IAA News Release: IAA Monograph on Discount Rates in Financial Reporting presented to the Bank of Portugal
April 23, 2015 | version française

Distinguished Financial Leaders Address Delegates at IAA Meetingss

The International Actuarial Association (IAA) held its Council and Committee meetings in Zürich, Switzerland, from April 7–12 at the invitation of the Association Suisse des Actuaires, one of its 67 Full Member associations.

An important aspect of these meetings included the keynote speeches by two distinguished leaders in the international financial community. The Council meeting featured guest speaker Felix Hufeld, Chairman of the Executive Committee of the International Association of Insurance Supervisors (IAIS) and President of the German Financial Supervisory Authority. The Presidents’ Forum featured guest speaker Craig Churchill, Chief of the Social Finance Programme at the International Labour Organization. 

Mr. Hufeld discussed some of the IAIS’ key strategic goals over the next five years, the most challenging of which is the development of the common framework for internationally active insurance groups (ComFrame), which includes the global insurance capital standard (ICS). Following the start of public consultation on the ICS, the IAIS has received 1,300 pages of comments from 55 respondents, including the IAA. They form part of the first step in the multi-year process to develop the ICS, and Mr. Hufeld said the IAA was very well placed to assist in the conceptual analysis and deep thinking required to achieve meaningful convergence and comparable outcomes over time, in the definition and measurement of capital.

Mr Hufeld said that the IAIS would be seeking more intensive input and collaboration with the IAA on a wide range of IAIS projects, including a forthcoming review of the IAIS Insurance Core Principles, the proposed Group-wide Actuarial Function for internationally active insurance groups, the relationship between the actuary and the auditor, and the proportionate regulation of inclusive insurance providers.

He also praised the IAA’s work on International Standards of Actuarial Practice (ISAPs), which continues to progress in parallel with the ICS work, and in other areas of common interest.

Mr. Churchill considered the value and viability of microinsurance, looking at the ways in which it can improve social outcomes including access to and utilization of health services, and stimulate investment. Explaining that different initiatives offered varying levels of profitability, he praised competition in the microinsurance market for rationalizing pricing and motivating innovation and clients’ focus.

He added that microinsurance offers a number of benefits for providers, including opportunities to demonstrate their social responsibility, access new markets, and establish brand loyalty with emerging consumers.

This collaboration supports several of the IAA’s strategic objectives including strengthening relationships with supranational audiences, expanding the scientific knowledge and skills of the actuarial profession beyond the traditional areas of actuarial practice, providing a forum for discussion of global issues among actuaries and actuarial associations throughout the world, and improving recognition of the actuarial profession among other professionals and academics.

To learn more about the work of the IAA in this area, please contact the Manager of Supranational Relations at the IAA Secretariat.