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

Canadian Institute of Actuaries/Institut canadien des actuaires

December 2016
Elliott Bauer
D.W. Simpson & Company
Eckler Ltd.
President's Update

By Dave Dickson, FCIA
CIA President

I decided to run for President-elect in spring 2015. Unlike other years, there was an actual election for the position with two other candidates in the running. After the votes were cast, I waited anxiously for the results. One day I returned from a lunch with two friends, both CIA members, to a voice mail from the Chair of the Elections Committee, Jim Christie, congratulating me on my victory and wishing me the best.

My immediate reaction was "now what?" I knew I would have a busy three years that would change my life. I was already actively volunteering with the CIA but becoming President-elect and then President would add a lot of responsibility. So, putting on my actuary’s hat, I decided to gather information. I had already spent time talking to some of the CIA’s leadership so I had an idea of my new role(s). To gather more information, I talked to various people involved with the CIA, including past presidents, Board members, and others. I did get some conflicting views on the role(s), but developed a better picture.

So, what have I learned?

  • It’s challenging. The CIA has a lot going on. We have many dedicated volunteers who provide leadership in many of the CIA’s initiatives. It was important for me to decide which projects to get involved with and which ones to play a more passive role in. It’s important to realize that you can’t be involved with everything.
  • It’s engaging. Over the last year and a half, I met with many members, at seminars, actuarial club visits, phone calls, committee meetings, etc. This helped me to get a better view of the CIA and to focus on initiatives that I thought were important. As an example, in my travels I discovered that many of our members don’t feel engaged with the CIA and I felt that it was important to improve this. We started a project to measure member engagement and plan to gather more member feedback through a series of focus groups.
  • It’s important to question things. I don’t try to disrupt everything, but like other organizations there is a tendency to continue doing things as they have always been done. I often ask why do we do things a certain way, can we change, do we need to do it at all? I feel that, as someone new to a role, this is important to do and I realize that change can be painful but important for any organization.
  • It’s a learning experience. I’ve learned much more about our different practice areas and topics such as climate change, genetics, and others. I’ve also learned to better appreciate how actuaries can make a difference and contribute to areas affecting the Canadian public. I’ve learned more about how the CIA works, my role in relation to the Board, the other two Presidents, the Secretary-Treasurer, our Executive Director, and the Head Office staff. I realized that the Board makes key decisions for the CIA, CIA leadership manages these decisions, and the Executive Director and his staff work with key volunteers to implement them. This model seems simple but took a while for me to understand; it works well. It is important that in my role I do not try to manage the work, but leave that to our Executive Director to do.
  • It’s personally and professionally enriching. I’ve really enjoyed attending numerous actuarial events, including representing the CIA at various international events. A couple of months ago we hosted the North American Actuarial Council meeting in Montréal and in November I attended the International Actuarial Association meeting in Cape Town.
  • It’s productive. As President, I chair the CIA Board meetings. These are always busy and there’s usually a problem keeping on time. But the meetings are very productive with lots of discussion and debate. We’ve also made the meetings more strategic, allowing more time for strategic discussion. Chairing the meeting is important, challenging, and rewarding. We do have a great Board and it makes the meetings very enjoyable.

In October, I attended the Society of Actuaries (SOA) annual meeting in Las Vegas. Craig Reynolds, the outgoing SOA President, gave a very inspirational farewell speech in which he thanked members who had voted for him and given him the opportunity to be SOA President. He said that it had been the most rewarding year of his professional career. In June 2017, I expect to say something similar during our Annual Meeting in Québec City.

I have really enjoyed my almost year and a half in these roles. It has allowed me to help make a difference to members and the profession, and most of all, it has been fun. It has changed my life in a very positive way and I look forward to the rest of my term.

Dave Dickson, FCIA, is President of the Canadian Institute of Actuaries.

 
In Focus

 

By Pierre Dionne, FCIA

This article provides updates on two recent Practice Council activities.

Timely Updates

Pension practitioners may have noticed a new type of announcement on October 21: a preliminary communication for Assumptions for Hypothetical Wind-Up and Solvency Valuations with Effective Dates on or after September 30, 2016. This communication is part of our continuous efforts to improve our service and relevance to members. It is intended to provide more timely updates around the discount rate and mortality recommendations for estimating the cost of purchasing annuities. This communication was published three weeks after quarter-end, and was eventually followed by an educational note supplement. In comparison, actuaries waited 40 days and 48 days for the educational note supplement at the end of the first and second quarters respectively. We hope the increased timeliness of the publication was useful. We are always open to comments, positive or constructive, so don’t hesitate to reach out to myself or to Simon Nelson, Chair of the Pension Plan Financial Reporting Committee.

DCAT and ORSA Integration

The Practice Council is currently engaged in a dialogue with both the Office of the Superintendent of Financial Institutions (OSFI) and the Autorité des marchés financiers (AMF) on streamlining the Dynamic Capital Adequacy Testing (DCAT) and the Own Risk Solvency Assessment (ORSA) processes. Indeed, upon a first quick look, both reports address risks faced by an insurance company and the amount of capital required to mitigate those risks. Both reports are ultimately presented to the board.

There are several significant differences between the two reports, including the following:

  • Level of guidance – CIA standards prescribe certain aspects of the DCAT (e.g., number of scenarios, definition of satisfactory financial condition, etc.) while ORSA has no requirements;
  • Scope – DCAT focuses on a capital sufficiency analysis relative to regulatory capital requirements, while ORSA is much broader from risk identification and assessment to its level of integration in the entire operations of the insurance entity, the approach of relating risk to capital, and the feedback loop into the decision-making process of senior management;
  • Ownership – DCAT is owned by the Appointed Actuary (as per the Insurance Companies Act the actuary must report on the financial condition of the insurance entity) while ORSA is owned by the board;
  • Opinion – It is required only for DCAT; and
  • Independence – The appointed actuary’s ownership of DCAT comes attached with the role’s independence from management. There is no such requirement for ORSA, other than a requirement for an independent review, which is also required for DCAT (external peer review).

These differences don’t mean that the two reports cannot be integrated. More specifically, it may be the DCAT report which is somehow integrated in the ORSA process. In particular, with regards to the scope, note that DCAT’s purpose of testing capital relative to regulatory requirements and identifying threats and mitigating actions is appropriate to the DCAT’s definition of a satisfactory condition. However, that definition is likely a narrow interpretation of satisfactory financial condition. Management’s ability to operationalize and manage the identification, assessment, quantification, and reporting of risk, and include it in its decision-making process, all of which are purposes of ORSA, must surely be factors to consider in reporting on a satisfactory financial condition.

Other weaknesses of DCAT include the fact that the adverse scenarios are dictated and tend to be static year-to-year, and that the recommendations, if any, may lack depth given the narrower approach taken with DCAT. On the other hand, having a signed opinion adds a level of credibility and assurance to a process or requirement due to the accountability that lies on the person signing. With an opinion, it is also more difficult to approach the requirement as a mere compliance exercise. It is to be expected that regulators will want to keep the opinion.

As we start meeting with regulators to discuss potential solutions, we will keep the membership apprised of our progress. Some solutions may require a change to our standards of practice. Stay tuned for more information.

My thanks to the DCAT/ORSA working group (Marco Fillion, Pierre Lepage, Larry Madge, and Leonard Pressey) for their analysis and for writing most of the above.

As usual, every member of the Practice Council remains available to discuss any issues you may have, either on the above two subjects or any other areas of actuarial practice. You can find the current list of Practice Council members and the list of committees and members, under the Organization tab of the members’ section of the CIA website.

Pierre Dionne, FCIA, is Chair of the Practice Council.

 
Actuaries on the Move

Career developments

Jean-François Blais, president of Intact Insurance, has been elected chair of the board of governors of the Insurance Institute of Canada.

Monique Maynard has been appointed president, Québec Affairs for Great-West Life, London Life, and Canada Life.

Rino D’Onofrio has been elected chair of the LL Global board of directors for 2017.

Actuaries in the media

The Financial Post quotes CIA members Bradley Baker and Neil Duffy in an article on Canada Bank Note’s recent decision to insure against longevity risk for its pension plan.

Robert Brown presents his case for an expanded Canada Pension Plan in The Hill Times. The article also appeared in Business in Vancouver, the Lethbridge Herald, and The Province. The Hill Times wrote a rebuttal to Mr. Brown’s article.


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 actuarial 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 bonnie.robinson@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.

 
Insight Decision Solutions
Acutarial Design
RGA Canada
On the Horizon

 

By Kelly Fry

In late September, we asked CIA members to participate in a communications survey, so that we could better understand the digital communication needs of our members. The survey provided insight into how members receive digital communications from the CIA, how valuable they deem it to be, and the content that they wish to read.

Close to 10 percent of CIA members participated in the survey, telling us that the content of current CIA digital communications is generally meeting their needs, although there is room for improvement. There is a strong desire to see more modernized, visually appealing e-mails, with practice-specific content and meaningful subject lines.

One of the survey findings indicated that some members are not sure how to manage the communications they receive from the CIA. You can update your e-mail subscriptions to various CIA publications and list servers by doing the following:

  1. Log in to your CIA member account and click on My Profile, then My E-mail Subscriptions.
  2. Click the Show list subscriptions button.
  3. Specify NoneNormal, or Digest beside the lists from which you would like to receive e-mail and click Save.
  4. If you wish to unsubscribe from all lists, click the Unsubscribe from ALL list subscriptions.
  • Note that if you choose to unsubscribe from all list subscriptions, you will still receive some communications from the Institute. We are obligated to communicate messages about bylaws, elections, guidance material, standards of practice, rules of professional conduct, continuing professional development compliance, and transactions as they relate to your actuarial profession, to all CIA members.

After analyzing the survey results, and researching best practices for other membership associations, we are excited to launch a new e-mail marketing tool in the new year. The new e-mails will contain more visual content and will indicate news by practice area to make it easier for members to read. Stay tuned throughout December for more updates on the look of the new e-mails and what you can expect as we roll out these changes to ensure we are providing you with timely, relevant information about the actuarial profession in Canada. If you have any questions or comments, please send me a note at kelly.fry@cia-ica.ca.

Kelly Fry is the manager, marketing at the CIA Head Office.

 
Institute News

By Caterina Lindman, FCIA

The Actuaries Climate IndexTM (ACI) is an objective, quarterly, online measure of changes in extreme weather frequency and sea level. The ACI is based on quarterly seasonal data in six different index components from 1961 to winter 2016. Higher index values point to an increase in the probability of extreme climate events by comparison with average frequencies during the reference period 1961 to 1990.

The ACI was developed through the partnership of the American Academy of Actuaries, the Canadian Institute of Actuaries, the Casualty Actuarial Society (CAS), and the Society of Actuaries. The Climate Change Committee appointed by these organizations worked with climate scientists from Solterra Solutions to develop the index. The index measures climate extremes in Canada and the continental United States. The ACI will serve to help educate the public about the increased frequency of climate extremes in recent decades. It will also highlight the actuarial profession.

The index contains a component for high temperatures, low temperatures, high winds, precipitation, drought, and sea level. The index, with the exception of the sea level component, measures extremes rather than averages because the increase in extremes is more relevant to climate risk. Each component is a measurement of the value today compared to the reference period of 1961 to 1990. A 30-year reference period is common in measuring climate, as it is long enough to exclude short-term trends. The difference between the current value and the average for the reference period is then divided by the standard deviation of that quantity during the reference period. This can be expressed in the form of

ACI Component = (x - µ)/σref

This creates a dimensionless quantity referred to as a standardized anomaly. The ACI is the average of the standardized anomalies of the six components.

The sea level component measures monthly average sea levels at 76 tidal stations across Canada and the United States. Sea level is measured relative to the land, and therefore, it is possible that the data from some tidal stations show an increase in sea level due to thermal expansions of the oceans as well as from the melting of land-based ice sheets, while some show a decrease in sea level because the land movements offset any increases in the volume of the ocean. The tidal stations in Alaska show a decrease in sea level due to rising land at those locations.

The remaining components are based on grid-level data, where each grid cell is 2.5 degrees longitude by 2.5 degrees latitude across the land portion of Canada and the continental United States. A grid is 275 km by 275 km at the equator, but the width of the grid cell gets smaller as one moves away from the equator, due to the curvature of the Earth’s surface.

Canada and the United States are divided into 12 regions, and the ACI is calculated for each of those 12 regions, as well as the larger regions of 1) Canada, 2) the contiguous United States, and 3) all 12 regions (i.e., the whole of Canada, Alaska, and the contiguous United States). The 12 smaller regions are shown here:


The high temperature component is based on the 90th percentile temperature from the reference period for each calendar day. Note that at a particular grid cell, one would have 30 values from the reference period for each day of the year. Thirty observations are not enough to get a robust 90th percentile, so a five-day window is used, with a total of 150 observations to calculate the 90th percentile. For example, to calculate the 90th percentile temperature threshold for November 3, the temperatures from November 1, 2, 3, 4, and 5 are used. Once the threshold temperature is calculated for each calendar day, we calculate the frequency of high-temperature days for each month and season in the current period. For example, we may find that the frequency of high temperatures has risen to 30% in the current period from 10% in the reference period. The ACI component for temperature is = (x - µ)/σref, where x is the frequency of high temperatures in the current period, and µ is the frequency of high temperatures in the reference period, and σref is the standard deviation of the frequency of high temperatures in the reference period. If the value of σref in our example was 16%, then the ACI component would be (30% - 10%)/16% = 1.25, which means that the value can be thought of as 1.25 standard deviations from average.

The cool temperatures component is based on the 10th percentile temperature. The increased frequency of high temperatures and the decreased frequency of cool temperatures is an indication that the probability distribution function of temperatures has shifted to the right. For that reason, the decrease in cool temperature extremes is added to the index.

The precipitation component is based on monthly maximum precipitation values over a consecutive five-day period.

The drought component is based on the number of consecutive dry days (defined as less than one mm of precipitation) for each calendar year.

The wind component is based on the frequency of high winds. The threshold value is defined as the mean plus 1.28 standard deviations from the reference period, and captures about 13% of the highest wind speeds from the reference period.

Results: The following are two graphs showing three of the components in each graph, as well as the overall ACI value. These values show the five-year moving average, in order to better discern the emerging trend from the values. The clearest trends are seen in the sea level, high temperatures (T90), and less frequent cool temperatures (-T10). The wind power, precipitation, and drought components are more erratic.

 

 

Caterina Lindman, FCIA, is a member of the CIA’s Climate Change and Sustainability Committee and chairs the joint Climate Index Working Group. This article was written for the International Association of Consulting Actuaries, and is used with permission.

 


In an effort to better serve new members and promote the role of the CIA within this group, the New Members Committee (NMC) conducted a survey in December 2015. The 268 respondents were members who had earned their FCIA (58 percent) or ACIA (42 percent) within the last five years. The intent of the survey was to gain insight from new members around volunteerism, professional development, and communication.

In November, the Member Services Council approved the New Members Survey Report. It will be circulated to committee chairs to review its recommendations in the following areas:

  • Volunteering;
  • CIA communications and services;
  • Continuing education; and
  • Branding.

Volunteering

The NMC’s recommendations on volunteering include the following:

  • Utilize the CIA volunteer database and actively recruit members who express interest in volunteering. Many respondents indicated that they expressed interest in volunteering with the CIA; however, they have never been contacted.
  • Promote various volunteering opportunities more prominently and consider the following to incentivize volunteerism:
    • E-mail communications which exclusively target volunteer opportunities;
    • Create short-term volunteer opportunities which require minimal member input; and
    • Develop volunteer and mentorship opportunities around emerging trends such as predictive analytics.
  • Designate specific volunteer opportunities such as the CIA’s Back to School campaign for new members.
  • Sponsor events and volunteer opportunities which focus on P&C insurance.
  • Encourage and support volunteer options which require national and/or international collaboration in order to ensure that all members remain connected and engaged.

In addition to the broad recommendations above, the NMC has the following specific recommendations intended to generate greater awareness, attractiveness, community engagement, and volunteerism within the new member community:

  • Reserve an elected voting position on the Board for a new Fellow (FCIA). The Elections Committee would be charged with filling this position;
  • Create a voting position on the board for an ACIA; and
  • Create a position for a new member on the CIA councils.

Communications

With regard to CIA communications, the NMC report recommends the following:

  • Clearly communicate to members how they can subscribe or unsubscribe to different CIA communications content.
  • Improve the website search engine to make it easier and faster for members to locate desired information or publications.
  • Use workshops, webcasts, and mentor programs to deliver content related to managerial and leadership skills.

Continuing Education

There was a strong demand among respondents for increased continuing professional development (CPD) opportunities. To that end, the report recommends the following:

  • The CIA should offer increased CPD related to soft skills, with a high importance on leadership skills.
  • Increased content related to the topic of professionalism.
  • P&C content should be increased to better meet the needs of members working in this practice area.
  • Create and/or share more free webcasts with members.
  • Increase the use of technology in order to deliver content to members in innovative ways.
  • Work to increase awareness of CPD opportunities for new members.

The committee was surprised to see a number of respondents were not aware of CIA-sponsored events.

Branding

Part of the survey looked at so-called secondary insights: responses to questions around broader issues such as the main reason the respondent became an actuary and what the respondent considers the primary purpose of the actuarial profession and the CIA. A majority of respondents focus on the technical aspects of the profession and the Institute, but the NMC believes that the profession has a better story to tell around the value it provides to its practitioners and society as a whole. To that end, the report proposes that in the CIA’s value proposition and brand there should be a greater emphasis on the value that actuaries provide to society and the higher purpose of the profession (to help the public).

Going Forward

The Institute will review the recommendations to determine which ones to implement, and how to do so.

 


The latest issue of Seeing Beyond Risk provides an overview of big data, its impact on the insurance industry, and the role that actuaries can play in using big data.

Étienne Plante-Dubé, director of modelling and research at Desjardins General Insurance Group, examines the role big data plays in the insurance industry, the use of telematics, the risks and advantages of big data, and their impact on society and business. He concludes that actuaries have the skills to play the role of data scientist in the insurance and risk management sectors.

Seeing Beyond Risk is the CIA’s quarterly electronic publication, featuring contributions from well-known names in actuarial science and experts in the field, writing about topics suggested and honed by the CIA Editorial Panel, readers, and Institute members.

We are sure you will find this article informative and thought-provoking, and we encourage you to distribute it among your friends and colleagues.

 

Duane Kidwell, FCIA (1974), FSA (1960), MAAA (1965)

Duane Kidwell passed away October 30, 2016. He was 94. Mr. Kidwell earned his undergraduate degree at Bowling Green State University and his master’s degree from The Ohio State University. After serving in the U.S. navy, he taught mathematics for two years at Ohio State. In 1948, he became an actuary at The Paul Revere Life Insurance Company, from which he retired in 1987 as vice-president and chief actuary. He taught actuarial science at the University of Hartford and worked as an actuarial consultant until 1994.

Duane Kidwell obituary

Michael Bennett, FCIA (1970), FSA (1970)

Michael (Mike) Bennett passed away on November 17, 2016 at the age of 82. In 1968, after many years at Dominion Life, Mr. Bennett became one of the first professors of actuarial science at the University of Waterloo, heading up the program until the mid-1970s. He was very well regarded as an excellent teacher, helping to attract a number of students to the Waterloo program. He retired from teaching in 1993. An active CIA volunteer from 1972 to 1996, he served as a member on numerous committees including the Mortality Committee, the Tutorial Subcommittee, and the Expected Experience Committee.

Michael Bennett obituary

 
Events News


Here is this month’s free archived webcast:

The Implications of a Low Interest Rate Environment on the Retirement Landscape

Speakers:
Malcolm Hamilton, senior fellow, C.D. Howe Institute
Doug Chandler, Canadian retirement research actuary, Society of Actuaries
Faisal Siddiqi, principal, pension consultant and actuary, Xerox

Interest rates have been declining for a quarter of a century and are now at their lowest levels in Canadian history. While there may be fundamental reasons to believe that nominal interest rates cannot fall far below zero, there is no reason to expect that rates will recover quickly, or that we will ever again see the double-digit rates of the 1980s and 1990s. Actuaries and pension plan sponsors must give serious consideration to the prospect of low interest rates for the remaining lifetime of the current workforce. This does not simply mean that saving for retirement will be more expensive. It requires reconsideration of fundamental choices around reliance on funded pension plans, tax deferral strategies, and plan design. Hear experts challenge your basic beliefs about the future.

To access the webcast, click here and login: https://cia-ica.adobeconnect.com/p6o1ylk6h03/

 

Investment Seminar participants.

In early November, the CIA hosted the Pension Seminar and the Investment Seminar.

Over 155 people attended the Pension Seminar in Montréal. The seminar featured a variety of sessions covering a wide-range of topics, including an overview of Samoisette v. IBM Canada Ltd. and legal issues surrounding participant investment decisions in defined contribution plans. CIA Fellow Rob Brown’s presentation on CPP expansion ("how much is enough?") and a session on solvency funding from the director of the pension policy branch of the Ontario Ministry of Finance were highlights.

Actuary and Canadian Paralympic gold medallist Dean Bergeron was the keynote speaker. In his talk, "Dare to dare! – The limits are only made to be overcome!" he discussed the challenges he has faced pursuing a career as an actuary and competing internationally as a wheelchair racer, setting records and earning 10 Paralympic medals. He explained how he links his personal objectives with a corporate strategic plan as a vice-president at La Capitale.

The next day, 70 people attended the Investment Seminar, also in Montréal. Speakers discussed a number of current topics, including investing in frontier and emerging markets, negative interest rates, robo advisors, and risk factor investing.

 

 

The 27th ANÉA-ASNA (Actuarial Students National Association) convention takes place in the heart of Toronto at the Westin Harbour Castle, from January 6–8, 2017. This year's convention promises to be the largest and best one yet, with new events such as a meet-and-greet with the ASNA leadership team and past favourites such as the club night, career fair, career scope, and gala dinner. Students and employers from across Canada will come together once again to build professional networks and support unique learning opportunities.

The ANÉA-ASNA will also host its case competition, one of the flagship events presented at each annual convention. The competition is open to all Canadian undergraduate students and allows participants to demonstrate and apply their actuarial, financial, and strategic skills by tackling a deep, layered problem (case) that is unique year-to-year. Winning teams will not only receive prizes, but also have an exclusive opportunity to network with the judges and recruiters.

Check out the ANÉA-ASNA website for more information.

We look forward to seeing you in Toronto this January!

 
Volunteers on the Move

Member Services Council

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

  • Research committee: Lisa Miolo (Vice-chair), effective retroactively to January 1, 2016;
    • Individual Life Experience Subcommittee: Vera Ljucovic (Vice-chair), effective September 13, 2017;
    • Annuitant Experience Subcommittee: Nicolas Genois, effective September 13, 2016;
    • Academic Research Subcommittee: Sheldon Lin, Jeffrey Pai, and Taehan Bae, effective October 20, 2016;
  • Editorial Committee: Scott McGaire (Chair), effective September 1, 2016;
  • Emerging Practice committee: Claude Ferguson (Chair), Joshua Bue, Jacques Demers, David Landriault, Denis Latulippe, Zhouliang (Joel) Li, and Martin Roy, effective October 13, 2016; and
  • Oversight Committee on the work of the work of theRetraite Québec Working Group on Transfer Values: Bernard Morency and Charles Lemieux, effective September 1, 2016.

The MSC has approved the creation of the Oversight Committee on the work of the Retraite Québec Working Group on transfer values, effective from September 1, 2016 to October 1, 2017, with the following mandate:

  • Oversee the evolution of the Retraite Québec Working Group work on transfer values and determine whether the Canadian Institute of Actuaries can approve its final report to be presented to the Ministère du travail and the Comité consultatif du travail et de la main d’oeuvre (CCTM); and
  • Receive and analyze a detailed report of each meeting of the working group from Joseph Gabriel, who coordinates the participation of the CIA in the working group.

The following people have completed their term or have resigned from the (sub)committees named below, and leave with thanks:

  • Editorial Committee: Walton Achoy (Chair), effective September 1, 2016; and
  • Annuitant Experience Subcommittee: Khurram Tehseen, effective September 13, 2016.

Ben Miclette was appointed MSC liaison to the Research Committee, replacing Peter Douglas, effective September 29, 2016.

The Group Insurance Committee, the Task Force on Mortality Improvement, and the Task Force on Pension Funding and Transfer Values have been disbanded, effective November 10, 2016, with thanks.

 
Head Office Update

 

By Michel Simard, CIA Executive Director

Once again, the CIA had a very busy year as it moved forward with ongoing projects and initiated a number of others.

Board Activities

The Board oversaw a number of internal and external projects, including the Bylaw amendment on the Disclosure of Criminal Convictions, implementation and testing of a customer relationship management (CRM) system, and a trilateral cross-border discipline agreement (Canada-USA-Mexico).

Public Positions and Submissions

During the year, we made over 14 submissions to various governments and organizations across the country. We published public positions on public pension plan reform, a national pharmacare plan, and the expansion of public pension plans, and published several research projects. We met with government officials in June regarding the CPP, and presented to the House of Commons Standing Committee on Justice and Human Rights regarding Bill S-201, An Act to prohibit and prevent genetic discrimination.

Actuaries Climate Index

Late November saw the launch of the Actuaries Climate Index (ACI), a joint project among the CIA, the American Academy of Actuaries, the Casualty Actuarial Society, and the Society of Actuaries. The ACI is a quarterly measure of changes in extreme weather events and sea levels, based on analysis of quarterly seasonal data for six different index components collected from 1961 to winter 2016, compared to the thirty-year reference period of 1961 to 1990.

Membership

In 2016, we welcomed 274 new Associates and 143 new Fellows to the Institute. We granted two Chartered Enterprise Risk Analyst (CERA) designations. This past year the Institute implemented an annual fee of $65.00 for retired members. While we were sorry that some decided not to renew their membership, most wanted to maintain their connection to the CIA.

Education

In August, the CIA published its first-ever educational syllabus. It is the basis for qualification requirements for Associate (ACIA) and Fellow (FCIA) membership in the Institute. The syllabus will continue to evolve over the coming years as it is updated to reflect the new education syllabus of the International Actuarial Association (IAA) and in response to emerging skill sets and areas of practice.

Continuing Professional Development

Over 390 members attended the Annual Meeting in June, held in St. John’s, Newfoundland in conjunction with the Joint IAA Colloquium. Close to 600 members attended the Appointed Actuary, Actuarial Evidence, Pension, and Investment Seminars. We hosted 22 webcasts, of which 8 were free.

Looking Ahead to 2017

Next year will continue to be busy for the Institute, as the Board examines its governance structure, determines possible topics for public positions, and oversees the future of CIA education. We are implementing a new communications strategy that, combined with the CRM system and other technology, will allow us to improve delivery of our digital communications. The Practice Education Course (PEC) is under review; big changes coming in 2018 will be announced early in 2017.

Thank you to our volunteer members and the CIA Head Office staff for their hard work over the year serving the Institute and the profession. The Institute could not accomplish the things it does without their dedication.

I wish you and your loved ones all the best for the holiday season, and a happy and prosperous 2017.

Michel Simard is the CIA’s Executive Director.