Current CAS Issues and Directions

1. Current CAS Issues and Directions Shawna Ackerman, CAS Board of Directors Casualty Actuaries of the Northwest (CANW) Seattle, WA March 30, 2012

2. Session Agenda Let’s Have A Conversation SOA Proposal and Related Developments Response to Fall 2011 Exam Results Longer Term Education Issues CERA Communication with Members

3. SOA Proposal and Related Developments

4. Developments Brad Smith Presidential Address (Oct. 2011) CAS Board issues statement (Nov. 2011) SOA Board forms exploratory Task Force Academy Board authorizes discussions w/SOA Leaders of CAS and SOA meet (Nov. 30, 2011) SOA forms Task Force to evaluate feasibility of SOA’s offering a casualty track Leaders of Academy and SOA meet (Jan. 2012); Agree to form profession-wide Task Force

5. Developments • Board agrees to identify representatives to serve on profession-wide Task Force (March Board meeting) • TF to evaluate functions carried out on behalf of the U.S.-based actuarial profession • TF recommendations left to the sole discretion and authority of the respective Boards to do as they wish • SOA announces intention to offer a general insurance specialty track leading to Fellowship in the SOA (Mar. 14, 2012) • CAS Board Statement (Mar. 15, 2012)

6. CAS Board Statement 1. As the only actuarial organization in the world exclusively focused on general insurance risks, the CAS is uniquely positioned to provide the most comprehensive and rigorous education in actuarial science and risk management for general insurance actuaries. The CAS will continue to strengthen its education, research, and programs to support our members worldwide in meeting the requirements of their principals and the public.

7. CAS Board Statement 2. A key advantage that has enabled the CAS to achieve this status during its nearly 100-year history has been the single focus it has maintained on general insurance with respect to all aspects of actuarial education, research, and programs.

8. CAS Board Statement 3. With the continued expansion of challenges in general insurance, the CAS will maintain this single focus in seeking to meet its mission, irrespective of any new entrants to the marketplace.

9. Developments • Risk Management Committee tasked with assessing risks to CAS; delivered report to Board for discussion at March meeting. Board agreed to: • Form a Task Force to evaluate educational objectives for preliminary actuarial exams and alternative approaches to delivering the educational content. • Direct the Committee to revisit the remaining issues outlined in its report for a more granular analysis. • Direct the Strategic Planning Committee to integrate the insights gained by the initial risk assessment into the development of the revised CAS Strategic Plan.

10. Fall 2011 Exam Results Update

11. Developments Fall 2011 Exam Results published, along with explanatory letter to candidates. CAS President Pat Teufel’s Open Letter Re: the Fall 2011 CAS Exam Results. Independent educational consulting firm engaged. Invited members/candidates to suggest improvements.

12. Developments Executive Council agreed to make candidate papers available on a test basis. Deadline for appeals was extended. Time available to complete Exam 9 extended from three to four hours. EC continues to review feedback and suggestions submitted in response to open letter.

13. Education – Longer Term Update

14. Actuarial Skill Set Board resolution at November 2010 meeting: All CAS members should be competent in the application of casualty actuarial techniques. CAS Fellows should not only be able to apply such techniques, but be able to synthesize such methodology and exercise complex judgment to bring those tools to bear in developing practical solutions to business problems not necessarily encountered before. Inherent in this ability is that Fellows be able to clearlycommunicate this understanding and complex judgment including inherent assumptions made and limitations in the approach taken to another party.

15. Developments Higher Level Testing – Bloom’s Taxonomy Training Exam Writers and Graders Preparing Candidates Task Force on Educational Balance issues preliminary report Interviewed employers of actuaries and academics. What skills are employers looking for? Are we measuring up? Board formed a TF to evaluate what the CAS brand should be with respect to a Fellow who has completed basic education. Board approved plans to offer Parts 5 and 6 twice a year, beginning in 2013 and 2014 respectively

16. CERA Update

17. CAS CERA Program Global Treaty Board approves CAS as award signatory Standard Route ACAS + Exams 7 and 9 + ERMM Seminar + UK ST-9 exam Experienced Practitioner Pathway Transfer CERA designation from another organization CAS member interest high – 300+ attended webinar on CAS CERA program. Two sessions of ERMM Seminar to be offered each year

18. Improving Communications with CAS Members

19. Improving Communication with CAS Members Based on Task Force recommendations and Board discussions, the CAS will: Formalize the outreach to Regional Affiliates – there should be a presentation on CAS Issues at every affiliate annually Publish the Actuarial Review more frequently (6x per year) Increase the use of video as a communication vehicle Experiment with ways to obtain timely membership-wide feedback (e.g., online polls) Blog: CAS Roundtable as a new communication vehicle

20. New CAS Blog: The CAS Roundtable

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