Current CAS Issues Current CAS Issues

and Directionsand Directions Shawna Ackerman, CAS Board of Directors

Casualty Actuaries of the Northwest (CANW) Seattle, WA

March 30, 2012

Session AgendaSession Agenda

Let’s Have A ConversationLet’s Have A Conversation

SOA Proposal and Related SOA Proposal and Related DevelopmentsDevelopments

Response to Fall 2011 Exam ResultsResponse to Fall 2011 Exam Results

Longer Term Education IssuesLonger Term Education Issues

CERACERA

Communication with MembersCommunication with Members

SOA Proposal and SOA Proposal and Related Related

DevelopmentsDevelopments

DevelopmentsDevelopments

Brad Smith Presidential Address (Oct. 2011)Brad Smith Presidential Address (Oct. 2011) CAS Board issues statement (Nov. 2011)CAS Board issues statement (Nov. 2011) SOA Board forms exploratory Task ForceSOA Board forms exploratory Task Force Academy Board authorizes discussions w/SOAAcademy Board authorizes discussions w/SOA Leaders of CAS and SOA meet (Nov. 30, 2011)Leaders of CAS and SOA meet (Nov. 30, 2011) SOA forms Task Force to evaluate feasibility of SOA forms Task Force to evaluate feasibility of

SOA’s offering a casualty trackSOA’s offering a casualty track Leaders of Academy and SOA meet (Jan. Leaders of Academy and SOA meet (Jan.

2012); Agree to form profession-wide Task 2012); Agree to form profession-wide Task ForceForce

DevelopmentsDevelopments

Board agrees to identify representatives to serve Board agrees to identify representatives to serve on profession-wide Task Force (March Board on profession-wide Task Force (March Board meeting)meeting) TF to evaluate functions carried out on behalf of the U.S.-TF to evaluate functions carried out on behalf of the U.S.-

based actuarial professionbased actuarial profession TF TF recommendations left to the sole discretion and recommendations left to the sole discretion and

authority of the respective Boards to do as they wishauthority of the respective Boards to do as they wish SOA announces SOA announces intention to offer a general intention to offer a general

insurance specialty track leading to Fellowship in insurance specialty track leading to Fellowship in the SOA the SOA (Mar. 14, 2012)(Mar. 14, 2012)

CAS Board Statement (Mar. 15, 2012)CAS Board Statement (Mar. 15, 2012)

CAS Board CAS Board StatementStatement

1. As the only actuarial organization in the 1. As the only actuarial organization in the world exclusively focused on general world exclusively focused on general insurance risks, the CAS is uniquely insurance risks, the CAS is uniquely positioned to provide the most comprehensive positioned to provide the most comprehensive and rigorous education in actuarial science and rigorous education in actuarial science and risk management for general insurance and risk management for general insurance actuaries. The CAS will continue to actuaries. The CAS will continue to strengthen its education, research, and strengthen its education, research, and programs to support our members worldwide programs to support our members worldwide in meeting the requirements of their in meeting the requirements of their principals and the public.principals and the public.

CAS Board CAS Board StatementStatement

2. A key advantage that has enabled the 2. A key advantage that has enabled the CAS to achieve this status during its CAS to achieve this status during its nearly 100-year history has been the nearly 100-year history has been the single focus it has maintained on general single focus it has maintained on general insurance with respect to all aspects of insurance with respect to all aspects of actuarial education, research, and actuarial education, research, and programs.programs.

CAS Board CAS Board StatementStatement

3. With the continued expansion of 3. With the continued expansion of challenges in general insurance, the CAS challenges in general insurance, the CAS will maintain this single focus in seeking will maintain this single focus in seeking to meet its mission, irrespective of any to meet its mission, irrespective of any new entrants to the marketplace.new entrants to the marketplace.

DevelopmentsDevelopments

Risk Management Committee tasked with Risk Management Committee tasked with assessing risks to CAS; delivered report to assessing risks to CAS; delivered report to Board for discussion at March meeting. Board Board for discussion at March meeting. Board agreed to:agreed to:

Form a Task Force to evaluate educational objectives Form a Task Force to evaluate educational objectives for preliminary actuarial exams and alternative for preliminary actuarial exams and alternative approaches to delivering the educational content.approaches to delivering the educational content.

Direct the Committee to revisit the remaining issues Direct the Committee to revisit the remaining issues outlined in its report for a more granular analysis.outlined in its report for a more granular analysis.

Direct the Strategic Planning Committee to integrate Direct the Strategic Planning Committee to integrate the insights gained by the initial risk assessment into the insights gained by the initial risk assessment into the development of the revised CAS Strategic Plan.the development of the revised CAS Strategic Plan.

Fall 2011 Exam Fall 2011 Exam Results UpdateResults Update

DevelopmentsDevelopments

Fall 2011 Exam Results published, along Fall 2011 Exam Results published, along with explanatory letter to candidates.with explanatory letter to candidates.

CAS President Pat Teufel’s Open Letter Re: CAS President Pat Teufel’s Open Letter Re: the Fall 2011 CAS Exam Results.the Fall 2011 CAS Exam Results.

Independent educational consulting firm Independent educational consulting firm engaged.engaged.

Invited members/candidates to suggest Invited members/candidates to suggest improvements.improvements.

DevelopmentsDevelopments

Executive Council agreed to make Executive Council agreed to make candidate papers available on a test basis.candidate papers available on a test basis.

Deadline for appeals was extended.Deadline for appeals was extended. Time available to complete Exam 9 Time available to complete Exam 9

extended from three to four hours.extended from three to four hours. EC continues to review feedback and EC continues to review feedback and

suggestions submitted in response to open suggestions submitted in response to open letter.letter.

Education – Longer Education – Longer Term UpdateTerm Update

Actuarial Skill Set Actuarial Skill Set

Board resolution at November 2010 meeting:Board resolution at November 2010 meeting:All CAS members should be competent in the application of casualty All CAS members should be competent in the application of casualty

actuarial techniques.actuarial techniques.

CAS Fellows should not only be able to apply such techniques, but CAS Fellows should not only be able to apply such techniques, but be be

able to synthesizeable to synthesize such methodology and such methodology and exercise complex exercise complex

judgmentjudgment to bring those tools to bear in to bring those tools to bear in developing practical developing practical

solutions to business problems not necessarily encountered beforesolutions to business problems not necessarily encountered before. .

Inherent in this ability is that Fellows be able to Inherent in this ability is that Fellows be able to clearlyclearly

communicate this understanding and complex judgmentcommunicate this understanding and complex judgment including including

inherent assumptions made and limitations in the approach taken to inherent assumptions made and limitations in the approach taken to

another party.another party.

DevelopmentsDevelopments

Higher Level Testing – Bloom’s TaxonomyHigher Level Testing – Bloom’s Taxonomy Training Exam Writers and GradersTraining Exam Writers and Graders Preparing CandidatesPreparing Candidates

Task Force on Educational Balance issues Task Force on Educational Balance issues preliminary reportpreliminary report Interviewed employers of actuaries and academics.Interviewed employers of actuaries and academics. What skills are employers looking for? Are we What skills are employers looking for? Are we

measuring up?measuring up? Board formed a TF to evaluate what the CAS brand Board formed a TF to evaluate what the CAS brand

should be with respect to a Fellow who has completed should be with respect to a Fellow who has completed basic education.basic education.

Board approved plans to offer Parts 5 and 6 twice Board approved plans to offer Parts 5 and 6 twice a year, beginning in 2013 and 2014 respectivelya year, beginning in 2013 and 2014 respectively

CERA UpdateCERA Update

CAS CERA ProgramCAS CERA Program

Global Treaty Board approves CAS as award Global Treaty Board approves CAS as award

signatorysignatory Standard RouteStandard Route

ACAS + Exams 7 and 9 + ERMM Seminar + UK ST-ACAS + Exams 7 and 9 + ERMM Seminar + UK ST-9 exam9 exam

Experienced Practitioner PathwayExperienced Practitioner Pathway Transfer CERA designation from another Transfer CERA designation from another

organizationorganization CAS member interest high – 300+ attended CAS member interest high – 300+ attended

webinar on CAS CERA program.webinar on CAS CERA program. Two sessions of ERMM Seminar to be Two sessions of ERMM Seminar to be

offered each yearoffered each year

Improving Communications with

CAS Members

Improving Improving Communication with CAS Communication with CAS

MembersMembersBased on Task Force recommendations and Board discussions,Based on Task Force recommendations and Board discussions,

the CAS will:the CAS will:

Formalize the outreach to Regional Affiliates – there Formalize the outreach to Regional Affiliates – there should be a presentation on CAS Issues at every should be a presentation on CAS Issues at every affiliate annuallyaffiliate annually

Publish the Actuarial Review more frequently (6x per Publish the Actuarial Review more frequently (6x per year)year)

Increase the use of video as a communication vehicleIncrease the use of video as a communication vehicle Experiment with ways to obtain timely membership-Experiment with ways to obtain timely membership-

wide feedback (e.g., online polls)wide feedback (e.g., online polls) Blog: CAS Roundtable as a new communication vehicleBlog: CAS Roundtable as a new communication vehicle

New CAS Blog: The CAS New CAS Blog: The CAS RoundtableRoundtable

Connect with the CAS!Connect with the CAS!

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