OFFICERS — 2006

Jean-Louis Massé, President
Yves Guérard, Secretary General
Alf Guldberg, Immediate Past President

The IAA mourns the passing of Peter Clark, one of its Officers, who died suddenly, but peacefully, at his home on Sunday, June 11, 2006, a little more than a week after having returned home from Paris where he had participated in the IAA Council and committee meetings and the 28th International Congress of Actuaries.

His loss will be felt tremendously by the international actuarial community, who had expected him to lead them in 2007.  Jean-Louis Massé represented the IAA at the funeral service on June 22.  A memorial service is being planned for November 15, 2006 in London.  Details will be communicated as they become available.

An obituary has been published on the Institute of Actuaries’ website and can be viewed at the following link: http://www.actuaries.org.uk/Display_Page.cgi?url=/news/clarkpeter_obituary.html

Donations in Peter's memory may be made to the Crusaders' Union (P N S Clark, c/o A H Cheater, 122 The Hundred, Romsey, Hants, S051 8BY). Alternatively, Peter's family intends to establish a charitable trust to further causes Peter was passionate about in Africa.

For further details, please visit the website dedicated to Peter at: www.noels.org.uk

VOTING BALLOTS

Early voting is strongly encouraged!

IAA Education Program Committee – Terms of Reference
(Voting period ends: 10 September 2006)

Election of President-Elect for Remainder of 2006
(Voting period ends: 19 September 2006)

FAST TRACK PROCEDURES

Common Structure for the Assessment of Insurer Solvency
(Deadline for objection: 26 July 2006)

IAIS Draft Supervisory Standard on Asset Liability Management
(Deadline for objection: 26 July 2006)

IAIS Standard on Disclosure Concerning Technical Risks and Performance for Life Insurers
Consultation Note
(Deadline for objection: 7 August 2006)

Available on IAA Homepage

EVENTS

Recent Events

Decisions Taken at May 28, 2006 Council Meeting

• Adoption of audited financial statements at December 31, 2005
• Full Member Association dues for 2007 set at $13.50 CAD based on the aggregate number of fully qualified actuaries
• Admission of New Associate Member Associations  Council admitted as Associate Members the Macedonian Actuarial Association (Macedonia) and the Russian Guild of Actuaries (Russia).  Congratulations and welcome!
• Appointments to IAA Committees and Subcommittees  Consult the full list of appointments to IAA Committees and Subcommittees online.

The Nominations Committee announced to Council its intent to recommend at the Council meeting on November 19, 2006 the election of David Hartman of the United States as President-Elect for the year 2007.

Meetings in Paris confirm that the IAA activity level is on the rise! 

The recent IAA Council and Committee meetings held in Paris painted a very heavy schedule and a high level of participation!  In total, there were 218 delegates and 60 accompanying persons representing 41 countries.  Representation by membership category was as follows:  47 of 55 Full Member associations, 2 of 21 Associate Member associations, all 7 sections and all 3 Institutional Members.  Total voting rights represented, including proxies and ballots, totalled 93.5%!  The IAA was pleased to welcome for the first time representatives from Côte d’Ivoire and Indonesia, its newest Full Member associations.

	L to R: Peter Clark, President Elect, Yves Guérard, Secretary General, Jean-Louis Massé, President, Nicole Séguin, Executive Director		Delegates at dinner

The IAA expressed its sincere gratitude to its French hosts, the Institut des Actuaires, who found the time during the final days of preparation for the 28th International Congress of Actuaries to host an elegant dinner for their international colleagues!

Jean-Marie Nessi, President of the Institut des Actuairs, and Jean Berthon, Vice-President of the Congress, receive from President Jean-Louis Massé the last of the blown crystal replica of the world globe

Reports by the President and the Secretary General

		The highlights of President Jean-Louis Massé’s report to Council include the following: A report on representation activities since the beginning of the year A listing of written articles submitted to various organizations A brief report on the use of the fast track procedure and the submission of public statements Get all the details online.
		Secretary General, Yves Guérard’s report focused on: A report on the Secretariat A report on bursaries for the Paris Congress The proposal for an international education program Growth of the IAA Public statements, representations, standards Annual fees and preliminary budget for 2007 Read the full report online.

Recognition of Outgoing Chairpersons

The IAA dinner is always a good opportunity to recognize among their peers those who contribute their time and efforts to the work of the IAA.  In Paris, plaques of recognition were awarded to the following past Chairpersons:

	Paul McCrossan, Subcommittee on Actuarial Standards 2002-2006		Peter Clark, Member Services, 2003-2005

It is to be noted that Paul McCrossan was also the founder of the McCrossan Group created in the early 1990s, which lead to the creation of the Forum of International Actuarial Associations in 1995 as a Section of the IAA, the predecessor to the restructure of the IAA in 1998.  Paul McCrossan was the first Chairman of the Forum in 1995-96.

In Paris, the following committee leadership appointments were made:

• David Congram as Co-Vice-Chairperson of the Insurance Accounting Committee and Co-Chairman of the Actuarial Standards Subcommittee (to replace Paul McCrossan)
• Michael Eves as Chairperson of the Reinsurance Subcommittee of the Committee on Insurance Regulation (to replace Peter Boller)
• Ibrahim Muhanna as Chairperson of the Member Services Committee (to replace Peter Clark)
• The Chairperson of the Committee on Social Security was appointed as the IAA delegate to the International Social Security Association (ISSA) (to replace Marie-Thérèse Lance)

Planned Events

IAA Council and Committee meetings, Edinburgh, Scotland

Committee meetings:  November 16-19, 2006
Presidents’ Forum:  November 16, 2006
Council:  November 19, 2006

The program is available online.  Please register early and reserve your bedroom. 

The IAA meetings will be followed by a Joint Groupe Consultatif / IAA Education Conference on November 20 and 21, also in Edinburgh.  Details available online.

Long Range Planning

The International Actuarial Events Calendar is the perfect tool for your long range planning. Visit it often through the link on the IAA’s home page.  Member associations are encouraged to post their events in the calendar to make the tool as useful as possible.  If you have misplaced your association’s login and password, send an email to secretariat@actuaries.org.

UPDATE ON THE WORK OF IAA COMMITTEES AND SECTIONS

Committees

• The committee was waiting for additional information from the Serbian Actuaries Association before it could make a recommendation with respect to their Full Member application.
• The committee was reviewing the application to upgrade to Full Membership from L’Association Marocaine des Actuaires (Morocco).
• The Committee was considering an application for Associate Membership from The Instituto de Actuarios Matemáticos de Chile. 
• The Committee unanimously approved the revised proposal on non-compliance with membership requirements. The Committee will include its proposal on the 90-day agenda for the November 19, 2006 Council meeting in Edinburgh.
• The Committee was considering terminating the membership of an Associate Member for non payment of dues for the past four years.  Unless the dues are paid in full by mid-August, a motion for termination of associate membership will be on the 90-day Council agenda for Edinburgh.

IAA Fund Meetings

• The meeting planned for the Central and Eastern Europe region in the third quarter of 2006 will take place in Warsaw on 4-5 September.
• The Pan American Congress of Actuaries will take place in Buenos Aires, Argentina, on October 18-20 and the IAA Fund intends to hold a seminar in conjunction with the international education program initiative in Latin America.
• In 2007, a meeting will probably be held in Nairobi, Kenya, in the first half of the year, for the Anglophone countries in Africa.  Consideration will also be given to a meeting for Francophone Africa, possibly in West Africa.
• In addition. a meeting is planned for late September 2007, to take place in Beijing, China in conjunction with the SAC meeting.

China Subcommittee

A meeting between the IAA leadership and representatives from the Society of Actuaries in China and the CIRC took place on 27 May and was conducted in a frank, friendly and constructive manner.  It may be hoped that the information delivered at this meeting, especially regarding the role and status of local associations, will prove beneficial in preparing the way for the SAC to submit an application to join the IAA, at first as an Associate Member, and in the foreseeable future, as a Full Member.  The IAA has been invited to participate in the SAC annual meeting in Chongquin next September.

• An ad hoc Working Group on the Role of the Actuary was formed jointly with the Insurance Accounting, Professionalism and Pensions and Employee Benefits Committees, with Ad Kok of The Netherlands as chairperson.
• The committee accepted the paper on "duties of committee members". 
• The committee sponsored jointly with the Insurance Accounting Committee and the Solvency Subcommittee the following three sessions at the ICA2006:
  • "How can supervisors and stakeholders rely on internal models?": moderator Jukka Rantala, speakers Allan Brender, Michael Koller and Allan Brender;
  • "Best practices of solvency assessment" moderated by Rolf Stölting and speakers Allan Brender, Helen Martin (Rowell) and Guy Castagnoli;
  • "Determination of risk margin in technical provisions"; moderator Henk van Broekhoven, speakers Henk himself and Paul McCrossan.

As the first print of our publication, A Global Framework for Insurer Solvency Assessment, is now sold out, the IAA will reprint 500 copies of the 1st edition pending the review by the committee which should lead to a new version to be published in 2008.

• Morris Review: The committee decided to establish taskforce(s) to address five agreed priority areas for the Committee, i.e. protecting the public interest/whistle-blowing; involvement of non-actuaries in standard setting; peer review/independent scrutiny of actuarial work; conflicts of interest and review of codes of conduct. It is likely that in each case the approach taken will be to gather information on national issues/practice in these areas; develop a paper on options/models to address them and identify case studies/best practice examples.
• Review of IAA due process: A first draft of a revised process was discussed and a further draft will be prepared for review/discussion by the Committee at its November meeting.
• IASPs: a survey on the application of International Actuarial Standards of Practice (IASPs) has been issued to member associations and results will be collated and circulated for discussion at the November meeting; a taskforce has also been established to develop case studies on different situations and how the IASPs might apply in practice.

Some of the other issues discussed at the meeting will also be followed up, in particular education on professionalism (review of syllabus plus mechanisms for sharing information), discipline processes for smaller associations (small group to develop summaries of options and issues); and participation in cross-committee task force on roles of actuaries, auditors and regulators (Roland van den Brink).

The Chairperson, Hillevi Mannonen, welcomed the participants to the meeting, and especially the representatives from ISSA Alejandro Bonilla Garcia and Théopiste Butare.  Messrs. Butare and Bonilla updated the committee on ISSA’s aims and plans. Both the Committee and ISSA expressed their aim to maintain and deepen the cooperation with each other.

The World Bank issued a publication last year entitled “Old-Age Income Support in the Twenty-First Century:  An International Perspective on Pension Systems and Reform.”  The Social Security Committee prepared a formal response to the World Bank on this new position, in accordance with the established due process for issuing public statements.  On March 7, 2006 the draft statement was exposed to a vote by Full Member associations with a deadline of
May 7.  No changes were made to the draft and, with the support of Full Member associations, the final response was issued to the World Bank on May 9, 2006.

At the Social Security committee meeting in Paris, Rob Brown asked committee members and observers if they knew of any stochastic social security models being used around the world.  The answer was basically that the only existing stochastic social security models are those now used in the United States (although Canada will include some stochastic analysis in their next evaluation).

The Society of Actuaries Social Security Committee has now met again and would like to broaden the net we are casting to obtain information about stochastic modeling as it might be applicable to the analysis of social security systems.

Two questions are being asked:

1. Are you aware of stochastic models where the principles of the modeling could be applied to the evaluation of social security systems?  These models might exist in the private sector or they might have been developed by academics.  The models do not have to analyze any complete social security system.  They only need to have potential application in the analysis of social security systems.  Thus, for example, a model that presents stochastic projections of mortality rates would be pertinent and should be included in your reply.
   
2. What methods are used in the social security systems (for which you have more than passing knowledge) to explore and explain uncertainty?  For example, does the relevant social security report contain any sensitivity analysis?  If so, is there an electronic site where we can get information of how that sensitivity analysis is done.  (Sensitive analysis is meant to be just one example, not an exhaustive list).

Please reply by July 31 to:  Rob Brown at rlbrown@uwaterloo.ca

This meeting was devoted to the follow up on current activities regarding

1. contacts with supranational organisations,
2. updating action plans and Internet available information.

In addition, the committee further debated on the strategic views regarding priorities of future action plans on the basis of a presentation made by Jules Gribble on his paper “Actuarial Supply and Demand”. Following discussions started by the committee at its last two meeting on developing some strategic thoughts, it appeared that there was a lack of actuarial resources in respect of a growing demand. Jules Gribble tried to quantify this gap and presented the essential findings of his paper.

Starting from the number of actuaries with a “fellowship” level or equivalent, Jules arrived to a figure close to 43,000. He compared it with a measure of insurance need that would be represented by GDP (World Bank figures in US $) and his findings show that bringing less advanced countries to the level of top ten ranking ones would require an increase in the number of actuaries of 75% to close the gap. Noting that this number grows on average more slowly than the increase in GDP, the projected supply of actuaries should show a significantly faster growth rate in order to close the gap, and it would take decades in most scenarios.

The committee’s conclusion after discussion was that there was a need for action in order to fill the gap – which is also what the World Bank recognised in expressing its needs for actuaries.  It is likely that the same level of actuarial skills is not required in all regions of the globe at this stage. Those quantitative considerations should be useful to the Education Committee and the Task Force assessing the feasibility of a global actuarial education program.

Sections

Click to view the new IAA Section Brochure

The IAA recently published a brochure to help promote its seven sections.  Member associations can request copies to help promote the sections within their respective associations.  Please send an email at secretariat@actuaries.org if your association would like to receive some copies.

                                                
ASTIN Bulletin has been listed by Thomson ISI

The Editorial Board is delighted to announce that the ASTIN Bulletin has been listed by the international publishers Thomson ISI in several of their international citation indices.

The listing follows several years of continued efforts by the ASTIN Bulletin editors (including recently-retired Professor Paul Embrechts).

Inclusion in the Thomson ISI citation indices will enhance the ASTIN Bulletin's visibility as a leading international journal.  It will also be welcomed by academics in many countries where a journal's inclusion in the Thomson ISI indices affects internal or external appraisal of research quality.

ASTIN Bulletin is listed from volume 35.1 (2005) in
- the Social Science Citation Index,
- the Science Citation Index Expanded,
- the CompuMath Citation Index, and
- Current Contents/Social & Behavioral Sciences

On behalf of the IAA Health Section (IAAHS) Committee and the Actuarial Society of South Africa's Organizing Committee, we want to invite you to attend our 4th International Health Colloquium in Cape Town, Republic of South Africa, from May 13-17, 2007.  The colloquium provides attendees with an international perspective on health actuarial practice, and public and private health issues. The colloquium program features an in-depth scientific program with highly informative keynote speakers and expert panel sessions to provide meaningful ideas for your professional practice. In addition, social events provide opportunities to meet and share ideas with your colleagues from around the world.  Information about the colloquium is now available on the web at http://www.iaahs2007.com/.

All these events take place in Cape Town, which is one of the most beautiful cities on earth. With this solid combination of scientific content, social programs, and a great site, our 4th International Health Colloquium is a "must attend" event for all actuaries interested in private health insurance, social insurance, and health policy matters.

Howard J. Bolnick, IAAHS Chairman
Emile Stipp, Chairman, ASSA Colloquium Organizing Committee
Adrian Baskir, President, ASSA

Jim MacGinnitie is the first recipient of the Max Lander Award.  Adrian Waddingham, IACA Chairman (center) and Brent Walker, IACA Past Chairman (right), present Jim with the award during the IACA lunch on June 2nd in Paris.  Details will be available in the next IACA Newsletter.

Congratulations Jim!

IAA Life section is launched

For some time a number of IAA members have been discussing the creation of a Life Section within the IAA. It is with sadness that we note that one of the key driving forces, Peter Clark, recently and suddenly passed away. His energy and support will be missed by us all.

The Life section was formally formed following the IAA council meeting in Rio de Janeiro, November 19, 2005. Since then, the interim committee of the section has been busy building the new section.

At the IAA congress in Paris, the Life Section organized a session in combination with the first general meeting of the section. The series of lectures was well received by the participants. At the general meeting, the following committee was elected: Kurt Wolfsdorf (Chairman), Stuart Wason (Vice Chairman and IAA delegate), Chris Lewis (Treasurer), Malcolm Campbell (Secretary and IAA delegate), Félix Arias, Morten Harbitz, Geraldine Kaye, Tomio Murata, Alan Rae, Kris Stroinski, Marc Slutzky, Peter Withey, Inge Zeilstra and Jesús Zúñiga.

In order to promote the new section, marketing material in the form of a PowerPoint presentation has been developed, a copy of which can be found at http://www.actuaries.org/LIFE/Documents/Presentation.pdf .

It has been decided to hold the Life Section’s first colloquium in Stockholm from June 11-13, 2007. This colloquium will take place immediately prior to the AFIR/ERM colloquium, with one day (June 13) being reserved for common sessions. It has also been decided to hold a Life colloquium in Québec City in June 2008, and in Germany in 2009.

A series of one day seminars are also planned, with the first to be held in Mexico City on April 19, 2007, following the IAA Council and committee meetings.

The committee is also discussing the provision of enhanced internet services, and a medium for publishing scientific papers.

The section is evolving and the committee is actively seeking input from its current and future members on ideas for the section’s development as well as volunteers for carrying out its activities. Input can be sent to the section’s mailbox info@iaa-life.org

NEWS FROM MEMBER ASSOCIATIONS

Consejo (Argentina)

a) The Consejo has put into practice the Guidelines for Actuarial Practice in Social Security Programs, details are available at http://www.consejo.org.ar/noticias06/normas43_2606.htm

b) The Consejo and the Instituto Actuarial Argentino are organizing the 5th Pan American Congress of Actuaries, October 18 to 20th, 2006, in Buenos Aires, and details are available at http://www.consejo.org.ar/congresos/5actuarios.htm

Faculty of Actuaries elects Stewart Ritchie OBE President

The Faculty of Actuaries in its 150th anniversary year has elected Stewart Ritchie (pictured left) as its new President.

Ritchie takes up his Presidency with immediate effect and will serve a two- year term. He qualified as a Fellow of the Faculty in 1977 and in 2002 he was made an Officer of the British Empire in recognition of his service to pensions and the actuarial profession.

He has been a member of the Pensions Board of the Actuarial Profession for many years and has been a Vice President of the Faculty of Actuaries since 2004. He has also served as Chairman of the Profession’s Board of Examiners.

After his election Ritchie said “I look forward to working closely with the new Institute President, Nick Dumbreck. A major challenge for us is to guide the re-shaping of the Profession following the Morris Review and the ceding of responsibility for technical standards to the Financial Reporting Council”.

Mr Ritchie will be giving his Presidential Address this Autumn.

Nick Dumbreck assumes Presidency of Institute of Actuaries

Nick Dumbreck has assumed the Presidency of the Institute of Actuaries.
Mr Dumbreck, who will serve a term of two years, joined the Profession in 1976. He qualified as a Fellow of the Institute in 1982.

He was a member of the Council of the Institute of Actuaries from 1993-98 and from 1999 to 2005, acting as Vice President to the Institute from 2003-05. He was Chairman of the Profession's Education and Continuing Professional Development (CPD) Board from 2002-04 and served as Honorary Secretary of the Institute from 1996-98.

Mr Dumbreck has been a member of the Education Committee of the International Actuarial Association and the Groupe Consultatif Actuariel Européen since 2002. He also chaired the Staple Inn Actuarial Society (SIAS) between 2002 and 2004.

He will give his Presidential Address this Autumn.

Financial Reporting Council's regulation of the Actuarial Profession

Overview

The central recommendations of the Morris Review of the Actuarial Profession, published in March 2005, was that the Financial Reporting Council (FRC) should be asked to establish a regime to set actuarial standards and oversee the Profession's broader regulatory responsibilities. The Profession welcomed these proposals. The Government accepted the recommendation in principle and asked the FRC to take on this new role.

The purpose of the new regime is to enhance the quality of actuarial reporting and promote the integrity, competence and transparency of the actuarial profession – to the benefit of all those who rely on actuarial advice.

The FRC has completed its preparations and has taken on its new role in setting actuarial standards by setting up a Board for Actuarial Standards and overseeing the regulation of the actuarial profession by expanding the role of the Professional Oversight Board to cover the Faculty and Institute of Actuaries as well as the various accountancy professional bodies. In preparing for its new role, the FRC has benefited from the positive support of the Actuarial Profession. On 18 May when the Profession handed over the majority of its guidance notes to be adopted by BAS on 19 May, the Presidents wrote an open letter to the BAS Chairman.

Full details of the new regime may be found on the FRC’s website. There are various links from this site to their information.

The Profession has a Memorandum of Understanding with the FRC which describes at a high level our respective responsibilities.

Equitable Life assurance Society Archive - Appeal oversubscribed at closing date!  
The overwhelming response from companies, actuarial associations and individuals in the UK and around the world in the final week resulted in the appeal being oversubscribed by around £27k at the closing date of 31 March.

The Profession is grateful for the generous donations by companies, actuarial associations and individuals worldwide.   It has been proposed that at least part of the surplus be devoted to conserving and publicising the archive with the aim of making key documents available electronically on the website as part of a presentation on the history of actuarial science.   Contributors will be regularly updated by email with news about the archive.    Non-contributors who would also like to stay informed should contact David Raymont at david.raymont@actuaries.org.uk.

Updates on further developments will appear regularly in The Actuary.   A list of corporate donors will feature in the next issue.

Chris Lewin, Chairman, Library Historical Texts Advisory Panel

Richard Muckart, Chairman, Library and Publications Committee