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

Canadian Institute of Actuaries/Institut canadien des actuaires

September 2014
Elliott Bauer
D.W. Simpson & Company
Eckler Ltd.
Your Institute

To view the video, click on the image above, or click here. Below is a transcript:

For my year as President, I have planned to produce short video updates on the progress the Institute is making on delivering its Strategic Plan and topics of interest to members that will arise over the coming year. This is a different way of communicating with you, and I believe that we all find it worthwhile.

The Board met on September 17 and covered a lot of territory.

  • We approved the funding and creation of graduate-level scholarships. These funds will promote graduate-level studies in actuarial science and will position the CIA as a promoter of actuarial research, will stimulate original research, and promote the transfer of new technology and original knowledge to the profession.
  • We had an important discussion on our Canadian education strategy, which will position the CIA as an education body within the North American and global environment. This is a topic that has been talked about on and off for over three decades, and the Board feels that we are on the brink of something very special for the Canadian actuarial profession.
  • The Board received a report from the Chair of the Climate Change and Sustainability Committee, Karen Lockridge. As with many actuarial subjects, our members do get passionate about this topic. The report was very well received and it is clear that she and her team intend to be inclusive. The Board endorsed the committee’s work to date and will ensure that a wide range of views are considered.
  • On the International Actuarial Association (IAA) front, there is an important change to announce to you. Micheline Dionne, the current Chair of the CIA’s International Relations Council, has been named to the IAA’s Executive Committee, effective January 1, 2015. I congratulate Micheline on this prestigious appointment. At the same time, we needed to find a replacement for Micheline, and I have the great honour of announcing that Dave Pelletier will be taking on the role of Chair of the IRC, effective January 1, 2015. These announcements demonstrate the strong presence the CIA members have in the international arena.
  • We worked on a value proposition for the CIA, which you will see printed in an upcoming edition of the (e)Bulletin. This document will codify what the Institute uniquely delivers to its members and will be a foundational element of future strategic initiatives in our internal and external marketing, communications, and government relations.
  • We reviewed and approved reports from councils and a progress report on delivering elements of our strategic plan.
  • We reviewed and approved a number of CIA policies that were up for revision, including new policies on copyright and waiving membership dues.
  • We discussed the numerous meetings we have held with governments, other actuarial associations, employers, and others as part of our Outreach Program. This included the meetings that the CIA has already had or has scheduled with the Privacy Commissioner, human rights commissioners, and the Senate Committee on Human Rights on sharing the results of known genetic tests with insurers. I have to thank the Member Services Council and the Task Force on Genetic Testing for their hard work on this topic over the last 18 months. Their excellent Statement on Genetic Testing and Insurance, backed up by timely and leading-edge research from Bob Howard, has delivered something logical, professional, and science-based to the CIA to contribute in discussions with political decision-makers and the media.
  • We had a lengthy session with Jacques Valotaire and Jim Christie, respectively the chairs of the Actuarial Standards Oversight Council and the Actuarial Standards Board, who delivered their annual reports to the CIA. These arm’s-length bodies are critically important to the profession and how we are perceived by regulators and governments.
  • We had an open discussion on improving our professionalism mechanisms to protect the public. Many professional organizations in Canada have implemented processes that the CIA never has, such as requiring members to declare a criminal conviction or being empowered to order a medical examination of a member in order to safeguard the public or the profession. These issues need to be addressed in the interest of public protection.

Along with these strategic issues, the Board was updated on plans to raise the profile of the profession, our progress internationally, human resource strategies and challenges, how the CIA finances are doing, and the 50th Anniversary celebrations. As we get closer to 2015, you will hear more about these, and I know you will be as excited as the Board is about this landmark year. Please plan to join us in Ottawa for a very special Annual Meeting blast next June.

If you have questions or comments about anything you have heard in this program, please don’t hesitate to send me an e-mail at jacques.tremblay@cia-ica.ca.

Until next time!
 
Jacques Tremblay, FCIA, is President of the Canadian Institute of Actuaries.

 
Spotlight

 

By Jim Christie, FCIA

In this (e)Bulletin article, I would like to comment on the ASB’s current efforts on Canadian actuarial standards.

A designated group (DG) chaired by Ty Faulds put tremendous effort into developing changes to the economic reinvestment assumptions for life insurance related to the use of fixed and non-fixed income assets in liability valuation, the determination of the ultimate reinvestment rate, and achieving greater consistency in the results obtained through applying stochastic vs. deterministic approaches. A final version was approved and published by the ASB in May and will become effective October 15, 2014. Early implementation is not allowed.

The DG chaired by Bob Howard presented a revised notice of intent (NOI) on Use of Models and a "discussion draft" of the proposed standard to the April 8, 2014, ASB meeting. The ASB approved issuing an NOI at that time. Comments received on the NOI were reviewed by the DG in preparing a draft exposure draft (ED). Comments on the draft ED have been requested from all CIA practice committees whose practice areas may be affected by the ED. The DG will present its proposed ED for discussion at the December ASB meeting, reflecting its response to the comments received on the NOI and any comments received on the draft ED from the practice committees. We expect to approve issuing the ED shortly after the December ASB meeting.

The International Actuarial Association (IAA) is developing International Standards of Actuarial Practice (ISAPs). ISAPs are intended to be model minimum standards and are not applicable to actuaries in any country unless adopted by the national actuarial standard-setting body. The member organizations of the IAA, including the CIA, have approved a policy of convergence whereby each national actuarial body commits to moving its own actuarial standards toward those issued by the IAA. ISAP 1 (General Actuarial Practice) and ISAP 2 (Social Security) were approved in final form by the IAA in 2012 and 2013 respectively.

The ASB reviewed ISAP 1 against our existing General Standards (Part 1000). As expected, in most circumstances Part 1000 provided similar or stronger requirements than ISAP 1. Nevertheless, a few areas where ISAP 1 went further than part 1000 were identified. The ASB approved issuing an ED at the April 2014 ASB meeting. A DG chaired by Michael Banks dealing with these matters expects to present its response to comments on the ED and various committee comments on the draft final standard for discussion at the October ASB meeting. We expect to approve issuing the final version shortly after that meeting.

The ASB has begun a review of ISAP 2 (Social Security). There is currently no part of our standards addressing social security, so the ASB will be appointing a DG chaired by Ed Gibson and composed mainly of actuaries working in this area to recommend how to incorporate the requirements of ISAP 2 into our standards. We expect to issue an NOI in Q4.

The International Accounting Standards Board released an ED on IFRS 4 (Insurance Contracts) in 2013. A final version is expected in 2015 to be effective in 2018. In anticipation of the final version of IFRS 4, the IAA has begun working on a related ISAP 4. The ASB has appointed a DG chaired by Simon Curtis to proactively monitor and comment upon statements of intent (SOIs) and EDs of ISAP 4. Ultimately the DG will recommend to the ASB what revisions to our standards are necessary to address ISAP 4. The ASB is on hold at this point, pending development of an international actuarial standard (ISAP 4) by the IAA. Our preference, if possible, is to implement a standard that is consistent with global actuarial practice. The IAA plans to issue an SOI (similar to our NOI) shortly with the final ISAP scheduled for 2017. Due to timing constraints imposed by our due process, we will mostly likely need to begin development of our standards based on the IAA ISAP 4 ED.

Increasing longevity is raising concern about the tables promulgated for use in the pension commuted values and marriage breakdown capitalized costs standards, as well as the mortality improvement assumptions used for commuted values generally. The CIA published new Canadian pensioners mortality tables in February 2014. A DG chaired by Conrad Ferguson will determine how to apply this research to promulgated appropriate tables and mortality improvement scales in our standards. A draft initial communication on the promulgation was discussed at the August ASB meeting. This initial communication has been shared with CIA’s pension and actuarial evidence committees. We expect to approve and release an initial communication shortly after the October ASB meeting.

With the planned review of promulgated mortality tables and mortality improvement scales, the ASB discussed the need to review the other assumptions underlying pension commuted values and marriage breakdown capitalized costs. The ASB developed a two-phase approach designed to minimize controversy during this review. The approach was agreed to by the CIA’s actuarial evidence and pension plan financial reporting committees. At the August ASB meeting a DG chaired by Gavin Benjamin presented the following aggressive timeline for its review for (phase 1) pension commuted values:

  • Issue NOI—January 2015;
  • Issue ED—May 2015;
  • Issue re-exposure of standard changes—September 2015;
  • Issue final standard—January 2016; and
  • Effective date of final standard—second quarter of 2016.

It does not expect to address (phase 2) marriage breakdown capitalized costs until phase 1 is nearing completion.

The ASB noted that existing actuarial standards do not address the volatility associated with stochastic modelling of investment returns for all pension funding (not just shared risk plans). Based on what has been done for life insurance standards it was not felt that mandating a particular stochastic model was the appropriate approach, but rather (as with life insurance) it would be better to prescribe calibration criteria for the outputs of any stochastic model used. Based on reports from the working group on calibration standards, the ASB at its August meeting appointed a DG, chaired by Tony Williams, to address the calibration criteria of pension asset returns.

The ASB appointed a DG, chaired by Paul Della Penna, to conduct a quinquennial review of the General section (part 1000) of our standards. Several minor items have been identified over the last few years and notes on all these have been given to the DG. The current plan is to have an NOI considered by the ASB at either its October or December meeting.

The ASB plans to appoint a DG to undertake a quinquennial review of the Insurance section (part 2000) of our standards. Several minor items have been identified over the last few years and notes on all these will be given to the DG once it is formed. The DG chair and members will be appointed at October’s ASB meeting and the DG will be asked to provide a tentative timetable for its review to the ASB in December.

Jim Christie, FCIA, is Chair of the Actuarial Standards Board.

 
MOVERS AND SHAKERS

Mel Bartlett of Morneau Shepell told National Post readers that target benefit plans should be expanded.

Nathalie Bégin of Towers Watson looked at predictive modelling in Canadian Underwriter.

Nigel Branker of Morneau Shepell, Tim Clarke (Aon Hewitt), Renée Couture (Buck Consultants at Xerox), Nic Crook (Towers Watson), and Jill Wagman (Eckler) contributed to a Benefits Canada article on pension and benefits consultants.

Patrick De Roy has moved from Pyramis Global Advisors to become the Québec risk and investment practice leader at Eckler.

Malcolm Hamilton of the C.D. Howe Institute and Fred Vettese of Morneau Shepell were mentioned in a Globe & Mail article looking at the impact of "too much" saving for retirement. Mr. Vettese also wrote about the 4% withdrawal rule in the Financial Post.

CIA Past President Jacques Lafrance discussed the future of pension plans on La Presse+.

Édouard Merette has been named as managing director, Asia-Pacific, at La Caisse de dépôt et placement du Québec.

In the Winnipeg Free Press, Dan Morrison of Towers Watson said retirement income was "like sailing a ship across the ocean".

Eric Nauss is the new associate vice-president, product development, group insurance, at Standard Life. He is responsible for the development of group insurance products and solutions.

Mathieu Tessier of Towers Watson co-wrote a Benefits Canada article looking at the thinking behind freezing a defined benefits plan.


Networking is a key part of any successful professional's career, and the CIA is offering you a fresh opportunity to inform your peers about your achievements and progress.

Our (e)Bulletin section, Actuaries on the Move, is a chance for you to publicize your new job, title, credentials or other information. This is an opportunity to tell thousands of fellow actuaries and financial professionals—whether they are ex-colleagues, former college friends, potential employers, future clients, etc.—about, for example:
  • Your new job;
  • A change of title or area of responsibility;
  • Your new qualifications;
  • A change of contact details;
  • Awards or other recognition; or
  • Publication of academic papers or articles.
Simply send an e-mail—one line of information can be enough, but feel free to add more if you so wish—to the CIA's English Editor at andrew.melvin@cia-ica.ca and we will aim to include it in the next issue of the (e)Bulletin.

For more news of CIA members and their activities, follow the CIA on Twitter.

 
Institute News

By Dave Pelletier, FCIA

OK, you ask, so what’s an ISAP?

The ISAPs are the International Standards of Actuarial Practice. These are being developed by the Actuarial Standards Committee (ASC) of the International Actuarial Association (IAA) to help achieve one of the IAA’s Strategic Objectives, which reads in part:

"Promote the development and issuance of actuarial standards in the jurisdictions of all Full Member Associations, and the global convergence of actuarial standards."

The ISAPs are primarily to serve as model standards. Actuarial standard-setters around the world are encouraged by the IAA to consider utilizing them where relevant and appropriate in various ways, which could include:

  • Adopting an ISAP as a standard essentially as written;
  • Customizing an ISAP into a standard to better meet local requirements (which could be as little as reformatting and reorganizing to make it consistent with the style of existing local standards);
  • Endorsing an ISAP as good practice;
  • Modifying existing local standards to obtain substantial consistency with an ISAP; or
  • Confirming existing standards are already substantially consistent with an ISAP.

To date, two ISAPs have been approved by the IAA Council. ISAP 1 deals with general actuarial practice, while ISAP 2 deals with financial analysis of social security programs. (The Actuarial Standards Board is currently determining what steps to take if it wishes to achieve "substantial consistency" with these ISAPs.)

Five more ISAPs are underway.

ISAP 3 deals with actuarial work in relation to International Accounting Standard 19 (IAS 19), which in turn deals with accounting for employee benefits. It has completed the exposure draft (ED) stage, and will shortly be undergoing the "final review" stage as called for by the recently revised due process for ISAPs. That part of due process calls for the ASC to distribute to all concerned the proposed final ISAP, along with its report covering the comments received on the ED and how they were dealt with, with a 30-day comment period to provide the recipients the opportunity to identify any unintended consequence that may have crept in as the ED was modified, and to express any concern about how their comments were considered. The IAA is publishing this "final review" version in the next few days, with a comment deadline of November 30 (somewhat later than the minimum 30-day period would have called for). Approval of this ISAP by the IAA Council is targeted for its April meeting.

ISAP 4 is to deal with actuarial work in relation to the new international financial reporting standard (IFRS) covering insurance contracts. This ISAP is intended to help lead to a more consistent application of the insurance contracts’ IFRS worldwide (analogous to the intent of ISAP 3 with respect to IAS 19). It will be accompanied by a number of international actuarial notes (IANs), analogous to the CIA’s educational notes. Earlier this month, the IAA Council approved the statement of intent (SOI) regarding this ISAP and work is underway. However, the timing of this ISAP is clearly dependent on the International Accounting Standards Board’s progress with the IFRS itself. For example, the ED on this one is targeted for early in the second half of 2015, based on the expected publication date of the IFRS itself, but that has been a moving target for many years. The effective date of the IFRS itself is expected to be three years after its publication, which suggests 2019. The ASC’s task force working on this ISAP will have its hands full as it finalizes the ED, reacts to (probably extensive) comments on it, and then prepares the final ISAP. 2017 is the target date for Council approval.

ISAPs 5 and 6 are to deal with insurer enterprise risk management (ERM). Interestingly, ERM was one of the five topics on which the ASC was first asked to develop a standard when it was created in late 2010. However, the SOI prepared at that time was felt to be too broad in scope, and it was withdrawn. This year, however, that request was renewed, but suggesting a narrower focus. At its meeting this month, the IAA Council approved SOIs for two ISAPs in this area, one dealing with insurer enterprise risk models, and the second dealing with ERM work done in accordance with regulatory requirements consistent with principles and standards—specifically Insurance Core Principles 8 and 16—published by the International Association of Insurance Supervisors (IAIS). These are targeted for ultimate Council approval in 2016.

ISAP 7 is intended to deal with actuarial work in connection with the recently announced Basic Capital Requirement and possibly Insurance Capital Standard proposed by the IAIS, to be applied to the global systemically important insurers (roughly 10 worldwide, none Canadian) and the internationally active insurance groups (about 60 worldwide, with at least two Canadian companies included). The IAIS is eager to have an ISAP in place to support its requirements, and in June the ASC published a draft SOI for such an ISAP. Several comments were received by the ASC, and it expects to be getting the proposed final SOI to the IAA Council by November or December for an electronic vote.

The Professionalism Committee of the IAA, as part of an annual questionnaire to the IAA’s member associations around the world, carried out a survey at the beginning of 2014 on what those member associations (and associated standard-setters) had done so far with respect to the two ISAPs approved to date. By that point, 18 associations had taken some kind of action along the lines of those shown above, while many more have them under consideration. As anticipated, smaller associations without standards so far find it easier and quicker to make good use of the ISAPs, as the larger associations with an already well-established body of standards have to consider how to deal with these models, if at all. The Professionalism Committee will be carrying out this survey annually, and it will be interesting to see what progress is made, in particular as ISAPs 3 and 4, dealing with subject matter that affects the work of many actuaries worldwide, come on stream.

Dave Pelletier, FCIA, is Chair of the IAA’s Actuarial Standards Committee.

 



By Nancy Yake, FCIA

The actuarial profession is making a difference to the financial literacy of Canadians.

Over the past couple of years the Actuarial Foundation of Canada (AFC) has embarked on an initiative to develop new partnerships with organizations that are active in the financial literacy arena in Canada, such as the Financial Consumer Agency of Canada (FCAC) and the Investor Education Fund (IEF). Working with its new partners, the AFC plans to target projects that will benefit from combining actuarial expertise with the partner’s resources to deliver more meaningful financial literacy programs to Canadians. In this way the AFC will help improve the public’s awareness and understanding of important consumer financial issues that have an actuarial component.

Investor Education Fund

The IEF is a non-profit organization set up by the Ontario Securities Commission. Its goal is to help consumers make better financial decisions.

A recent AFC initiative with the IEF focused on recording a series of informational videos on retirement and health care issues. They were posted on the Globe and Mail’s website in June, and are available for viewing by all Canadians. Three relate to health care issues in retirement and feature discussions between Ellen Whelan, an actuary representing the AFC, and Rob Carrick, a personal finance columnist for the Globe and Mail. Ms. Whelan is an experienced health care actuary with a commitment to improve financial education for Canadian youth. Mr. Carrick has been writing about investing, business, and economics for more than two decades. Together they explore and discuss key health care issues for Canadians to consider when planning for their retirement.

Viewers will become more aware of a number of health topics that can have a significant impact on their financial planning and their financial security in retirement. During their recorded discussions, Ellen Whelan and Rob Carrick address issues such as:

  • The trend for employer-sponsored health care plans to provide less benefit coverage or no coverage to employees after retirement, and the implications of this trend for individuals;
  • The high cost of health care after retirement, and the impact of longer lifespans and cash-strapped governments on such costs for individuals; and
  • Various health challenges that can impact an individual’s working life after age 65.

These videos can be viewed here.

Financial Consumer Agency of Canada

The FCAC is an independent organization established by the federal government, and has a vision of empowering Canadian financial consumers.

Over the last several months, the AFC has contributed volunteer expertise to the agency’s projects to update and improve parts of the FCAC website. The site includes a number of useful financial literacy resources for consumers, including a series on various life events and their financial implications.

Al Edwards, an actuary representing the AFC, provided comments to the FCAC’s update of a module related to planning your retirement. It and the companion module Living in Retirement offer good general information for retirees and those moving towards retirement. During this review, Mr. Edwards relied not only on his background as an actuary, but also his professional experience with financial services and his personal experience as an early retiree. He noted that much of his input related to the importance of considering health-related expenses, especially for those electing early retirement or those living out of their home province, and the importance of financial planning on an after-tax basis. He also pointed out that the Living in Retirement series appropriately positions retirement planning as an ongoing process and not as a one-time event.

The updated and improved advice is now posted on the FCAC website.

Conclusion

Ellen Whelan and Al Edwards have made a difference to financial literacy in Canada, and have achieved both professional and personal satisfaction from volunteer jobs well done.

These recent projects reflect the continuing success of the partnerships that the AFC has developed with other organizations. It is anticipated that these partnerships will continue to meld the expertise of actuaries with the resources and scope of other organizations to enhance financial literacy in Canada.

In addition to these new financial literacy initiatives, the AFC continues to support and fund a broad range of programs across Canada that target youth math education for all ages, from pre-school to university, as well as to fund various public policy research studies. For information on the AFC and the wide range of programs that it supports, or to make a donation, visit its website.

By supporting the AFC with their time and their donations, actuaries can and do make a difference in the areas of youth education, financial literacy, and public policy research.

Nancy Yake, FCIA, is a past secretary of the AFC.

 

Students and actuaries enjoyed five days together at Western University.

An invitation to learn about actuarial science over five interesting days found a willing and eager audience among high school students.

Western University held the Actuarial Summer Quest to offer young people an insight into the profession and what it involves, inviting those with an A in grade 10 or 11 math to apply. Twenty students were selected to participate, and attended the university last month for a broad range of events.

The first three days included introductory sessions on actuarial mathematics and financial security, a students’ panel, a panel of actuaries discussing their careers, and lessons on developing communication skills. The following day was spent job-shadowing actuarial employees at London Life, and the event closed with a day of presentations in which each student gave a five-minute précis of what they learned at London Life. Janine Noorloos was delighted to be awarded an iPad for giving the best presentation.

Many participants clearly demonstrated that they had gathered a lot of information during their visit, and more than a few had good things to say about a potential actuarial career. The actuaries who took part included Chris Fievoli, Stephen Eadie, Kelley McKeating, and Alix Chisholm.

The Quest was supported by the CIA and Actuarial Foundation of Canada, besides London Life, and Western was very appreciative of the assistance provided by all three organizations. Plans to hold the event again are now underway.

CIA resident actuary Chris Fievoli was among those who gave the students an insight into the actuarial profession.

 
Co-sponsorship from the CIA has resulted in a new book that will benefit the Actuarial Foundation of Canada and offer actuaries and others a refresher on the latest data mining techniques.

The CIA and Casualty Actuarial Society (CAS) sponsored the release of Predictive Modeling Applications in Actuarial Science: Volume One, the first in a two-part series published by Cambridge University Press. It is written for practising actuaries at all levels and looks at data mining and advanced statistical topics.

Glenn Meyers, a Fellow of the CAS and a co-editor of the book, said: "Businesses are fully embracing the benefits of predictive modelling, many of which are outlined in this set. As CAS members continue to deepen our collective expertise, we are poised to continue to play a leading role in the application of these cutting edge technologies moving forward."

Proceeds from sales of the book will go to the Actuarial Foundation of Canada and its U.S. counterpart, the Actuarial Foundation. It is available through Amazon and Cambridge University Press. Volume two is expected in the fall of 2015.

 

The CIA and actuarial employers met hundreds of UQAM students during an informative three-hour session.

University students turned out in force to learn about opportunities and jobs available to them in actuarial science, and the role the CIA could play in helping them become actuaries.

The Institute had one of the largest and most visible booths at a job fair organized earlier this month by the Association Générale Étudiante en Mathématique et Actuariat at the Université du Québec à Montréal (UQAM).

Around 500 students are studying the UQAM actuarial program, and approximately 200 of them attended the event to visit 15 booths set up by key actuarial employers: consulting firms, life insurance companies, casualty insurers, and banks.

The three-hour fair, which takes place each year, is designed to enable students and employers to connect face to face for recruiting purposes. The CIA was also there to answer questions about the University Accreditation Program, career opportunities within and outside Canada, recognition of the ACIA and FCIA designations, and qualification requirements.

The Institute’s representatives were kept busy assisting students and offering advice on topics like exam-writing techniques and approaches to studying for a successful journey through the advanced examinations. The subject of international recognition of the ACIA/FCIA designations was also outlined by explaining the existing mutual recognition agreements with other actuarial organizations.

For more information about actuarial careers, continuing professional development, and other education-related issues, visit the Membership and Education section of the CIA website.

 
THIS MONTH'S PUBLICATIONS

AM-2014-23 Session 23: IFRS Update (Volume 45, June 2014)

214106 Highlights of CIA Board Meeting Nº81 Held on Wednesday, September 17, 2014

SES10AA2014 Session 10 - Dynamically Adjusting for Auto Reform (Appointed Actuary Seminar 2014) (Pantaleo and Yeung)

UAPFAQ Frequently Asked Questions on the CIA UAP

SES8AA2014 Session 8 – Presenting to the Board – Secrets for Success (Appointed Actuary Seminar 2014) (Brothers, MacNicholas, Palter)

SES9-2AA2014 Session 9: Judgment in Actuarial Valuation Practice (Appointed Actuary Seminar 2014) (Pouliot)

CCSCM004 CCSC: Minutes of the August 21, 2014 Meeting

CIAUAP The Canadian Institute of Actuaries University Accreditation Program

AM-2014-19 Session 19: Models, Related Risks, and Controls (Volume 45, June 2014)

AE006 La contribution de l’actuaire aux litiges civils

AE007 Actuarial Evidence? What’s That??

AE008 L'actuaire au service du droit

AE009 Actuarial Evidence? What’s That?? (Presentaiton to ASNA)

AE010 The Actuarial Evidence (AE) Practice Area

AE011 Actuarial Evidence? What’s That?? (Presentation to the University of Toronto)

AE012 The Waterloo Actuary

AE013 The State of the AE Nation

AM-2014-12 Session 12: Individual Life, the Next Wave. Come and Surf With Us (Volume 45, June 2014)

JOBACCA CIA University Accreditation Program – Job Description: Accreditation Actuary (One for Each University)

UAPINSTACK UAP Instructor Acknowledgement Form

SES9-1AA2014 Session 9: Judgment in Actuarial Valuation Practice (Appointed Actuary Seminar 2014) (Giguère)

PROFWREG Registration Form - Professionalism Workshop

SES4-1AA2014 Session 4: Structured Tools to Help Organize One’s Thinking When Performing or Reviewing a Reserve Analysis (Appointed Actuary Seminar 2014) (Cheslawski Balester)

SES2AA2014 Session 2: Economic Capital Modelling and Insurance Risk (Appointed Actuary Seminar 2014) (Weiland)

SES2-1AA2014 Session 2: Economic Capital Modelling and Insurance Risk The IBC Handbook (Appointed Actuary Seminar 2014) (MacLean)

SES2-2AA2014 Session 2: Discussion Questions (Appointed Actuary Seminar 2014)

SES9AA2014 Session 9: Judgment in Actuarial Valuation Practice (Appointed Actuary Seminar 2014) (Filion)

SES1-2AA2014 Session 1 – Investments – More Than Fixed Assets! (Appointed Actuary Seminar 2014) (Combined)

SES1AA2014 Session 1: Investments – More Than Fixed Assets! (Appointed Actuary Seminar 2014) (Mason-Wood, Cuthbert, and Gilbert)

SES4AA2014 Session 4: Enhancing One’s Thinking When Performing or Reviewing a Reserve (Appointed Actuary Seminar 2014) (Bégin)

SES1-1AA2014 Session 1: ALM Considerations for NFIs (Appointed Actuary Seminar 2014) (Gilbert)

SES12-1AA2014 Session 12: Catastrophe Model Updates for Canada (Appointed Actuary Seminar 2014) (Katz)

SES12-2AA2014 Session 12: Catastrophe Model Updates: Cedant’s perspective (Appointed Actuary Seminar 2014) (Cervinka)

SES7-2AA2014 Session 7 – Basic Capital Requirements (Appointed Actuary Seminar 2014) (Ovsec)

BA081 Agenda: Board Meeting No 81 (September 17, 2014)

SES5-1AA2014 Session 5: Longevity Perspectives (Appointed Actuary Seminar 2014) (Graziani)

SES5-2AA2014 Session 5: Longevity Perspectives (Appointed Actuary Seminar 2014) (Nakada)

SES11AA2014 Session 11: Research Committee Update (Appointed Actuary Seminar 2014) (Dickson, Miclette, Lam, and Snyder)

SES12AA2014 Session 12: Natural hazard risk models and why they change so much (Appointed Actuary Seminar 2014) (Orwig)

SES5AA2014 Session 5: Longevity Perspectives (Appointed Actuary Seminar 2014) (Madge)

SES6AA2014 Session 6 – P&C Financial Reporting Committee: Past, Present & Future (Appointed Actuary Seminar 2014) (Laforce, Martin, and Bhanji)

SES7-1AA2014 Session 7 – IFRS Overview (Appointed Actuary Seminar 2014) (Thomson)

214104 Coaching for Actuaries

SES6AE2014 Session 6: Discount Rates in Civil Litigation (Actuarial Evidence Seminar 2014) (Gorham)

PENREG2014 Registration Form: 2014 Pension Seminar

INVREG2014 Registration Form: 2014 Investment Seminar

214103 Submission to the International Actuarial Association: Draft Statement of Intent (SOI) for ISAP [7] – "Current estimates" and other matters in relation to the IAIS capital standards

THURAE2014 Actuarial Evidence Committee Face-to-face Annual Planning Meeting (September 2014)

SES11AE2014 Session 11: Hot Topics – Health Adjusted Work Life Expectancies (Actuarial Evidence Seminar 2014) (Allen)

SES3AE2014 Session 3: A Refresher Course on Landmark Legal Decisions (Actuarial Evidence Seminar 2014) (McKeating and Benarroch)

SES4AE2014 Session 4: Statistics Canada Earnings Tabulations - A Hands-On Primer (Actuarial Evidence Seminar 2014) (Larouche and Burns)

SES8AE2014 Session 8 : The Inside Scoop on Structured Settlements (Actuarial Evidence Seminar 2014) (Di Stefano)

SES10-2AE2014 Session 10: Elements of Fatal Accident Claims (Actuarial Evidence Seminar 2014) (Jeffery)

SES1-1AE2014 Session 1: Update from the AE Committee (Actuarial Evidence Seminar 2014) (McKeating, Burnell, Wolgelerenter)

SES7-1AE2014 Session 7: A Comparison of U.S. and Canadian Practice: The Economic Loss Expert Witness (Actuarial Evidence Seminar 2014) (Allen)

SES1AE2014 Session 1: Updates from the Committee on Actuarial Evidence (Actuarial Evidence Seminar 2014)

SES7AE2014 Session 7: Working with Counsel as an Expert Witness (Actuarial Evidence Seminar 2014) (Harrison)

SES2AE2014 Session 2: AE and the CIA’s Strategic Objectives (Actuarial Evidence Seminar 2014) (McKeating and Giffen)

SES10AE2014 Session 10: Fatalities, a case study (Actuarial Evidence Seminar 2014) (Rivest)

SES10-1AE2014 Session 10: Fatalities (Actuarial Evidence Seminar 2014) (Karp)

C1REPORT2013 Report on the CIA Survey of C-1 Provisions of Life and Health Insurance Organizations in Canada – 2013 Fiscal Year-End

SES7AA2014 Session 7: International Landscape – IFRS and IAIS BCR Overview (Seminar for the Appointed Actuary 2014) (Creber)

EECMOTION Eligibility and Education Council Motions (May 22, 2014)

SES5AE2014 Session 5 • Professionalism – Actuarial Evidence Seminar (September 2014) (Brooks, Dickson, Delwaide)

214099 Educational Note: Guidance for Investment Assumptions Used in the Valuation of Life and Health Insurance Contract Liabilities

SES3AA2014 Session 3: CLIFR Update (Seminar for the Appointed Actuary: September 2014) (Gerbeau and Rycroft)

214100 Revised Educational Note – Guidance on Asset Valuation Methods

214101 Revised Educational Note – Expenses in Funding Valuations for Pension Plans

CCSCM003 CCSC: Minutes of the July 17, 2014 Meeting

EECA115 Eligibility and Education Council Agenda - Meeting nº 115 (September 3, 2014)

MSCA110 Member Services Council Agenda - Meeting nº 110 (August 26, 2014)

AAREG2014 Registration Form: 2014 Appointed Actuary Seminar

214096 Final Communication of a Promulgation of Calibration Criteria for Investment Returns Referenced in the Standards of Practice for the Valuation of Insurance Contract Liabilities: Life and Health (Accident and Sickness) Insurance (Subsection 2360)

214097 Submission to the Ministère des Affaires municipales et de l'Occupation du territoire: Bill 3, An Act to foster the financial health and sustainability of municipal defined benefit pension plans

214063 CIA Policy on the Release of Legal Opinions

CCSCRES CCSC Resources (August 18, 2014)

214062 Privacy Policy

SIPPROC Schedule A: Investment Strategies

214061 Statement of Investment Policy

AE2014-11 Session 11 • Hot Topics in Actuarial Evidence (Karp)

214065 Policy on the Approval of Public Positions

PPMND Public Position: Natural Disasters, Climate Change and Insurance Premiums (Full Version)

PPPND Public Position: Natural Disasters, Climate Change and Insurance Premiums

CCSCM002 CCSC: Minutes of the May 29, 2014 Meeting

CCSCD002 Presentation Notes – Ernst Rauch, Head Corporate Climate Center, Munich Re, July 22, 2014

214093 CIA Governance Philosophy and Strategic Plan 2013–2016

214094 Educational Note Supplement: Guidance for Assumptions for Hypothetical Wind-Up and Solvency Valuations Update – Effective June 30, 2014, and Applicable to Valuations with Effective Dates Between June 30, 2014, and December 30, 2014

214092 Model Validation for Insurance Enterprise Risk and Capital Models

214090 Notice of Charge and Referral to a Disciplinary Tribunal – Mr. Harry Cohen

214091 Seeing Beyond Risk (July 2014)

CCSCD001 Presentation: Natural Catastrophes – Climate Change – Renewable Energies: A Reinsurer's Perspective

EECA114 Eligibility and Education Council Agenda - Meeting nº 114 (July 29, 2014)

EECM114 Eligibility and Education Council Minutes - Meeting nº 114 (July 29, 2014)

214087 Policy on the International Role of the Canadian Institute of Actuaries

214089 Assessing high-risk scenarios by full-range tail dependence copulas

214088 Annual Meeting 2014 Report

SREI Information with Respect to Speaker Recruitment and Expenses

214086 Submission to Industry Canada: Statutory Review of the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act

214083 Highlights of CIA Board Meeting Nº80 Held on Tuesday, June 17, 2014

214085 Communiqué: Genetic Testing and Insurance: A Level Playing Field is in the Interest of All Canadians

AEREG2014 Registration Form for the Actuarial Evidence Seminar 2014

EWREG2014 Registration Form: Entrepreneurial Workshop 2014

214084 Educational Note: Guidance for the 2014 Valuation of Insurance Contract Liabilities of Life Insurers

214082 Report to CIA Research Committee: Genetic Testing Model: If Underwriters Had No Access to Known Results

214098 Submission to the International Associaiton of Insurance Supervisors: BCR Consultation Tool

MSCA109 Member Services Council Agenda - Meeting nº 109 (July 8, 2014)

MSCM109 Member Services Council Minutes - Meeting nº 109 (July 8, 2014)

GRPPRES2014 Practice Education Course 2014 Presentations – Group

RETPRES2014 Practice Education Course 2014 Presentations – Retirement

ILAPRES2014 Practice Education Course 2014 Presentations – Individual Life and Annuities

FINPRES2014 Practice Education Course 2014 Presentations – Finance and Investments

MSCM108 Member Services Council Minutes - Meeting nº 108 (July 3, 2014)

RETCS2014 Retirement Benefits Section of the CIA Practice Education Course Case Study – June 2014

FINEXAM2014 Practice Education Course – Finance and Investments Exam (June 2014)

ILAEXAM2014 Practice Education Course – Individual Life and Annuities Exam (June 2014)

GRPEXAM2014 Practice Education Course – Group Exam (June 2014)

RETEXAM2014 Practice Education Course – Retirement Exam (June 2014)

CCSCM001 CCSC: Minutes of the April 17, 2014 Meeting

214064 Approval of Administrative Policies

MSCA108 Member Services Council Agenda - Meeting nº 108 (July 3, 2014)

EB0614PDF (e)Bulletin June 2014 (PDF Version)

EB0614 (e)Bulletin June 2014

214079 Policy Regarding CIA Continuing Professional Development Events

214076 CIA Bylaws (July 2014)

214075 Rules of Professional Conduct (July 2014)

214078 Policy on Councils

 

September's tweets from @CIA Actuaries:

Register today for the #Investmentboot camp for #pension #actuaries Oct 14 #Toronto http://bit.ly/1rvRE27

#Actuaries & #ActuarialStudents. Like to write? Submit your essay on the future of the profession http://bit.ly/CIAFifty

#Actuary Fred Vettese #FCIA wonders if your #RRIF can survive the stress test http://bit.ly/1rdUfhX

Revised Minimum #Capital Test Guideline for #PropertyCasualty #insurers released by @OSFIBSIF http://bit.ly/1rk74ES

Thank you Benefactor-level sponsors of #AppointedActuarySeminar: GGY Axis, Elliott Bauer, @KPMG_Canada, RGA, @SCOR_SE and @SOActuaries

OSFI issues updated ICAAP reporting template and reporting instructions http://bit.ly/1Dtc7JH

Thank you to the Patron-level sponsors of the CIA #AppointedActuarySeminar @DeloitteCanada @AurigenRe @SunLifeCA

Thanks @drgregwells for a great luncheon keynote at the #AppointedActuary seminar http://bit.ly/CIAAA2014 - pic.twitter.com/zIwm69Hsr0

Four changes to @OSFIBSIF Memorandum for Appointed Actuary's Report for property/casualty #actuaries http://bit.ly/ciaica397

#Life insurance #actuaries - @OSFIBSIF makes three changes to 2014 Memorandum to the Actuary http://bit.ly/ciaica396

Thanks @pcarayiannis for sharing your experiences and inspiring #actuaries to become #entrepreneurs http://bit.ly/SOLOActuary

Interesting #Jobs for #Actuaries in the CIA Actuarial Jobs Bank http://bit.ly/ActuarialJobsBank...

Market value of employer-sponsored #pension funds: $1.4tn at end of Q1, up 5.3% from 2013 Q4, says @StatCan_eng http://bit.ly/ciaica394

#Actuary Fred Vettese on the "biggest myth" of defined benefit #pensions, in @nationalpost 

Property/casualty#insurers: final return templates and instructions now available from @OSFIBSIF http://bit.ly/ciaica391

Final return templates and instructions for life #insurers, fraternal #benefit societies available from @OSFIBSIF http://bit.ly/ciaica390

#Actuaries, need a refresher on modern-day #data-mining techniques? Check out the new book we sponsored with @CASact http://bit.ly/1rPOYhn

 
Calendar of Events
Board and Council Updates

Board

The new Board members appointed in 2014 are: David Congram, Alan Cooke, Richard Gauthier, Karen Lockridge, and Kim Young (filling the position left vacant by Rob Stapleford for a one-year term), the new President-elect is Rob Stapleford, the new President is Jacques Tremblay, and Jacques Lafrance is now Immediate Past President. Simon Curtis, Claude Ferguson, Jacque Friedland, Chris Townsend, and Michel St-Germain left the Board with thanks.

The memberships of the following councils and committees for 2014–2015 have been approved, effective July 1:

  • Eligibility and Education: Angelita Graham (Chair), Rémi Villeneuve (Vice-chair), Mathieu Boudreault, Maxime-Frédéric Brochu-Leclair, Joel Cohen, Alana Farrell, Bruno Gagnon, Lynn Grenier-Lew, Thomas Hinton, and Deborah McMillan, as well as the designated Board liaison, Kim Young. The new members being approved are Maxime-Frédéric Brochu-Leclair and Deborah McMillan. The term of Jason Vary ended on June 30, and he left with thanks.
  • International Relations: Micheline Dionne (Chair, to be succeeded by Dave Pelletier effective January 1, 2015, when Mme Dionne will become an observer member), Geoffrey Melbourne (Vice-chair), Robert Berendsen, Mike Hale, Denise Lang, Jason Malone, Robert McKay, Chris Townsend, and Catherine Robertson, as well as the designated Board liaison, Richard Gauthier.
  • Member Services: Jason Alleyne, Marc-André Belzil, Claire Bilodeau, David Dickson, Frank Grossman, Marie-Hélène Malenfant (Vice-chair), Nari Persad, Martin Roy, and Marc Tardif (Chair), as well as the designated Board liaison, Jean-Yves Rioux. The new member being approved is Martin Roy.
  • Practice: Bruce Langstroth (Chair), Pierre Dionne (Vice-chair), Faisal Siddiqi, Don Tettmar, Kathryn Hyland, Jacques Boudreau, Michael Williams, and Rachel Dutil, as well as the designated Board liaison, Mercy Yan. The new members being approved are Kathryn Hyland, Jacques Boudreau, Michael Williams, and Rachel Dutil. The terms of Richard Larouche, B. Dale Matthews, Hélène Pouliot, and Leslie Rehbeli ended, and they left with thanks.
  • Professional Conduct: Liam McFarlane (Chair), Douglas Brooks (Vice-chair), Richard Béliveau, François Boulanger, Stephen Butterfield, Dave Dickson, Luc Dionne, Stephen Eadie, Sym Gill (not enrolled in the CIA), Don Ireland, Maryse Larouche, Claude Lockhead, Bonnie Lysyk (not enrolled in the CIA), and Jean-Claude Primeau. Jacques Lafrance replaces Simon Curtis as an ex officio member. Simon Curtis and Ian Karp left the committee with thanks.
  • Tribunal Panel: Simon Curtis, Gilles Dufresne, Brian FitzGerald, Normand Gendron, Neville Henderson, Guy Martel, Daniel Murphy, J. Edward Nixon (Chair), Philip Pothier, Allan Shapira, David Short (Vice-chair), William Solomon, Michel St-Germain, William Weiland, and Nancy Yake.

The following people have been appointed to the committees named below, effective July 1:

  • 2015 Elections: Stephen Bonnar, Jim Christie (Chair, effective September 17), Simon Curtis, Marc-André Melançon (effective September 17), Dennis Schettler, Kathleen Thompson, and Stuart Wason. Larry Miller, Jean-François Poitras, and Heike Reck left with thanks.
  • Governance: Robert Stapleford (Chair), David Congram, Alan Cooke, Jacques Lafrance, and Kim Young.
  • Human Resources, Finance, and Audit: John Dark (Chair), Dan Doyle, Richard Gauthier, Karen Lockridge, and Joe Nunes.
  • Risk: Sharon Giffen (Chair), John Dark, Steve Easson, Michel Giguère, Jean-Yves Rioux, and Mercy Yan.

The Committee on International Relations has been disbanded, effective July 1, 2014.

Eligibility and Education Council

The following people have been appointed to the committees named below, effective July 1 unless otherwise stated:

  • Academic Relations: X. Sheldon Lin and Barbara Sanders, effective immediately;
  • Accreditation: David Landriault, Jim Doherty, and Patricia Hladun;
  • Continuing Education: Deborah McMillan (Chair), retroactive to July 1, 2014;
  • Continuing Education subcommittees:
    • Pension: Gord Ripley;
    • P&C: Sati MacLean;
    • Investments: Patrick Chamberland; and
    • Group Life and Health: Peter Muirhead;
  • Eligibility: Sébastien St-Louis;
  • Exam 6 Syllabus: Sean Satar and Mei-Hsuan Chao; and
  • ILA and FIN/INV Exam Committees for the 2014 Practice Education Course: Nathalie Cloutier (retroactive to April 1).

The following people have been appointed to the positions named below, effective July 1 unless otherwise stated:

  • Accreditation Actuary at the University of Waterloo: Johnny Li;
  • CIA Liaison to the SOA’s education committees: Rémi Villeneuve; and
  • CIA representative on the CERA Global Treaty Board: Minaz Lalani, effective as of the September 2014 CERA Global Board meeting. Mariève Tétreault has been appointed as the CIA’s Review Panel representative on the board, effective as of the same meeting, and Julian Gribble has been appointed as the Institute’s representative external reviewer to the board, effective retroactively to July 2013.

The following people completed their terms on the committees or in the positions named below (unless otherwise stated), and left with thanks:

  • CIA Liaison to the SOA’s education committees: Jason Vary;
  • Academic Relations Committee: David Landriault (resigned, effective July 1), and Henry Huen (resigned), effective July 30, 2014;
  • Accreditation Actuary at the University of Waterloo: David Landriault;
  • Accreditation Actuary at the University of Western Ontario: Bruce Jones;
  • CIA representative on the CERA Global Treaty Board: Michael Hale;
  • Investments Subcommittee of the Committee on Continuing Education: Pavlo Tytarenko (resigned);
  • Continuing Education: Lynn Grenier-Lew (Chair);
  • Accreditation: Peter Douglas and Isabelle Larouche, and Keith Sharp (resigned); and
  • CIA representative on the CERA Global Treaty Board Review Panel: Minaz Lalani, effective as of the CERA Global Treaty Board meeting in September 2014.

Member Services Council

The following people have been appointed to the positions/committees named below:

  • Enterprise Risk Management Applications: Hélène Baril (Chair), and Sim Segal (Vice-chair), effective July 31, 2014;
  • Communications: Frank Reynolds (Chair), effective July 31, 2014;
  • Research Committee subcommittees:
    • Segregated Fund Experience: Aaron Bradford (non-CIA member), effective June 3, 2014;
    • Individual Life Experience: Damien Lapointe Nguyen, effective July 16, 2014; and
    • Annuitant Experience: Peter Snyder, effective June 1, 2014;
  • Editorial: Walton Achoy (Chair), effective May 14, 2014, Andrew Gooden (effective in 2010), Shannon Patershuk (effective in 2013), Michael Cao and Edward Lam (effective August 13, 2014);
  • New Members: Paul Lai Fatt, effective August 26, 2014; and
  • Genetic Testing: Jacques Boudreau (Chair), Bernard Naumann (Vice-chair), Alison Begley, Greg Cerar, Patrick Thompson, Kyle Wu, Paul Fryer, and Loraine Oman-Ganes, effective immediately.

The following people have resigned from the (sub)committees named below (unless otherwise stated), and leave with thanks:

  • Climate Change and Sustainability: Jacqueline Friedland, effective June 10, 2014;
  • Op-Ed: Binni Rana, effective July 14, 2014;
  • Enterprise Risk Management Applications: Shannon Patershuk (completed her mandate as chair), effective July 31, 2014;
  • Segregated Fund Experience Subcommittee: Rohana Ambagaspitiya and Lee Carmichael, effective May 26, 2014, and Mary Fong, effective June 3, 2014;
  • Research: Joseph DeDominicis, effective retroactively to November 13, 2013;
  • Individual Life Experience Subcommittee: Annie Girard (completed her mandate), effective July 15, 2014;
  • Annuitant Experience: Jinxia Ma, effective June 1, 2014;
  • Editorial: Peter Snyder (completed his mandate as chair), effective May 14, 2014—he remains a member of the committee, and Kamran Quavi, effective August 13, 2014; and
  • Communications: Stephen Cheng (completed his mandate as chair), effective August 21, 2014—he remains a member of the committee.

The disbandment of the Task Force on Genetic Testing has been approved.

The Committee on Genetic Testing has been created with the following mandate:

To monitor developments in the fields of genetics, genetic testing, and genetic testing-related legislation to 1) assess how they might impact insurance and the public at large; and 2) indicate when it would be appropriate for the CIA to revise its Statement on Genetic Testing and Insurance.

The Mortality Improvement Task Force has been created with the following mandate:

  • Include appropriate representation from relevant practice areas.
  • Develop a best estimate for the general population, and then determine whether the general population assumption needs to be modified for different sub-groups.
  • Develop a new margin for adverse deviations, or level of conservatism, specific to each practice, as the current margin is out of scope.
  • Leverage work done by the UK Institute and Faculty of Actuaries and the Society of Actuaries where appropriate.
  • Provide education to members.

Practice Council

The following people have been appointed to the committees named below:

  • Appointed/Valuation Actuary: Ralph Ovsec, effective April 1, 2013;
  • Investment Practice: Jonathan Lapointe, effective June 13, 2014; and
  • Property and Casualty Insurance Financial Reporting: Julie-Linda Laforce (Chair), Raul Martin (Vice-chair), and Patricia Hladun; plus Anna-Marie Beaton, effective August 20, 2014;
  • Workers' Compensation: Yun (Bill) Xu.

Paul Tytarenko has stepped down from the Committee on Investment Practice, effective May 6, 2014.

Chris Walton is no longer the Insurance Bureau of Canada Financial Affairs Committee observer. He has not been replaced.

Julie Bélanger and Michael Williams have resigned from the Committee on Workers’ Compensation.