erm case study dec 2013

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Society of Actuaries Request for Proposals, ERM Case Study Page 1

December 9, 2013

The Society of Actuaries is issuing a request for proposal (RFP) for a consultant to enhance the case

study that accompanies the ERM exam. The attached RFP provides the background of the scope of

services we are seeking, the proposal requirements, and the timeline.

If you interested in responding to the RFP please submit the requested materials to me by December 30,

2013. If you have questions, please contact me by phone or e-mail. An earlier indication of an intent to

respond would be appreciated.

Sincerely,

Stuart Klugman, FSA, CERA

Staff Fellow, Education

Society of Actuaries

475 North Martingale Road, Suite 600

Schaumburg, IL 60173

ph: 847.706.3590

f: 847.273.8590

[email protected]
mailto:[email protected]:[email protected]:[email protected]


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Request for Proposal (RFP)

Enhancement of ERM Exam Case Study

Requested by:

Society of Actuaries (SOA)475 North Martingale Road, Suite 600

Schaumburg, IL 60173

847-706-3500

www.soa.org
http://www.soa.org/http://www.soa.org/http://www.soa.org/


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1. Project Background and OverviewThe Education Committee of the Society of Actuaries (the Committee) has responsibility for the

education, examination and credentialing of professional actuaries. One responsibility of theCommittee is the establishment and maintenance of the case studies that accompany fellowship

examinations. At the present time, the Committee desires to hire a consultant to enhance the case

study that accompanies the Enterprise Risk Management (ERM) exam.

The current case study has been in use since the exams inception in the Fall 2012 exam session. A copy

can be downloaded from this page:

http://www.soa.org/education/exam-req/syllabus-study-materials/edu-multiple-choice-exam.aspx

The following sections describe the tasks being requested by the Committee, the timeline, desired

qualifications, and materials to include in an application.

2. Project DetailsThe following is provided as a more detailed outline of the process and the specific tasks required for

successful completion of the project. It is understood that a single person may not be able to complete

all the tasks in item c. The application should indicate which of the tasks you are able to complete. Those

with higher priority are listed first. Items i) and ii) are requirements for your proposal to be considered

a. An expert or team of experts (the consultant) is hired for the project. The consultant will beselected by a panel of actuaries appointed by the SOA. The consultant will sign a contract with

the SOA specifying the duties to be performed, timelines and compensation.

b. After signing the contract, the consultant receives a Word document that is the master for thecurrent case study. Any available supporting spreadsheets will also be provided.

c. Consultant completes any or all of the following tasks:i) (Required) Develop consistent financial statements for each of the subsidiaries and for Lyon

Corporation on regulatory and economic bases; include a more complex capital structure,

for example, including some debt for at least one company (probably SLIC)

ii)

(Required) Provide economic capital information in consistent format for each company,with enough detail in terms of results and process to allow for more in-depth application

questions; include stress testing results for SLIC and Pryde

iii) Add cash flow statements and tax dataiv) Include investment detail for the General Corporate section, similar to the type of

information already provided for SLIC
http://www.soa.org/education/exam-req/syllabus-study-materials/edu-multiple-choice-exam.aspxhttp://www.soa.org/education/exam-req/syllabus-study-materials/edu-multiple-choice-exam.aspxhttp://www.soa.org/education/exam-req/syllabus-study-materials/edu-multiple-choice-exam.aspx


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v) Expand rating agency materialo Add historical financial information (including earnings, premium, simplified income

statement and balance sheet) to General Corporate sectiono Add high-level rating agency discussion for each subsidiary

vi) Add a DC pension plan to one of the companiesvii) Add one or more international subsidiaries probably life or general insurance companies,

but could be a non-traditional corporation, possibly in Canada and/or Asia

3. Qualifications of ConsultantThe consultant should possess relevant expertise through education, practice or both with regard to

ERM, particularly as it relates to the exam syllabus (available at http://www.soa.org/education/exam-

req/edu-exam-erm-detail.aspx ). As the most critical requirements relate to financial statement

development, the consultant should possess relevant experience with insurance financials at the

subsidiary and holding company level. Prior experience working with Society of Actuaries exam case

studies is helpful, though not required

4. TimingThe Committee wishes to complete this project by May 31, 2014. An initial deliverable is desired by

March 31, 2014, to allow for feedback from the Committee and re-working by the consultant to meet

the deadline for the final deliverable.

5. CompensationThe consultant will be compensated at his or her customary hourly rate, but not to exceed $150 per

hour. The consultant will be compensated for actual hours worked, but if the hours exceed a number

specified in the contract, no additional compensation will be paid for completion of the assignment. The

consultant should estimate the needed hours in the proposal.

6. ApplicationThe consultant is to provide a statement (no more than one page) describing why he, she, or the team is

an appropriate choice for this engagement. The statement should also indicate which parts of theproject the consultant is prepared to complete. Applicants should provide an estimate of the number of

hours required to complete the engagement and the requested hourly compensation. Finally, the

applicant(s) must provide a full curriculum vitae/resume and contact information.

7. Applications should be submitted by December 30, 2013. Submissions after that date may not beconsidered.
http://www.soa.org/education/exam-req/edu-exam-erm-detail.aspxhttp://www.soa.org/education/exam-req/edu-exam-erm-detail.aspxhttp://www.soa.org/education/exam-req/edu-exam-erm-detail.aspxhttp://www.soa.org/education/exam-req/edu-exam-erm-detail.aspxhttp://www.soa.org/education/exam-req/edu-exam-erm-detail.aspxhttp://www.soa.org/education/exam-req/edu-exam-erm-detail.aspx

erm case study dec 2013

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