News from Committees

February 2016

Actuarial Standards Committee (ASC)
Alf Gohdes, Chair
Progress has continued on model international actuarial standards of practice (ISAPs) since our last report.
Exposure drafts of two standards were published in October:

• ISAP 1A – Governance of Models; and
• ISAP 5 – Insurer Enterprise Risk Models.

The exposure period for both of these ends on March 31.

Since the two ISAPs are closely related (ISAP 5 depends on ISAP 1A), the ASC hosted a webinar on January 27 to help IAA member associations and other interested parties better understand the drafts’ key aspects. There were around 70 participants, and a recording is available on the IAA website.

Exposure drafts on three standards are at various stages of progress. In the expected order of issuance, they are:

• ISAP 6 – Insurance Enterprise Risk Management Programs and IAIS Insurance Core Principles
• ISAP 7 – “Current estimates” and other matters in relation to the IAIS Basic Capital Requirement for Internationally Active Insurer Groups insurers
• ISAP 4 – IFRS X, Accounting for Insurance Contracts

The relevant task forces have all made substantial progress since the meetings in Zürich.

The ASC has also been working closely with the Executive Committee on the mitigation of possible risks to the IAA from issuing ISAPs. To this end, amendments have been proposed to the due process for ISAPs, and revised wording is being considered by Council.

The ASC has also been working with the Professionalism Committee on a possible joint glossary covering both international actuarial notes and ISAPs.

Social Security Committee (SSC)
Barbara D’Ambrogi-Ola, Chair

The SSC prepared the previously-mentioned response to the IPSASB consultation paper on Recognition and Measurement of Social Benefits. It was developed by a working group consisting of Assia Billig, Rob Brown, Barbara D’Ambrogi-Ola, Chris Daykin, Anne Drouin, Sam Gutterman, Charles Hett, Ibrahim Muhanna, Derek Osborne, Tibor Párniczky, Junichi Sakamoto and Costas Stavrakis. They:

• Suggested covering health-related programs in a separate standard or expanding this standard to address different forms of such programs;
• Strongly recommended that there should be a requirement for full disclosure of long-term sustainability information on an open group basis in the notes to the accounts; and
• Suggested that the standard should provide for the involvement of appropriate experts in making required claim liability and open group funding assessments, and underlined that qualified actuaries are the relevant experts for making such assessments of future cash flows and their present values.

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