Mutual Recognition

1. Mutual Recognition Casualty Actuaries of Greater New York June 11, 2003 Gail M. Ross

2. What is Mutual Recognition? A bilateral agreement, between the CAS and Actuarial Society “X” whereby an FCAS could be granted Fellowship in Society “X” (subject to terms of the agreement). In turn, an actuary achieving Fellowship in Actuarial Society “X” could be granted Fellowship in the CAS.

3. Your View • Should the CAS be willing to enter into mutual recognition agreements with selected actuarial organizations? All those in FAVOR of the concept of MR All those OPPOSED to the concept of MR All those UNCERTAIN about the concept of MR

4. Historical Background • 1999 Board action • Not pursue bilateral agreements • Work to ensure practice rights globally • Subsequent developments • CAS members were being excluded from certain practices in Australia, Ireland, India • CAS Board set an international strategy to be an active participant in the global community of P/C actuaries • November 2001 - Board created a MR Task Force to revisit the issue

5. The CAS Board’s Vision (11/02) • The actuarial profession is an increasingly global community. The CAS seeks to foster a vibrant and effective global community of P/C actuaries, to be an active participant in this global community, and to promote casualty actuarial science. • The vision of the CAS is to be a global resource for education, knowledge, experience and applied research for P/C actuaries. We seek to collaborate with other organizations that research and educate in this field. • The CAS desires that CAS members and other actuaries be recognized as qualified actuaries and be able to practice in all countries and on all assignments where they have appropriate knowledge and experience. • The CAS desires to attract future members with diverse backgrounds, including future members from around the globe.

6. The CAS Board’s Recent Action (11/02) • CAS Board voted to endorse the concept of entering into MR agreements with other actuarial organizations that have specialty exam tracks in general (P/C) insurance. • CAS Board recognizes that: • Constitutional amendment will be required • Member support is necessary • Member education/feedback is underway

7. Big Audacious Goal (March ‘03) The CAS will be globally recognized as the preeminent resource in educating casualty actuaries and conducting research in casualty actuarial science. CAS members will be recognized as the leading experts in the evaluation of hazard risk and the integration of hazard risk with strategic, financial and operational risk.

8. The Mutual Recognition Opportunity • Facilitates our members’ ability to practice in various jurisdictions • Increases attractiveness of our exams to students in other countries • Get the CAS P/C education • Become FCAS • Use FCAS to gain admission in local actuarial organization • Improves CAS visibility, stature, and influence as an active player in the global actuarial community

9. The Controls Being Discussed • MR agreements are only being considered with organizations that have rigorous property/casualty educational, testing and continuing education processes similar to the CAS. • Institute of Actuaries • Faculty of Actuaries • Institute of Actuaries of Australia • Individual actuaries applying for FCAS by mutual recognition • Must demonstrate knowledge and experience in P/C field, e.g., • Took P/C specialty track in home organization • N out of M most recent years working in field • Take CAS Course on Professionalism • Letters of reference

10. The Controls Being Discussed • FCAS by Mutual Recognition is subject to: • Code of Conduct • Standards of Practice • Qualification Standards • Candidates would not be allowed to use a “derived qualification” to apply for membership in the CAS

11. Major Objections / Responses • There will be a flood of actuaries from other organizations applying for the FCAS designation • There are only 200 members of the IA/FA that have completed the P/C track. • SOA and CIA have had MR agreements with the IA/FA/ IAA for a number of years and have had less than 25 MR applicants.

12. Major Objections / Responses • The other actuaries applying will be less qualified since the examination path will not be identical • “Different” does not imply “Less Rigorous” • The IA/FA/IAA offer education and exams in areas that we don’t (e.g., actuarial control cycle)

13. Major Objections / Responses • MR will be a distraction and will divert CAS resources from focusing on issues that face our members in the US • Will give us additional resources to achieve our goals

14. What’s In It For Me? • Being associated with the worldwide leader in casualty actuarial science • Broader job opportunities • An opportunity to further develop skills and expertise

15. What Are The Implications of Not Pursuing MR? • Undermines the BAG • Isolates the CAS from the rest of the world • The actuarial community might perceive the CAS as not interested in the concerns of other countries • Someone else will likely fill our spot

16. Your Turn • Questions? • Concerns? • Issues the Board should be certain to address? • Other ideas/comments

17. Your View • Should the CAS be willing to enter into mutual recognition agreements with selected actuarial organizations? All those in FAVOR of the concept of MR All those OPPOSED to the concept of MR All those UNCERTAIN about the concept of MR

18. THANK YOU !!!!!