IAA Newsletter - September 2005

Officers for 2005

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

Upcoming Events

Rio Around the Corner!

In a little more than one month, the IAA Council and Committees, and the Presidents of the Full Member associations of the IAA will meet at the Sofitel Hotel in Rio de Janeiro, Brazil. Although a few committees will meet on November 16, the full program of committee meetings will begin on November 17 and end on the morning of November 19. The Council will meet on the afternoon of November 19. The Presidents will gather on November 20 to discuss issues of mutual interest and concern. The full meeting program is available online. It is not too late to register! Click here for more details.

If the topic of financial risks interests you, then attend the Financial Risks Seminar planned for November 21.

All of these events will be followed by the 6th Brazilian Congress of Actuaries and the 7th Pan American Congress of Actuaries, from November 21-23.

International Congress of Actuaries (ICA) 2006 in Paris and Bursaries

ICA 2006In less than one year, the worldwide actuarial community will be gathering in Paris for the 28th ICA. The IAA is keen to strengthen the profession in developing countries and, with this in mind, has created a limited bursary fund to enable actuaries from such countries to attend the Congress. The Bursary fund has benefited in 2005 from generous contributions from ASTIN, IACA, AFIR/ERM, and the Canadian Institute of Actuaries.

International Congresses are a tremendous opportunity to meet with actuaries from around the world. Particularly for those from developing countries, this provides an opportunity to discuss issues with those from larger actuarial associations and seek help and guidance.

Details of the bursary procedure and application form are available at https://www.actuaries.org

If you would like to discuss this further, or if you would like to make a contribution to the Congress Bursary Fund, please contact Peter Clark, Chairperson of the Member Services Committee at peter@ballardswood.org.uk or Nicole Séguin, IAA Executive Director at (executive.director@actuaries.org).

Special Note: In order to allow members of the Health Section of the IAA to attend the health track sessions over a half-week program, sessions organized by the Health Section will be held exclusively in the second part of the Congress week, namely, Thursday, June 1st and the morning of Friday, June 2nd. Anyone wishing to switch their registration from the first half of the week to the second may do so without cost. For any additional information, please contact info@ica2006.com.

Plan to be in Paris from May 28 to June 2, 2006!

Register before December 31, 2005 and save $$

Member Services

Please note the new look of our Web site. We have enhanced the visibility and the accessibility of the material relating to each Section, including details of their Colloquia and/or Seminars. The Presidents’ Forum is also identified by its own icon. The Automatic Translation tool and the virtual Global Actuarial Library have also been made easier to find.

The Global Actuarial Library comprises 188,804 indexed documents from 72 web sites including actuarial associations, international standard-setting organisations, international donors, various universities and academic institutions, actuarial research organisations. Powerful search algorithms are available and the results of a search can be automatically translated on line in any of the 8 languages supported by our customised system.

We continually strive to improve our website and your feedback is always appreciated at secretariat@actuaries.org.

Recent Events

Fast Track Procedure (FTP)

As announced through email communications, the IAA proposes to use the FTP to respond to the IASB Proposed Amendments to IAS 37, Provisions, Contingent Liabilities and Contingent Assets, and to IAS 19, Employee Benefits. The Committee on Insurance Accounting is developing the responses and all Full Member associations were invited to participate. Full Member associations wishing to object to the use of the FTP must do so no later than October 23, 2005.

Membership Overview

  • 52 Full Member Associations: 3 associations to be considered for upgrade to Full Member status at Council meeting in Rio: Côte d’Ivoire, Slovakia and Indonesia
  • 23 Associate Member Associations
  • 3 Institutional Members (International Association of Insurance Supervisors, International Social Security Association, International Accounting Standards Board)
  • 1 Observer Member (World Bank)

Annual Dues

Full Member Associations:   Set at $12.50 CAD for 2006 based on the aggregate number of fully qualified actuaries, as defined by the association
Associate Member Associations:   $50 CAD
Sections:   $40 CAD per member for all sections except AWB which is $20 CAD

Strategic Planning

The Task Force is accepting comments until October 17 on the February 2005 document discussed in Rome. The Task Force is discussing needed changes by email and will continue these discussions in Rio. Discussion of the strategic plan is on the agenda for the Council meeting in Rio and active participation is expected.

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.

Senior Actuaries Club

Yves Guérard, Secretary General of the IAA, has been elected to the membership of the Senior Actuaries’ Club. This group is chaired by Jim MacGinnitie of the United States, and the next meetings will take place on November 13 in New York, in conjunction with the Society of Actuaries annual meeting, and on November 14, in Baltimore, in conjunction with the CAS annual meeting.

2005 Budget

Expected Revenue: $704,000 CAD
Expected Expenses: $702,000 CAD

News from Member Associations

Institute and Faculty of Actuaries (United Kingdom)

On 27 June 2005 Mary Frances Miller, BA FCAS MAAA FCA was elected as an Honorary Fellow of the Institute of Actuaries.

A successful Ageing Population Conference was held in Oxford, England from 7 to 9 September 2005. Sixty-five delegates attended from around the world.

The profession in the UK is undertaking a Strategic Review in the light of the findings of the Morris Review.

See attached memorandum on peer review in the UK.

Recent Events

Association Suisse des Actuaires (Switzerland) Celebrates 100th Anniversary

President Alf Guldberg travelled to Basel, Switzerland immediately after the IAA meetings in Rome in order to join the Swiss in their Centenary celebrations.

  IAA President Alf Guldberg presenting
crystal globe to Swiss President,
Marc Chuard

ASTIN and AFIR/ERM Colloquia in Zurich Switzerland

In September, the ASTIN and AFIR/ERM Sections held their colloquia in Zürich, Switzerland.  President Alf Guldberg represented the IAA at both events.  Details below.

ASTIN held one of its most successful Colloquia ever in Zürich, Switzerland, September 4-7, 2005. The meeting was held in the hallowed halls of the Swiss Federal Institute of Technology Zürich (ETH Zürich) where Albert Einstein studied physics and many famous actuaries have either taught or earned degrees. The meeting was attended by about 250 delegates (including about 75 academics) plus about 50 accompanying persons from over 30 countries. There were 48 papers presented, about half of which were authored by people from academia and about half by people from industry.

Delegates were treated to thought-provoking lectures from the following highly respected invited lecturers:

David R. Cox - Nuffield College, Oxford
Thomas Mack - Munich Reinsurance
Phelim Boyle - University of Waterloo
Elias S. W. Shiu - University of Iowa
Hans Bühlmann - Swiss Federal Institute of Technology Zürich
Robert F. Engle - 2003 Nobel Laureate in Economic Sciences, Stern School of Business, NYU

Wednesday was a joint day with AFIR/ERM, which also met on September 8-9.

Thanks are due to Marc Chuard, Chairman of the Swiss Association of Actuaries, for hosting ASTIN in Switzerland, to Paul Embrechts and Andrew Cairns for co-chairing the Scientific Committee for this meeting, and to Hanspeter Tobler, Alois Gisler and others for their work on the Organizing Committee. The year 2005 marks the 100th anniversary of the SAA and the 150th anniversary of ETH Zürich, so the mood was quite celebratory.

In addition to the scientific program, the social program was spectacular. On Sunday evening, delegates were hosted by Swiss Re at Rüschlikon situated on a hill above the lake of Zürich providing a panoramic view. On Tuesday afternoon, the attendees enjoyed an unforgettable steam boat ride on Lake Lucerne. The "föhn" (a wind from the south) was blowing which resulted in clear blue skies and stunning views of the Alps. On Wednesday evening, ASTIN and AFIR/ERM attendees joined for a gala dinner in a 200 year old building which hosts the annual shooting festival each year. We were accompanied by authentic Swiss music and dance.

Paul Embrechts has served as Editor of the ASTIN Bulletin for the past ten years and stepped down from that position at this meeting. We owe Paul a great debt of gratitude for all he has done to increase the stature of the Bulletin during his term. Shaun Wang was elected as Editor. Andrew Cairns of the UK (an Editor of the ASTIN Bulletin), David Finnis of Australia, and Jose Luis Lobera of Mexico were elected members of the ASTIN Committee.

ASTIN will not hold a Colloquium in 2006 in order to encourage its members to participate in the International Congress of Actuaries in Paris. The 37th ASTIN Colloquium will be in Orlando, Florida, USA in June, 2007 in conjunction with the 50th anniversary of the founding of ASTIN.

David G. Hartman, Chairman

The 15th AFIR/ERM 2005 A great event - beautiful people – fantastic organisers

The colloquium was one of the main features of the centenary of the Swiss Association of Actuaries. The colloquium was a joint arrangement with ASTIN with one joint day. The view is that ASTIN studies are approaching AFIR/ERM subjects and that many studies of risk management in the financial context could be classified as both AFIR/ERM and ASTIN subjects. As an example, last year Jon Holtan won the Hachemeister prize for a paper using an option pricing framework to analyze insurance pricing.

The AFIR/ERM 2005 took place in Zürich at the ETH and attracted 158 participants and 29 accompanying persons from 24 countries.

There were 12 sessions which attracted 32 papers.

The joint day with ASTIN featured such eminent speakers as Phelim Boyle from the University of Waterloo who talked on Incomplete Markets, Elias Shiu from the University of Iowa who talked on Dynamic Fund Protection, and ETH’s own Hans Bühlmann, who discussed three fundamental issues in insurance: the collective, reserves and profitability. Last but not least, on Wednesday was the most memorable talk of the Noble Prize winner in Economy, Robert F. Engle from New York University who talked on Downside risk – economic models and financial implications. Arch and Garch models now have a new place in AFIR/ERM actuary’s tool kit.

Thursday and Friday featured invited lectures from Mary Hardy from the University of Waterloo who talked on Validation of Investment Models for Actuarial Applications, and Damir Filipovic who talked on Risk-based Solvency Capital Requirements.

One must congratulate the colloquium Scientific Committee for putting together such a magnificent program. The social programme and events were first rate so both the mind, the eyes and the stomach were well-taken care of.

The general assembly saw four changes in the committee: Robert Clarkson, Mike Barker, Peter Albrecht and Bill Chinery left the committee. They were replaced by Pierre Devolder, Josephine Marks, Raimond Maurer and Shaun Wang. At the general assembly Jean Berthon gave a hearty thanks to the members who were resigning, thanking them for the work they had done during their term on the committee. At the same time, he welcomed aboard the newcomers. As both the treasurer and secretary left the committee, Tor Eivind Høyland and Josephine Marks were elected new officers in the AFIR/ERM committee. Josephine will keep an eye on the finances while Tor Eivind will try to continue the good work done by Mike Barker, the former secretary.

Tor-Eivind Høyland, Secretary

IACA in Bali, Indonesia in September 2005
The International Association of Consulting Actuaries (IACA) organised a programme track at the recent East Asian Actuarial Conference in Bali, Indonesia at the beginning of September. There will be a similar IACA track at the annual conference of the CCA in Asheville, North Carolina from 31st October to 2nd November. The next full IACA conference will be held in Paris as part of the 2006 IAA Congress. The IACA programme there will take place on the 1st and 2nd June (registration for the Paris Congress is already open).

Adrian Waddingham, Secretary

IAA Fund Meeting in Bali
The fourth International Meeting of Leaders of the Actuarial Profession and Actuarial Educators in Asia and the Pacific took place on Friday, September 16 and Saturday, September 17, 2005 at the Westin Resort, Bali, Indonesia at the invitation of the Actuarial Society of Indonesia (PAI). The meeting followed on the heels of the 13th East Asian Actuarial Conference (EAAC) held in the same location. The 14th EAAC will be held in Tokyo, Japan in 2007.

IAA representatives included President Alf Guldberg, Secretary General Yves Guérard, Chair of the Advice and Assistance Committee, Stephen Handler, and Chair of the Member Services Committee, Peter Clark.

Balinese musical performance at the opening of the 13th EAAC

A panoramic view of the participants to the IAA Fund Workshop

The opening session was chaired by Steve Handler of the A&A Committee, and the head table comprised from left to right, Peter Clark representing Chris Daykin, Rianto Djojosugito, new President of the PAI, Maryoso Sumaryono, Chair of EAAC, and Alf Guldberg, IAA President

The Secretary-General, Yves Guérard and Peter Clark, Chairperson of the Member Services Committee, during an interactive session on education

The meeting, attended by representatives from 15 countries in the region, focussed on professionalism and the development of actuarial education and qualification. Several countries were looking for help and advice in the development of local standards and local education. Not only was the desire of the IAA to help stressed, but also the need to find suitable funding, particularly for educational developments. This need is becoming more acute given the education requirements introduced by the IAA in 2005.

Shortly before the meeting, PAI elected a new President, Rianto Djojosugito, who attended the meeting and met with several IAA representatives in relation with the PAI application for full membership. In the days leading to these meetings, an article had appeared in the Bisnis Indonesia to the effect that the Indonesia actuarial association was working very hard at upgrading its membership in the IAA to Full Member status.

"Kami nanti di sela-sela Konferensi Aktuaria se-Asia Timur akan melakukan pendekatan dengan pihak mereka." "We will approach them on the sidelines of the East Asian Actuarial Conference," announced PAI Secretary General, Angger P. Yuwono.

The PAI was working hard to improve its Code of conduct, Discipline procedures and standards as well as the qualifications of its members, in order to better prepare them to compete with their foreign colleagues within the ASEAN Free Trade Area and beyond..

Chairman of the EAAC, Maryoso Sumaryono, announced "We want the public to know this profession and to associate it with the development of the domestic financial industry."
“Kami ingin profesi ini dikenal masyarakat luas seiring semakin berkembangnya industri keuangan, tentunya jasa aktuaris akan semakin dibutuhkan."