 – public personal injury compensation plans (PPICP)

Notice of intent to amend practice-specific standards published August 25, 2017.

Mark Simpson

Comment period ended.

Thank You to Our Designated Groups

The ASB is grateful for the effort of all members on all DGs and extends particular thanks to those who have completed their mandates for the three insurance promulgations chaired by Dominic Hains (mortality), Jean-Yves Rioux (ultimate reinvestment rates), and Dean Stamp (calibration criteria for equity returns).

International Developments

The ASB is aiming for convergence to the model standards (International Standards of Actuarial Practice (ISAPs)) released by the International Actuarial Association (IAA). We are currently reviewing peer review (convergence to ISAP 1) and ISAP 3 as mentioned above.The IAA also recently released ISAP 6 on enterprise risk management programs and International Association of Insurance Supervisors (IAIS) Insurance Core Principles, and the related amendments to the glossary. The ASB will consider any changes required to converge to this model standard during the ASB’s next planning cycle.  

Conrad Ferguson, FCIA, is Chair of the Actuarial Standards Board.

 

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