the international actuarial association · •stochastic modeling – theory and reality from an...

The International Actuarial

Association

Cecil Bykerk, President

The New Role of the Actuary

and

The IAA 1

The New Role of the Actuary

and

The IAA

XXV Mexican Actuarial Congress

Acapulco, Mexico

Fairmont Princess

22 September 2011

2

Global Challenges for the

Actuarial Profession

• The International Actuarial Association

• Vision and Mission

• Strategic Objectives

• Supranational outreach

• Sections

• Working Groups

3


Association

• Originally formed in 1895, reconstituted in 1998,

and restructured in 2010

• The IAA has 63 Full Member Associations and

26 Associate Member Associations,

representing over 50,000 actuaries in over 100

countries

• Extending accessibility to high quality actuarial

services worldwide

4

The Vision of the IAA

• The actuarial profession is recognised worldwide

as a major player in the decision-making

process within the financial services industry, in

the area of social protection and in the

management of risk, contributing to the well-

being of society as a whole.

5

The Mission of the IAA

• To represent the actuarial profession and

promote its role, reputation and recognition in

the international domain

• To promote professionalism, develop education

standards and encourage research, with the

active involvement of its Member Associations

and Sections, in order to address changing

needs

6

13th Global Conference of Actuaries 2011 February 20 – 22, 2011

Strategic Objective 1

• Identify, establish, and maintain

relationships with key supranational

audiences and provide them with actuarial

input to improve the soundness of

decisions being made on important issues

with a global impact.

8


• Facilitate the use and expansion of the

scientific knowledge and skills of the

actuarial profession, including beyond the

traditional areas of actuarial practice, to

help enhance the scope, availability, and

quality of actuarial services offered by

individual members of its member

associations.

9


• Establish, maintain and promote common

standards of actuarial education and

common principles of professional

conduct. Promote the development and

issuance of actuarial standards in the

jurisdictions of all Full Member

Associations, and the global convergence

of actuarial standards.

10


• Support the development, organization

and promotion of the actuarial profession

in areas of the world in which it is not

present or is not fully developed.

11


• Provide a forum for discussion among

actuaries and actuarial associations

throughout the world.

12

Global Challenges for the

Actuarial Profession

• Financial stability

• Financial reporting

• Mortality and longevity

• Population ageing

• Climate change

• Developing economies

13

Targeting supranational

organizations

• To raise awareness of actuaries and the areas

in which they can contribute

• To contribute to their work, through briefs,

representation at meetings and joint projects

• To engage them in dialogue and involve them in

IAA discussions and developments

14

Institutional/Observer Members

• International Association of Insurance Supervisors – IAIS

• International Social Security Association – ISSA

• International Accounting Standards Board – IASB

• International Organisation of Pension Supervisors –

IOPS

• Organisation for Economic Cooperation and

Development – OECD

• Asian Development Bank - ADB

15

Regulation/Standards

• IAIS – insurance regulation and solvency

• IASB – insurance & pensions accounting

• IOPS – pensions regulation

• OECD – pensions best practice

16

Social Affairs

• ISSA – social security

• ILO – poverty alleviation & microinsurance

• Aga Khan Agency for Microinsurance

• World Bank – pensions & microinsurance

• WHO – health & ageing

• OECD - health

17

Financial

• IMF – systemic risk & stress testing

• Geneva Association – insurance issues

• CRO Forum – risk management issues

• CFO Forum – financial issues

• WTO – trade in financial services

18

IAA publications

• Stochastic Modeling – Theory and Reality from

an Actuarial Perspective

• Measurement of Liabilities for Insurance

Contracts: Current Estimates and Risk Margins

• Note on the use of Internal Models for Risk and

Capital Management purposes by Insurers

19

Forthcoming publications

• Educational Monograph on Determination of

Discount Rates (to be released in 2011)

20

The Global Financial Crisis

• “Dealing with Predictable Irrationality – Actuarial Ideas to Strengthen Global Financial Risk Management” –

IAA February 2009 Targeted at the Financial Stability Forum, Governments, and major

financial institutions Presented to the Joint Forum, of IAIS, BCSB, IOSCO

• “The Global Financial Crisis – What Next? – IAA July 2009, focused more on insurance and pensions

21

Prevention of future financial

crises

22

G-20 Regulatory Convergence

Efforts

• IAA asked to participate in a Private

Sector Task Force of Regulated

Professions and Industries

• Interim Report to G-20 Deputies to be

released soon

• Final report due in September

• IAA is involved but also wants to be

careful and preserve flexibility by region

23

IAA Sections

• ASTIN – Actuarial Studies in Non-life Insurance

• IACA – International Association of Consulting

Actuaries

• AFIR – Actuarial Approach for Financial Risks

• IAAHS – IAA Health Section

• PBSS – Pensions, Benefits and Social Security

• AWB – Actuaries Without Borders

• LIFE – Life Section

24

ASTIN Bulletin

• ASTIN Bulletin- The Journal of the IAA

25

IAA Sections

Individual actuaries should join a Section to get involved and broaden their horizons

26

Mortality Working Group

• Create an authoritative body of knowledge

• Data sources and collection

• Research

• Coordination of input to projects

27

Mortality and Longevity Needs

• Social Security – the cost of old age support

• Health care – cost of public/private provision

• Pension funds – funding of DB schemes;

adequacy of DC schemes

• Life insurers – solvency and pricing

• Care services – implications

28

Population Issues Working

Group

• Identify population issues of interest to

actuaries – initial focus is ageing and

migration

• Monitor population studies and research

• Create a network of interested actuaries

and others

29

Microinsurance Working Group

• Identify actuarial needs of microinsurance

organisations

• Assist in training

• Expand knowledge

30

Environmental Issues Working

Group

• Just being established

• Initial interest from CAS/SOA, CIA, IAAust,

IFA

31

Developing Economies

• China Actuarial Association is the IAA’s

latest Full Member Association

• We are working with Bosnia and other

smaller European countries

32

Model International Actuarial

Standards of Practice

• Established an Interim Actuarial Standards

SubCommittee

• Current draft developed by Generic Task

Force – (ISAP 1) General Actuarial

Practice

• Foundational standard

33



• Additional Task Forces

– ERM Team

– IAS 19

– IFRS 4

– SOCIAL SECURITY

34



• New Task Force established in last few

months – Task Force on a Permanent

Structure for International Standards

• Due Process Task Force – working on a

revised due process for considering

Statements of Intent for developing ISAPs

35

Education and Professionalism

• Establish, maintain and promote common standards of

actuarial education and common principles of

professional conduct

• IAA Member Associations are recommended to create

and implement a CPD strategy under which their

members are encouraged or required to proactively

address CPD needs

36

Education Syllabus

• Establishment of Education Syllabus

Guidelines

• One of the first major work products of an

IAA Committee

• All Full Member Associations must have

education requirements that meet the

guidelines

37


Association provides a vital

vehicle for coordinating

worldwide engagement

www.actuaries.org

The IAA

38

the international actuarial association · •stochastic modeling – theory and reality from an...

Documents