ASSOCIATION ACTUARIELLE INTERNATIONALE INTERNATIONAL ... · RÉDACTEUR EN CHEF/ CHIEF EDITOR: Jean Lemaire Insurance and Risk Management Department University of Pennsylvania 3641

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RÉDACTEUR EN CHEF/CHIEF EDITOR:

Jean LemaireInsurance and Risk Management

DepartmentUniversity of Pennsylvania

3641 Locust WalkPhiladelphia, PA 19104-6218

U.S.A.

COMITÉ DE RÉDACTION/EDITORIAL COMMITTEE:

Roger CorleyGrande-Bretagne

Hans GerberSuisse

Yves GuérardSecrétaire Général A.A.I.

RÉDACTEURS NATIONAUX/NATIONAL EDITORS:

Associations nationales/National Associations

W. Els � Afrique du SudJ. Strauss � Allemagne

J. Stanard (C.A.S.) �États-Unis

L. Baber (C.C.A.) �États-Unis

C.E. Huntington (Society) �États-Unis

R. Carey � AustralieF. Liebmann - Autriche

R. Schokaert � BelgiqueR. Westenberger � BrésilM. Chambers � Canada

J.H. Huang � Rép. de ChineT. Chung � Rép. de ChineF. Cederbye � Danemark

A. Vegas Montaner � EspagneC.E. Huntington (Academy) �

États-UnisJ. Tuomikoski � Finlande

J. Berthon � FranceG.M. Murray (Faculty) �

Grande-BretagneE. Smyth (Institute) �

Grande-BretagneS.H. Leckie �

Hong-KongS.P. Subhedar � Inde

E. Levay � IsraëlC.A. Mormino � Italie

H. Yoshida � JaponR. Frère � G.-D. Luxembourg

H. Lechuga � MexiqueG. Harbitz Jr. � Norvège

J. Eriksen � Nouvelle-ZélandeJ.D. Breen � Pays-BasL. Portugal � PortugalA. Sandstrom � Suède

H. Gerber � SuisseP. Mandl � République Tchèque

S. Rajitrangson � Thailande

Autres associations et sections/Other Associations and Sections

J. Lemaire (ASTIN)Y. Guérard (AFIR)

C. Daykin (A.I.S.S.)J.M. Henty (Groupe Consultatif)M. Lacroix (IAA Promotion and

Education Fund)

ASSOCIATION ACTUARIELLE INTERNATIONALEINTERNATIONAL ACTUARIAL ASSOCIATION

BULLETINCONTENTS / SOMMAIRE

1. Important Dates / Dates importantes .................................................................. 2

2. Letter to Individual Members ............................................................................. 3

3. Lettres aux membres individuels ........................................................................ 4

4. Minutes of the Council Meeting - June 6, 1998, Birmingham, U.K. .................. 5

5. Procès-verbal de la réunion du Conseil du 6 juin 1998,Birmingham (R.-U.) .......................................................................................... 18

6. Summary of the General Assembly - June 8, 1998, Birmingham, U.K. ........... 31

7. Sommaire de l�Assemblée Générale du 8 juin 1998, Birmingham (R.-U.) ...... 35

8. Minutes of the Council Meeting - June 11, 1998, Birmingham, U.K. .............. 40

9. Procès-verbal de la réunion du Conseil du 11 juin 1998,Birmingham (R.-U.) .......................................................................................... 47

10. Report on Birmingham Congress from U.K. Institute ...................................... 53

11. Report on Cape Town Meetings / Rapport sur les réunions tenues àCape Town ........................................................................................................ 55

12. Research in Progress / Recherche en cours ...................................................... 56

13. Reports from Member Associations / Rapports des associationsmembres ............................................................................................................ 65

14. Table of Contents of Actuarial Journals / Tables des matières derevues actuarielles ............................................................................................. 83

15. Reports on Actuarial Meetings / Comptes-rendus de réunionsactuarielles ........................................................................................................ 97

16. International Summer School / École d�été internationale ............................... 99

Association Actuarielle Internationale / International Actuarial AssociationSecretariat / Secrétariat

820-360 AlbertOttawa (Ontario)

CANADA K1R 7X7

1-613-236-0886 1-613-236-1386

[email protected] / [email protected] / www.actuaires.org

No 28 X-1998

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1. IMPORTANT DATES / DATES IMPORTANTES

1999

April 17-18 avrilCouncil and Committees / Conseil et Comités

Madrid, Spain

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August 22-25 aoûtASTIN

Tokyo, Japan

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August 24-27 aoûtAFIR

Tokyo, Japan

�

August 28-29 aoûtCouncil and Committees / Conseil et Comités

Tokyo, Japan

�

December 10-11 décembreCouncil and Committees / Conseil et Comités

Paris, France

2000

May / maiCouncil and Committees / Conseil et Comités

Jerusalem, Israël

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June 20-23 juinAFIR

Tromsø, Norway

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September 17-20 septembreASTIN

Porto Cervo, Costa Smeralda, Italy

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November 21-22 novembreCouncil and Committees / Conseil et Comités

Ottawa, Canada

2001

May / maiCouncil and Committees / Conseil et Comités

Portugal

�Fourth Quarter - Quatrième trimestre

Council and Committees / Conseil et ComitésHong Kong

2002

March 15-16 mars Council and Committees / Conseil et Comités

Cancun, Mexico

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March 17-22International Congress of Actuaries /

Congrès International des ActuairesCancun, Mexico

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Fourth Quarter - Quatrième trimestreCouncil and Committees / Conseil et Comités

Barcelona, Spain

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2. LETTER TO INDIVIDUAL MEMBERS

Dear Colleagues,

In the Report II on the Future of the IAA we presented theproposition of the Provisional Executive Committee for thereorganisation of the IAA. The proposition was discussed atthe International Congress in Birmingham on 6 June 1998and was accepted by an overwhelming majority. In the past,the IAA was an association of individual members, now ithas become an association of actuarial societies andassociations.

As an individual member, you will probably be askingyourself what your role in the new IAA is, and you will wantto know how your interests as an actuary and individualmember are going to be represented. Let us answer thesepoints as follows:

� Representation of your professional interests in yourcountry will continue to be in the hands of your nationalassociation, and the IAA will be responsible forrepresentation at the international level. In this respect,the IAA will completely take over the functions of theformer IFAA.

� All fully qualified actuaries of full and associate memberassociations are automatically individual members of theIAA, with the right to participate in IAA events relatingto the profession. In future, there will not be an individualmembership fee for these fully qualified actuaries.

� The roles and responsibilities of the sections ASTIN andAFIR and membership of these will remain unchanged.The normal subscriptions for these sections will continue.

� To further promote the professional and scientific interestsof members, the Committee for Services to IndividualMembers has been established within the new IAA. Theirtask is to support the professional interests of eachmember of the IAA and stimulate communication betweenindividual members. Support for the internationalcongresses is one such task that falls within thecommittee�s area of responsibility. The creation of furthersections based on the successful models of ASTIN andAFIR for other special areas is under discussion. Thesewill help maintain the present level of service formembers, and they will further expand on the number ofservices offered.

� The Bulletin, which has up to now been published inbook form, will in future be made available electronically

on a web site to accommodate the larger number ofindividual members. Individual members who do notbelong to an association of actuaries and do not have e-mail or access to the Internet can request a copy of theBulletin from the secretariat.

We are certain that the new IAA will offer our manyindividual members new opportunities for the expansion ofknowledge and for improved communication. We will makeevery effort on our part to promote these goals.

Jean Berthon Martin BalleerPresident of the IAA Chairman of the Committee for

Services to Individual Members

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3. LETTRES AUX MEMBRES INDIVIDUELS

Chers collègues,

Dans le deuxième rapport sur l�avenir de l�AAI, nous avonsprésenté la proposition préconisée par le Comité ExécutifProvisoire pour la réorganisation de l�AAI. Cette propositionavait été discutée au Congrès international tenu àBirmingham le 6 juin 1998 avant d�être acceptée par unemajorité écrasante de membres. Dans le passé, l�AAI étaitune association de membres individuels, mais elle estmaintenant une association de sociétés et d�associationsd�actuaires.

À titre de membre individuel, vous vous demandezprobablement quel sera votre rôle dans la nouvelle AAI etde quelle façon nous allons représenter vos intérêts à titred�actuaire et de membre individuel. Permettez-nous derépondre à ces préoccupations.

� La représentation de vos intérêts professionnels dans votrepays continuera d�incomber à votre association nationale,tandis que l�AAI se chargera de vous représenter àl�échelon international. À cet égard, l�AAI assumeratoutes les fonctions de l�ancien FIAA.

� Tous les actuaires pleinement qualifiés d�une associationmembre titulaire ou associé sont membres d�office del�AAI et ont droit de participer aux activités de l�AAI quiont trait à la profession. Dans l�avenir, ces actuairespleinement qualifiés n�auront pas à payer une cotisationindividuelle.

� Les rôles et les responsabilités des sections ASTIN etAFIR et l�adhésion à celles-ci demeurent inchangés. Lessouscsriptions aux sections continuent comme par lepassé.

� Pour favoriser davantage les intérêts professionnels etscientifiques des membres, la nouvelle AAI a créé unComité sur les services aux membres individuels. Cecomité veillera à appuyer les intérêts professionnels dechacun des membres de l�AAI et à stimuler lacommunication entre eux. L�appui aux congrèsinternationaux est l�une des tâches qui relèvent de lacompétence de ce comité. La création d�autres sectionsbasées sur le modèle réussi d�ASTIN et d�AFIR, maisdans d�autres domaines, est en cours de discussion. Cescomités aideront à maintenir le niveau actuel de servicesaux membres tout en étendant les services déjà offerts.

� Le bulletin, qui était jusqu�à maintenant publié sous formede livre, sera à l�avenir mis sur le site Web afin de répondreaux besoins d�un plus grand nombre de membres. Lesmembres individuels qui n�appartiennent à aucuneassociation d�actuaires et qui n�ont pas accès au courrierélectronique ou à Internet peuvent demander unexemplaire du bulletin en s�adressant au secrétariat.

Nous sommes certains que la nouvelle AAI offrira à nosnombreux membres individuels de nouvelles occasionsd�étendre leurs connaissances et d�accroître leurs échanges.Nous ferons tout en notre possible pour atteindre cesobjectifs.

Jean Berthon Martin BalleerPrésident de l�AAI Président, Comité sur les

services aux membres individuels

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4. MINUTES OF THE COUNCIL MEETINGJUNE 6, 1998 - BIRMINGHAM, U.K.

The IAA Council meeting took place on June 6, 1998 at theInternational Convention Centre in Birmingham, U.K., inconjunction with the 26th International Congress ofActuaries.

President André Lamens opened the meeting by welcomingall delegates.

A list of attendees is attached to these minutes.

AGENDA

1. Ratification of the appointment of the President, Vice-Presidents and Secretaries of the 26th InternationalCongress

2. Report of the Secretary General and Report on theaccounts to June 30, 1997

3. Nomination of new ordinary and donation members

4. Changes in the composition of the Bureau and theCouncil

5. Final Report of the Provisional Executive Committeeon the Future of the IAA

� Review of the Statutes, Internal Regulations andInitial Motions

� Creation of the Committee for Services to IndividualMembers, appointment of initial members of theCommittee and designation of the Chairperson

� Approval of the Statutes to be adopted by the GeneralAssembly

� Dissolution of the PEC

6. Report of the Mexican delegation on the Organisationof the 2002 Congress

7. Report on the activities of ASTIN

8. Report on the activities of AFIR

9. Report on the activities of the IFAA

10. Report of the delegation of ISSA

11. Report on the activities of the International Promotionand Education Fund

12. Miscellaneous

13. Closing remarks by the President of the IAA

PRESIDENT, VICE-PRESIDENTS ANDSECRETARIES OF THE 26TH CONGRESS

The first item of business was the ratification of theappointment of the President, Vice-Presidents and Secretariesof the 26th Congress as follows:

President Hugh Scurfield

Vice-Presidents Roy BrimblecombeMalcolm Murray

Secretaries Kevin O�Brien, President of the Organising CommitteeDavid Wilkie, President of the Scientific Committee

Country Vice-President Secretary

Australia John Trowbridge David KnoxCanada Harry Panjer Morris W. ChambersDenmark Henrik Ramlau-

Hansen Finn HeerwagenFinland Jaakko Tuomikoski Hannu ParviainenFrance Jean Frey Jean-Michel EyraudGermany Martin Balleer Jürgen StraußJapan Masakatsu Nishibe Masahiko FujikiMexico Luis Huerta Rosas Juan Carlos Padilla

AquilarNetherlands Peter Kuys Ad KokNorway Pål Lillevold Torodd RendedalSouth Africa Reg Munro Adrian BaskirSweden Harry Wide Marie-Louise

WenanderSwitzerland Peter Diethelm Kurt WettenschwilerU.K. Faculty Paul Grace Mike RossU.K. Institute Duncan Ferguson Nick DumbreckUnited States Curtis E. Huntington David G. Hartman

Representing countrieswith fewer than 20participants Bruce Maxwell Petr Mandl

(Ireland) (Czech Rep.)

The appointments were ratified by a round of applause.

REPORT OF THE SECRETARY GENERAL ANDTREASURER, YVES GUÉRARD

�Dear Colleagues,

Fortunately I was not victim this year of the series of delaysthat last year resulted in my arrival in Brussels just a fewhours before the closing dinner; thus I have the privilege of

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presenting, as scheduled, my first Report as Secretary Generalof the IAA. But first let me go back to this previous meetingwhen my predecessor Willy Lenaerts presented his lastReport and was applauded in recognition of his nine yearsof service as Secretary General. I missed that moment, but Iwould like to add retroactively my own personal appreciationfor his work during all these years and particularly for hissupport in the transition from Brussels to Ottawa. My mostsincere thanks to you Willy; I will try to keep the highstandards you have set with much less support than I enjoyfrom the Secretariat in Ottawa.

Since our last meeting, in addition to the organization of the26th Congress by our British colleagues, a major challengein itself, the focus has been on the transformation of theIAA into an Association of Associations. This effort willculminate next Monday when our members will be called tovote on the new Statutes that we will examine today. Inaddition to the September 27, 1997 Meeting in Brussels, theProvisional Executive Committee has met in London onFebruary 23, 1998, but much work has also been done inbetween and after meetings by an exchange of faxes andemails. These efforts produced the documents that were sentto you in November 1997 and, more recently in March 1998,also posted on our newly born Web site.

The Secretariat has provided the Congress OrganizationCommittee with the required support and has enjoyed theassistance of the British actuaries for the coordination of themeetings of the IAA Council and the General Assembly. Ourtask was made easy by the efficiency of our Britishcolleagues. Two days ago, at Staple Inn, the IAA presentedthe Institute of Actuaries with a bust of George King, aneminent member of the Institute who participated in the 2ndIAA International Congress held in this country 100 yearsago, in 1898, where he promoted the concept of an universalactuarial notation.

In parallel, the Secretariat has been kept busy with thetransition from Brussels to Ottawa which involved thetransfer and the reception of boxes and boxes of documentswhich had to be reviewed and classified. The phasing out ofthe operations in Brussels entailed an additional set ofactivities which will not be recurrent. We believe that bynow we have gathered and organized all the necessaryinformation, both for the administrative functions and thefinancial management.

Two objectives, cost reductions and more efficientcommunications, made the development of the Web site andthe use of electronic communications an immediate priority.The IAA Web site developed by the Secretariat in Ottawa isvery similar to the plan presented to the IAA Council inSeptember 1996. Assuming the approval of the

reorganization of the IAA by the General Assembly nextMonday, the Web site will be changed to reflect the neworganization. We will take advantage of this opportunity tostandardize the colors to those of the logo: orange and blue.In addition, experience gained in the past year in usingelectronic communications will be applied to improving theuse and effectiveness of the Web site. We have begun postingdocuments in PDF format to enable members to downloaddocuments which are identical to the printed version. Weare also studying the various technological tools which canbe used to control the access to the database and to thedocuments which are posted as well as ways to provide securecommunications within groups such as the Council, theExecutive and other committees and task forces.

The cost issue is paramount in the case of the Index and inSeptember 1997 we distributed a Discussion Paper on thisissue to the members of the Council. Option 1 was �No Index�with possibly a low cost complement described as follows:

As a low cost complement, a folder listing theAssociations with postal and electronic addresses,phone and fax numbers plus an indication of thecategories of members who are automaticallymembers of IAA, can be printed and distributed atlow cost to prospective third-party users.

Option 2 was an Index on the Web site. An associationdatabase is already available on the IFAA side. Assumingmost member associations, including all the larger ones, canprovide electronic copies of the relevant information in theirmembership lists, a consolidated membership database couldbe made available on the new IAA Web site. Alternatively,the IAA Web site could contain only the lists of membersfor associations that do not maintain their own Web site andfor the others a Hyperlink would bounce the search to thelocal association Web site. The database or bases wouldreflect membership in AFIR, ASTIN or other sections aswell as individual members.

Members or third parties such as regulatory bodies or otherusers could more readily verify on the Web, the qualificationsof individuals presenting themselves as actuaries. For thosenot having ready access to Internet facilities, a diskette couldbe provided upon request on a cost recovery basis. A folderdescribing the site and how to access it can be printed anddistributed to enhance the IAA visibility.

Technology is not quite ready for the posting of the Index tothe Web site as envisaged in Option 2. The Canadian Instituteof Actuaries� Secretariat is currently investigating variousoptions for posting the database to the Web site and expectsto make significant progress by the end of August 1998.The IAA Secretariat would piggy back on themethodology to apply it to its database.

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Option 3 was adding to Option 2 the publication anddistribution of a limited number of copies of a consolidatedIndex in printed form. Pursuant to further examination andto discussions at the PEC, we are not planning to publishany such hard copies; Option 3 is out.

The cost of printing and distributing hard copies of theBulletin is also a high cost element: $25,000 Cdn for theApril 1998 Bulletin alone, a number that would greatlyincrease if we were to distribute it to all individual membersof the new IAA. We envisage instead posting it on the Website plus a limited distribution in bulk through theAssociations or individual mailings only upon request. Wehave reduced accordingly the provision in the budget.

Better cost-efficient communications also mean accessibilityin many languages. Our Web site is partly bilingual. YourSecretariat is investigating the feasibility of integrating alanguage translator into the IAA Web site. Two technologieshave been compared: one offered by Alis Technology andone by Systran Professional; there may be others. Thetechnology would allow translation on the fly of emails orweb pages; in other cases batch translation of files could bemore efficient. More than a dozen language pairs are alreadyavailable and the number is growing. All the languages usedin our international Congresses are of course available butalso translations into languages that would tremendouslyincrease the accessibility of actuarial literature in lessactuarially developed areas.

I know that other actuarial associations are looking into thesepossibilities and I believe that a joint effort would benecessary to minimize costs and increase more quickly thequality of the translations by customizing the basicdictionaries. We intend to pursue our research in thatdirection and would welcome comments, suggestions andadditional information especially from national associationsthat are considering such options.

I will now turn to the financial statements. The auditedstatements for the year ending in June 1997 were presentedto the September 1997 Council meeting in Brussels. Theaudited statements for the year ending June 30, 1998 areobviously not available, but could be presented at the nextCouncil Meeting, presumably in November 1998 at CapeTown, South Africa. We have made a preliminary projectionwhich indicates that, after consolidating the operationsconducted in Brussels and in Ottawa, the deficit for the yearwill be of the order of $90,000 Cdn compared to a surplusof $1,027 Cdn last year. This excludes the effect of thetransfer of BEF 1,500,000 to the Birmingham Congresswhich has also reduced the assets by nearly $60,000 Cdn.The expenses have increased by $40,373 Cdn which increase

corresponds roughly to the amount identified asreorganisation costs incurred in Brussels up to January 20,1998, which are non recurring. The revenues have decreasedby $51,000 Cdn which is attributable to the absence thisyear of the Confederation Life recovery and lower interestincome; membership fees are lower by $10,000 Cdn,presumably due to an increase in unpaid fees at the date ofthe report. Some follow-up letters have been sent fromBrussels and we will follow up on the amounts outstanding.

Despite this expected or unexpected transitional deficit, theIAA should terminate the current year with an accumulatedsurplus of approximately $170,000 Cdn on June 30, 1998which, in accordance with Article 34 of the proposed Statutes,would be earmarked to support activities related to individualmembers. In addition, the IAA assets should includeapproximately $266,000 Cdn in the International Promotionand Education Fund known as the IAA Fund. To date, theoperations of the IAA Fund have not been reflected in theIAA income statements.

A proposed budget has been prepared for the 18-monthperiod beginning July 1, 1998 and ending December 31,1999 on the basis of the proposed reorganisation. Inaccordance with the Initial Motions which have beendistributed, this budget will be submitted to the new Councilat the meeting scheduled for June 11, 1998.

I thank you for your attention.�

The Secretary General�s Report was approved.

NOMINATION OF NEW ORDINARY ANDDONATION MEMBERS

The Secretary General presented the list of new individualcandidates. With the support of their nationalcorrespondents, they were unanimously accepted.

CHANGES IN THE COMPOSITION OF THE IAACOUNCIL AND OF THE BUREAU

Countries 1997-98 ChangesArgentina N. J.H. PellegrinelliNew Zealand N. J. EriksenSwitzerland J. Kupper H. Lüthy

Roger Corley of the U.K. took the floor. �Mr. President.Before you leave point 4, it has been my honor for severalyears now to propose to this meeting the re-election of thePresident of the IAA for the forthcoming year. I would liketo take that privilege for what will be my last opportunityand propose that, and I think if we look back we can see thatit is a valuable proposal, our present President, Monsieur

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André Lamens, should continue in office, as President ofthe IAA, as that body exists in its present form. It is anunusual proposal, because if the meeting on Monday shouldaccept the reorganisation put forward, it is a proposal that,Mr. President, you should continue for a matter of six days.If the unexpected happens and, on Monday, the membershipturns down the reorganisation, I think you have a lifetimecommitment. I think that the meeting would like to at leastsignify that they would be very happy if you went on asPresident and I ask the meeting to support that with the usualapplause.� The audience applauded enthusiastically.

Roger Corley continued: �It is also my habit to propose there-election of the Secretary General. There we have a slightlydifferent case, because whatever the meeting decides onMonday, I don�t think Yves Guérard gets off the hook. YvesGuérard was appointed last year until this meeting and Iwould like to propose that he continue as Secretary Generalof the IAA as long as that body exists in its present form.After the reorganisation, he continues then as the SecretaryGeneral of the new IAA, but I think we need formalappointment at this time.� The audience showed approvalby a round of applause.

THE 1998 IAA CONGRESS IN BIRMINGHAM

Hugh Scurfield, President of the Congress, took the floor tosay a few words about the Congress.

�To report, we expect to be just short of 950 actuaries comingand 380 accompanying persons joining them. The SecretaryGeneral talked about some money passed to us from Brusselsand I want to emphasize that that money was used forbursaries and not the general running of the Congress. Indeedthere are due to be here 42 people with bursaries of one sortor another using some money from the Montréal Congressand some from the U.K.

Thanks to contributions from all the U.K. employers ofactuaries, we�re hoping to run the Congress at a little morethan break-even and expect to hand-off some money toMexico for bursaries there. So far as the scientific content,there are 168 papers, as you no doubt would have readthrough all the Transactions, thanks to David Wilkie�senormous work who managed to get 300 people involved inthe running of the scientific program this week. Finally, wehope that you enjoy and feel stimulated by this Congressand we hope that the weather will not always be overcast asit is today.�

André Lamens commented on the importance of bursaries,in particular considering that the increasing level of fees forattending Congresses could be a deterrent to youngeractuaries, researchers and academics. He noted that their

attendance at Congresses was important, therefore it wasnecessary to continue to offer and even to enhance the bursarysystem.

FINAL REPORT OF THE PROVISIONALEXECUTIVE COMMITTEE ON THE FUTURE

OF THE IAA

The President referred to the Final Report of the ProvisionalExecutive Committee on the Future of the IAA which wassent to all members in March 1998 and which was alsoincluded in the Congress information kits distributed on-site. �It was thanks to the extraordinary work done by theteam, and especially by Walt Rugland, that we were able tohave our last conclusion settled at the end of February andready to send all the documents (Statutes, InternalRegulations, Initial Motions) in March. All the members ofCouncil and all the members of the IAA received thatinformation. The associations of actuaries in differentcountries should have had enough time to gather and discussthe proposals. I would like to open immediately thediscussion of these proposals.

The first proposal is for this Council to create a newcommittee, a Committee for Services to Individual Members.It can seem strange to decide to create a new Committee sixdays before the fundamental change in the structure of theIAA, but, in fact, it is a key point of our conclusions. At ourCouncil meeting last year, I underlined that the difficulty forthe Provisional Executive Committee was to transform anassociation of individual members into an association ofassociations. In the present situation, the voting rights are,of course, in the hands of the individual members. Thequestion was, �Would it be possible to create an associationof associations with voting rights given not only to theassociations themselves, but also to individual members?�We didn�t find a solution. Maybe it would be possible, butit would be so complex and so difficult to manage that weunanimously agreed in the Provisional Executive Committeethat we had to propose an IAA association of actuarialassociations, with the voting rights in the hands of themember associations only. Then the question was, �Howwill the rights coming from the past individual members beprotected in the future?� And the idea was to create acommittee responsible for providing services to individualmembers. For me it was a key point and, as soon as we hadthat idea, I was personally totally in favour of all theproposals. We propose in the new Statutes that all the existingIFAA Committees will stay. In the future, maybe they canbe re-organized. From the beginning, we keep all the existingCommittees, then we need one more and why not create itinside the existing IAA. So, like the Committees coming

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from the IFAA, the new Committee will continue to existand to do its job. Concerning its job, we have proposed avery short definition because we thought it was good to leaveit to the members of that Committee to develop the proposal.Fundamentally, the Committee will be responsible forpromoting the interests of individual members within theIAA; secondly, proposing activities and services within theIAA which will benefit individual members; thirdly,administering funds designated within the IAA for the benefitof individual members. You will see that in the Statutesthere is a special item to define those funds. Fourthly, theCommittee will be responsible for facilitating communicationamong interested individual members. That Committeeshould especially have in mind the development of thescientific activities of the IAA. Of course, those scientificactivities are already very largely developed in the ASTINand AFIR Sections, but why not think of creating newSections that could come from that new Committee. So, myfirst proposal for today is to have your reactions concerningthat idea. I want to see if we can create a Committee likethat one today, so that it will continue to exist and to functionin the new structure, provided of course that the new structurewill be approved at the General Assembly.�

David Wilkie noted that the Congresses were not referred toin the proposed terms of reference for the Committee. Heinquired whether the Committee would be responsible forapproving the location and organization of future Congresses.

André Lamens referred to the existing structure wherebyCouncil had the responsibility of finding voluntary countriesto organize Congresses every three or four years. He notedthat, if the proposals were approved, it would be up to thenew Council to ask the new Committee to take over thatresponsibility, if it so wished.

The President continued with the appointment of membersfor the new Committee. �We have had an extraordinaryexperience during the last three years through the work ofthe Bühlmann Group, then by the PEC and, finally, by theextended PEC. During three long years, those personsdiscussed many times the fundamental question: �Will wefind good reasons to convince the individual members to beunanimously in favour of the new structure?� So they arequite aware already of all the details of the discussions wehad. My proposal would be to create the new Committeearound a kernel made of the initial Bühlmann Group. In theBühlmann Group, we had a representative from eachfounding country of the IAA: Roger Corley for the U.K.,Jim MacGinnitie for the United States, Martin Balleer forGermany, and Yves Couturier for France, to whom we addedPeter Kuys for the Netherlands. We also added Yves Guérardas Secretary General of the IAA. My proposal would be to

begin with the same team, but to enlarge it with the Presidentof the IAA and also with some more representatives. I thinkthat we should have someone representing Asia. I won�task for a name now, but I would like to ask our Japanesecolleagues to think of that possibility. And also, I received aspontaneous candidature from Ibrahim Muhanna and I thinkit�s an excellent idea because he�s obviously a representativeof small countries and emerging countries where there arecertainly important needs for individual members. Myproposal is to begin the Committee like that. When I say arepresentative from the U.K., one from the United States, Ipropose the names from the Bühlmann Group. If after acertain period the names have to change, why not. That canbe quite flexible. It�s only to have a kernel to begin with.We also need a chairman and I have personally asked, and Ihope he agrees, Martin Balleer to preside over that newCommittee. When I said all the names, of course, there is aname I have not given, it is Hans Bühlmann. I would likeour Honorary Member to accept to participate to that veryimportant question for the future. Are there anyquestions?�

In the absence of questions, the President declared theCommittee created and the membership approved aspresented.

The President then referred to the proposed Statutes whichwould be presented for approval by the General Assemblyon Monday, June 8. The Internal Regulations and the InitialMotions did not need to be approved by the GeneralAssembly. If the result on Monday were positive, the firstmeeting of the new Council would be organized for Thursday,June 11 to approve the Internal Regulations and the InitialMotions.

The President opened the floor for questions and commentsconcerning the Statutes.

Walter Rugland, Immediate Past Chairman of the IFAA �Mr.President. The IFAA resolved, by an electronic or mail ballotwhich was completed on May 1st of this year, to state that itagrees with the PEC proposal. I should note that that motionrequired that 50% of the delegates vote and that at least 80%of the voting rights be in favour of the motion. In fact, 64%of the delegates voted by returning a ballot and all the votingrights cast were in favour of the motion. My conclusionfrom that ballot is that no Full or Associate Members of theIFAA have indicated any concern or any opposition withrespect to the proposal of the PEC. Thank you.�

André Lamens thanked Walter Rugland for his commentson behalf of the IFAA and indicated that it was fundamentalto have the IFAA support. He then invited ASTIN and AFIRto confirm their support for the proposals.

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James Tilley, Chairman of AFIR, had sent his apologies fornot being able to attend. André Lamens quoted from JamesTilley�s letter: �I�m in complete agreement with theproposals. I wish the IAA the very best success in approvingand implementing the reorganization. I believe that suchreorganization will benefit actuaries globally. It representsa strategically important step for the profession.�

André Lamens then welcomed the Chairman of ASTIN,Edward Levay, to speak on behalf of ASTIN.

�Mr. President. We met a while ago and, as I told you then,I am repeating to all the members here that we definitelyapprove it. Of course, those are the words from theCommittee of ASTIN. We are very pleased with the changesand we are going to be part of it and move ahead now.�

André Lamens once again invited questions and commentsfrom members of Council.

Alf Guldberg asked how the life members of the presentIAA would be affected by the reorganisation. He referred toArticle 2.2.2 of the proposed Internal Regulations regardingindividual members and asked whether life members wouldbe considered a type of individual member or if they wouldbe members in the ordinary way. He wondered if the questionhad been discussed by the PEC. (Note: President Lamensexplained that life members of the IAA came from a verylong past when, in some countries, it was rather difficult tosend money from abroad to the Secretariat. In thosecountries, if somebody wanted to be a member of the IAA,instead of paying every year a small fee, they took theoccasion when they were abroad to make one payment tobecome a life member. He added that there were very fewlife members.)

The President called upon Roger Corley to assist inresponding.

�Mr. President, presumably, if they are members now, theywill remain members forever. The fact that other membersfrom now on won�t have to pay an annual fee doesn�t altertheir position.�

Max Lacroix: �I am still convinced that, even though wegreatly appreciate the work done over the last two or threeyears, it is unwise to neglect to make place for individualinitiatives in IAA Statutes. I am convinced and, given mylegal training, I can say without hesitation that even thoughthe IAA is based on a membership of national associationsof actuaries, it can nonetheless have individual members.

Allow me to give you a few examples of the role they canplay. It is actually the individual members who originallycreated our most active Sections, ASTIN and AFIR and,frankly, even the Forum more recently. I do not think it wise

to simply say �any member of a recognised nationalassociation is a member of the IAA�. It is not enough eitherto say that, where there is no national association, we canadmit individual members. This is good, it means they areallowed but that is not enough. The way I see it, when wehave colleagues in national associations, and there are manyin European associations, who are interested in internationalprofessional relations and are active in this area, they mustbe allowed to express this interest as individual IAAmembers, even if it means they have to pay a token tuition.This is not a problem. In exchange, we could continue toprint the Index of individual members, possibly in the sameform created by you, the Index blue book, when you wereSecretary General, Mr. President. The Index is not redundant,even in this age of E-Mail and the Internet. It is not devoidof professional value.

Secondly, when a given Congress establishes a quota, wecould see to it that individual members are given a certainpriority. Other such arrangements could also be made. I feltstrongly about expressing this view because our professionstrikes me as one that must be practised with courage. I amquite aware that many of my colleagues disagree, but I diddiscuss this with my authorities before voicing my opinionsince I am not here as an individual member.�

André Lamens: �This issue is about the possibility of beinga member or not. It also addresses the fundamental aspectof defending individual members. In terms of defending theinterest of individual members, and I repeat, I was onlypersonally convinced of the soundness of our proposal theday we created the ad hoc committee. And we did not simplycreate an ad hoc committee, because that is merely a decisionon paper, we especially gave it operational means; in otherwords, a substantial predetermined budget whose veryprincipal is defined by the Statutes. Money makes the worldgo round. This committee will be able to focus on individualand scientific considerations on an international level becauseit will have the means to apply its policy. But this does notaddress your basic objection if I understood it properly.

You say it is good that, where there are no actuarialassociations, one can become an individual member. Butwhy, even when there is an actuarial association which hasdecided to join the IAA, could we not skip over thisassociation to become individual members? There may beadvantages to this but it is not always convenient. I will notrepeat the advantages since you have perfectly describedthem. But consider the possible inconveniences. Allow meto name one. For any association to join the IAA, we makeit a condition that it meet a complete series of criteria and,among other things, have established rules of conduct and adisciplinary process. Imagine a situation where, in a given

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country, the disciplinary process had to be applied and aconflict developed between the individual and the associationof that country such that he/she could no longer be an IAAmember. No longer a member of the association, this personcould present himself as an IAA member in spite of the openconflict between him and the association of which he was amember. You may answer: �No problem. The IAA simplyhas to create a filter for this type of situation.� But the IAAwas not intended to have a disciplinary role. Just imaginethe type of international tribunal we would have to create.That is one objection that comes to my mind.

The only thing I can say is that, this topic has been discussedat length, not for two years but, and I emphasize, for threeyears. We invited every possible remark and commentaryand we have been forced to compromise on points where wewere unable to reconcile all views. And the proposal wemade is really a proposal of compromises. Yet I repeat,personally, I support it 100% for reasons I have already statedand which I believe to be in the best interest of individuals.

I would also like you to explain to me why someone with aparticular desire to be involved at the international level couldnot do so through his association. I would think that all ofour actuarial associations have people who are specificallyin charge of international issues. That would be the normalway to reach the objective you described.�

Roger Corley: �Thank you Mr. President. I listened to MaxLacroix as carefully as I could and I found myself agreeingwith his first statement altogether. However, I do think wehave actually taken care within the Statutes and the InternalRegulations of all the points that he made. We did spend along time thinking about how we could include individualactuaries who were not members of associations, about thosewho would like to be actuaries but are not actuaries and whatwe did about them, and whether we would encourage themto attend Congresses if they could contribute. In fact, if youlook at Article 6 of the Statutes, �Council may grantmembership to other individuals.� We put it permissive forfuture Council to sort out as time goes on who would beappropriate to be individual members and who wouldn�t, bymaking it clear that all full members of associations that aremembers will be individual members, but that others couldbe at the discretion of Council.

The other thing I think Max was saying is that we wouldstifle individual initiative. I believe that this is an importantpoint and I think the new Committee will be looking forindividual initiative and encouraging it. In particular, weenvisage the new Committee looking for leaders of newscientific sections and to do some thinking of the future ofCongresses. What we didn�t want to do is to tie the hands ofthe future Council, to say that this is how you will operate.

What we have done is put down some markers and somelatitudes so that the new Council can operate and can changethings as time goes on. I think those who read the Statutescarefully will see that Council has an enormous amount ofdiscretion.�

Jean Berthon: �Mr. President, on the topic of individualinitiatives, I would simply like to add that the work donetoday within the Forum subcommittees, soon to become theIAA committees if the reform takes place, largely rests onindividuals; that is, the actuaries who are generallyrecommended to act by their respective associations on thesesubcommittees. It is through the work of such individualsthat subcommittees can develop points of view forsubmission to Council which then determines whether thesebecome official IAA policy. Therefore, I believe that therole of individuals remains crucial even though, in terms ofstructure, associations and their representatives are givendecision-making authority. In any case, it is clear to us allthat an association is nothing in itself if not what its individualmembers make of it. The exact same thing will apply to theIAA.�

In response to a question on the role of the ExecutiveCommittee, the President responded that some members ofthe PEC thought it would be good to have a small Committeeto which the President could refer if a practical problemoccurred between two Council meetings. The ExecutiveCommittee would be a very flexible body which would actas a first help for the President. It would certainly not be anorganism that would operate the same way as the other well-organized committees. André Lamens stressed that thepowers would be in the hands of the Council and not theExecutive Committee.

Max Lacroix: �Thank you Mr. President. I have a questionof a very legal nature concerning Sections 1 and 2. I readthat the Association�s new legal structure complies with Swisslaw. I think this is great. As you know, we had long beenconcerned about giving our Association a legal personality.It is customary to indicate where the Association�sheadquarters are and Association headquarters is notsynonymous with the Secretariat�s location.�

André Lamens: �Yes, we have finally proposed that theAssociation be given a legal personality. Indeed, it must beofficially recognized and we have finally proposed that it beunder Swiss law because we found this solution to be by farthe most flexible, the most adaptive, the lightest and leastexpensive in taxes. So, let�s wait for the General Assemblystatement and the first Council meeting. I have preparedsome documentation for my successors, which suggests thatour headquarters could be in Geneva. The constitution�sone time cost would be 350 Swiss Francs and the annual

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management costs would be 250 Swiss Francs. There wouldbe no other expenses. There are no taxes on heritage, thereare no taxes of any kind to be paid and our only obligationwould be to file the Statutes in Geneva. The person receivingthe 250 Swiss Francs would, of course, take care of this andwe would have to provide him with a list of Council members.The list would simply have to be updated when changes aremade, accounts sent once a year, and that�s it. We do noteven have to indicate the address on official IAA documents.�

The President asked for a show of hands for the approval ofthe Statutes and declared the Statutes approved unanimously,except for two abstentions. Council responded with a heartyround of applause.

Now that the work of the Provisional Executive Committee(PEC) was complete, the President presented a motion infavour of its dissolution. Before proceeding to the vote, thePresident paid tribute to all those who were members of thesuccessive teams: the Bühlmann Group, the first PEC andthen the extended PEC. There was a lot of work, but everyonetook part very actively and the result was the final remarkableconsensus. He paid special tribute to Walt Rugland for hisremarkable work and to Roger Corley who spent an enormousquantity of his time on the project, improving it ever more.Council responded with another round of applause.

REPORT OF THE MEXICAN DELEGATION ONTHE ORGANISATION OF THE 2002 CONGRESS

Roger Corley: �Three years ago in Brussels, we said that atthis meeting we would have a look at the future format ofCongresses. The British running this Congress undertookto have a survey to give some background and some usefulinformation so that a group could look at the future formatof Congresses. Whatever we do could not affect Mexico,but there is a survey going on at this Congress. We expect,and I hope that the new Council of the new IAA will takethis responsibility, that some work will be done so that wecan have a good look at how Congresses ought to be runningin the next several years.�

Luis Huerta, Chairman of the Organising Committee,commented that the survey was an excellent idea and thatthe Mexicans could benefit from it even though they alreadyhad a program for 2002. The site would be Cancun and thedates March 17 to 22, 2002.

He then referred to the written report which accompaniedthe agenda.

The regulations were developed and would be presented tothe new Council of the IAA on June 11, 1998. The themefor the Congress would be �A New Millennium, A NewActuarial Challenge�. The Committee has been working

now for a few years. The following committees wereestablished: a Financial Committee, a Scientific Committeeand a Promotion Committee in order to stimulate a largenumber of actuaries to attend the Congress. A generalprogram was already established and it was very similar tothe one established by the British, but it could be fine-tuneddepending on the results of the survey. Luis Huerta indicatedthat the first promotional effort for the 2002 Congress wouldstart in Birmingham with an information booth. A video,available in English, French, German, Spanish and even inJapanese, would be sent to most of the different associationsin order to help promote the Congress. The Committee wouldtry to visit most associations and would be in touch will allassociations and actuaries in order to ensure a very goodattendance number and very good papers.

Luis Huerta indicated that the 2002 Congress organisers wereexploring possibilities for making the Congress attractive toyounger actuaries, researchers and academics, such asoffering a less expensive program which would concentrateon the scientific activities and would not include socialactivities. The expectation was to have a lower fee generallyspeaking, and an even lower fee for young actuaries.

REPORT OF THE ACTIVITIES OF ASTIN

Edward Levay, Chairman of ASTIN: �Mr. President andmembers of the Council, it gives me great pleasure to addressyou regarding the ASTIN activities since our last Councilmeeting in Brussels nine months ago.

1. As of today, the membership of ASTIN stands at over2000.

2. The ASTIN Task Force, created in Brussels in 1995, tospend part of ASTIN�s assets for the benefit of actuarialscience in actuarially emerging countries is contemplatingthe organisation and sponsoring of educational actuarialseminars. Jean H. Lemaire, Vice Chairman of ASTIN,leads this much-needed Task Force. This is a long-termproject, and we will provide information regarding itsprogress on an annual basis. The first ASTIN sponsoredseminar will take place this summer in Santiago, Chile.Prof. Sam Cox of Georgia State University will lead acourse there.

3. The ASTIN Bulletin is distributed to over 3000. Sincethe insurance industry is rapidly adapting to advances infinancial services, social changes, progress in healthcareand evolution of computers, the contents of the ASTINBulletin need to progressively shift in a correspondingway. The ASTIN Bulletin has been published on timeand I would specifically like to congratulate the editorsfor their efforts. In addition, the number of pagespublished is certainly a new record.

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4. Over 4000 actuaries, all members of IAA, but not membersof ASTIN or AFIR, have recently been approached withthe aim of urging them to join ASTIN, to increase itsmembership, and become more aware of developmentswithin the general insurance and healthcare insuranceindustry. We did not approach every actuary, since asyou are already aware, we have over 30,000 actuaries,most of whom are from the USA. We are stillcontemplating approaching the whole profession, possiblyvia e-mail, or an ASTIN Web site, where the opportunityto join electronically may be available.

5. I would like to end my report by inviting you and yourlocal members to our next three ASTIN meetings, and ofcourse I would personally recommend you to participatein those colloquia, which are becoming more excitingfrom the theoretical and practical point of view.

Further Colloquia:

A. 7-10 October 1998 in Glasgow, Scotland linkedtogether with the GISG - General Insurance StudyGroup of the Faculty and Institute of Actuaries in acombined conference.

B. 22-25 August 1999 in Tokyo, Japan combined withAFIR and The Centennial convention of the Instituteof Actuaries of Japan.

C. 17-20 September 2000 in Porto Cervo, Costa Smeralda,Italy with the heading �Colloquium ASTIN 2000�.

Thank you for your attention.�

REPORT OF THE ACTIVITIES OF AFIR

David Wilkie reported on behalf of the AFIR Chairman,James Tilley, that the next AFIR Colloquium would takeplace in Cambridge, England in September 1998. It wouldbe combined with the Institute and Faculty of ActuariesInvestment Annual Conference. September 14 would bethe beginning of the Investment Conference; September 15would be a joint day investment conference and AFIR; and,September 16 and 17 would be AFIR days. All events wouldtake place in Robinson College, Cambridge.

Alf Guldberg added that the Committee discussed in Cairnsan invitation from the Norwegian Society of Actuaries tohost the Colloquium in 2000. The proposal was that theColloquium take place in Tromsø on the Arctic Circle inJune.

REPORT OF THE ACTIVITIES OF THE IFAA

Jean Berthon, Chairman of the IFAA: �Thank you Mr.President. It is my pleasure, as the new Forum President, to

report on what will no doubt have been its last meeting and,therefore, lay it to rest in a few hours.

So since the last meeting of the IAA Council, we met first inPaphos, Cyprus where we had the chance to enjoy the verywarm hospitality of our Cyprus Association and I thank themvery much for that. And yesterday, June 5th, we were sentto Coventry.

Next meetings scheduled are for 1998 and 1999. In 1998, itwill be November 2 and 3, in Cape Town, South Africa. In1999, April 17 and 18, in Madrid, Spain. During thecentenary of our Japanese colleagues, a meeting is scheduledfor August 29 in Tokyo. Finally, we have scheduled a meetingfor the beginning of December in Paris.

The new leadership was elected yesterday. I was electedChairman of the Committee and Catherine Prime, fromAustralia, was elected Deputy Chairman. Somesubcommittee appointments: our Immediate Past Chairman,Walt Rugland, was elected Chairman of the NominationsSubcommittee and will continue in that function after thereorganization. Howard Webb was nominated Chairman ofthe Accreditation Subcommittee and Mo Chambers, DeputyChairman; Cecil Bykerk, Deputy Chairman of the EducationSubcommittee; Ted Chung, Deputy Chairman of the PublicStatements Subcommittee; Luis Huerta, Chairman of theAdvice and Assistance Subcommittee; David Hartman,Deputy Chairman of the Insurance Regulation Subcommittee,and, Reg Munro, Chairman of the Social SecuritySubcommittee.

The list of these committees indicates all of the Forum�scurrent focuses of attention and the very specific role thatwe must play, especially in relation to internationalassociations such as the IASC or the International Associationof Insurance Supervisors.

The Committee approved new Forum membership criteria,the same contained in the new IAA Internal Regulationsproposal. The Committee approved the selection processfor the Forum�s President and Vice-President or President-Elect. This process will be identical to the one proposed inthe new IAA Internal Regulations. The Committee alsoestablished a procedure for creating subcommittees,compiling subcommittee mandates and appointing theirchairmen.

We have been pleased to receive new member applications,notably from the Croatian association and the CaribbeanActuarial Association, both of which have been accepted asObserver Members, subject to IAA approval of theirapplication to become Donation A Members. The ActuarialSociety of the Philippines has become Full Member.

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We approved the core syllabus and preamble concerningeducation. We approved the processes for issuing IFAA pressreleases. We established a new Committee on InsuranceRegulation to, inter alia, liaise with the InternationalAssociation of Insurance Supervisors (IAIS) and, as WalterRugland said earlier, we approved the proposed restructureof the IAA through our May ballot, by a 65% favourablevote.

I might add that, as expressed in the Secretary General�sreport, we have ourselves used the Website developed underthe IAA and the Canadian Institute of Actuaries stewardshipand this has been most beneficial in terms of cost and usuallyin terms of speed and making documents available. We arevery satisfied with the use made of this tool. And thatconcludes my report. Thank you.�

REPORT OF THE DELEGATION OF THE ISSA

Chris Daykin: �As Chairman of the Permanent Committeefor Statistical, Actuarial and Financial Studies of theInternational Social Security Association (ISSA), I havepleasure in presenting the report of the ISSA delegation tothe IAA Council.

The Second Seminar for Social Security Actuaries andStatisticians from Industrialized Countries took place inTokyo, Japan on 20-21 May 1998. A number of excellentpapers were presented and discussed on the following topics:

� pension reform and the funding alternative� health care schemes: statistical and actuarial

considerations� methods of financing work injury schemes� methods of financing unemployment insurance

There were participants from 45 countries, including a goodattendance from the host country.

A Seminar on Social Security Actuarial and StatisticalTechniques for Countries in the Southern Cone took placein Buenos Aires, Argentina on 13-14 November 1997. Afurther meeting in this series is planned to take place inMontevideo, Uruguay in November 1998, followed by asimilar seminar for actuaries of the Central American regionin Managua, Nicaragua. The Second Interregional TrainingSeminar on Actuarial and Statistical Techniques for English-speaking Countries will be held in Manila, The Philippinesin September 1998.

The 26th General Assembly of the ISSA will be held inMarrakesh, Morocco from 25-31 October 1998. Changesare expected to be made to the constitution of the ISSA,which, among other things, will replace the PermanentCommittee structure by a new and more flexible structure of

Executive Committees. Since the Permanent Committee forStatistical, Actuarial and Financial Studies has been operatingwith an Executive Committee for the last three years, littlechange will be required - in effect the rest of the ISSA isfollowing the example of the actuaries.

At the General Assembly, a half-day meeting to be presentedby the Permanent Committee for Statistical, Actuarial andFinancial Studies will take as its topic �Standards of Practicefor Social Security Actuaries�. It is hoped to progress thistopic through co-operation between the ISSA and the newlyformed Social Security Sub-committee of the IFAA.

ISSA has supported the writing of a text-book on ActuarialMathematics of Social Security by the former Chief Actuaryof the ILO Social Security Department, Mani Iyer. It is hopedthat this will be published shortly in English and that atranslation into Spanish will be made available in due course.

The ISSA has established a web site (http://www.aiss.org)and an increasing number of ISSA technical papers will befound there in the four official languages of the ISSA.

The ISSA hopes to continue its long-standing closerelationship with the IAA following the changes envisagedto the IAA constitution and looks forward to becoming anInstitutional Member of the new IAA.�

REPORT ON INTERNATIONAL PROMOTIONAND EDUCATION FUND ACTIVITIES

Max Lacroix: �Allow me to begin by reminding everyonethat the Fund�s activities exist thanks to voluntarycontributions made by a number of national associations,the IAA, ASTIN and, more recently, AFIR Sections as wellas by individual members of the International Association.

Inevitable administrative expenditures have, so far, beencovered by a small increase in the contributions made byindividual IAA members from the Fund�s founding membercountries. Following the format proposed a few years ago,this is a minor supplementary contribution that amounts to amere 100 Belgian Francs per year per member. The newfinancial structure should therefore easily make place forthis. As for the rest, I hope that the method of voluntarycontributions will continue.

In the year since our last Council meeting was held inBrussels, the Fund made way for participants from acrossCentral and Eastern Europe, where actuarial education isbeing developed, mostly in universities, to attend and playan active role in the important seminar held in the Netherlandslast July. In the end, all those invited were able to make itthanks to Fund subsidies. I believe this to have been mostsignificant because the meeting addressed the �Core

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Syllabus� for actuarial training in Europe. The event wassponsored by an organisation we all know well, the AdvisoryGroup of the Groupe Consultatif des Associationsd�Actuaires des Pays de la Communauté Européenne.

The IAA Fund intends to keep working hard to prepare athird meeting on organizing the actuarial professionand training in Central and Eastern Europe. There were afew technical problems with the countries who wanted tohost the meeting. Therefore, we prefer to play it safe andprolong preparations and, if necessary, change the location.By �we� I mean the Fund�s two honorary trustees, JamesMacGinnitie and Christopher Daykin, and myself.

Moreover, the Fund has worked diligently to prepare asecond meeting for the Asia-Pacific region. Actually, weshould say Asia east of India, hoping for an unofficialinvitation from the People�s Republic of China. It is stronglyfelt that it would be of great interest to the profession if Chinawere to hold this meeting. But we need the go ahead which,for reasons that I will not attempt to explain here and now,has not been given yet. Still, we are hopeful, especially sincethe executives of the controlling authority have accepted aninvitation from Congress organizers. Should it becomeimpossible to hold the meeting in China, we have anotherlocation in mind. However, it could never have the sameimpact as in China.

An ISSA meeting of actuarial statisticians, held in Praguelast year, has paved the way for a first meeting of this naturein Africa.

Thank you.�

Roger Corley: �I was interested in how the Fund choosesthe countries to do its good work and whether there is ageographical limitation on this other than it goes whereverthere is need and opportunity.�

Max Lacroix: �The Fund�s mission is to help promote theprofession and, to a limited extent, actuarial education indeveloping countries on one hand and in Eastern and, to alimited extent, Central European countries on the other. Isay �to a limited extent Central� because development inCentral Europe is such that less intervention will be neededthere.�

Duncan Ferguson: �André. And I deliberately address youas André, not as Mr. President. Not out of any disrespect tothe Chair, but out of respect to the person. André, you areand have been a friend to everybody that is in this room andevery member of this Council and a number who have beenmembers of the Council in the past. It is possible that thismay be the last Council meeting in this form and the last

Council meeting over which you preside. Now that�s notcertain, but we actuaries are trained to deal in probabilitiesand there is a certain probability that this will be the case.Therefore, I think it is opportune to say a few words of thankson behalf of Council members for all that you have done.You have been President of this Council for more years thansome of us can remember. I don�t suppose it�s more yearsthan you can remember or more years than you care toremember. But what we all have found as we have joinedthis Council is that we are joining a family, a group of peoplewho get together, who work together and enjoy each other�scompany. The fact that it happens has a great deal to dowith you, André, with your style, the way that you conductour affairs, the person that you are, the hospitality whichyou�ve offered to us in Brussels over many years at theMaison du Cygne. So if we are a family, and if we�ve beena family, and the family enjoys each other�s company andwe will stick together, that indeed has a great deal to do withyour personality and the way that you have led us. I don�twish to embarrass you with a lengthy peroration. I�m surethat during the course of the week there will be others whowill attempt to encompass, much more eloquently than Icould ever do, all you have achieved. I would like to inviteCouncil members to show their appreciation to you as aperson and to the way that you have graced the office ofPresidency so well and at so many of these meetings overthe past.�

Council delegates responded with a warm round of applause.

�Now some of you know tradition is very important to ushere in Britain. You may find more traditions coming up inthe course of this week and if we don�t find that a suitabletradition already exists, then we invent one. We have a certaintradition at the Institute which I hope might, if others agree,migrate to the IAA. It concerns gifts. Those of you whocame to Staple Inn earlier this week will know that gifts arevery important and, in our 150th Anniversary, we had somemagnificent gifts from a number of associations that arerepresented here. It was quite overwhelming. I�m not goingto invite comparisons between them, but the IAA�s gift wascertainly very splendid. As Yves said in his report whichwas circulated two days ago - the IAA did present the Instituteof Actuaries with a bust of George King. It�s very importantthat you get those two words in the right order. It�s a bust ofGeorge King and he was an eminent actuary, a member ofthe Institute of Actuaries. He participated in the 2ndCongress which was held in this country 100 years ago in1898. One of the things that he then promoted wasthe concept of a universal actuarial notation. Now, when Ifirst joined the IAA, I thought that the IAA had only oneobject and that was to arrange enjoyable and productive

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scientific Congresses every three or four years. But as themail came through, I realised that it did in fact have a secondobjective and that was to try and institute a commoninternational actuarial notation.

You have a badge of office about your neck and I believe, infact I know, that it was presented to you by Marshall Fieldon behalf of the Institute of Actuaries. I assume it musthave been when he was president 10 or 12 years ago. I havea photograph of that occasion.�

André Lamens: �It was July 9, 1988 in Helsinki.�

Duncan Ferguson: �Well at the last Council meeting beforea president of the Institute hands over office, it is customaryfor the outgoing president to be presented with a replica pastpresident�s badge that he may wear on suitable occasions.And so it gives me great pleasure on behalf of the Instituteof Actuaries to present you with a past president�s badgewhich you may be able to wear later this week, maybe notfor many years to come, and, if not, keep it and you willwear it one day. I hope you will wear it with pride.�

André Lamens: �It�s truly a replica.

It�s true that we are a family. The words could not havebeen better chosen. I have personally attended 18 meetingslike this one, for 18 consecutive years and, each time, onthis side of the podium since I was already Secretary Generalduring the first eight years and then President for 10 years.There have only been friends around me throughout this timeand I might even say very old friends in some cases becausesome of you were already there 18 years ago and still otherseven before then. I will not name them all because I wouldundoubtedly forget some, but I must at least mention HansBühlmann, Max Lacroix, Roger Corley, Malcolm Murray,Georg Harbitz, Konstantinos Koutsopoulos. They have beenpart of an old team that was often renewed over the yearsbut with extraordinary consistency. I remember mypredecessor Henri Rijkers, saying to me: �you know, youare Secretary General now but don�t worry, there is not muchwork involved. It�s not too important. You organize onemeeting per year, during which there is a bit of work, thenyou have to do the minutes, but the rest of the year is absoluterest�. This may have been true at the time but, somehow, itall changed suddenly and the pace has been amazing. I feelthat we have accomplished a lot together. We have donegood work and I am convinced that we will do even betterwork in the future. The constant though, that which hasalways made this possible, feasible, is precisely this familyspirit that always existed among the Council; it is thisfriendship that has united us no matter where we come fromin the world; it is the pleasure and happiness that we havefelt each time we have gathered; it is also the extraordinary

consensus that we have invariably reached. Our decisionshave always been unanimous and today�s meeting is anotherextraordinary proof of that because today�s decisions arehistoric. They are fundamental and they are most significantto the profession�s future. And once again, we have beenable to decide all this together, hand in hand, as a large family.And so, the best wish I can make for the future of the IAA isto maximize its new structure to increase possibilities tenfoldsince we will be much better equipped to do everything thathas to be done. But there remains a lot to be done, but withthis new structure, as with the old one, there is one thingthat we must preserve, and that is my wish: the family spiritthat we have all shared. May the new Council alwaysmaintain this spirit that is our Association�s surest bet forlong life and what I expect to be an increasingly bright future.

And so, I thank you all. I thank you for this truly memorablegift. It will always bring the best memories. It will alsoenable me to see you again, often I hope. It is also, I mustadmit, a pledge, a testimony of great pride, indeed, I wasforgetting to say it, but I have always been very proud ofdoing what I did and I will be even prouder as I contemplatethis expression of your friendship. I am particularly gratefulto the Institute of Actuaries for giving me all this. TheInstitute is tradition, it is respect, it is the past, it is the roots.Thank goodness for these roots. They allow the tree to thrive,the leaves to grow and the flowers to blossom. And so,thank you very much once again and allow to me say nomore because this evening, my intention is to unwind. Thankyou.�

ADJOURNMENT

There being no further business to discuss, the meeting wasadjourned at 4:30 p.m.

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Attendees, IAA Council Meeting,June 6, 1998 /

Participants à la réunion du Conseildu 6 juin 1998

Atfield, Rod ......................................................... Australia

Balleer, Martin ..................................................... Germany

Berthon, Jean .......................................................... France

Bühlmann, Hans ............................................. Switzerland

Chambers, Mo ....................................................... Canada

Chung, Ted ............................................... Taiwan, R.O.C.

Clark, Peter ................................................................ U.K.

Corley, Roger ............................................................. U.K.

Couturier, Yves ....................................................... France

Daykin, Chris ............................................................. U.K.

Defrancq, Christian .............................................. Belgium

Dumbreck, Nick ........................................................ U.K.

Eyraud, Jean Michel ............................................... France

Falk, Erling ............................................................Norway

Ferguson, Duncan ...................................................... U.K.

Fernet, Marc .......................................................... Canada

Fujiki, Masahiko ....................................................... Japan

Garcia, Jorge ......................................................... Portugal

Grace, Paul ................................................................ U.K.

Groll, Simon Abel ............................................. Argentina

Guérard, Yves ........................................................ Canada

Guldberg, Alf ......................................................... Sweden

Harbitz, Georg .......................................................Norway

Hartman, David ...................................................... U.S.A.

Heerwagen, Finn ..................................................Denmark

Heinen, Norbert ................................................... Germany

Heubeck, Klaus ................................................... Germany

Høyland, T.E. .........................................................Norway

Huerta, Luis ........................................................... Mexico

Huntington, Curtis .................................................. U.S.A.

Inoguchi, Katsunori .................................................. Japan

Kehoe, James .......................................................... Ireland

Kok, A.A.M. ................................................... Netherlands

Koutsopoulos, C.J. ................................................. Greece

Kuys, Peter ..................................................... Netherlands

Lamens, André ...................................................... Belgium

Levay, Edward .......................................................... Israel

Lillevold, Pål .........................................................Norway

MacGinnitie, W. James ........................................... U.S.A.

Mandl, Petr ............................................... Czech Republic

Matt, Klaus ..................................................... Switzerland

Maxwell, Bruce ...................................................... Ireland

Mitamura, Takashi .................................................... Japan

Muhanna, Ibrahim .................................................. Cyprus

Munro, Reg .................................................... South Africa

Murray, G. Malcolm .................................................. U.K.

Nishibe, Masakatsu .................................................. Japan

Paakkanen, Markku ............................................... Finland

Padilla Aguilar, Juan Carlos .................................. Mexico

Panjer, Harry .......................................................... Canada

Peraita Huerta, Manuel ............................................. Spain

Prime, Catherine .................................................. Australia

Rendedal, Torodd .................................................. Norway

Roberts, William K. ............................................. Australia

Rugland, Walter ...................................................... U.S.A.

Ruohonen, Matti .................................................... Finland

Scurfield, Hugh ......................................................... U.K.

Séguin, Nicole ....................................................... Canada

Strauß, Jürgen ...................................................... Germany

Thornton, Paul ........................................................... U.K.

Trowbridge, John ................................................. Australia

Tuomikoski, Jaakko ............................................... Finland

Wegenkittl, Klaus ................................................... Austria

Wenander, Marie-Louise ....................................... Sweden

Wettenschwiler, Kurt ...................................... Switzerland

Wide, Harry ........................................................... Sweden

Wilkie, David ............................................................. U.K.

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5. PROCÈS-VERBAL DE LA RÉUNION DU CONSEILDU 6 JUIN, 1998 - BIRMINGHAM (R.-U.)

Le Conseil de l�AAI se réunit le 6 juin 1998 au InternationalConvention Centre de Birmingham (R.-U.), de concert avecla tenue du 26e Congrès International des Actuaires.

Le Président, André Lamens, ouvre la réunion en souhaitantla bienvenue à tous les délégués.

Une liste des participants est jointe au présent rapport.

ORDRE DU JOUR

1. Ratification de la nomination du Président, des Vice-présidents et des Secrétaires du 26e Congrès international

2. Rapport du Secrétaire Général et rapport sur les comptesau 30 juin 1997

3. Nomination des nouveaux membres ordinaires etdonateurs

4. Changements dans la composition du Bureau et duConseil

5. Rapport final du Comité exécutif provisoire sur l�avenirde l�AAI

� Examen des Statuts, du Règlement intérieur et desPropositions initiales

� Création du Comité des services aux membresindividuels, nomination des premiers membres et duprésident du Comité

� Adoption des Statuts qui seront présentés àl�Assemblée générale

� Dissolution du CEP

6. Rapport de la délégation mexicaine sur l�organisationdu Congrès de l�an 2002

7. Rapport sur les activités d�ASTIN

8. Rapport sur les activités d�AFIR

9. Rapport sur les activités du FIAA

10. Rapport de la délégation du ISSA

11. Rapport sur les activités du Fonds international depromotion et de formation

12. Divers

13. Remarques finales du Président de l�AAI

PRÉSIDENT, VICE-PRÉSIDENTS ETSECRÉTAIRES DU 26e CONGRÈS

Le premier point à l�ordre du jour est la ratification de lanomination du président, des vice-présidents et dessecrétaires du 26e Congrès, comme suit :

Président Hugh ScurfieldVice-Présidents Roy Brimblecombe

Malcolm MurraySecrétaires Kevin O�Brien, Président du Comité

d�organisationDavid Wilkie, Président du Comité scientifique

Pays Vice-Président Secrétaire

Australie John Trowbridge David Knox

Canada Harry Panjer Morris W. Chambers

Danemark Henrik Ramlau-Hansen Finn Heerwagen

Finlande Jaakko Tuomikoski Hannu Parviainen

France Jean Frey Jean-Michel Eyraud

Allemagne Martin Balleer Jürgen Strauß

Japon Masakatsu Nishibe Masahiko Fujiki

Mexique Luis Huerta Rosas Juan Carlos PadillaAquilar

Pays-Bas Peter Kuys Ad Kok

Norvège Pål Lillevold Torodd Rendedal

Afrique duSud Reg Munro Adrian Baskir

Suède Harry Wide Marie-LouiseWenander

Suisse Peter Diethelm Kurt Wettenschwiler

R.-U. Faculty Paul Grace Mike Ross

R.-U. Institute Duncan Ferguson Nick Dumbreck

États-Unis Curtis E. Huntington David G. Hartman

Représentant les pays avecmoins de 20 participants

Bruce Maxwell Petr Mandl (Rép.(Irelande) Tchèque)

Les membres ratifient les nominations par desapplaudissements.

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RAPPORT DU SECRÉTAIRE GÉNÉRAL ETTRÉSORIER, YVES GUÉRARD

«Chers collègues,

Tout d�abord, je dois me réjouir d�avoir échappé cette annéeà tous ces incidents qui m�avaient fait arriver l�an dernierquelques heures seulement avant le dîner de clôture annuel.J�ai donc le privilège de vous présenter, comme prévu, monpremier rapport à titre de secrétaire général de l�AAI.Permettez-moi cependant de revenir à cette réunion de 1997à laquelle Willy Lenaerts, mon prédécesseur, a présenté sondernier rapport et a été applaudi en reconnaissance de sesneuf années de service comme secrétaire général. J�aimanqué cette occasion, mais je tiens, moi aussi, à soulignerrétroactivement le travail qu�il a accompli pendant toutesces années et tout particulièrement son soutien pour assurerla transition entre Bruxelles et Ottawa. Willy, je tiens à teremercier très sincèrement. Je vais essayer de respecter lesnormes élevées que tu as établies sans avoir bénéficié detout le soutien que j�ai au secrétariat à Ottawa.

Depuis notre dernière réunion, outre l�organisation de la 26e

conférence par nos collègues britanniques, qui représenteen elle-même un défi de taille, c�est la transformation del�AAI en une association d�associations qui a retenul�attention. Tous ces efforts se concrétiseront lundi prochainlorsque nos membres seront appelés à voter sur les nouveauxstatuts que nous examinerons plus tard aujourd�hui. En plusde la réunion à Bruxelles du 27 septembre 1997, le Comitéexécutif provisoire s�est réuni à Londres le 23 février 1998;cependant il s�est également fait beaucoup de travail partélécopieur et par courrier électronique, entre les réunions etaprès celles-ci. Tous ces efforts ont débouché sur lesdocuments qui vous ont été envoyés en novembre 1997 et,plus récemment, en mars 1998, également disponibles surnotre nouveau site Web.

Le Secrétariat a fourni le soutien nécessaire au comitéorganisateur de la conférence et a reçu l�aide des actuairesbritanniques au moment de coordonner les réunions duConseil de l�AAI et de l�assemblée générale. L�efficacité denos collègues britanniques nous a facilité la tâche. Il y adeux jours, au Staple Inn, l�AAI a présenté à l�Institute ofActuaries un buste de George King, un éminent membre decet institut qui a participé à la deuxième conférenceinternationale de l�AAI qui a eu lieu dans ce pays en 1898, ily a cent ans. À cette occasion, King avait fait campagnepour l�adoption d�une notation actuarielle universelle.

En parallèle, le Secrétariat a eu fort à faire pour assurer latransition entre Bruxelles et Ottawa, notamment l�envoi etla réception d�une tonne de boîtes de documents qu�il a dûrevoir et classer. La fermeture progressive du Secrétariat à

Bruxelles a engendré diverses activités supplémentaires nonrépétitives. À ce moment, nous pensons avoir réuni etorganisé tous les renseignements nécessaires tant pour lesfonctions administratives que la gestion financière.

Deux objectifs, c�est-à-dire la réduction des coûts et une plusgrande efficacité des communications, ont rendu prioritairesla création immédiate du site Web et l�utilisation descommunications électroniques. Élaboré par le Secrétariat àOttawa, le site Web de l�AAI ressemble de près au plan quiavait été présenté au Conseil de l�AAI en septembre 1996.En supposant que la réorganisation de l�AAI soit approuvéepar l�assemblée générale lundi prochain, le site Web seramodifié pour en tenir compte. Nous profiterons de cetteoccasion pour adopter les couleurs du logo, c�est-à-direorange et bleu. De plus, l�expérience des communicationsélectroniques que nous avons acquise dans le passé nousservira pour améliorer l�utilisation et l�efficacité du site Web.Nous avons commencé à afficher des documents en formatPDF afin que les membres puissent avoir en main lesdocuments identiques à la version imprimée. Nousexaminons aussi en ce moment les divers outilstechnologiques qui pourront servir à contrôler l�accès à labase de données et aux documents affichés ainsi qu�à assurerdes communications plus sûres entre les groupes, commeles membres du Conseil, l�exécutif et les autres comités etgroupes de travail.

La question du coût est primordiale dans le cas de l�index.En septembre 1997, nous avons remis aux membres duConseil un document de discussion à ce sujet. La premièreoption était de ne faire aucun index et de le remplaceréventuellement par un outil complémentaire peu coûteux,comme suit :

À titre d�outil complémentaire peu coûteux, il estpossible d�imprimer et de distribuer à peu de frais àdes tiers éventuels une liste des associations avecadresses postales et électroniques, numéros detéléphone et de télécopieur et indication descatégories de membres qui sont membres d�officede l�AAI.

L�option 2 favorisait un index sur le site Web. Il existe déjàau FIAA une base de données des associations. En supposantque la plupart des associations membres, dont les plusgrosses, puissent nous fournir une copie électronique desrenseignements pertinents au sujet de leurs membres, il seraitpossible d�offrir sur le nouveau site Web de l�AAI une basede données regroupée de tous les membres. Une autresolution serait de présenter sur le site Web de l�AAIuniquement la liste des membres des associations qui nepossèdent pas leur propre site Web, tandis qu�un hyperlien

20

acheminerait les visiteurs sur le site Web des autresassociations. Ces bases de données indiqueraient l�adhésionaux sections AFIR, ASTIN ou d�autres et comprendraienttous les membres à titre individuel.

Les membres ou autres tierces parties, comme les autoritésde réglementation et d�autres utilisateurs, pourraient plusfacilement vérifier sur le Web les titres des personnes qui sedisent actuaires. Les personnes qui n�ont pas facilementaccès à Internet pourraient se procurer, moyennant un prixdéterminé, les mêmes renseignements sur disquette. Undossier servant à décrire le site et la manière d�y accéderpourrait être imprimé et diffusé pour accroître la visibilitéde l�AAI.

La technologie n�est pas encore tout à fait au point pournous permettre d�afficher l�index sur le site Web, comme leprévoit l�option 2. Le Secrétariat de l�Institut Canadien desActuaires examine en ce moment diverses options d�affichagede la base de données sur le site Web et espère avoir faitbeaucoup de progrès d�ici la fin d�août 1998. Le Secrétariatde l�AAI reprendra à ce moment-là la méthode retenue pourl�appliquer à sa propre base.

L�option 3 consistait à ajouter à l�option 2 la publication etl�envoi d�un nombre restreint d�exemplaires imprimés del�Index regroupé. À la suite des examens et des échangesqui ont eu lieu, le CEP a abandonné l�option 3.

Le coût d�impression et de diffusion de Bulletins sous formeimprimée représente aussi un coût important : 25 000 $ CANpour le bulletin de mars seulement, chiffre qui augmenteraitlargement si le Bulletin était diffusé à tous les membres dela nouvelle AAI. Nous envisageons plutôt de l�afficher surle site Web et d�en faire une distribution restreinte en vracpar le biais des associations ou encore de l�envoyer auxmembres seulement sur demande. Nous avons réduit enconséquence le montant prévu au budget.

Des communications rentables, plus efficaces, signifientégalement une accessibilité en plusieurs langues. Notre siteWeb est en partie bilingue. Votre Secrétariat examine en cemoment la faisabilité d�ajouter sur le site un traducteurautomatique. Deux technologies ont été comparées : celled�Alis Technology et une autre par Systran Professional. Ilpeut y en avoir d�autres. La technique permet de traduiresur-le-champ des messages électroniques ou des pages Web.Dans d�autres cas, il sera plus efficace de grouper latraduction des fichiers. Il y a déjà plus d�une douzaine depaires de langues et leur nombre ne cesse de croître. Bienentendu, toutes les langues utilisées dans nos conférencesinternationales sont disponibles, de même qu�une traductiondans les langues qui accroîtraient très substantiellementl�accessibilité des publications actuarielles dans les régionsoù l�actuariat est en développement.

Je sais que d�autres associations actuarielles examinent cespossibilités et il sera sans doute nécessaire de conjuguer nosefforts afin de réduire les coûts et d�augmenter plusrapidement la qualité des traductions par une adaptation desdictionnaires de base. Nous entendons poursuivre nosrecherches en ce sens et nous accueillerons avec bienveillancetoutes les remarques et suggestions de toutes les associationsnationales qui songent à faire comme nous.

Passons maintenant aux états financiers. Les états financiersvérifiés pour l�exercice prenant fin en juin 1997 ont étéprésentés à la réunion du Conseil tenue à Bruxelles enseptembre 1997. Évidemment, les états financiers vérifiéspour l�exercice terminé le 30 juin 1998 ne sont pas encoredisponibles, mais ils pourraient être présentés à la prochaineréunion du Conseil, sans doute à Cape Town, en Afrique duSud, en novembre 1998. Selon une première projection, ilsemble, après regroupement des activités menées à Bruxelleset à Ottawa, que le déficit pour l�exercice atteindra 90 000 $CAN comparativement à un excédent de 1 027 $ CAN l�andernier. Tout cela ne tient pas compte des conséquences dutransfert de 1 500 000 FB à la conférence de Birmingham,qui a aussi diminué l�actif de près de 60 000 $ CAN. Lesdépenses ont augmenté de 40 373 $ CAN, ce qui corresponden gros aux frais de réorganisation engagés à Bruxellesjusqu�au 20 janvier 1998, frais qui ne sont pas répétitifs.Les recettes ont diminué de 51 000 $ CAN à cause del�absence cette année de la réévaluation de ConfederationLife et aussi à cause d�un revenu d�intérêt moins élevé; lesdroits d�adhésion ont diminué de 10 000 $ CAN à causeprésumément d�une augmentation des impayés à la date dece rapport; des lettres de rappel ont été envoyées de Bruxelles,nous reprendrons le suivi.

Malgré ce déficit temporaire prévu ou imprévu, l�AAI devraitterminer l�exercice avec un excédent accumulé d�environ170 000 $ CAN le 30 juin 1998, montant qui, selon l�article34 des statuts proposés, sera affecté aux activités qui visentles membres individuels. De plus, les actifs de l�AAIdevraient comprendre environ 266 000 $ CAN dans le Fondsinternational de promotion et de formation, connu sous lenom de Fonds de l�AAI. Jusqu�à présent, l�état des résultatsde l�AAI ne tient pas compte des activités du Fonds de l�AAI.

Un projet de budget a été dressé en fonction de laréorganisation proposée pour la période de 18 moiss�étendant du 1er juillet 1998 au 31 décembre 1999.Conformément aux motions initiales qui ont été diffusées,ce budget sera présenté au nouveau Conseil à la réunionprévue le 11 juin 1998.»

Le rapport du Secrétaire Général est adopté.

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PRÉSENTATION DES NOUVEAUXMEMBRES ORDINAIRES ET DONATEURS

Le Secrétaire Général présente la liste des nouveaux candidatsindividuels. Appuyés par les correspondants nationaux, cesmembres sont acceptés à l�unanimité.

MODIFICATIONS DE LA COMPOSITION DUCONSEIL DE L�AAI ET DU BUREAU

Pays 1997-98 ModificationArgentine N. J.H. PellegrinelliNouvelle Zélande N. J. EriksenSuisse J. Kupper H. Lüthy

Roger Corley (R.-U.) prend la parole. «Monsieur le Président,avant de laisser derrière vous le point 4 à l�ordre du jour, j�ail�honneur, depuis plusieurs années, de proposer aux membresde cette assemblée la réélection du Président de l�AAI pourl�année qui vient. J�aimerais exercer ce dernier privilège dema charge et proposer, car il s�agit en rétrospective d�uneproposition utile, que notre Président actuel, M. AndréLamens, poursuive son mandat de Président de l�AAI dansla forme actuelle de cet organisme. La proposition estinhabituelle, car si l�Assemblée de lundi accepte larestructuration proposée, votre mandat, Monsieur lePrésident, se poursuivra pendant six jours. Si l�imprévu seproduit et que les membres rejettent la restructuration, votreengagement durera sans doute une vie complète. Selon moi,les membres aimeraient au moins dire qu�ils seraient trèsheureux que vous poursuiviez votre mandat de Président, ceque je leur demande de faire maintenant en vousapplaudissant.» Les membres applaudissent avecenthousiasme.

Roger Corley poursuit : «J�ai aussi l�habitude de proposer laréélection du Secrétaire Général. Le cas est légèrementdifférent ici, car peu importe la décision des membres lundi,je ne crois pas que Yves Guérard puisse nous quitter. YvesGuérard a été nommé l�an dernier jusqu�à cette réunionaujourd�hui et je propose maintenant qu�il soit maintenu dansles fonctions de Secrétaire Général de l�AAI tant et aussilongtemps que cet organisme existera dans sa forme actuelle.Après la restructuration, il continuera à titre de SecrétaireGénéral du nouvel organisme, cependant, j�estime que nousdevons sanctionner maintenant cette nomination.» Lesmembres approuvent la proposition en applaudissant.

LE CONGRÈS 1998 DE L�AAI À BIRMINGHAM

Hugh Scurfield, Président du Congrès, dit quelques mots ausujet du Congrès.

«Nous prévoyons une participation tout juste inférieure à950 actuaires auxquels se joignent 380 autres personnes. Le

Secrétaire Général a indiqué que des fonds nous avaient ététransmis de Bruxelles. Permettez-moi de souligner que cetargent a servi aux bourses et non aux frais généraux duCongrès. De fait, nous attendons 42 titulaires de boursesgrâce à des sommes provenant du Congrès de Montréal etdu Royaume-Uni.

Grâce à la contribution financière de tous les employeursd�actuaires du Royaume-Uni, nous espérons terminer leCongrès avec un léger excédent que nous affecterons auxbourses pour le Mexique. Du côté scientifique, 168communications ont été présentées, comme vous l�auriezsans doute lu dans les délibérations; nous devons remercierDavid Wilkie qui a réussit le tour de force de réunir 300personnes dans le programme scientifique cette semaine.Enfin, nous espérons que ce Congrès vous plaira et vousstimulera et que le temps sera un peu plus clémentqu�aujourd�hui.»

André Lamens parle de l�importance des bourses, surtoutque l�augmentation constante des frais d�inscription auxCongrès est susceptible de dissuader les jeunes actuaires,les chercheurs et les universitaires. Étant donné que leurprésence aux Congrès est importante, il est nécessaire decontinuer à offrir et même d�accroître le système des bourses.

RAPPORT FINAL DU COMITÉ EXÉCUTIFPROVISOIRE SUR L�AVENIR DE L�AAI

Le Président mentionne le rapport final du Comité ExécutifProvisoire sur l�avenir de l�AAI, que tous les membres ontreçu en mars 1998 et qui faisait aussi partie des troussesd�information distribuées au Congrès. «Grâce au travailexceptionnel accompli par l�équipe, et plus particulièrementpar Walt Rugland, nous avons été en mesure de rédiger notredernière conclusion à la fin de février et d�envoyer tous lesdocuments aux membres (Statuts, Règlement Intérieur,Propositions Initiales) en mars. Tous les membres du Conseilet tous les membres le l�AAI ont reçu cette information. Lesassociations d�actuaires des divers pays devraient avoirsuffisamment de temps pour discuter des propositions.J�accueillerai maintenant toutes les questions et observationsau sujet de ces propositions.

La première proposition demande à ce Conseil de créer unnouveau comité intitulé Comité sur les services aux membresindividuels. Il peut sembler étrange de vouloir créer unnouveau comité six jours avant la restructuration de base del�AAI, mais il s�agit dans les faits d�un point clé de nosconclusions. À la réunion de notre Conseil de l�an dernier,j�avais précisé que l�un des problèmes qu�éprouvait le ComitéExécutif Provisoire était de transformer une association demembres individuels en une association d�associations.Actuellement, les droits de vote résident, bien entendu, entre

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les mains des membres individuels. La question consiste àsavoir s�il serait possible de mettre sur pied une associationd�associations en accordant des droits de vote non seulementaux association mais aussi aux membres individuels. Nousn�avons pas trouvé de solution à ce problème. Il serait sansdoute possible de le faire, mais la situation serait tellementcomplexe et difficile que le Comité Exécutif Provisoire adécidé à l�unanimité de proposer une associationd�associations actuarielles avec droits de vote accordésuniquement aux associations membres. Nous nous sommesensuite demandés comment les droits des membresindividuels passés seront protégés dans l�avenir. Nous avonseu l�idée de créer un comité chargé de fournir des servicesaux membres individuels. Il s�agissait pour moi d�un pointclé et dès que l�idée a été mise sur le tapis, j�ai appuyéentièrement toutes les propositions. Nous proposons dansles nouveaux Statuts le maintien de tous les comités existantsdu FIAA. Peut-être pourra-t-on les restructurer dans l�avenir.Pour commencer, nous conservons tous les comités existants.Nous en avons besoin d�un autre, pourquoi ne pas le créer àl�intérieur de la structure actuelle de l�AAI? Ainsi, à l�instardes comités du FIAA, le nouveau comité continuera d�existeret de faire son travail. Sur ce dernier point, nous avonsproposé une très courte définition de son mandat, car nouscroyons qu�il doit être défini par les membres du comité.Fondamentalement, ce comité serait chargé de promouvoirles intérêts des membres individuels au sein de l�AAI, deproposer des activités et des services au sein de l�AAI quiprofiteront aux membres individuels et, dans un troisièmetemps, d�administrer les fonds désignés dans l�AAI pour lebénéfice des membres individuels. Il y a dans les Statutsune disposition particulière sur l�affectation des fonds. Enquatrième lieu, le comité sera chargé de faciliter lacommunication entre les membres individuels intéressés. Cecomité devra garder à l�esprit le développement des activitésscientifiques de l�AAI. Bien entendu, ces activitésscientifiques sont déjà en très grande partie menées dans lessections ASTIN et AFIR, mais pourquoi ne pas créer denouvelles sections à partir de ce nouveau comité? J�aimeraisdonc que vous me fassiez part de vos réactions sur cetteidée. Je veux savoir s�il est possible de créer un comitécomme celui-ci aujourd�hui afin qu�il continue defonctionner dans la nouvelle structure, à conditionévidemment que l�Assemblée Générale adopte cette nouvellestructure.»

David Wilkie précise que le projet de mandat du comité nefait aucune mention des Congrès. Il demande si le comitésera chargé d�approuver l�emplacement et l�organisation desCongrès à venir.

André Lamens fait remarquer que, selon la structure actuellede l�AAI, le Conseil a la tâche de trouver des pays pour

organiser bénévolement les Congrès tous les trois ou quatreans. Si les propositions sont adoptées, il incomberadorénavant au nouveau Conseil de demander aunouveau comité d�assumer cette responsabilité s�il le désire.

Le Président poursuit avec la nomination des membres aunouveau comité. «Nous avons connu une expérienceextraordinaire ces trois dernières années par l�entremise dugroupe Bühlmann, puis par le CEP et enfin par le CEPétendu. Pendant ces trois longues années, ces personnesont soulevé à de nombreuses reprises la questionfondamentale suivante : «Trouverons-nous de bonnes raisonsde convaincre les membres individuels d�adopter àl�unanimité la nouvelle structure?» Ils connaissent donc àfond tous les détails des discussions que nous avons eues.Je propose de créer le nouveau comité autour d�un groupede personnes qui siégeaient initialement au sein du groupeBühlmann. Ce groupe comprenait un représentant de chaquepays fondateur de l�AAI : Roger Corley (R.-U.), JimMacGinnitie (États-Unis), Martin Balleer (Allemagne), YvesCouturier (France) et Peter Kuys (Pays-Bas). Il y avaitégalement Yves Guérard qui agissait comme SecrétaireGénéral de l�AAI. Je propose de commencer avec la mêmeéquipe et d�y ajouter le Président de l�AAI et d�autresreprésentants. Nous devrions avoir des représentants del�Asie. Je ne demande pas de noms maintenant, maisj�aimerais que nos collègues japonais songent à cettepossibilité. De plus, j�ai reçu la candidature spontanéed�Ibrahim Muhanna, et l�idée est excellente, car il représentede toute évidence de petits pays et des pays en voie dedéveloppement où les besoins des membres individuels sontcertes importants. Je propose donc cette composition pourle comité. Lorsque je parle d�un représentant du Royaume-Uni et d�un des États-Unis, je propose qu�ils soient choisisau sein du groupe Bühlmann. Si, après un certain temps, ilfaut remplacer des représentants, nous le ferons. Nouspouvons être très souples à cet égard. Ce n�est qu�un noyauinitial. Comme nous aurons besoin d�un Président, j�aidemandé personnellement à Martin Balleer de présider cenouveau comité, et j�espère qu�il acceptera. Dans la listedes représentants, je n�ai pas mentionné le nom deHans Bühlmann. Je tiens à ce que notre membre honoraireaccepte de siéger à cet important comité. Y a-t-il desquestions?»

Comme il n�y a aucune question, le Président déclare lecomité créé et sa composition adoptée sans modifications.

Le Président passe ensuite aux Statuts provisoires qui serontprésentés pour fins d�adoption à l�Assemblée Générale lelundi 8 juin. Le Règlement Intérieur et les PropositionsInitiales n�avaient pas à être adoptés par l�AssembléeGénérale. Si le résultat de lundi est favorable, la première

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réunion du nouveau Conseil aura lieu le jeudi 11 juin afind�adopter le Règlement Intérieur et les Propositions Initiales.

Le Président accueille ensuite les questions et lesobservations des membres au sujet des Statuts.

Walter Rugland, Président sortant du FIAA : «Monsieur lePrésident, le FIAA a décidé, par vote électronique ou votepostal le 1er mai cette année, d�adopter la proposition duCEP. Cette motion nécessitait l�accord de 50 % des déléguéset au moins 80 % des droits de vote. De fait, 64 % desdélégués ont retourné leur bulletin de vote et tous les votesétaient en faveur de la motion. Je conclus, à partir de cevote, qu�aucun membre à part entière ni membre associé duFIAA ne voit de problème dans la proposition du CEP. Jevous remercie.»

André Lamens remercie Walter Rugland de ses commentairesau nom du FIAA et indique qu�il est essentiel de pouvoirdisposer de l�appui du FIAA. Il invite ensuite ASTIN etAFIR à confirmer leur soutien des propositions.

James Tilley, Président d�AFIR, ne peut assister à la réunion.André Lamens lit l�extrait suivant de la lettre de JamesTilley : «Je suis complètement d�accord sur les propositions.Je souhaite à l�AAI tout le succès possible dans l�adoptionet la mise en oeuvre de cette restructuration. Je crois qu�elleprofitera à tous les actuaires dans le monde. Elle représenteune importante mesure stratégique pour la profession.»

André Lamens souhaite ensuite la bienvenue au Présidentd�ASTIN, Edward Levay, et lui demande de prendre la paroleau nom d�ASTIN.

«Monsieur le Président. Nous nous sommes rencontrés il ya quelque temps et, comme je vous l�ai dit à ce moment-là,et je le répète à tous les membres ici présents, nous appuyonscette proposition sans réserves. Bien entendu, il s�agit dusouhait du comité d�ASTIN. Nous sommes très heureuxdes modifications et nous allons aider à les réaliser.»

André Lamens demande ensuite aux membres s�ils ont desquestions ou des observations.

Alf Guldberg demande si les membres à vie qui fontactuellement partie de l�AAI seront touchés par larestructuration. Il se reporte à l�article 2.2.2 du RèglementIntérieur proposé, qui concerne les membres individuels, etdemande si les membres à vie seront considérés comme untype de membre individuel ou comme des membres réguliers.Il demande si la question a été abordée par le CEP. (Nota :Le Président Lamens explique que les membres à vie de l�AAIexistent depuis très longtemps parce que, dans certains pays,il était plutôt difficile d�envoyer de l�argent au Secrétariat.Si quelqu�un d�un de ces pays désirait adhérer à l�AAI, ilpouvait, au lieu de verser une cotisation annuelle, profiter

d�un voyage à l�étranger pour verser une seule cotisationafin de devenir membre à vie. Il ajoute qu�il y a très peu demembres à vie.)

Le Président demande ensuite à Roger Corley d�ajouter sescommentaires sur cette question.

«Monsieur le Président, s�il y a des membres à vieactuellement, ils le demeureront sans doute pour toujours.Le fait que d�autres membres n�auront plus désormais à verserune cotisation annuelle ne modifie aucunement leursituation.»

Max Lacroix : «Je demeure persuadé que tout en apprécianttrès vivement le travail qui a été fait au cours des deux outrois dernières années, ce n�est pas sage de ne pas réserverune place aux initiatives individuelles dans les Statuts del�AAI. Je suis persuadé, et ma formation juridique me permetde le dire sans hésitation, que tout en étant basée surl�adhésion des associations nationales d�actuaires,l�Association Actuarielle Internationale pourrait, et peutencore, avoir des membres individuels.

Je vais donner quelques exemples du rôle qu�ils peuventjouer. Ce sont en réalité les membres individuels qui ont étéà l�origine de la création des Sections si vivantes de l�ASTINet de l�AFIR et, disons le franchement, aussi du Forum, plusrécemment. Je ne crois pas qu�il soit sage de dire toutsimplement �tous les membres d�une association nationalereconnue sont membres de l�AAI�. Il ne suffit pas non plusde dire que, là où il n�y a pas d�association nationale, onpeut admettre des membres individuels. C�est très bien, çaprouve qu�il peut en avoir, mais ce n�est pas suffisant. Ce àquoi je pense est ceci. Lorsque nous avons des collèguesdans des associations nationales, et il y en a bon nombredans les associations européennes, qui s�intéressent auxrelations internationales professionnelles, qui contribuent,ils doivent pouvoir manifester cet intérêt en devenant membrede l�AAI à titre personnel, quitte à payer une petite cotisation.Cela n�est pas grave, en échange de laquelle on pourraitcontinuer à publier le répertoire des membres individuels engros sous la forme que vous avez établi quand vous étiezSecrétaire Général, Monsieur le Président, du livre bleu del�Index. Ce n�est pas sans valeur même à l�époque del�Internet et de courrier électronique. Ce livre n�est pas sansvaleur professionnelle.

Deuxièmement, on pourrait prévoir que, lorsque dans unCongrès il se poserait une question de quota, les membresindividuels pourraient bénéficier d�une certaine priorité. Onpourrait prévoir d�autres arrangements de ce genre. Voilàce que je tenais beaucoup à dire, car je crois que notreprofession est une profession qui doit être exercée aveccourage. Je sais très bien que je parle à contre courant de

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l�opinion de beaucoup de collègues, mais je ne parle passans avoir consulté mes autorités, parce que je ne suis pasici à titre individuel.»

André Lamens : «Il y a la question de la possibilité d�êtremembre ou de ne pas l�être. Il y a aussi l�aspect fondamentalde la défense des membres individuels. En ce qui concerne,la défense des intérêts des membres individuels, et je lerépète, j�ai été personnellement convaincu du bien-fondé detout ce que nous proposons que le jour où nous avons crééun comité ad hoc. Et non seulement de créer un comité adhoc, parce que ça c�est une décision sur papier, mais surtoutde lui donner les moyens de fonctionner, c�est-à-dire de luiallouer un budget important et prédéterminé dont le principemême est défini dans les Statuts. L�argent c�est le nerf de laguerre. Ledit comité aura des activités et elles serontorientées vers les aspects individuels, vers les aspectsscientifiques à l�échelon international parce que ce comitéaura les moyens de sa politique. En disant ça, je ne répondspas à votre objection fondamentale, si je l�ai bien comprise.

Vous dites que c�est très bien que, là où il n�y a pasd�association d�actuaires, on puisse devenir membre à titreindividuel. Mais pourquoi, là où il y a une associationd�actuaires qui a elle même décidé d�être membre de l�AAI,ne pourrait-on pas, sans passer par cette association, êtremembre à titre individuel? Il y a des avantages mais il y aaussi des inconvénients. Des avantages que je ne vais pasrépéter puisque vous les avez parfaitement décrits. Maispensez aussi aux inconvénients possibles. Je vais vous enciter un. Nous mettons comme condition pour qu�uneassociation puisse devenir membre de l�AAI qu�elle répondeà toute une série de critères et notamment d�avoir des règlesde conduite et un processus disciplinaire. Imaginons que,dans un pays, ce processus ait dû intervenir et qu�unepersonne se soit trouvée en conflit avec l�association existantedans ce pays et, que de ce fait là, ne puisse plus être membrede l�AAI. N�étant plus membre de l�association, on pourraitvoir cette personne néanmoins se prévaloir de la qualité demembre de l�AAI, alors qu�elle serait en conflit ouvert avecl�association dont elle faisait partie. Vous allez me dire, �Pasde problème. Il n�y a qu�au niveau de l�AAI d�instaurer unfiltre à cet effet.� Mais nous n�avons pas prévu de doterl�AAI d�un règlement de discipline. Imaginez quel genre detribunal international qu�on serait amené à constituer. Cecic�est une objection qui me vient à l�esprit.

La seule chose que je peux vous répondre c�est que, non paspendant deux ans, mais j�insiste pendant trois ans, nous avonslonguement discuté ça. Nous avons fait appel à tous lescommentaires et remarques possibles et nous avons été forcésde nous rallier à des compromis sur les points où on neparvenait pas à concilier tous les points de vue. Et la

proposition qui a été faite est vraiment une proposition decompromis. Mais je répète, personnellement je l�appuie à100% pour les raisons que j�ai déjà indiquées et qui, je crois,sont des raisons qui vont dans le sens des intérêts desindividus.

Expliquez-moi aussi pourquoi quelqu�un qui seraitparticulièrement motivé pour jouer un rôle sur le planinternational ne pourrait-il pas le faire par le biais de sonassociation. J�imagine que dans toutes nos associationsd�actuaires, nous avons des personnes qui sont plusspécialement en charge de questions internationales. Il y adonc la voix normale pour atteindre l�objectif que vousdécrivez.»

Roger Corley : «Merci, Monsieur le Président. Ayant écoutéMax Lacroix aussi attentivement que je le pouvais, je suisentièrement d�accord sur sa première affirmation. Cependant,je crois que tous les points qu�il soulève ont été réglés dansles Statuts et le Règlement Intérieur. Nous avons longtempsétudié la façon d�intégrer les actuaires individuels qui nesont pas membres d�associations, ceux qui aimeraient êtreactuaires mais n�en sont pas et ce que nous pourrions faire àleur sujet, et la pertinence ou non de les encourager à assisterà des Congrès s�ils peuvent y contribuer quelque chose. Defait, si vous examiner l�article 6 des Statuts, «le Conseil seréserve le droit d�accepter l�adhésion d�autres membresindividuels», vous constaterez que le Conseil futur a le loisird�établir au fil des ans qui deviendra ou non membreindividuel, en faisant clairement ressortir que tous lesmembres titulaires des associations sont également membresà titre individuel, mais que d�autres peuvent l�être à ladiscrétion du Conseil.

Max prétendait également que nous étoufferions l�initiativeindividuelle. Ce point est important et je crois que le nouveaucomité encouragera les initiatives individuelles. Plusparticulièrement, nous prévoyons que le nouveau comitécherchera a solliciter des dirigeants pour les nouvellessections scientifiques et réfléchira à l�avenir des Congrès.Nous ne voulions pas lier les mains du nouveau Conseil enlui imposant des exigences. Nous avons plutôt établi desrepères afin que le nouveau Conseil puisse fonctionner etmodifier les choses au fur et à mesure qu�elles se présentent.Ceux qui ont lu attentivement les Statuts constateront que leConseil possède une grande latitude.»

Jean Berthon : «Monsieur le Président. Concernant lesinitiatives individuelles, je voudrais juste ajouter que le travailqui est fait aujourd�hui à l�intérieur des sous-comités duForum, et donc dans les prochains comités de l�AAI si laréforme a lieu, repose pour beaucoup sur les individus. C�est-à-dire, les actuaires qui ont été nommés en général sur larecommandation de leur propre association pour participer

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à ces travaux. C�est à travers les travaux des individus queles sous-comités peuvent développer des points de vue quiseront ensuite soumis au niveau du Conseil et considéréscomme étant des positions officielles de l�AAI. Donc, jecrois que le rôle des individus reste essentiel, même si auniveau des structures le pouvoir de décision à été confié enfait aux associations et aux représentants des associations.Nous savons très bien qu�une association, de toute façon,n�est pas un objet en soi et ne vit que par les individus qui laconstituent. Il en sera exactement de même pour l�AAI.»

En réponse à une question sur le rôle du Comité exécutif, lePrésident répond qu�une partie des membres du CEPcroyaient qu�il serait utile d�avoir un comité restreint auquelle Président pourrait faire appel pour régler un problèmepratique entre deux réunions du Conseil. Le Comité exécutifaurait beaucoup de souplesse et serait le bras droit duPrésident. Ce ne serait certes pas un organisme qui pourraitfonctionner de la même façon que les autres comités bienorganisés. André Lamens indique que le pouvoir reposeraitentre les mains du Conseil et non entre ceux du Comitéexécutif.

Max Lacroix : «Merci Monsieur le Président. J�ai unequestion de caractère réellement juridique concernant lesArticles 1 et 2. Je lis que l�Association a maintenant unepersonnalité juridique conforme à la loi Suisse. Je me réjouisbeaucoup. Vous savez que c�était un souci depuis longtempsque nous ayons une Association avec une existance juridique.Il est d�usage que l�on indique où est le siège de l�associationet le siège de l�association est quelque chose de différent del�endroit où est situé le Secrétariat.»

André Lamens : «Oui, nous avons finalement proposé quel�Association puisse avoir une personnalité juridique. Il fauteffectivement qu�elle soit officiellement reconnue et nousavons finalement proposé que ce soit sous le droit Suisseparce que nous avons constaté que c�était la solution de loinla plus flexible, la plus souple, la plus légère et la moinscoûteuse en terme de taxation. Alors, attendons donc quel�Assemblée Générale se prononce, que le premier Conseilse réunisse. J�ai préparé pour mes successeurs unedocumentation dont il ressort que le siège pourrait être àGenève. Le coût pour la constitution, une fois pour tout,serait de 350 Francs Suisses et le coût de gestion annuelleserait 250 Francs Suisses. Il n�y a aucun autre coût. Il n�y apas d�impôt sur le patrimoine, il n�y a pas de taxes de quelquenature à payer, et les seules obligations consistent à déposerles Statuts là-bas. La personne à laquelle on paierait ces250 Francs Suisses se charge, bien sûr, de faire le travail eton doit y joindre la liste des membres du Conseil. Cetteliste doit simplement être mise à jour lorsqu�il y a desmodifications et on envoie une fois par an, les comptes, et

c�est tout. Il n�y a absolument rien d�autre. Il n�y a mêmepas l�obligation de faire figurer l�adresse sur les documentsofficiels de l�AAI.»

Le Président demande un vote à mains levées pour faireadopter les Statuts. Les Statuts sont adoptés à l�unanimité,sauf pour deux abstentions. Le Conseil applaudit.

Maintenant que le Comité Exécutif Provisoire (CEP) aterminé son travail, le Président présente une motion pourdissoudre ce comité. Avant de passer au vote, le Présidentremercie tous ceux qui ont été membres des équipessuccessives : le groupe Bühlmann, le premier CEP et le CEPétendu. Il s�est fait beaucoup de travail, chacun a joué unrôle très actif et nous avons obtenu à la fin un consensusremarquable. Il remercie tout particulièrement Walt Ruglandde son excellent travail, et Roger Corley qui a consacrébeaucoup de temps à améliorer ce projet. Le Conseilapplaudit.

RAPPORT DE LA DÉLÉGATION MEXICAINE SURL�ORGANISATION DU CONGRÈS DE 2002

Roger Corley : «Il y a trois ans, à Bruxelles, nous avions ditque nous examinerions aujourd�hui la structure future desCongrès. Les Britanniques, organisateurs du présentCongrès, ont mené une enquête afin qu�un groupe puisse enutiliser les résultats pour examiner la structure future desCongrès. Tout ce que nous ferons n�aura aucun effet sur leCongrès au Mexique, cependant il y a effectivement unsondage en cours à ce Congrès. Nous espérons et nousprévoyons que le nouveau Conseil de l�AAI assumera cetteresponsabilité afin que nous puissions avoir une bonne idéede la façon dont les Congrès devraient fonctionner dans lesannées à venir.»

Luis Huerta, Président du comité organisateur, fait remarquerque le sondage était une excellente idée et que les Mexicainspourraient en profiter même s�ils ont déjà établi unprogramme pour 2002. Le Congrès aura lieu à Cancun du17 au 22 mars 2002.

Il se reporte ensuite au rapport écrit qui accompagne l�ordredu jour.

On a mis au point le règlement qui sera présenté au nouveauConseil de l�AAI le 11 juin 1998. Le Congrès aura pourthème «Un nouveau millénaire, un nouveau défi actuariel».Le comité y travaille maintenant depuis plusieurs années.Les sous-comités suivants ont été créés : un sous-comité desfinances, un sous-comité scientifique et un sous-comité depromotion, afin de stimuler la participation des actuaires auCongrès. On a déjà dressé un programme général quiressemble beaucoup à celui des Britanniques, mais on pourral�améliorer après avoir pris connaissance des résultats de

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l�enquête. Luis Huerta indique que les premiers efforts depromotion pour le Congrès de 2002 commenceront àBirmingham dans un kiosque d�information. Un vidéo,disponible en anglais, en français, en allemand, en espagnolet même en japonais, sera envoyé à la plupart des associationsafin qu�elles puissent promouvoir convenablement leCongrès. Le comité essayera de visiter la plupart desassociations et il gardera contact avec toutes les associationset tous les actuaires afin d�assurer une très nombreuseparticipation et une très grande qualité dans lescommunications.

Luis Huerta indique que les organisateurs du Congrès de2002 examinaient la possibilité d�attirer les jeunes actuaires,les chercheurs et les universitaires au Congrès, par exemple,en diminuant les frais d�inscription à leur intention et en seconcentrant plus sur des activités scientifiques que sociales.On prévoit donc en général que les frais diminueront, etencore plus ceux des jeunes actuaires.

RAPPORT DES ACTIVITÉS D�ASTIN

Edward Levay, Président d�ASTIN : «Monsieur le Présidentet membres du Conseil, je suis très heureux de vous parlerdes activités d�ASTIN survenues depuis notre dernièreréunion du Conseil tenue à Bruxelles il y a neuf mois.

1. En date d�aujourd�hui, ASTIN compte plus de 2 000membres.

2. Le Groupe de travail ASTIN, créé à Bruxelles en 1995pour consacrer une partie des fonds d�ASTIN au bénéficede la science actuarielle dans les pays en voie dedéveloppement actuariel, songe à organiser des colloquesactuariels d�information. Jean H. Lemaire, Présidentadjoint d�ASTIN, dirige ce groupe de travail fortnécessaire. Il s�agit d�un projet à long terme au sujetduquel nous vous fournirons des renseignementsannuellement. Le premier colloque parrainé par ASTINaura lieu cet été à Santiago (Chili). Le professeur SamCox, de l�Université de l�État de Géorgie, y animera uncours.

3. Le bulletin ASTIN est diffusé à plus de 3 000 personnes.Étant donné que le secteur de l�assurance s�adapterapidement aux progrès accomplis dans les servicesfinanciers, aux changements sociaux, aux progrès dansles soins de santé et à l�évolution de l�informatique, lecontenu du bulletin doit suivre en conséquence. Lebulletin ASTIN est publié dans les délais et je tiens àféliciter les rédacteurs de leur travail. De plus, le nombrede pages du bulletin constitue certes un nouveau record.

4. Plus de 4 000 actuaires, tous membres de l�AAI, maisnon des membres d�ASTIN ou d�AFIR, ont récemmentété approchés pour les inciter à adhérer à ASTIN et aussipour les tenir davantage au fait des progrès quisurviennent dans l�industrie générale de l�assurance etdans le secteur de l�assurance maladie. Nous n�avonspas communiqué avec tous les actuaires parce que, commevous le savez déjà, il y en a plus de 30 000 dont la pluparthabitent les États-Unis. Nous songeons quand même àcommuniquer avec l�ensemble de la profession, sansdoute par courrier électronique ou par le site Web del�ASTIN, lorsqu�il sera possible aux membres de remplirune adhésion par voie électronique.

5. Permettez-moi de terminer mon rapport en vous invitant,vous et vos membres locaux, à nos trois prochainesréunions de la section ASTIN; bien entendu, je vousrecommande personnellement de participer à cescolloques qui deviennent de plus en plus stimulants surle plan théorique et pratique.

Colloques à venir :

A. Du 7 au 10 octobre 1998 à Glasgow (Écosse). Cecolloque fait partie d�une conférence combinée avecle GISG - General Insurance Study Group de la Facultyet de l�Institute of Actuaries.

B. Du 22 au 25 août 1999 à Tokyo (Japon), encombinaison avec AFIR et le Congrès du centenairede l�Institut des actuaires du Japon.

C. Du 17 au 20 septembre 2000 à Porto Cervo (CostaSmeralda, Italie) sous le titre «Colloque ASTIN 2000».

Je vous remercie de votre attention.»

RAPPORT DES ACTIVITÉS D�AFIR

David Wilkie précise, au nom du Président d�AFIR, JamesTilley, que le prochain colloque d�AFIR aura lieu àCambridge (Angleterre) en septembre 1998. Il sera combinéà la conférence annuelle sur les investissements de l�Instituteet de la Faculty of Actuaries. La conférence sur lesinvestissements commencera le 14 septembre. Le lendemainsera une journée conjointe pour la conférence et AFIR; enfin,les 16 et 17 septembre seront réservés à la section AFIR.Toutes ces activités auront lieu au Collège Robinson deCambridge.

Alf Guldberg ajoute que le Comité a examiné à Cairns uneinvitation que lui a envoyée la Norwegian Society ofActuaries pour accueillir le colloque en l�an 2000. Laproposition demandait que le colloque se déroule à Tromsø,dans le Cercle Arctique, en juin.

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RAPPORT DES ACTIVITÉS DU FIAA

Jean Berthon, Président du FIAA : �Merci Monsieur lePrésident. J�ai donc le plaisir, comme nouveau Président duForum, de faire le compte rendu de sans doute sa dernièreréunion et, donc, de pouvoir l�enterrer dans quelques heures.

Depuis la dernière réunion du Conseil de l�AAI, nous noussommes réunis d�abord à Paphos (Chypre) où nous avonseu la chance de profiter d�une excellente hospitalité de notreassociation chypre, que je remercie vivement de son accueil.Hier, le 5 juin, nous nous sommes réunis à Coventry.

Les prochaines réunions auront lieu les 2 et 3 novembre 1998à Cape Town (Afrique du Sud) et les 17 et 18 avril 1999 àMadrid (Espagne). Lors de la célébration du centenaire del�association de nos collègues japonais, une réunion auralieu le 29 août à Tokyo. Enfin, nous avons prévu une réunionau début de décembre à Paris.

La nouvelle direction a été élue hier. Je suis devenu Présidentdu Comité et Catherine Prime (Australie) a été élue Présidentedésignée. Voici quelques nominations aux sous-comités :notre Président sortant, Walt Rugland, a été élu président duSous-comité des mises en candidatures et il continuerad�exercer ce rôle après la restructuration. Howard Webb aété désigné président du Sous-comité de l�agrément, et MoChambers, président adjoint; Cecil Bykerk est présidentadjoint du Sous-comité de l�éducation; Ted Chung estprésident adjoint du Sous-comité des déclarations publiques;Luis Huerta est président du Sous-comité de consultation etd�aide; David Hartman est président adjoint du Sous-comitéde la réglementation de l�assurance, et Reg Munro estprésident du Sous-comité de la sécurité sociale.

La liste de ces comités montre tous les centres d�intérêts duForum aujourd�hui et le rôle très particulier que nous sommesappelés à jouer concernant, en particulier, les relations avecles associations internationales comme le CINC oul�Association Internationale des Contrôleurs de l�Assurance.

Le Comité a approuvé de nouveaux critères pour l�adhésionau Forum concernant les nouvelles associations qui sont lesmêmes que ceux qui sont inclus dans les RèglementsIntérieurs proposés pour la nouvelle AAI. Le Comité aapprouvé le protocole pour choisir le Président et le Vice-Président, ou le Président désigné du Forum, qui sera aussile même protocole que nous proposerons d�accepter dansles Règlements Intérieurs de la nouvelle AAI. Le Comité ade même établi le protocole pour la création de sous-comités,pour la rédaction de mandat des sous-comités et pour ladésignation de leur président.

Nous avons eu la chance de recevoir des applications denouveaux membres, en particulier l�association croate et la

Carribean Actuarial Association, qui ont été acceptéescomme Membres observateurs, sujet à l�approbation parl�AAI de leur demande de devenir Membres Donateurs A.Et nous avons accueilli comme Membre à part entière laActuarial Society of the Philippines.

Nous avons approuvé le programme de base et le préambulepour la formation. Nous avons approuvé les procédés dediffusion des communiqués du FIAA. Nous avons établi unnouveau Comité sur la réglementation de l�assurance quiaura notamment pour mandat d�entretenir des relations avecl�Association Internationale des Contrôleurs d�Assurance(AICA) et, comme l�a mentionné plus tôt Walter Rugland,nous avons approuvé la restructuration proposée de l�AAIpar un vote favorable de 65 % qui a eu lieu au mois de mai.

Je peux ajouter, comme l�a exprimé dans son rapport leSecrétaire Général, nous avons eu recours nous même ausite Web développé sous l�égide de l�AAI et l�InstitutCanadien des Actuaires, et ceci nous a fait gagner beaucoupen terme de coûts et normalement en terme de rapidité et demise à disposition des documents. Nous sommes trèssatisfaits de cet usage. Voilà, ceci conclut mon rapport.Merci.»

RAPPORT DE LA DÉLÉGATION DE L�AISS

Chris Daykin : «À titre de président de la Commissionpermanente des questions actuarielles et statistiques del�Association internationale de la sécurité sociale (AISS),j�ai le plaisir de présenter au Conseil de l�AAI le rapport dela délégation de l�AISS.

Le deuxième Séminaire des actuaires et statisticiens de lasécurité sociale des pays industrialisés s�est déroulé à Tokyo(Japon) les 20 et 21 mai 1998. Plusieurs excellentescommunications y ont été présentées et on a abordé les sujetssuivants :

� la réforme des pensions et le financement de rechange� les régimes de soins de santé : considérations statistiques

et actuarielles� les méthodes de financement des régimes d�indemnisation

des accidents du travail� les méthodes de financement de l�assurance-chômage

On a dénombré des participants de 45 pays et un boncontingent du pays hôte.

Un Séminaire sur les techniques statistiques et actuariellespour les pays du Cône Sud a eu lieu à Buenos Aires(Argentine) les 13 et 14 novembre 1997. Une autre réunionde cette série devrait avoir lieu à Montevideo (Uruguay) ennovembre 1998, suivie d�un colloque du même genre destinéaux actuaires de la région d�Amérique centrale, à Managua

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(Nicaragua). Le deuxième Séminaire interrégional sur laformation aux techniques actuarielles et statistiques pour lespays anglophones se déroulera à Manille (Philippines) enseptembre 1998.

La 26e Assemblée générale de l�AISS se tiendra à Marrakech(Maroc) du 25 au 31 octobre 1998. On prévoit modifier laconstitution de l�AISS et, notamment, remplacer la structurede la Commission permanente par une nouvelle structureplus flexible de comités exécutifs. Étant donné que laCommission permanente des questions actuarielles etstatistiques fonctionne depuis trois ans avec un comitéexécutif, très peu de modifications s�imposent - dans les faits,le reste de l�AISS suit l�exemple des actuaires.

À l�Assemblée générale, une réunion d�une demi-journéeprésentée par la Commission permanente des questionsactuarielles et statistiques se déroulera sous le thème «Normesde pratique pour les actuaires en sécurité sociale». On espèrefaire avancer ce sujet grâce à la collaboration qu�entretiennentl�AISS et le nouveau Sous-comité de la sécurité sociale duFIAA.

L�AISS a financé la rédaction d�un ouvrage intitulé ActuarialMathematics of Social Security écrit par l�ancien actuaireen chef du Département de sécurité sociale du BIT, ManiIyer. On espère que cet ouvrage sortira bientôt en anglais etqu�une traduction en espagnol sera publiée au moment voulu.

L�AISS a mis au point un site Web (http://www.aiss.org) surlequel on trouvera un nombre croissant de communicationstechniques de l�AISS dans les quatre langues officielles del�association.

L�AISS espère poursuivre sa relation étroite de longue dateavec l�AAI après les changements qui sont prévus à laconstitution de l�AAI, et elle espère vivement devenir unmembre institutionnel de la nouvelle AAI.»

RAPPORT SUR LES ACTIVITÉS DU FONDSINTERNATIONAL DE PROMOTION ET DE

FORMATION

Max Lacroix : �D�abord je voudrais rappeler que le Fondfonctionne grâce à des contributions volontaires pour sesopérations, faites par un certain nombre d�associationsnationales, par les Sections de l�AAI, ASTIN et, depuisquelques années, AFIR, et par des membres individuels del�Association internationale.

Les dépenses administratives qui sont inévitables sontcouvertes par une petite addition à la contribution desmembres individuels de l�AAI venant des pays fondateursdu Fonds. Selon la formule que vous aviez proposée il y aquelques années, c�est une contribution supplémentaire qui

est faible puisqu�elle s�élève à 100 Francs Belges par an etpar membre. Alors, dans la nouvelle structure financière, ilne nous sera pas, je crois, très difficile de trouver une placepour cela. Et pour le reste, j�espère que la méthode descontributions volontaires pourra continuer.

Au cours de l�année qui s�est écoulée depuis notre dernierConseil à Bruxelles, le Fonds a pu permettre à des participantsvenant de tous les pays d�Europe Centrale et Orientale où sedéveloppent des activités de formation d�actuaires,généralement dans des universités, d�assister et de prendreune part active à l�important séminaire qui a eu lieu auxPays-Bas, au mois de juillet dernier. Tous les invités ont pufinalement venir grâce à des subventions du Fonds. Ceciest, je crois, très important parce qu�à cette réunion étaitdiscuté le programme-cadre d�études pour la formation desactuaires en Europe. La réunion avait lieu sous l�égide decet organisme que nous connaissons tous, le GroupeConsultatif des Associations d�Actuaires des Pays de laCommunauté Européenne.

Le Fonds de l�AAI a toujours l�intention de travaillerassidûment à la préparation d�une troisième réunion pourl�Europe Centrale et Orientale sur l�organisation de laprofession et la formation des actuaires. Il y a eu quelquesproblèmes techniques avec les pays hôtes qui s�étaientproposés, et plutôt que de risquer nous avons préféré allongerla préparation, peut-être s�il le faut, changer le lieu. Quandje dis nous, je parle des deux commissaires honoraires duFonds, James MacGinnitie et Christopher Daykin, et moi-même.

Par ailleurs, le Fonds a travaillé assidûment à essayer depréparer une deuxième réunion pour la région de l�Asie etdu Pacifique. En fait, disons l�Asie à l�est de l�Inde, avecespoir qu�une invitation officieuse de participants de laRépublique Populaire de Chine. Il y a un grand désir que laChine accueille cette réunion, un grand intérêt pour laprofession. Mais il faut un certain feu vert qui, pour desraisons que je n�expliquerai pas ici parce que j�en seraisincapable, n�a pas encore été donné. Mais, on a bon espoir,d�autant plus que les dirigeants de l�autorité de contrôle ontaccepté une invitation des organisateurs de ce Congrès. Sivraiment il était impossible que la réunion ait lieu en Chine,nous avons des idées en tête pour un autre lieu. Mais celan�aura pas certainement le même impact qu�en Chine.

Grâce à une réunion de l�AISS, des actuaires statisticiens,l�année dernière à Prague, des jalons ont été posés pour unepremière réunion de cette nature en Afrique.

Merci.»

Roger Corley : «J�étais intéressé de savoir comment le Fondschoisit les pays où il exerce ses activités et s�il y a une

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limitation géographique à son travail autre que lesbesoins et les occasions qu�il déniche.»

Max Lacroix : �La vocation du Fonds est d�aider à lapromotion de la profession et, dans une certaine mesure, laformation des actuaires d�une part dans les pays en voie dedéveloppement économique et d�autre part dans les pays del�Europe orientale et dans une certaine mesure, centrale. Jedis dans une certaine mesure centrale parce que l�évolutiondans les pays d�Europe centrale est telle que les interventionsseront moins nécessaires.�

Duncan Ferguson : «André, et je m�adresse volontairementà toi par ton prénom et non par les mots «Monsieur lePrésident». Ce n�est pas par manque de respect pour lafonction, mais par respect pour la personne. André, tu asété et tu demeures un ami pour tous ceux qui se trouventdans cette salle aujourd�hui, de même que pour tous lesmembres du Conseil et certains anciens membres du Conseil.Il est possible que ce soit la dernière réunion du Conseilsous cette forme et aussi la dernière réunion du Conseil quetu présides. Rien n�est certain, mais nous, actuaires, sommesformés pour traiter avec des probabilités et il existe unecertaine probabilité que ce soit le cas. Par conséquent, jecrois qu�il est opportun de te remercier au nom des membresdu Conseil pour tout ce que tu as fait. Tu as été Président dece Conseil pendant plus d�années que certains peuvent serappeler. Je ne crois pas que ce nombre d�années soit siélevé que tu ne puisses t�en rappeler ou que tu ne daignest�en rappeler. Toutefois, ce que nous avons constaté ensiégeant à ce Conseil, c�est que nous joignions une famille,un groupe de personnes qui se réunissent, qui travaillentensemble et qui profitent de leur compagnie mutuelle. Cettesituation t�a été largement imputable, André, à ton style, à tafaçon de conduire nos affaires, à ta personnalité, àl�hospitalité que tu nous as offerte à Bruxelles pendant delongues années à la Maison du Cygne. Si nous avons étéune famille, et une famille prend plaisir à la compagnie dechacun de ses membres et reste ensemble, c�est en fait engrande partie à cause de ta personnalité et de ta façon denous diriger. Je ne veux pas t�embarrasser avec une longuepéroraison. Je suis certain que, pendant la semaine, d�autrestenteront d�englober, de façon beaucoup plus éloquente queje ne pourrais le faire, toutes tes réalisations. J�invitemaintenant tous les membres du Conseil à te manifester leurappréciation en tant que personne et aussi à rendre hommageà la façon dont tu as tellement bien occupé la charge dePrésident pendant un si grand nombre de réunions dans lepassé.»

Les délégués du Conseil applaudissent chaleureusement.

«Certains d�entre vous savent que la tradition est trèsimportante en Grande-Bretagne. Tu verras peut-être d�autres

traditions la semaine prochaine et si nous n�en trouvons pasune pertinente qui existe déjà, nous l�inventerons. Il y a àl�Institute une tradition qui pourrait, si les autres sontd�accord, être adoptée par l�AAI. C�est la tradition desprésents. Ceux qui sont arrivés à Staple Inn plus tôt cettesemaine savent que les présents sont très importants. Pournotre 150e anniversaire, des associations ici présentes nousont remis de magnifiques présents. C�était très émouvant.Je ne voulais pas faire de comparaison, mais le présent del�AAI a certainement été exceptionnel. Comme Yves l�aindiqué dans son rapport qui a été diffusé il y a deux jours,l�AAI a effectivement présenté à l�Institute of Actuaries unbuste de George King. Il est très important que vous reteniezces deux mots dans le bon ordre. George King a été unimminent actuaire et aussi un membre de l�Institute ofActuaries. Il a participé au deuxième Congrès qui a eu lieudans ce pays il y a 100 ans, en 1888. Une des choses qu�il aencouragées à ce moment-là fut le principe d�une notationactuarielle universelle. Lorsque j�ai joint les rangs de l�AAIpour la première fois, je croyais que cet organisme n�avaitqu�un seul but, c�est-à-dire organiser d�agréables etproductifs Congrès scientifiques tous les trois ou quatre ans.Mais à mesure que je recevais le courrier de l�AAI, j�ai prisconscience qu�il y avait effectivement un deuxième objectif,celui d�essayer d�appliquer une notation actuarielleinternationale commune.

Tu portes autour du cou une chaîne de fonction et je crois,en fait je sais, qu�elle t�a été présentée par Marshall Fieldsau nom de l�Institute of Actuaries. Je suppose que la remisea eu lieu pendant sa présidence il y a 10 ou 12 ans. J�ai unephotographie de cette occasion.»

André Lamens : «C�était le 9 juillet 1988 à Helsinki.»

Duncan Ferguson : «À la dernière réunion du Conseil, avantque le Président de l�Institute ne termine ses fonctions, il estd�usage de remettre au Président sortant une réplique del�insigne du Président sortant, qu�il pourra porter en certainesoccasions. J�ai donc le grand plaisir de te présenter au nomde l�Institute of Actuaries l�insigne de Président sortant quetu pourras porter plus tard cette semaine, peut-être pas pourbien des années encore, sinon tu pourras le porter un autrejour. J�espère que tu le porteras avec fierté.»

André Lamens : «C�est une vraie réplique.

C�est vrai que nous formons une famille. Les mots nepouvaient pas être mieux choisis. J�ai personnellementparticipé 18 fois à une réunion comme celle-ci, 18 annéesde suite et j�ai été 18 fois sur ce côté du podium puisquec�était déjà comme Secrétaire Général pendant 8 ans et puispendant 10 ans comme Président. Je n�ai jamais pu compterque des amis et je peux même dire quelques fois de très

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vieux amis parce certains étaient déjà là il y a 18 ans etcertains même avant. Je ne peux pas les citer tous parce queje vais sûrement en supprimer. Enfin, comment ne pas citerHans Bühlmann, Max Lacroix, Roger Corley, MalcolmMurray, Georg Harbitz, Konstantinos Koutsopoulos. Ils ontfait partie de la vieille équipe qui s�est renouvelée au fil dutemps mais avec une constance extraordinaire. Je mesouviens de mon prédécesseur Henri Rijkers quand il m�adit �tu deviens Secrétaire Général mais ne t�en fais pas, iln�y pas beaucoup de travail. Ce n�est pas tellement important.Tu organises une réunion par an, à ce moment là il y a unpeu de travail, après il faut faire un procès-verbal mais lereste de l�année c�est le repos absolu.� À cette époque làc�était peut-être vrai, mais je ne sais pas pourquoi,brusquement cela a changé et l�accélération a étéextraordinaire. Je crois que nous avons accompli pas malde travail ensemble. Je crois qu�on a fait du bon travail et jesuis convaincu que l�on en fera du meilleur dans l�avenir.Mais la constante, ce qui a fait que cela a toujours été possible,réalisable, c�est justement l�esprit de famille que nous avonstoujours connu au sein de ce Conseil de direction. C�estcette amitié qui nous lie d�où que nous venions, de tous lespays du monde. C�est ce plaisir, cette joie que nous avionschaque fois à nous retrouver. Et c�est aussi l�extraordinaireconsensus auquel nous sommes toujours arrivés. Nous avonstoujours pris nos décisions à l�unanimité et la réuniond�aujourd�hui en a encore été une preuve extraordinaire parceque les décisions d�aujourd�hui sont historiques. Elles sontfondamentales et elle sont très importantes pour l�avenir dela profession. Et encore fois, nous avons pu décider tout çaensemble, la main dans la main, comme une grande famille.Alors le meilleur voeu que je puisse faire dans l�avenir pourl�AAI, c�est d�exploiter à fond sa nouvelle structure qui vadécupler les possibilités parce qu�on sera beaucoup mieuxoutillé pour faire tout ce qu�on a à faire, et il reste énormémentà faire. Mais dans cette structure là, comme dans l�ancienne,il y a une chose à conserver et c�est le voeu que je forme,c�est l�esprit de famille que nous formons tous. Et jetransmets au nouveau Conseil de direction ce voeu et cetesprit qui est la meilleure garantie de la pérennité de notreassociation et de son avenir, je suis sûr, de plus en plusbrillant.

Alors, encore merci à tous. Merci aussi pour ce cadeau quiest bien sûr inoubliable. Il me rappellera tous ces bonssouvenirs. Il me permettra aussi de vous retrouver encore,souvent j�espère. Il est aussi, je ne vous le cache pas, ungage, un témoin d�une très grande fierté, parce que j�oubliaisde le dire, mais j�ai toujours été très fier de pouvoir faire ceque j�ai fait et je serai encore plus fier de pouvoir contemplerce témoignage de votre amitié. Je remercie toutparticulièrement l�Institute of Actuaries parce que c�est le

présent de l�Institute. L�Institute c�est la tradition, c�est lerespect, c�est le passé, ce sont les racines. Heureusementque les racines existent. C�est grâce à elles que l�arbre sedéveloppe, que les feuilles poussent et que les fleursfleurissent. Alors, encore un grand merci et permettez-moid�en rester là parce que ce soir, à l�occasion de notre dîner,j�ai plutôt l�intention de me défouler. Merci.»

AJOURNEMENT

L�ordre du jour étant épuisé, la réunion est levée à 16 h 30.

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6. SUMMARY OF THE GENERAL ASSEMBLY,JUNE 8, 1998, BIRMINGHAM, U.K.

Chairman André Lamens welcomed and thanked delegatesfor attending this very important General Assembly toconsider a fundamental change in the structure of the IAA.President Lamens reminded delegates that all members ofthe IAA were sent a first Report in November 1997 on thefuture of the IAA and a second Report in March 1998outlining the final proposals of the Provisional ExecutiveCommittee (PEC). To ensure that the information containedin the latest report was clearly understood, the Presidentinvited a member of the PEC, Peter Kuys, to present a shortsummary of the proposals before calling the vote on therevised Statutes. If the new Statutes were adopted, proposedInternal Regulations and Initial Motions would be on theagenda of the new Council meeting to be held on June 11.

Peter Kuys: �As a member of the Provisional ExecutiveCommittee, our President asked me to summarise brieflywhat is in the second report containing the proposals forreorganisation. I will do this by going through it in foursteps.

1. Why do we believe the change is necessary?2. A review of the wider set of objectives designed for

the IAA.3. To discuss in some detail what the changes are all about.4. To demonstrate the final steps in the process of

restructuring the IAA.

First, let us talk about the need for a new structure. Theprocess started about four years ago when there were initialdiscussions to start the Forum of associations. The IAAneeded to take on a wider role at a global level in order to beable to cope with the consequences of globalisation andfurther involvement of actuaries at an international level.The first step is to create a professional platform that will beable to take care of everything that is needed in order foractuaries, as a profession, to take on that vital role in theworld.

Secondly, to create a structure that would allow the IAA tomake representations to international bodies such as theWorld Bank and the IMF - two international institutionswhich are active in many countries - to create a financialinfrastructure.

Finally, we need to create an international standard foreducation, and that could also only be dealt with at the highestlevel on the international scene.

In order to be able to take on this much wider role, we needa single, strong, unified framework. To achieve this, we

need resources. We need the backing and the consensusfrom the associations, and therefore an essential role isneeded from the associations of actuaries in the variousmarkets and countries.

One of the first things that we discussed in our work, whichended up in the proposals in front of you, was to redefineour objectives. The objectives of the IAA, as they are at themoment, primarily have to do with the advancement ofactuarial science and the organisation of congresses.

In the eyes of those who have worked over the past two andhalf years, the first step is to change the IAA from anassociation of individual members to an association of ourassociations. We felt that, in order to be able to achieve ourobjectives, the role of the association should be recognisedin the structure of the IAA. We also felt that the governancestructure introduced by the IFAA, when it was founded, hasworked quite well and very effectively. We believe that itshould be carried over into the IAA.

Finally, in order to ensure that the activities of the sectionssuch as ASTIN and AFIR blend very well in the overallstructure, these sections will be represented on Council andwill have similar voting rights as the associations.

What are the implications for individual IAA members? Firstof all, the voting power will be transferred from the Assemblyto the Council. The associations will delegate one persononto that new Council. All fully qualified members of Fulland Associate associations will become automaticallyindividual members of the IAA. Thirdly, individual memberscontinue to participate in the appropriate activities of theIAA. The fees are no longer paid directly by the individualqualified members, but through the associations. Finally,the surplus at the end of the current financial year of the oldIAA will be earmarked for the activities of the individualmembers.

Further, we have decided, and that was done by the IAACouncil at its meeting on Saturday, to make sure that theinterests and benefits of the current individual members ofthe IAA are being properly preserved, that we have a specialindividual member services committee that is not onlytrustees of earmarked assets, in other words, to make surethat the money is spent in accordance with its objective, butwhich also will be charged with the fulfilling of the needs ofthe individual members to encourage participation inscientific and social events, and to foster initiatives byindividual members in an international context.�

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In order to illustrate better the effect of the proposed changes,Peter Kuys presented an organisation chart of the currentIAA structure and one of the proposed IAA structure.

The President thanked Peter Kuys for his presentation andopened the floor for discussion.

David Wilkie of the U.K. made a lengthy speech opposingthe proposed restructure and urged delegates to vote againstthe proposal. His main objections are summarized below:

� the proposals could have an adverse effect on individualmembers as well as on AFIR and ASTIN

� there would be such a rapid change of chairmanship thateventually members would not know who the presidentwas

� he strongly objected the weighted voting system becausevotes to associations would be allocated according to theirtotal membership; he noted that about two thirds of themembership would be Americans and eventually theywould take over the IAA

David Wilkie concluded his presentation with the followingwords: �I would vote against it, if there is a seconder. Iwould prefer to see these proposals rejected, and if somebodyis prepared to come up on the platform and second myopposition to these proposals, I will push for a vote. Ifnobody comes up, then I assume that I am the only personthat wishes to speak against these proposals.�

James Shah, United States, immediately took the floor insupport of David Wilkie�s motion and urged delegates to becareful about the provisions. �I am opposing the newStatutes. The reason is that we are going to lose our freedom.In the global situation we have redefined objectives. I believestrongly that we can attain and maintain all the independentobjectives in the present status of the IAA. That is why I amopposing the new version of the IAA.�

Jean Berthon, France, then spoke in favour of the proposaland responded to some of the concerns expressed. �I shouldlike to answer David and our other colleague concerning thelegitimate fears one can have about the new structure thatwe are proposing. First of all, some of you may rememberthat when we started discussing the creation of the newsection called the Forum, I was certainly among the mostopposed to that creation. I was against such an evolutionwhich I thought at that time would give too much power tosome associations and would dissolve this very valuable spiritof family that is shared by all our colleagues in the IAA.

I was even wondering if it was necessary to create such abody. But then I saw how the Forum started to live and towork, and how the people representing the associations were

willing to meet together to discuss common subjects ofinterest. Frankly speaking, I found at the Forum level exactlythe same spirit of family that I had found before at the IAA- even dinners of the committee of the Forum tried to be likethe Council dinners, with less formality.

Much more important, I can testify that an enormous amountof work has already been done inside the committees of theForum. It is only due to the existence of this Forum that weare now a recognised body with some official links with otherorganisations like the IASC (International AccountingStandards Committee) and the IAIS (InternationalAssociation of Insurance Supervisors), which are veryimportant to our profession. They have asked us to participatein some of the committees concerning insurance, accountingand regulation, and it is certainly one of the best ways forus, in my view, to enhance the role of the actuary world-wide.

Finally, and it could be hard for some of you to believe,there have never been any signs of imperialism in the waythe Forum was run. The voting rules respect a very delicatebalance between regions and countries as well as the criteriato select officers and chairmen and vice-chairmen. No groupof associations of one part of the world in the present Statuteswill be able to take over the Forum.

A first step has been climbed. It now remains to reach thetop of the building, and this is what we are proposing to youtoday. Everybody can understand that we need a very stronginternational association, something like a federation, whereall the powers remain in the hands of the associations whichdelegate only part of those at the higher level because it is atthat level the problems will be solved and the questions willbe addressed in the most efficient way.

As far as our family spirit is concerned, it was decided toestablish a new committee for services to individual members.So I hope I have given you some positive answers to someof the fears you may have. I urge you to vote in favour ofthe resolution which has been proposed today.�

Anna Rappaport, President of the Society of Actuaries. �Iwant to report to you that a number of us had serious concernsabout the proposals over the last year, and that we reallyappreciate the co-operation of the group that has beenworking on this and making changes and resolving thoseconcerns. Our board is perfectly comfortable with andsupports the proposals. I believe that is true now of theother North American organisations as well.�

Chris Daykin, U.K. �My background is with the Institute ofActuaries, but over the last few years I have been involvedin one way or another with the actuarial profession in 65countries. I have a real desire that the actuarial profession

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should move forward internationally and that our very manynew member associations in some of those countries shouldhave a role on the world stage.

I think it is completely fallacious understanding of theseproposals to suggest that actuaries will lose any freedomfrom what is proposed. Actuaries will gain freedom and wewill gain access to a new, international opportunity throughsupporting these proposals.

The present Statutes of the IAA, which have served us wellfor a long time, do not provide the mechanism for achievingthe objectives which the profession now sees it has to pursuein terms of the openings for individuals and also the interfacebetween the profession and many international bodies andothers at the international dimension. We need to have aclear status as a legal entity, which we have not had up tonow, and we need to avoid having the confusion that caneasily exist between having the Forum on one hand and theIAA on the other.

It is of key importance that we gain balance internationallyin the total way in which we organise ourselves and,personally, I cannot accept what David Wilkie said aboutthe rotation of the president. That was a key proposal inorder to ensure that this organisation represents the world�sactuaries, and that we are able to have on a regular basis apresident from different parts of the world. Part of theproposal is that within every six years we will attempt tohave two presidents from outside Europe and North America,areas where the profession is growing rapidly. On average,two from Europe, two from North America, where there arerespectively the largest number of associations and ofactuaries. Everything is very carefully balanced to ensurethat no part of the world will dominate, and that every newassociation is able to play a part and contribute to the movingforward of this organisation.

Individuals will lose nothing. Indeed, individuals will gainenormously from this proposal because the focus onindividual members� activities is clearly defined within thestructure, within the new committee that has that as its aimand objective. There will, I believe, in a very short space oftime be a move forward with the possibility of new sectionswhich will bring open new opportunities of participation forlife and pension actuaries who have not had special provisionwithin the existing structure. The wider membership willenable the financing of the organisation to be managed moreeasily and will greatly increase the potential membership ofthe sections.�

John Ryan, United States: �I think a very important part ofthese proposals is the individual members committee. Isupport very much the proposal put before this meeting

because I think it brings the organisation up to date to fulfilthe role we need to provide internationally, and that has beeneloquently explained by a number of people.

One of the problems with the IAA to some extent has beenits failure to get out and communicate and encourage a two-way dialogue with the general members. This structure withthe individual members committee could play a veryimportant part in this area.�

Catherine Prime, Australia, spoke in favour of the motionstressing the need for the actuarial profession to positionitself better on the world scene.

Harry Panjer, Canada, spoke in support of Catherine Prime�scomments.

Stanley Weisleder, United States: I have been paying duesto this organisation for a number of years. I have neverattended any meetings. I am not even familiar with what theaspirations or the internal politics of the organisation are.This organisation has existed for something over 100 years.As we enter the new millennium, I would like to see theInternational Actuarial Association enter the new millenniumas well. Without these proposals, I believe that theInternational Actuarial Association will remain with its feetfirmly planted in the 19th century.�

Norbert Heinen, Germany: �Just because David expressedhis concerns about a potential weakening of the Europeanposition within the new IAA framework, I should like tomake a remark on behalf of a continental European, theGerman Association of Actuaries.

I think it is fair to say that over the recent 10 or 12 years orso, we have gone through a process of increasingprofessionalism in the continental European associations inline with deregulation in Europe, in line with deregulationof insurance markets, etc. That has led to the necessity inour associations to shift the focus of our internationalrepresentation from a more scientific focus to a moreprofessional focus. That is why it was necessary, from ourperspective, not only to have the Groupe Consultatif, butespecially in line with the internationalisation of otherneighbouring professions like accountants, etc., to have aprofessional representation on the international level, andthat was the IFAA.

Now, some of you will certainly remember that I was notvery much in favour of the IFAA when it came into existencea couple of years ago. That was because the majority ofmedium-sized and smaller European associations werecertainly concerned not to diversify their capacities and theirpowers too much between different types of internationalassociations.

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I think it is really important and absolutely necessary, notonly to have the IFAA, and not only to have the scientificinternational community of actuaries, but to have both aspectsin one integrated association. That is what the proposedchange of the IAA structure will achieve, and that is why Iam in favour of that new structure.

Just a final remark concerning the lack of attention that Davidfears to come in line with the automatic membership ofindividuals on the international level. That is what we havebeen practising in Germany for the last 100 years or so. Thereis an automatic membership in the IAA for every Germanmember of the DAV, and that could not prevent a number of25 or 30 papers being contributed to that Congress inBirmingham this year. I think this is proof that this concerndoes not become reality.

To sum up, I think we should be in favour of the new IAAstructure.�

An unidentified speaker noted that there were members whowould be able to continue to be individual members of theIAA, although it looked like only associations would bemembers. The members who did not belong to associationswould continue to be able to join the IAA.

Chiu-Cheng Chang, Taiwan: �I am an actuary from the USA,Canada, Taiwan, Singapore. I have worked in six countries.I have met numerous great actuaries. Today I am urgingeach of you to use the common sense approach. Just thinkabout what Chris Daykin and Harry Panjer have said. ChrisDaykin has been unbelievably active in virtually everythingactuarial on a global international basis. His insight shoulddeserve our respect.�

President Lamens: �I see no other hands raised. I think it istime to close the discussion.� He offered David Wilkie thelast word given that he was the first to express opposition.

David Wilkie, U.K.: �Mr President. I should just like to saythat I think my duty as an opposer of the motion has produceda lot of arguments in its favour. I will be perfectly happy toaccept the result of a show of hands rather than the troubleof a card vote.�

President Lamens thanked David Wilkie for having expressedhis opinion so frankly. He indicated that he would proceedto a vote by raised hands and that, if the results were obvious,a written vote would not be necessary.

The vote on the Statutes was called and the President notedtwo against and two abstentions. The Statutes were declaredapproved. The delegation responded with a hearty round ofapplause.

President Lamens: �I would like very briefly to thank all

those who have worked to come to that final result ofproposals, especially today to Peter Kuys for his presentation,but to all the members of the Provisional ExecutiveCommittee.�

The President invited Bob Collett to speak on the attributionof the Woodrow Milliman Sidney Benjamin scholarship.

Bob Collett, United States: �Sidney Benjamin, from theUnited Kingdom, was a career-long member of the IAA,and a tireless champion of the actuarial profession, mostespecially its commitments to research and to the expansionof its boundaries.

After Sidney�s untimely death at the beginning of this decade,his partners in Woodrow Milliman sought a way to recognisehis contributions appropriately. We elected to create a studyopportunity through the IAA Promotion and Education Fundto be awarded to a promising actuarial candidate from acountry where the profession is in a relatively early stage ofdevelopment. The Sidney Benjamin memorial scholarshipincludes both sufficient funds to permit a year of researchand study and practical gainful employment in a WoodrowMilliman office. Prior winners have included actuaries fromRussia and China.

The most recent award winner is Tarmo Koll, from Estonia.Tarmo has just completed his year of study and work in theUnited Kingdom, and has this month returned to Estonia todo teaching and gainful actuarial work.

Tarmo, on behalf of Max Lacroix, Council delegate to theIAA, Chris Daykin and Jim MacGinnittie, trustees for theIAA Fund, my partners in Woodrow Milliman, and incelebration of the many contributions of Sidney Benjamin, Iam very pleased to present to you this certificate of awardand completion.�

Mr. Koll�s achievements were recognised by a round ofapplause.

The President offered his congratulations and thanks in thename of the IAA to Woodrow Milliman.

There being no further business to discuss, the GeneralAssembly was declared closed.

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7. SOMMAIRE DE L�ASSEMBLÉE GÉNÉRALEDU 8 JUIN 1998, BIRMINGHAM (R.-U.)

Le président, André Lamens, souhaite la bienvenue auxdélégués et les remercie d�assister à cette Assemblée Généraletrès importante qui a pour but d�examiner une modificationfondamentale de la structure de l�AAI. Le président Lamensrappelle aux délégués que tous les membres de l�AAI ontreçu un premier rapport en novembre 1997 traitant de l�avenirde l�AAI et un deuxième en mars 1998, qui faisait état despropositions finales du Comité Exécutif Provisoire (CEP).Pour assurer que l�information contenue dans le dernierrapport a été bien comprise, le Président invite un membredu CEP, Peter Kuys, à présenter un résumé des propositionsavant de passer au vote sur les nouveaux Statuts. S�il y aadoption des nouveaux Statuts, le projet de RèglementIntérieur et les Propositions Initiales figureront à l�ordre dujour de la réunion du nouveau Conseil qui aura lieu le 11juin.

Peter Kuys : «En tant que membre du Comité ExécutifProvisoire, notre Président m�a demandé de vous résumeren quelques mots les propositions de réorganisationcontenues dans le deuxième rapport. Je vais procéder enquatre étapes.

1. Pourquoi pensons-nous que ce changement estnécessaire?

2. Un examen des objectifs plus généraux conçus pourl�AAI.

3. Discussion détaillée des modifications.4. Les dernières étapes du processus menant à la

restructuration de l�AAI.

Parlons d�abord de la nécessité d�une nouvelle structure.Tout a commencé il y a environ quatre ans par des discussionsdestinées à mettre sur pied le Forum d�associations. L�AAIavait besoin de se doter d�un plus vaste rôle à l�échelleinternationale afin d�être mieux en mesure de faire face auxconséquences de la mondialisation et d�une participationaccrue des actuaires aux activités internationales. Lapremière étape consiste à créer une plateformeprofessionnelle qui pourra satisfaire tous les besoins desactuaires, en tant que profession, pour assumer ce rôlefondamental dans le monde.

En deuxième lieu, pour que l�AAI puisse faire desreprésentations auprès d�organismes internationaux, commela Banque mondiale et le FMI, deux institutionsinternationales actives dans beaucoup de pays, il estnécessaire de créer une infrastructure financière.

Enfin, nous devons mettre sur pied une norme internationalede formation, ce qui peut également ne se faire qu�au plushaut niveau sur la scène internationale.

Pour pouvoir assumer ce rôle beaucoup plus vaste, nousavons besoin d�un cadre unique, fort et unifié et aussi deressources. Comme nous avons besoin du soutien et del�appui des associations, les associations d�actuaires dansles divers marchés et pays ont un rôle essentiel à jouer.

Une des premières choses que nous avons faites, et qui ontdébouché sur les propositions que vous avez en main, a étéde redéfinir nos objectifs. Pour l�instant, les objectifs del�AAI touchent principalement l�avancement de la scienceactuarielle et l�organisation de congrès.

Aux yeux de tous ceux qui ont travaillé à ce processus depuisdeux ans et demi, la première étape consiste à transformerl�AAI d�une association de membres individuels à uneassociation de nos associations. Pour accomplir nos objectifs,nous avons pensé qu�il fallait tenir compte du rôle del�association dans la structure de l�AAI. Nous avons aussiestimé que la structure administrative mise sur pied par leFIAA au moment de sa fondation avait très bien fonctionné,qu�elle était très efficace et qu�elle devrait être transportéedans la nouvelle AAI.

Enfin, pour assurer que les activités des sections commeASTIN et AFIR s�intègrent à la perfection dans le cadreglobal, ces sections seront représentées au Conseil et jouirontde droits de vote similaires à ceux des associations.

Quelles sont les conséquences pour les membres individuelsde l�AAI? D�abord, le pouvoir de vote sera transféré del�Assemblée au Conseil. Les associations enverront undélégué à ce nouveau Conseil. Tous les membres pleinementqualifiés des associations titulaires et associées deviendrontautomatiquement membres individuels de l�AAI. Entroisième lieu, les membres individuels continueront departiciper aux activités appropriées de l�AAI. Les cotisationsne seront plus versées directement par les membrespleinement qualifiés mais bien par l�entremise de leurassociation. Enfin, l�excédent à la fin de l�exercice courantde l�ancienne AAI sera affecté aux activités des membresindividuels.

De plus, le Conseil de l�AAI a décidé à sa réunion de samedique, pour bien préserver les intérêts et les avantages desmembres individuels actuels de l�AAI, il fallait créer un

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comité spécial des services aux membres individuels qui nonseulement serait dépositaire des fonds réservés, mais aussiprendrait les moyens pour que les fonds soient dépensésconformément aux objectifs; on lui confiera également latâche de satisfaire les besoins des membres individuels afinde les encourager à participer aux activités scientifiques etsociales. Enfin, il devra favoriser les initiativesinternationales des membres individuels».

Pour mieux illustrer l�effet des modifications proposées, PeterKuys présente un organigramme de la structure actuelle del�AAI et un autre illustrant la structure proposée.

Le Président remercie Peter Kuys de sa présentation etaccueille les questions de la salle.

David Wilkie (R.-U.) fait un long exposé dans lequel ils�oppose à la restructuration proposée et incite les déléguésà voter contre la proposition. Voici un résumé de sesprincipales objections :

� les propositions pourraient avoir des répercussionsnuisibles sur les membres individuels de même que surAFIR et ASTIN

� le changement de présidence serait tellement rapide queles membres ne sauraient plus à la longue qui est levéritable président

� il s�oppose fortement à un système de vote pondéré, carles votes sont attribués aux associations en fonction dunombre total de membres qu�elles comptent; il souligneque près des deux tiers des membres viennentd�Amérique et qu�ils prendraient éventuellement lecontrôle de l�AAI.

David Wilkie termine sa présentation dans les mots suivants: «Je vote contre la proposition si quelqu�un m�appuie.J�aimerais mieux que ces propositions soient rejetées et, siquelqu�un est prêt à se tenir à mes côtés pour appuyer lerejet de ces propositions, je demanderai un vote. Si personnene se présente, je supposerai que je suis le seul qui s�opposeà ces propositions».

James Shah (États-Unis) se lève aussitôt et appuie la motionde David Wilkie et incite les délégués à faire preuve deprudence au sujet des propositions. «Je m�oppose auxnouveaux Statuts, car nous allons perdre notre liberté. Nousavons redéfini des objectifs dans le contexte mondial. Jecrois fermement que nous pouvons atteindre et préservertous nos objectifs indépendants en conservant l�AAI danssa situation actuelle. Voilà pourquoi je m�oppose à cettenouvelle version de l�AAI».

Jean Berthon (France) prend ensuite la parole en faveur dela proposition et répond à une partie des inquiétudessoulevées. «Permettez-moi de répondre à David et à notreautre collègue au sujet des craintes légitimes que peut susciterce projet de nouvelle structure. D�abord, certains d�entrevous se rappelleront peut-être que lorsque nous avons amorcéles discussions au sujet de la création de la nouvelle sectionqui s�appelait le Forum, j�étais indéniablement parmi ceuxqui s�opposaient le plus à ce nouvel organisme. Jem�opposais à cette évolution qui, le croyais-je à cette époque,aurait donné trop de pouvoirs à certaines associations et auraitfait disparaître ce très grand esprit de famille que partagenttous nos collègues à l�AAI.

Je me suis même demandé si la création de cet organismeétait vraiment nécessaire. C�est alors que j�ai vu comment leForum a pris forme et a commencé à travailler, comment lesgens qui représentaient les associations étaient désireux de serencontrer pour discuter de sujets d�intérêt commun. En toutefranchise, j�ai trouvé dans le Forum exactement le même espritde famille que j�avais trouvé auparavant à l�AAI-même lesrepas organisés par le Comité du Forum ressemblaient à ceuxdu Conseil, avec cependant moins de formalité.

Plus important encore, je peux témoigner que les comitésdu Forum ont déjà abattu une somme considérable de travail.C�est uniquement à cause de l�existence du Forum que noussommes maintenant un organisme reconnu qui entretient desrelations officielles avec d�autres organisations comme leCINC (Comité international des normes comptables) etl�AICA (Association internationale des contrôleursd�assurance), qui revêtent une très grande importance pournotre profession. Ils nous ont demandé de participer auxtravaux des comités portant sur l�assurance, la comptabilitéet la réglementation, et c�est indéniablement l�une desmeilleures façons qui existent, à mon avis, d�accroître le rôlede l�actuaire dans le monde.

Enfin, et cela est peut-être difficile à croire pour quelques-uns d�entre vous, il n�y a jamais eu de manifestationd�impérialisme dans la façon dont le Forum a été géré. Lesrègles de vote respectent un équilibre très délicat entre lesrégions et les pays de même que les critères utilisés pour lasélection des dirigeants et des présidents et vice-présidents.Aucun groupe d�associations dans l�une ou l�autre régiondu monde ne pourra, selon les Statuts actuels, prendre lacharge du Forum.

Un premier pas vient d�être franchi. Il reste maintenant àfaire le reste du chemin, et c�est ce que nous vous proposonsaujourd�hui. Tous les membres ici présents peuventcomprendre que nous avons besoin d�une association

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internationale très forte, comme une fédération où tous lespouvoirs demeurent entre les mains des associations qui endélèguent uniquement une partie au niveau le plus élevé étantdonné que c�est à ce niveau que les problèmes seront régléset que les questions pourront être abordées le plusefficacement possible.

Pour ce qui est de notre esprit de famille, il a été décidéd�établir un nouveau comité des services aux membresindividuels. J�espère donc vous avoir fourni des réponsespositives et avoir atténué une partie des craintes que vouspouviez avoir. Je vous incite à voter en faveur de la résolutionqui est proposée aujourd�hui.»

Anna Rappaport, présidente de la Society of Actuaries.«Plusieurs d�entre nous ont éprouvé au cours de la dernièreannée de sérieuses appréhensions au sujet des propositions.Nous avons vraiment apprécié la collaboration du groupequi a travaillé à apporter des modifications et à atténuer noscraintes. Notre conseil d�administration est tout à fait à l�aiseet appuie les propositions. Je crois que c�est maintenant lecas des autres organismes d�Amérique du Nord.»

Chris Daykin (R.-U.). «Je suis membre de l�Institute ofActuaries et dans les dernières années, j�ai eu des contacts àun niveau ou à l�autre avec la profession actuarielle de 65pays. Je souhaite ardemment que la profession actuarielleévolue à l�échelle internationale et que nos très nombreusesnouvelles associations membres dans certains de ces paysjouent un rôle international.

Selon moi, il est tout à fait erroné de croire que cespropositions enlèveront toute liberté aux actuaires. C�estplutôt le contraire qui arrivera et les actuaires auront accès àun nouveau marché international s�ils appuient cespropositions.

Les Statuts actuels de l�AAI, qui nous ont bien servis pendantlongtemps, ne renferment pas le mécanisme nécessaire pouraccomplir les objectifs que la profession estime maintenantnécessaires de poursuivre pour offrir des débouchés à sesmembres et pour mettre en place l�interface entre laprofession et de nombreux organismes internationaux. Nousdevons établir clairement notre existence juridique, ce quenous n�avons pas fait jusqu�à maintenant, et nous devonsaussi éviter la confusion que peut facilement faire naître ladouble existence du Forum et de l�AAI.

Il est de toute première importance d�établir à l�écheloninternational un équilibre dans la façon générale de nousorganiser. Pour ma part, je ne peux accepter ce que DavidWilkie a dit au sujet de la rotation du président. Il s�agit-làd�une proposition clé qui vise à assurer que votre organisme

représentera les actuaires dans le monde et que nous pouvonsnous doter régulièrement d�un président provenant dedifférentes parties du monde. Cette proposition précise enpartie que nous tenterons, tous les six ans, d�élire deuxprésidents de l�extérieur de l�Europe et de l�Amérique duNord, deux régions où la profession augmente rapidement.En moyenne, il y aura deux présidents d�Europe, deuxd�Amérique du Nord, où l�on compte respectivement le plusgrand nombre d�associations et d�actuaires. Tout est trèsbien équilibré pour assurer qu�aucune région du monde nedomine l�association et pour que toute nouvelle associationpuisse jouer un rôle et contribuer à l�avancement del�organisation.

Les individus ne perdront rien. De fait, ils gagneronténormément de cette proposition, car l�accent qui est missur les activités des membres individuels est clairement définià l�intérieur de la structure, et plus particulièrement dunouveau comité qui s�est attribué cet objectif. Si je nem�abuse, il y aura très bientôt une mesure qui permettra decréer de nouvelles sections qui amèneront de nouvellesoccasions de participation pour les actuaires du domaine del�assurance vie et des régimes de retraite, eux qui ne faisaientl�objet d�aucune disposition spéciale dans la structureactuelle. De plus, le nombre accru de membres permettra degérer plus facilement le financement de l�organisation etaugmentera largement l�adhésion dans les sections.»

John Ryan (États-Unis) : «Le Comité des services auxmembres individuels représente, selon moi, une partie trèsimportante de ces propositions. J�appuie largement laproposition faite à cette assemblée, car elle permet à notreorganisme de remplir le rôle que nous devons jouer à l�échelleinternationale, situation qui a été extrêmement bien expliquéepar diverses personnes.

Un des problèmes de l�AAI a été, dans une certaine mesure,son échec à sortir d�elle-même, à communiquer et àencourager un dialogue bilatéral avec les membres. Lanouvelle structure, qui comprend notamment le Comité desservices aux membres individuels, pourrait jouer un rôle trèsimportant à cet égard.

Catherine Prime (Australie) parle en faveur de la motion etinsiste sur la nécessité pour la profession actuarielle de mieuxse positionner sur la scène mondiale.

Harry Panjer (Canada) appuie les commentaires deCatherine Prime.

Stanley Weisleder (États-Unis) : «Depuis plusieurs années,je verse une cotisation à cet organisme. Je n�ai jamais assistéà une assemblée. Je ne connais même pas les aspirations ni

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les politiques internes de l�organisme. Cet organisme existedepuis plus de cent ans. À l�aube du nouveau millénaire,j�aimerais que l�Association Actuarielle Internationale entreaussi dans le nouveau millénaire. Si ces propositionsne sont pas adoptées, je crois que l�AssociationActuarielle Internationale demeurera bien ancrée dans leXIXe siècle.»

Norbert Heinen (Allemagne) : «Permettez-moi de faire uneremarque au nom d�un Européen du continent, à savoirl�Association des actuaires d�Allemagne, en réponse auxcraintes exprimées par David concernant l�affaiblissementpossible de la position européenne au sein de la nouvellestructure de l�AAI.

Il est juste de dire que depuis 10 ou 12 ans, nous avons ététémoin d�un processus d�accroissement du professionnalismedans les associations d�Europe continentale, processus quia suivi la déréglementation en Europe, la déréglementationdes marchés de l�assurance, etc. Tout cela a amené nosassociations à mettre plus l�accent sur le côté professionnelque scientifique de notre représentation internationale. Voilapourquoi il a fallu, de notre point de vue, non seulementcréer le Groupe consultatif, mais aussi, conformément àl�internationalisation des autres professions voisines commecelles des comptables, etc., créer le FIAA pour pouvoir êtrereprésenté professionnellement à l�échelle internationale.

Certains d�entre vous se rappelleront sans doute que je n�étaispas très favorable au FIAA lorsqu�il a été créé il y a environdeux ans. En effet, la majorité des associations européennesde petite et moyenne tailles craignaient de ne pas pouvoirdiversifier leur capacité et leur pouvoir entre les différentstypes d�associations internationales.

Je crois qu�il est vraiment important et tout à fait nécessairenon seulement de bénéficier du FIAA et de la communautéscientifique internationale des actuaires, mais aussi deretrouver ces deux aspects dans une association intégrée.Voila ce que la nouvelle structure de l�AAI cherche à faire etla raison pour laquelle je souscris à cette nouvelle structure.

Permettez-moi une dernière remarque au sujet du manqued�attention, selon David, qu�amènera l�adhésion automatiquedes membres à l�échelle internationale. C�est ce que nousfaisons en Allemagne depuis une centaine d�années. Tousles membres du DAV adhèrent automatiquement à l�AAI, etcela n�a pas empêché l�association de présenter 25 ou 30communications au Congrès de Birmingham cette année.C�est la preuve que cette inquiétude ne s�est pas concrétisée.

Pour résumer, nous devrions nous prononcer en faveur de lanouvelle structure de l�AAI.

Un membre non identifié fait remarquer que les membrespourront continuer leur adhésion à titre individuel à l�AAI,même s�il semble que seules les associations en deviendrontmembres. Les membres qui n�appartiennent pas à desassociations pourront quand même adhérer à l�AAI.

Chiu-Cheng Chang (Taiwan) : «Je suis actuaire des États-Unis, du Canada, de Taiwan et de Singapour. J�ai travaillédans six pays et j�ai rencontré un grand nombre d�actuaires.Je vous exhorte aujourd�hui à faire preuve de bon sens.Pensez seulement à ce qu�ont dit Chris Daykin et HarryPanjer. Chris Daykin a été incroyablement actif dans à peuprès toutes les activités à carcatère actuariel à l�échelleinternationale. Sa perspicacité mérite notre respect.»

Le Président Lamens : «Je ne vois aucune autre main levée.Il est temps de clore la discussion.» Il offre à David Wilkiele dernier mot puisqu�il a été le premier à ouvrir le sujet.

David Wilkie (R.-U.) : «Monsieur le Président, monopposition à cette motion a généré une foule d�argumentsen faveur des propositions. Je serais tout à fait heureuxd�accepter le résultat d�un vote à mains levées plutôt qu�unvote secret.»

Le Président Lamens remercie David Wilkie d�avoir expriméson opinion d�une façon si franche. Il indique qu�il procéderamaintenant à un vote à mains levées et que si le résultat estévident, il ne sera pas nécessaire de demander un vote secret.

Le Président demande un vote et note deux opposants etdeux abstentions. Il déclare les Statuts adoptés. Ladélégation applaudit chaleureusement à cette nouvelle.

Le Président Lamens : «Je remercie tout ceux qui ont travailléà obtenir ce résultat final, surtout Peter Kuys de saprésentation, mais aussi tous les membres du Comité ExécutifProvisoire.»

Le Président invite Bob Collett à remettre la bourse d�étudesSidney-Benjamin de Woodrow Milliman.

Bob Collett (États-Unis) : «Sidney Benjamin, du Royaume-Uni, a été membre de l�AAI pendant toute sa carrière et il aaussi été un champion infatigable de la profession actuarielle,plus particulièrement par son engagement dans la rechercheet dans l�expansion des frontières de la profession.

Après le décès précoce de Sidney au début de cette décennie,ses associés chez Woodrow Milliman ont voulu reconnaîtrecomme il se doit sa contribution. Nous avons donc décidéde créer une bourse d�études par l�entremise du Fondsinternational de promotion et de formation de l�AAI et del�accorder à un candidat prometteur provenant d�un pays où

39

la profession actuarielle commence à se développer. Labourse d�études commémorative Sidney-Benjamin estsuffisamment bien garnie pour que le titulaire puisse fairedes recherches et des études pendant un an tout en occupantun emploi rémunéré dans un cabinet de Woodrow Milliman.Les lauréats antérieurs comprenaient des actuaires de Russieet de Chine.

Le lauréat le plus récent est Tarmo Koll, d�Estonie. Tarmovient tout juste de terminer son année d�études et de travailau Royaume-Uni et est retourné ce mois-ci en Estonie pourenseigner et occuper un emploi rémunéré en actuariat.

Tarmo, au nom de Max Lacroix, délégué du Conseil del�AAI, de Chris Daykin et de Jim MacGinnittie, commissairesdu Fonds de l�AAI, de mes associés chez WoodrowMilliman, et en hommage aux nombreuses contributions deSidney Benjamin, je suis très heureux de vous présenter cecertificat.»

Les membres applaudissent M. Koll.

Le Président remercie et félicite Woodrow Milliman au nomde l�AAI.

L�ordre du jour étant épuisé, l�Assemblée Générale est levée.

40

8. MINUTES OF THE COUNCIL MEETINGJUNE 11, 1998, BIRMINGHAM, U.K.

President André Lamens welcomed delegates to the firstmeeting of the IAA governed by its new Statutes that wereapproved June 8, 1998 by the General Assembly. Hereminded delegates that the new Statutes were in force andmust be respected and proceeded to read the followingextracts from the Statutes, especially concerning the Council.

Article 9. The Council constitutes the governing body. AllFull and Associate Member Associations and each Sectionshall be entitled to be represented by their designatedDelegate and Alternate.

Article 11. The Council shall be composed of one Delegateformally appointed by each Full or Associate MemberAssociation and by each Section. Each such Association andSection may appoint an Alternate Delegate who mayparticipate in all meetings and may vote when the Delegateis not present.

Observer Associations may send a representative to Councilmeetings; these representatives do not have any voting rights.

Council decisions can be taken only if at least half of thetotal voting rights are represented in person, by proxy, orelectronically.

CONFIRMATION OF THE MANDATE OF THEMEMBERS OF THE NEW COUNCIL

Article 29. Immediately following the adoption of theseStatutes, the Council of the IAA shall comprise Delegatesauthorised by Full and Associate Member Associationsspecifically for Council, or where authorisation has notspecifically been made by a Full or Associate MemberAssociation, the Delegate authorised by that Association tothe former IFAA Committee.

The President proceeded to a roll call to ensure a quorumwas present and announced that an exceptionally largemajority of associations were represented.

APPROVAL OF INTERNAL REGULATIONS

The President referred to the Internal Regulations which weresent in due time to every member of the IAA, as were theStatutes, and opened the discussion by inviting questions,remarks and proposals of any kind. In the absence ofcomments from the delegates, the President called the votefor the adoption of the Internal Regulations by a show ofhands.

The Internal Regulations were adopted unanimously.

APPROVAL OF INITIAL MOTIONS

Motion 1: That Council accepts the dissolution petitionof the IFAA Section and absorbs its assets and liabilities.

Before proceeding with the vote, President Lamens askedJean Berthon, Chairman of the IFAA, to confirm the IFAASection�s request for dissolution.

Jean Berthon confirmed that, at its last meeting in Coventryon June 5, the IFAA had unanimously decided that, if thenew Statutes were approved by the General Assembly, itwould dissolve itself and transfer all its assets and liabilitiesto the new IAA.

The vote was called and the motion to dissolve the IFAASection was approved unanimously.

Motion 2: The President of the IAA shall be the thenChairman of the former IFAA, duly elected by the memberassociations of the IFAA. Jean Berthon is in that positionand was proposed as President of the IAA.

President Lamens called the vote and the motion wasapproved unanimously. He congratulated Jean Berthon onhis election and handed the chairing of the meeting over tothe new President to the applause of the delegation.

Newly elected President Berthon thanked the delegates fortheir vote of support. �I�m very proud and I will do my bestto be a good President.� He then resumed the presentationof the remaining initial motions.

Motion 3: The President Elect of the IFAA shall be thethen Deputy Chairperson of the former IFAA duly electedby the Member Associations of the IFAA. Catherine Primeis in that position and was proposed as President Elect ofthe IAA.

President Berthon called the vote and the motion wasapproved unanimously. Catherine Prime was congratulatedon her election by a round of applause.

Motion 4: The Immediate Past President of the IAA shallbe André Lamens of Belgium.

Motion 5: The Secretary General of the IAA shall be YvesGuérard of Canada.

Motion 6: The members of the Nominations Committeeshall be the members of the former IFAA NominationsSubcommittee. The first Chairperson of the Committeefor the period up to the Annual Meeting in 1999 shall bethe Immediate Past President of the former IFAA, WalterRugland of the United States.

41

Motion 7: The members of the Executive Committee shallbe the Officers, Section Chairpersons and all CommitteeChairpersons.

Motion 8: The next annual meeting of the Council shallbe on December 11, 1999.

In the expediency of time, motions 4 to 8 were presented forapproval as a group. President Berthon called the vote andthe motions were approved unanimously.

Motion 9: The initial fee for Full and Associate MemberAssociations will be calculated at the annual rate of $6Canadian for each fully qualified actuary. The firstfinancial year will begin on July 1, 1998 and end onDecember 31, 1999 and the fee for this eighteen-monthperiod will be $9 Canadian. The fee for an individualmember not included in the head count of a Full orAssociate Member Association will be calculated on thesame basis. The fee for Observer and Donation Memberswill be $50 Canadian, excluding ASTIN and AFIRcontributions. Therefore, the fee for the initial eighteen-month period will be $75.

There being no discussion, the President called the vote onthe motion which was approved unanimously.

Motion 10: The Secretariat shall be authorized toreimburse the President and Secretary General forpersonally incurred costs with respect to Council andCommittee meetings based on �C� class or comparableairfares and actual documented disbursements.


Motion 11: The Secretariat shall be authorized to providenotice as required for the following meetings of Council:November 3, 1998 (Cape Town, South Africa); April 18,1999 (Madrid, Spain); August 29, 1999 (Tokyo, Japan);December 11, 1999 (Paris, France).

The President called the vote on the motion which wasapproved unanimously.

Motion 12: The Donation Members of the IAA shall bethose members who have been designated Donation BMembers. The first Institutional Member of the IAA shallbe the International Social Security Association.


Motion 13: The membership fee for an association shallbe based on the last count of fully qualified members atthe date the fees are due.


Motion 14: The Budget submitted for the FY July 1st, 1998to December 31, 1999 shall be approved.

Jean Berthon invited the Secretary General, Yves Guérard,to discuss the budget prior to presenting the motion forapproval.

Yves Guérard: �You received a copy of the first proposedbudget for the IAA at the same time as Report II. We havelooked at the budget that was necessary to operate the Forumand the budget that was necessary to operate the IAA andwe have tried to determine what expenses would offset eachother, and what expenses would be introduced by the newStatutes and Regulations. If you have questions on individualitems, with the help of our International Director, NicoleSéguin, who is sitting here, I will attempt to provide youwith answers.

We have reduced the provision in the budget by eliminatingthe printing and the mailing of the Index as alreadyannounced in previous meetings. It would be extremelyexpensive and, in fact, it would cost more than the cost permember to print and distribute an Index containing the nameof 30,000 members, or a bit less after eliminating duplication.We also have assumed that the Bulletin will be posted on theWeb site and printed copies will be made available fordistribution in bulk by the associations. Individual memberswho are not members of an association and who wish toreceive a hard copy of the Bulletin will receive it directlyfrom the Secretariat. We have assumed that only a moderatepercentage of the members will require a hard copy and Ihope that in future years that percentage will decrease untilasymptomatically it becomes equal to zero. If we take thatinto account, we have projected on the basis of themembership into the associations and individual members,plus the fees from Observer and Donation Members andinterest earned on the funds that we have in hand, that therevenues for the 18-month period would be close to $385,000Cdn. The sum of the expenditures is $380,500 Cdn, whichleaves a projected surplus of $4,225 Cdn. This is not a bigprojected surplus in percentage or in absolute number, butin my opinion the expense projections are fairly conservativeand the revenue projection is conservative as well. So Ithink that we should be able to complete this 18-month periodwell within budget.

As a note to the budget, we indicated that with the projectionthis year in income and expenditures, we should be left with$170,000 Cdn that would be earmarked for the Committeeon Services to Individual Members if we consider mergingwhatever surplus there is in the reserve for Congress, whichis also an amount for activities for individual members. Wealso have a projected surplus coming from the Forum ofwhich, under Motion 1, we have absorbed the assets and

42

liabilities of approximately $85,000 Cdn. That amount wouldrepresent four months of expenses. In my opinion, we shouldtry and build a reserve that is higher than that. We coulddiscuss what that reserve should be. I note that the Canadianassociation, of which I am member, is targeting one year ofrevenue as surplus. That is not something we can build inone year, but we would be already in that good direction.Are there any other questions that you would like me tocomment about?�

In response to a question from Edward Levay, Yves Guérardindicated that the Sections, AFIR and ASTIN, would settheir own fees as they had been doing in the past. TheSecretariat would collect the fees on the Sections� behalfand transfer the money to AFIR and ASTIN, provided thatthe associations continue collecting the fees for remittanceto the Secretariat. The Secretariat would not, of course,collect from individuals; it would do it through theassociations.

Curtis Huntington pointed out that those organizations thathave been billing their individual members for the ASTINand AFIR fees would need to be informed fairly early whatthe dues would be in order to be able to remit them to theSecretariat on a timely basis.

Yves Guérard responded that the fees would be due onJanuary 1st, 1999, therefore there was ample time to providethe organizations with that information. The Secretariatwould confirm with ASTIN and AFIR the level of feeapplicable at that date and would inform all associationsaccordingly.

Yves Guérard continued, �You will notice that it is implicit,but before the reorganization, the fees were due at thebeginning of the year of the association. In this case, theyear begins on July 1st, 1998, but we have put the fee due onJanuary 1st, 1999 as in future years, it will be on January 1st.We have made cash flow projections and we should be ableto survive without collecting the fees until January 1999,but I would expect that the associations will be prompt atpaying their fees in January 1999, so that we won�t need toborrow to finance our activities.�

In response to a further question from Edward Levay, YvesGuérard indicated that he thought the Sections would be wellinspired to adopt the same period as the IAA for the collectionof dues. ASTIN and AFIR dues would therefore be payableon January 1st, 1999 for an 18-month period as well. Afterthat it would be on a calendar basis.

In the absence of further questions, the President called themotion to adopt the July 1, 1998 to December 31, 1999budget to a vote. The motion was approved unanimously.

Motion 15: That the firm Deloitte and Touche be appointedauditor for the fiscal year 1998-99.

Before proceeding to the vote, the Secretary Generalinformed Council that Deloitte and Touche was the auditorfor the International Forum of Actuarial Associations andfor the Canadian Institute of Actuaries, which was responsiblefor the IAA Secretariat. He indicated that it would beconvenient and cost-efficient for the IAA to have the sameauditor, noting that this decision could be changed in futureyears, but that there was no particular reason to change theauditor at this time.

President Berthon called the motion to a vote which wasapproved with one abstention.

REMARKS BY THE NEWLY ELECTEDPRESIDENT OF THE IAA

Jean Berthon: �First and foremost, I am delighted that weare now 39 Full Member associations in the InternationalActuarial Association and 19 Observer Member associations.Seven of the Observer Member associations were alreadyObserver Members in the Forum and 12 have becomeobservers through their status as IAA Donation A Members.There is no doubt in my mind that some of these will soonapply for full IAA membership.

My intention is to make no fundamental changes in Forumoperations as we have known them until now. I believe thattoday�s new structure primarily represents a change in names,where the Forum Committee becomes Council of the IAAand former Forum subcommittees become IAA committees.

For those of you who weren�t in Coventry or didn�t attendthe last Council of the old IAA, let me remind you of thedifferent committees in function today and their chairperson.In order for you to put a face to those names, may I ask eachchairperson to stand up when I name him or her, startingwith the Accreditation Committee. The AccreditationCommittee is responsible for membership applications andto ensure that the new associations meet the specifiedmembership requirements. The Chairperson is HowardWebb, who is unfortunately ill at the moment.

Advice and Assistance is responsible for promoting theprofession in actuarially developing countries and to giveadvice on how to establish actuarial organizations, inter alia.Luis Huerta is the Chairperson since the last meeting inCoventry.

The Audit Committee is responsible for recommending theapproval of the annual financial statements and theappointment of an auditor. We still have to nominate a

43

Chairperson and this will be done with the proposal ofthe Nominations Committee in Cape Town.

The Education Committee is responsible for proposingeducation guidelines and encouraging the development ofinternationally oriented actuaries through a build-up of adatabase with particular reference to CPD requirements. TheChairperson is Malcolm Murray.

The IASC Insurance Committee is responsible for monitoringthe responses to the IASC concerning the development ofinsurance accounting standards and Sam Gutterman is theChairperson.

The IASC Employee Benefits Committee has quite the sameterms of reference except that it relates to the employeebenefits standard. Paul Thornton is the Chairperson.

Insurance Regulation is a newly established Committeewhich, inter alia, is responsible to liaise with the IAIS onissues relating to the regulation and supervision of insurancecompanies and related matters. Peter Kuys is theChairperson.

The Committee for Services to Individual Members wasestablished at the last Council of the IAA. Its aim is topromote the interests of individual members within the IAA.Martin Balleer is the Chairperson and he will say a few wordsafter I finish my remarks.

The Nominations Committee provides all the nominationsto Council and proposals for the nomination to President,President-Elect, and also the establishment of newcommittees and the designation of terms of reference.It is chaired by Walter Rugland, former Chairman of theIFAA.

The Public Statements Committee is responsible forestablishing guidelines for the issuance of IAA publicstatements and is chaired by Junzo Tanaka.

And finally, the Social Security Committee responsible forliaising with the International Social Security Association,and in particular with the Executive Committee of Actuariesand Statisticians. The Committee is chaired by Reg Munro.

One important change in our procedures is that the committeechairpersons are not ex officio members of Council andtherefore have to be invited by the President in order to takepart in the discussion. I can assure you that it is my intentionto do so on a permanent basis. So please, all chairpersons ofall committees are invited to participate in all the work atthe Council level as of today.

Now that we have proven our capacity to represent theprofession at an international level in developing closecontacts with international bodies like the IASC, the

IAIS, and the ISSA, I suspect that we will be a little moreproactive than we have been before and not only reactive tothe problems.

For me, that means we could eventually form a committeeto define our position on banking industry regulations forinstance. Specifically, I am thinking of the Bank forInternational Settlements� many innovations in terms ofinternal models for measuring risks.

In the same way, I am sure it could be very useful to liaisewith institutions like IAMRN, GIPS (European associationresponsible for the establishment of standards of practice inperformance measurements). Many actuaries and consultingfirms are already involved in these businesses and, as aprofessional body, I believe we should also become involved.We obviously have to represent and be ready to get in touchwith the most important bodies and organizations that are ina way or another handling or controlling the businesses whereactuaries have a role to play.

And we also need to contact the United Nations forrecognition at a higher level in view of our new incorporationunder the Swiss law. But we have to be aware of one thing.Nothing is more counterproductive than to offer cooperationto any other institution and not be able to deliver what wehave promised. So, on this I will conclude my remarks oftoday.

We need the support of the national associations if we wantto be successful. We need their help in many ways. Firstly,we need them to select the right man or the right woman, inthe right place at the different levels: Council, committeesor working groups, if any. I am quite sure that this selectionhas been done already and that we are very pleased to workwith all the existing members of those committees. But justremember, that it is your duty to appoint a delegate to eachcommittee, except the Nominations and ExecutiveCommittees which have a limitation in members.

Secondly, we also need to be able to have access to some ofyour internal resources. For example, we would like, in somecircumstances, to be able to commission a study to oneassociation or to a regional group of associations. This willbe essential if we want things to be done because, as youknow, as an association of associations the IAA will be verypoor and have very little resources of its own.�

COMMITTEE FOR SERVICES TOINDIVIDUAL MEMBERS

The President welcomed the chairperson of the Committee,Martin Balleer, to say a few words about the role of theCommittee.

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�Thank you Mr. President. I�m pleased to give you someshort remarks on the newly established Committee forServices to Individual Members which was created torespond to the needs of our individual members. TheCommittee�s responsibilities are given first by the Statutesand then by the Internal Regulations. The Committee hasalready met to discuss what it will do. There is a need toinform the individual members that their special needs willbe addressed by this Committee and this will be done througha letter from the Committee. It will not be possible to list allmembers in an Index, therefore there is also a need to findout and refine the special needs of individual members. Wecould do it by questionnaire and we could integrate it into asurvey conducted by our British friends in this Congressaccording to the professional and scientific needs.

We need to look at the scientific side and the bridges betweenthe professionals and the universities. We just founded asmall working party, Peter Kuys, Hans Bülhmann and myself,to consider this area. One of the things that has to bediscussed is a potential need for more communication onexpertise between the Congresses, except for ASTIN andAFIR which have annual meetings.

We have to establish terms of reference according to ournew Statutes and Internal Regulations. After setting up termsof reference, all associations should nominate a delegate tothis committee. This person could deal in a very specialway with the above-mentioned needs. So, we are quite surenot to neglect the traditional activities of the older IAA, butto promote these activities to our colleagues worldwide.Thank you.�

APPOINTMENTS TO COMMITTEES

The President noted that there were no new appointments tocommittees.

FUTURE MEETINGS OF COUNCIL, SECTIONSAND COMMITTEES

Yves Guérard announced that the following Council meetingswere approved:

� Cape Town, November 3, 1998� Madrid, April 18, 1999� Tokyo, August 29, 1999� Paris, December 11, 1999

He advised the Council that an invitation was receivedfrom the Israel Association which would be pleased to hostan IAA Council meeting in the second quarter of the year2000. An invitation was also received from the

Canadian Institute of Actuaries to host a meeting onNovember 22 of the year 2000 in Ottawa, Canada.

Yves Guérard acknowledged the invitation from the Col.legide Actuaris de Catalunya to host an IAA Council meeting inBarcelona in the fourth quarter of 2001. He pointed out thatan invitation for that same time frame was also received fromthe Actuarial Society of Hong Kong. The ASHK wasconsidering the latter part of October 2001, to coincide withthe East Asia Actuarial Conference and the same invitationwas extended to ASTIN and AFIR. The East Asia ActuarialConference is held every two years and attracts 200-300actuaries.

In view of the conflict, Félix Arias, on behalf of the Col.legide Actuaris de Catalunya, indicated that the Col.legi wouldextend an invitation for November 2002 instead of 2001.This left an opening for the second quarter of the year 2001which Jorge Garcia, on behalf of the Instituto dos ActuáriosPortugueses, offered to host in Portugal.

CONGRESS 2002 IN CANCUN, MEXICO

Luis Huerta presented, for Council approval, the proposedregulations for the 27th International Congress of Actuariesto be held in Cancun, Mexico in March 2002.

The President recommended that the new IAA proceduresbe followed and that the proposed regulations be referred tothe Committee for Services to Individual Members for reviewand to make a recommendation for Council approval at theCape Town meeting in November.

CONGRESS OF 2006

The President announced that a motion to hold the Congressof 2006 in France would be presented at the next meeting inCape Town.

Félix Arias presented the results of a survey conducted bythe Col.legi concerning holding a pre-Congress in Barcelona.He will communicate with Martin Balleer and the Committeefor Services to Individual Members to decide whether ornot a pre-Congress would be suitable.

OTHER BUSINESS

Peter Kuys suggested that, in future, committee meetings bescheduled for full days and in such a way that committeemembers serving on more than one committee could attendmore than one committee meeting.

Paul Thornton: �I feel that this historic occasion would notbe quite complete without once again expressing appreciationto the Immediate Past President. I think we thanked him

45

and many others already in earlier meetings for all the workthat has gone on, but we have not yet thanked him for hisskillful handling of the General Assembly on Monday,June 8.�

Paul Thornton�s comments were supported by a hearty roundof applause.

ADJOURNMENT

There being no further business to discuss, the Presidentadjourned the meeting at 6:30 p.m.

NEXT MEETING

The next meeting will be in Cape Town, onNovember 3, 1998.

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Attendees at the IAA Council Meeting,June 11, 1998 /

Participants à la réunion du Conseildu 11 juin 1998

President: ...................................................... Jean Berthon

President-Elect: ....................................... Catherine Prime

Immediate Past President: .......................... André Lamens

Secretary-General: ....................................... Yves Guérard

ASTIN President: ................................... Edward J. Levay

Committee Chairpersons:

Advice & Assistance ............................ Luis Huerta RosasEducation ........................................... G. Malcolm MurrayIASC Insurance ........................................ Sam GuttermanIASC Employee Benefits ....................... Paul N. ThorntonInsurance Regulation ........................................ Peter KuysIndividual Member Services ....................... Martin BalleerNominations ......................................... Walter S. RuglandSocial Security ............................................ A. Reg Munro

Full and Associate Member Association Delegates:

Argentina (Consejo) .............................. Simon Abel GrollAustralia ................. William K. Roberts & Rod J. AtfieldAustria ............ Ed Kompast (proxy for Klaus Wegenkittl)Belgium ................................................ Christan DefrancqBrazil ................................................ Robert WestenbergerCanada ...................................................... Harry H. PanjerCyprus ................................................... Ibrahim MuhannaDenmark ................................................... Frank CederbyeFinland ................................................ Jaakko TuomikoskiFrance (Assoc. des Actuaries Diplômés

de l�I.S.F.A.) ........................................ Yves CouturierGermany ................................................... Norbert HeinenIreland ............... Bruce Maxwell (proxy for James Kehoe)Israel ....................................................... Edward J. LevayJapan (JSCPA) .......................................... Tetsuya TamuraJapan (IAJ) ........................................... Masakatsu NishibeMexico (Colegio) ........................................ Jorge VergaraNetherlands ................................... Margreet Haandrikman

(proxy for Simon van Vuure)New Zealand ......................................... Edward Robinson

(proxy for Daryl Hayes)Norway ......................................................... Pal LillevoldPortugal ......................................................... Jorge GarciaSouth Africa ................................................ A. Reg MunroSpain (Col.legi) ................................. Felix Arias Bergada

Sweden ............................................................ Harry WideSwitzerland .......................................................... H. LüthyTaiwan, R.O.C. ................................................. Ted ChungU.K. (Faculty) ................................................... Paul GraceU.K. (Institute) ...................................... Paul N. ThorntonU.S.A. (AAA) ............................................ David Hartman

(proxy for W. James MacGinnitie)U.S.A. (ASPA) .................................. Curtis E. HuntingtonU.S.A. (CAS) ........................................ David G. HartmanU.S.A. (SOA) ......................................... Robert L. Collett

Observer Member Association Representatives:

Argentina (Instituto) ................................ Mario PerelmanCaribbean ................................... Michelle Chong Tai-BellCroatia .............................................. Tatjana Racic-ZlibarCzech Republic ................................................ Petr MandlFrance (Union Strasbourgeoise

des Actuaires) ....................................... Pierre LacosteHong Kong .................................................. Michael RossIndonesia .................................................... Kasir Iskandar

Other Representatives:

IPEF ............................................................... Max Lacroix

ISSA ............................................................. Chris Daykin

ISSA ............................................. Alvaro Castro-Gutierez

Staff: ........................................................... Nicole Séguin

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9. PROCÈS-VERBAL DE LA RÉUNION DU CONSEILDU 11 JUIN 1998, BIRMINGHAM, R.-U.

Le Président, André Lamens, souhaite la bienvenue auxdélégués à la première réunion de l�AAI qui est maintenantrégie par de nouveaux Statuts qui ont été adoptés le 8 juin1998 par l�Assemblée Générale. Il rappelle aux déléguésque les nouveaux Statuts sont maintenant en vigueur et qu�ilsdoivent être respectés. Il lit les extraits suivants des Statutsau sujet du Conseil.

Article 9. Le Conseil constitue l�organe directeur de l�AAI.Toutes les associations Membres titulaires ou associés, demême que chaque section, sont représentées au Conseil parun délégué et un suppléant.

Article 11. Chaque association Membre titulaire ou associé,de même que chaque section nomme un délégué pour lereprésenter au Conseil. Chaque association et chaquesection peut de plus nommer un suppléant, qui pourraparticiper à toutes les réunions et voter en l�absence dudélégué.

Les associations Membres observateurs peuvent envoyer unreprésentant aux réunions du Conseil; ce représentant n�apas droit de vote.

Le Conseil peut rendre une décision seulement si la moitiédu total des droits de vote est représentée, en personne, parprocuration ou par voie électronique.

CONFIRMATION DU MANDAT DES MEMBRESDU NOUVEAU CONSEIL

Article 29. Immédiatement après l�adoption des présentsStatuts, le Conseil de l�AAI sera composé de représentantsdélégués par des associations Membres titulaires et associés.Si une association n�a délégué aucun représentant, c�est lereprésentant délégué par cette dernière au Comité de l�ancienFIAA qui la représentera au Conseil de l�AAI.

Le Président fait ensuite un appel nominatif pour s�assurerqu�il y a quorum et annonce que le nombre d�associationsprésentes est exceptionnellement élevé.

ADOPTION DU RÈGLEMENT INTÉRIEUR

Le Président ouvre la discussion en accueillant les questions,les remarques et les propositions de tout genre sur leRèglement Intérieur qui a été envoyé au moment opportun àtous les membres de l�AAI, tout comme les Statuts. Commeil n�y aucun commentaire des délégués, le Président demandeà l�assemblée de voter à mains levées sur l�adoption duRèglement Intérieur.

Le Règlement Intérieur est adopté à l�unanimité.

ADOPTION DES PROPOSITIONS INITIALES

Motion 1 : Que le Conseil accepte la demande dedissolution de la Section FIAA et en intègre l�actif et lepassif.

Avant de passer au vote, le Président Lamens demande àJean Berthon, Président du FIAA, de confirmer la demandede dissolution de la Section FIAA.

Jean Berthon confirme qu�à la dernière réunion tenue àCoventry le 5 juin, le FIAA avait décidé à l�unanimité de sedissoudre et de transférer tout son actif et tout son passif à lanouvelle AAI si l�Assemblée Générale adoptait les nouveauxStatuts.

Le vote est demandé et la motion visant à dissoudre la SectionFIAA est adoptée à l�unanimité.

Motion 2 : Le Président de l�AAI est le Président en postedu FIAA, dûment élu à cette charge par les associationsmembres du FIAA. Jean Berthon occupe ce poste et estproposé comme Président de l�AAI.

Le Président Lamens demande le vote et la motion est adoptéeà l�unanimité. Il félicite Jean Berthon de son élection etremet au nouveau Président la conduite de l�assemblée, auxapplaudissements de la délégation.

Le nouveau Président élu, Jean Berthon, remercie lesdélégués de leur vote de confiance. «Je suis très fier et jeferai tout mon possible pour être un bon président.» Ilreprend ensuite la présentation des propositions initiales.

Motion 3 : Le Président désigné de l�AAI est le Présidentadjoint en poste du FIAA, dûment élu à cette charge parles associations membres du FIAA. Catherine Primeoccupe ce poste et est proposée comme Présidente désignéede l�AAI.

Le Président Berthon demande le vote et la motion estadoptée à l�unanimité. Les délégués applaudissent CatherinePrime de son élection.

Motion 4 : Le Président sortant de l�AAI est André Lamens,de Belgique.

Motion 5 : Le Secrétaire Général de l�AAI est Yves Guérard,du Canada.

Motion 6 : Les membres du Comité des mises encandidature sont les membres de l�ancien Sous-comité desmises en candidature du FIAA. Le premier président ducomité pour la période allant jusqu�à l�assemblée annuelle

48

de 1999 est le Président sortant de l�ancien FIAA,Walter Rugland, des États-Unis.

Motion 7 : Les membres du Comité exécutif sont lesdirigeants, les Présidents de section et tous les présidentsde comités.

Motion 8 : La prochaine réunion annuelle du Conseil auralieu le 11 décembre 1999.

Pour accélérer les choses, on regroupe les motions 4 à 8pour les faire adopter. Le Président Berthon demande levote et les motions sont adoptées à l�unanimité.

Motion 9 : La cotisation initiale des associations membrestitulaires et associés est calculée au taux annuel de 6 $CAN pour chaque actuaire pleinement qualifié. Le premierexercice débute le 1er juillet 1998 et se termine le 31décembre 1999. La cotisation pour cette période de 18mois est de 9 $ CAN. La cotisation d�un membre individuelnon compris dans le décompte des membres d�uneassociation membre titulaire ou associé est calculée sur lamême base. La cotisation d�un membre observateur etd�un membre donateur est fixée à 50 $ CAN, à l�exclusiondes cotisations à ASTIN et à AFIR. Par conséquent, lacotisation pour la première période de 18 mois est fixée à75 $.

Comme il n�y a aucune discussion, le Président demande levote sur la motion, qui est adoptée à l�unanimité.

Motion 10 : Le Secrétariat est autorisé à rembourser lePrésident et le Secrétaire Général des frais personnelsengagés pour assister aux réunions du Conseil et descomités, d�après les tarifs aériens de catégorie «C» ou d�unecatégorie comparable et les pièces justificatives présentées.


Motion 11 : Le Secrétariat est autorisé à envoyer l�avis deconvocation des réunions suivantes du Conseil : 3novembre 1998 (Cape Town, Afrique du Sud); 18 avril 1999(Madrid, Espagne); 29 août 1999 (Tokyo, Japon); 11décembre 1999 (Paris, France).

Le Président demande le vote sur la motion, qui est adoptéeà l�unanimité.

Motion 12 : Les membres donateurs de l�AAI sont ceuxqui ont été désignés membres donateurs B. Le premiermembre institutionnel de l�AAI est l�Associationinternationale de la sécurité sociale.


Motion 13 : La cotisation d�une association est calculéed�après le dernier dénombrement de membres titulaires àla date d�échéance des cotisations.


Motion 14 : Le budget soumis pour l�exercice s�étendantdu 1er juillet 1998 au 31 décembre 1999 est adopté.

Jean Berthon invite le Secrétaire Général, Yves Guérard, àdiscuter du budget avant de présenter la motion d�adoption.

Yves Guérard : «Vous avez reçu une copie du budget proposépour l�AAI en même temps que le Rapport II. Après avoirexaminé le budget nécessaire pour faire fonctionner le Forumet le budget nécessaire pour faire fonctionner l�AAI, nousavons essayé de déterminer les dépenses qui s�annuleraientet celles qu�apporterait la mise en �uvre des nouveaux Statutset règlement. Si vous avez des questions sur des pointsparticuliers, je tenterai d�y répondre avec l�aide de notredirectrice internationale, Nicole Séguin, qui est parmi nous.

Nous avons diminué la provision au budget en supprimantles frais d�impression et d�envoi par la poste de l�Index,comme nous l�avions déjà annoncé à des réunionsprécédentes. Il serait extrêmement coûteux et, de fait, lesfrais d�impression et de diffusion d�un Index renfermant lenom de 30 000 membres seraient supérieurs au coût parmembre, peut-être un peu moins si l�on élimine les doubles.Nous avons aussi supposé que le Bulletin sera affiché sur lesite Web et que des imprimés de celui-ci seront distribués envrac par les associations. Les membres individuels ne faisantpas partie d�une association qui désirent obtenir une copieen clair du Bulletin le recevront directement du Secrétariat.Nous avons supposé que seul un faible pourcentage desmembres demanderont une copie en clair et j�espère que cepourcentage diminuera asymptomatiquement jusqu�à zérodans les années à venir. Si nous tenons compte de ce fait,nous prévoyons que, sur la base de la cotisation des membresdes associations et des membres individuels, plus lescotisations des membres observateurs et des membresdonateurs et l�intérêt perçu sur les fonds en main, les recettespour la période de 18 mois s�élèveront à près de 385 000 $CAN et les dépenses, à 380 500 $ CAN, ce qui laisse unexcédent prévu de 4 225 $ CAN. Il ne s�agit pas d�unexcédent important en pourcentage ou en chiffres absolus,cependant, à mon avis, les projections de dépenses sont trèsprudents, tout comme les projections de recettes. Nousdevrions donc être en mesure de terminer cette période de18 mois sans défoncer le budget.

En corollaire au budget, nous avons indiqué que la projectiondes recettes et dépenses cette année devrait nous laisser unsurplus de 170 000 $ CAN qu�on affectera au Comité sur les

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services aux membres individuels, si nous y incluons toutexcédent éventuel du Congrès, qui représente aussi unesomme réservée aux activités des membres individuels. Nousavons également prévu un excédent au budget du Forumdont nous avons absorbé l�actif et le passif d�environ85 000 $ CAN, selon les modalités de la proposition 1. Cemontant représente quatre mois de dépenses. À mon avis,nous devrions essayer de constituer une réserve supérieure àcela. Nous pourrions d�ailleurs en discuter. Je note quel�association canadienne, dont je suis membre, prévoit elle-même constituer une réserve égale à un an de recettes. Cen�est pas quelque chose que nous pouvons atteindre en unan, cependant nous avons déjà un bon pas de fait dans cettedirection. Y a-t-il des questions?»

En réponse à une question d�Edward Levay, Yves Guérardindique que les sections AFIR et ASTIN établiront leurpropre cotisation comme par le passé. Le Secrétariat percevrales cotisations au nom des sections et leur transférera lessommes recueillies, à condition que les associationscontinuent de percevoir les cotisations à remettre auSecrétariat. Bien entendu, le Secrétariat ne percevra aucunecotisation directement des individus; tout sera fait parl�entremise des associations.

Curtis Huntington signale qu�il faudra informer assez tôtdes nouveaux montants les associations qui perçoiventdirectement de leurs membres les cotisations à ASTIN et àAFIR afin que ces associations puissent être en mesure defaire leurs versements à temps au Secrétariat.

Comme les cotisations doivent être réglées le 1er janvier 1999,Yves Guérard répond qu�il y aura amplement de temps pourfournir aux organismes en question les renseignementsvoulus. Le Secrétariat confirmera auprès d�ASTIN et d�AFIRle niveau de la cotisation applicable à ce moment-là et lecommuniquera à toutes les associations.

Yves Guérard poursuit : «Cela est implicite, mais avant laréorganisation, les cotisations devaient être réglées au débutde l�exercice de l�association. Dans notre cas, l�exercicecommence le 1er juillet 1998, cependant nous demandonsque la cotisation soit payée le 1er janvier 1999 puisque ladate du 1er janvier sera reprise tous les ans par la suite. Nosprojections de trésorerie nous indiquent que nous devrionsêtre en mesure de survivre sans avoir à percevoir d�autrescotisations avant janvier 1999. Cependant, je m�attends àce que les associations règlent rapidement leur cotisation enjanvier 1999 afin que nous n�ayons pas à emprunter pourfinancer nos activités.»

En réponse à une autre question d�Edward Levay, YvesGuérard précise que les sections auraient avantage à adopterla même période que l�AAI pour la perception de leurs

cotisations. Par conséquent, les cotisations d�ASTIN etd�AFIR deviendraient payables le 1er janvier 1999, égalementpour une période de 18 mois. Après cela, les cotisationsseraient établies sur la base de l�année civile.

Comme il n�y a pas d�autres questions, le Président demandele vote sur la motion visant à adopter le budget pour la périodedu 1er juillet 1998 au 31 décembre 1999. La motion estadoptée à l�unanimité.

Motion 15 : Que le cabinet de Deloitte et Touche soitnommé vérificateur pour l�exercice 1998-1999.

Avant de passer au vote, le Secrétaire Général informe leConseil que Deloitte et Touche a été le vérificateur du ForumInternational des Associations Actuarielles et de l�InstitutCanadien des Actuaires, lui-même chargé du Secrétariat del�AAI. Il serait pratique et rentable que l�AAI ait le mêmevérificateur, et il fait remarquer que cette décision pourraitêtre modifiée à l�avenir mais qu�il n�y aurait aucune raisonparticulière de choisir quelqu�un d�autre pour l�instant.

Le Président Berthon demande le vote sur la motion, qui estadoptée à l�unanimité sauf pour une abstention.

REMARQUES PAR LE NOUVEAU PRÉSIDENTDÉSIGNÉ DE L�AAI

Jean Berthon : «Tout d�abord, je me rejouis que nous soyonsmaintenant 39 associations Membres titulaires del�Association Actuarielle Internationale et 19 associationsMembres observateurs. Parmis ces associations qui sontMembres observateurs figurent sept associations qui l�étaientdéja au niveau du Forum et 12 qui sont devenus observateurspar le statut qu�elles avaient d�être Membre Donateur A del�AAI. Je ne doute pas qu�un certain nombre d�entre ellesdemanderont rapidement leur adhésion en tant que Membretitulaire de l�AAI.

Il est dans mon intention de ne pas changerfondamentalement le mode de fonctionnement que nousconnaissions jusqu�à ces derniers temps au Forum. Je croisque la nouvelle structure se traduit plus aujourd�hui par unchangement du nom avec un Comité du Forum qui est devenule Conseil de Direction de l�AAI, avec des Comités de l�AAIqui sont les anciens sous-comités du Forum.

Pour ceux d�entre vous qui n�étaient pas à Coventry ou quin�ont pas assisté à la dernière réunion du Conseil de l�ancienAAI, permettez moi de vous rappeler quels sont les différentscomités en existence aujourd�hui de même que le nom deleur président. Afin que vous puissiez associer un visage àchaque nom, je demande à chaque président de se leverlorsque je le présenterai, à commencer par le Comité del�agrément. Le Comité de l�agrément est chargé d�approuver

50

les demandes d�adhésion et de veiller à ce que les nouvellesassociations respectent les exigences de leur adhésion. Leprésident de ce comité est Howard Webb, qui estmalheureusement absent pour cause de maladie.

Le Comité de consultation et d�aide est chargé de promouvoirla profession dans les pays en développement actuariel et àdonner des conseils sur la manière d�établir des organismesactuariels, entre autres choses. Luis Huerta en est le présidentdepuis la dernière réunion tenue à Coventry.

Le Comité de vérification est chargé de recommanderl�adoption des états financiers annuels et la nomination d�unvérificateur. Il reste encore à désigner un président, ce quenous ferons dans la proposition du Comité des mises encandidature qui sera présentée à Cape Town.

Le Comité de l�éducation est chargé de proposer les lignesdirectrices de formation et de favoriser le perfectionnementdes actuaires à vocation internationale grâce à la constitutiond�une base de données portant spécifiquement sur lesexigences de la formation continue. Le président en estMalcolm Murray.

Le Comité des normes comptables de l�assurance du CINCest chargé d�analyser les réponses envoyées au CINC au sujetde l�élaboration de normes comptables sur l�assurance. SamGutterman en est le président.

Le Comité de la norme comptable sur les avantages sociauxdu CINC a à peu près le même mandat sauf qu�il porte sur lanorme comptable des avantages sociaux. Paul Thornton estle président.

Le Comité de la réglementation de l�assurance est un nouveaucomité, qui, entre autres choses, est chargé d�entretenir descontacts avec le CINC sur des questions qui ont trait à laréglementation et à la supervision des sociétés d�assuranceset à d�autres questions. Peter Kuys est le président.

Le Comité des services aux membres individuels a été crééà la dernière réunion du Conseil de l�AAI. Il a pour but depromouvoir les intérêts des membres individuels au sein del�AAI. Martin Balleer est le président et il vous dira quelquesmots lorsque j�aurai terminé.

Le Comité des mises en candidature présente toutes lescandidatures au Conseil ainsi que les propositions aux postesde président, président désigné, l�établissement des nouveauxcomités et la désignation des mandats. Il est présidé parWalter Rugland, ancien président du FIAA.

Le Comité des déclarations publiques est chargé d�établirdes lignes directrices sur l�émission des déclarations

publiques de l�AAI. Son président est Junzo Tanaka.

Enfin, le Comité de la sécurité sociale a pour rôle d�entretenirdes relations avec l�Association internationale de la sécuritésociale, plus particulièrement avec le Comité exécutif desactuaires et statisticiens. Il est présidé par Reg Munro.

Nos procédures comportent une modification importantepuisque les présidents de comités ne sont pas membresd�office du Conseil et qu�ils doivent donc être invités par lePrésident pour assister ou participer aux discussions. Je peuxvous assurer que j�ai l�intention de le faire en permanence.J�invite tous les présidents de tous les comités à participer àtous les travaux du Conseil à compter d�aujourd�hui.

Maintenant que nous avons démontré que nous étionscapables de représenter la profession à l�écheloninternational, en établissant des contacts étroits avec desorganismes internationaux comme le CINC, l�AICA etl�AISS, je crois que nous serons un peu plus proactifs quenous l�avons été au lieu d�être seulement réactifs auxproblèmes.

Cela veut dire pour ma part que, par exemple, nous pourrionschercher à établir un comité chargé de définir notre positionconcernant les réglementations dans l�industrie bancaire. Jepense en particulier à tout ce qui est developpé au niveau dela banque des règlements internationaux et qui concernel�utilisation des modèles internes pour la mesure des risques.

De la même manière, je suis sûr qu�il pourrait être très utilede garder contact avec des institutions comme IAMRN, GIPS(association européenne chargée d�établir des normes depratique sur la mesure du rendement). Beaucoup d�actuaireset de cabinets d�experts-conseils travaillent déjà dans cesdomaines et, à titre d�organisme professionnel, nous devrionsaussi le faire. De toute évidence, nous devons être représentésauprès des plus importantes organisations qui, d�une façonou d�une autre, contrôlent les domaines dans lesquels lesactuaires ont un rôle à jouer, et nous devons être prêts àentretenir avec eux des contacts.

De plus, vu notre incorporation en vertu de la loi suisse,nous devons obtenir des Nations Unies une reconnaissanceà un plus haut niveau. Cependant, nous devons êtreconscients qu�il n�y a rien de plus improductif que de nepouvoir offrir à une institution la collaboration qu�on lui apromise. Je termine donc sur cette note aujourd�hui.

Nous avons besoin du soutien des associations nationales sinous voulons prospérer. Nous avons besoin de leur aidesous plusieurs formes. D�abord, nous avons besoin d�ellespour choisir un bon représentant au bon moment et àdifférents niveaux : Conseil, comités ou groupes de travail,le cas échéant. Je suis à peu près certain que cette sélection

51

a déjà eu lieu et que nous serons très heureux de travailleravec tous les membres actuels de ces comités. Rappelez-vous simplement que c�est votre devoir de nommer undélégué à chaque comité, sauf aux Comités exécutif et desmises en candidatures, dont le nombre de membres est limité.

En deuxième lieu, nous devons aussi avoir accès à une partiede vos ressources internes. Par exemple, nous aimerionsparfois être en mesure de commander une étude à uneassociation ou à un groupe régional d�associations. Celasera essentiel si nous voulons accomplir des choses car,comme vous le savez, étant une association d�associations,l�AAI sera très peu fortunée et ne pourra compter que surdes ressources très restreintes.»

COMITÉ SUR LES SERVICES AUX MEMBRESINDIVIDUELS

Le Président souhaite la bienvenue au président du comité,Martin Balleer, et lui demande de dire quelques mots au sujetdu rôle du comité.

«Merci, Monsieur le Président. Je suis heureux de vousprésenter quelques brèves observations sur le Comité surles services aux membres individuels, qui a récemment étécréé pour répondre aux besoins de nos membres. Lesresponsabilités du comité sont énumérées en premier lieudans les Statuts puis dans le Règlement Intérieur. Le comités�est déjà réuni pour discuter de ce qu�il fera. Nous devonsinformer par lettre les membres que notre comité a pourmandat de satisfaire leurs besoins particuliers. Comme il nesera pas possible de dresser un Index de tous les membres, ilfaudra trouver quels sont les besoins spéciaux des membreset les préciser davantage. Nous pourrions le faire au moyende questions intégrées dans un sondage mené par nos amisbritanniques pendant ce Congrès, selon les besoinsprofessionnels et scientifiques.

Nous devons examiner le côté scientifique et les ponts quiexistent entre les spécialistes et les universités. Nous venonstout juste de fonder un petit groupe de travail, composé dePeter Kuys, Hans Bülhmann et moi-même, pour étudier cettequestion. Un des points qui seront analysés est le besoinéventuel d�accroître la communication sur les compétencesentre les Congrès, sauf dans le cas d�ASTIN et d�AFIR quise réunissent tous les ans.

Nous devons établir notre mandat selon nos nouveaux Statutset le Règlement Intérieur. Cela fait, toutes les associationsdevraient désigner un délégué à notre comité. Cette personnepourrait aborder de façon très particulière les besoins précisésci-avant. Nous sommes donc à peu près certains de ne pasnégliger les activités traditionnelles de l�ancienne AAI, et

nous veillerons à promouvoir ces activités auprès de noscollègues dans le reste du monde. Merci.»

NOMINATIONS AUX COMITÉS

Le Président indique qu�il n�y a aucune nomination nouvelleà des comités.

RÉUNIONS FUTURES DU CONSEIL, DESSECTIONS ET DES COMITÉS

Yves Guérard annonce l�adoption des dates des prochainesréunions du Conseil :

� Cape Town, le 3 novembre 1998� Madrid, le 18 avril 1999� Tokyo, le 29 août 1999� Paris, le 11 décembre 1999

Il signale au Conseil que l�Association d�Israël a invité leConseil de l�AAI à tenir une réunion qu�elle parrainerait audeuxième trimestre de l�an 2000. Nous avons aussi reçuune invitation de l�Institut Canadien des Actuaires qui désirenous accueillir le 22 novembre de l�an 2000 à Ottawa(Canada).

Yves Guérard accuse réception de l�invitation reçue duCol.legi de Actuaris de Catalunya, qui désire que le Conseilde l�AAI tienne sa réunion à Barcelone au quatrième trimestrede 2001. Il précise qu�une invitation pour la même périodea été reçue de l�Actuarial Society of Hong Kong. Celle-cisonge à accueillir le Conseil dans la dernière partie d�octobre2001, de concert avec la Conférence actuarielle d�Asie del�Est, invitation qui a aussi été lancée à ASTIN et AFIR. LaConférence actuarielle d�Asie de l�Est a lieu tous les deuxans et attire entre 200 et 300 actuaires.

Vu le conflit de dates, Félix Arias, du Col.legi de Actuarisde Catalunya, indique que le Col.legi invitera le Conseil pournovembre 2002 plutôt que 2001. Comme il y a une ouverturepour le deuxième trimestre de 2001, Jorge Garcia proposeque l�Instituto dos Actuários Portugueses organise la réuniondu Conseil à ce moment.

CONGRÈS DE 2002 À CANCUN (MEXIQUE)

Luis Huerta présente à l�adoption du Conseil les règlementsproposés pour le 27e Congrès International des Actuairesqui aura lieu à Cancun (Mexique) en mars 2002.

Le Président recommande que les nouvelles procédures del�AAI soient respectées et que les règlements proposés soientconfiés au Comité sur les services aux membres individuels

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qui les analysera et présentera au Conseil unerecommandation en ce sens à sa réunion de Cape Town, ennovembre.

CONGRÈS DE 2006

Le Président annonce qu�une motion visant à tenir le Congrèsde 2006 en France sera présentée à la prochaine réunion àCape Town.

Félix Arias présente les résultats d�un sondage mené par leCol.legi au sujet de la tenue d�un pré-Congrès à Barcelone.Il communiquera avec Martin Balleer et le Comité desservices aux membres individuels qui décideront de lapertinence d�un telle activité.

AUTRES

Peter Kuys propose de tenir à l�avenir les réunions descomités pendant une journée complète de manière à ce queles membres qui siègent à plus d�un comité puissent assisterà toutes les réunions.

Paul Thornton : «J�ai l�impression que cette occasionhistorique ne serait pas tout à fait complète sans remercierencore une fois le Président sortant. Si je ne m�abuse, nousl�avons déjà remercié, lui et bien d�autres, lors de rencontresprécédentes pour tout le travail accompli, mais nous nel�avons pas encore assez remercié de la façon adroite dont ila présidé l�Assemblée Générale du lundi 8 juin.»

Les commentaires de Paul Thornton sont appuyés par desapplaudissements nourris des participants.

AJOURNEMENT

L�ordre du jour étant épuisé, la séance est levée à 18 h 30.

PROCHAINE RÉUNION

La prochaine réunion aura lieu à Cape Town, le 3 novembre1998.

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10. REPORT ON BIRMINGHAM CONGRESSFROM U.K. INSTITUTE

The 26th International Congress of Actuaries was held inthe United Kingdom at the International Convention Centre,Birmingham from 7-12 June 1998. It was hosted jointly bythe Faculty and Institute of Actuaries.

983 participants, 374 partners and 19 children attended theCongress from 61 countries, many of which were representedat a Congress for the first time.

The Honorary President of the Congress was HRH The Dukeof Edinburgh and Honorary Vice Presidents were the PrimeMinister, the Chancellor of the Exchequer, the President ofthe Board of Trade, the Secretary of State for Social Security,the Lord Lieutenant of West Midlands and the Lord Mayorof Birmingham.

The Scientific Programme was very different from those inthe past, no themes were named and fewer of the workingsessions were plenary. At this Congress, papers were dividedinto groups of three or four for discussion purposes and,throughout the Tuesday and the Thursday, there were fivestreams of parallel sessions covering Life Assurance,Pensions and Social Security, General Insurance, Health &Long Term Care, and Investments, Banking & Finance. Inaddition, there were guest speakers on each of the five mainsubjects. The feedback from the Congress was that thesearrangements provided very worthwhile discussions at almostall the working sessions, which were well attendedthroughout the Congress. In a survey of participants carriedout at the end, 98% wanted parallel sessions to continue atfuture Congresses, and 90% supported not having a speciallydesignated theme. Also new at this Congress were PCdemonstrations and Poster Displays. These too were foundto have been worthwhile.

In all, 168 papers were received for discussion andthese were published in eight volumes and mailed to allparticipants in advance of the Congress. The final volume,which will contain a report on the discussions which tookplace, is currently in preparation and will be issued earlynext year.

In order to maintain a fee level similar to past Congresses, itis customary and expected that the host country will pay forabout 20% of the costs as a subsidy. After much discussionamongst actuaries and employers, it was agreed that, on thisoccasion, insurance companies and consultants would allcontribute towards the Congress £150 per UK actuaryemployed. We are very grateful to them for the generosity

of their support which enabled the Congress to go ahead. Inaddition, 16 employers also paid for and arrangedentertainment which took place at various venues on theMonday evening providing hospitality for all participantsand their partners.

In order to support the attendance of those from actuariallydeveloping countries some £65,000 was provided in bursariesfrom the Staple Inn Actuarial Society, the Hey and JohnsonFunds, the Faculty and Institute of Actuaries, and theInternational Promotion and Education Fund of the IAA. Inaddition, the Canadian Institute of Actuaries and theInternational Actuarial Association both offered money inthe form of bursaries based on surpluses generated from the1992 and 1995 congresses in Montreal and Brussels. Thegenerosity of all those involved enabled a total of 41 peoplefrom 21 countries to receive support, including some fromcountries not previously represented at the internationalcongresses. It is intended to continue this tradition and,depending on the final financial outcome of the 1998Congress, a sum of money will be offered to the organisersof the 2002 Congress in Cancun to be spent on bursaries,thus enabling the Congress to maintain its world-wideperspective.

Apart from the scientific sessions, the Congress also includeda number of highly successful social occasions and thetraditional �day out� on the Wednesday. At this Congress,the day out offered participants and their partners the choiceof playing golf at Edgbaston, experiencing the thrills of atheme park at Alton Towers or visiting Chatsworth Houseand enjoying the activities of an English country fayre. Over1000 people chose the latter and were rewarded with a highlymemorable occasion on which the sun shone - something inshort supply during the Congress week as a whole!

Another highlight of the week was the concert given by theCity of Birmingham Symphony Orchestra in the worldfamous Symphony Hall, for which a programme of Britishmusic had been selected. As part of the programme, becauseof the celebrations for the 150th Anniversary of the foundingof the Institute, the Concert Overture entitled �Certum exIncertis� was specially commissioned from composer JudithWeir. The concert was recorded and later broadcastnationally.

Throughout the Congress, there was a very active programmefor partners. A team of wives was on duty in the hospitalityroom, which became a welcoming base for partners

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throughout the week. Other wives acted as hostesses duringthe tours, which were organised to a variety of places aroundBirmingham including Stratford upon Avon, BlenheimPalace, Warwick Castle and Oxford. Feedback from partnersreflected their appreciation of these arrangements. Anotherinnovation for this Congress was the newspaper, the CongressHerald, which was delivered to participants daily in theirhotels, providing instant reports with photographs of theprevious night�s social events and a preview of the day instore.

Planning for the Congress began back in 1989 when the IAAgave approval to the holding of a Congress in the UK in1998 to coincide with the 150th anniversary of the foundingof the Institute of Actuaries and the birth of the actuarialprofession world-wide. Work began in earnest in 1992 andmany actuaries and their partners have done much over theyears to make the Congress happen. The brunt of theworkload, however, fell on three people in particular: HughScurfield, Chairman of the Congress Committee, DavidWilkie, Chairman of the Scientific Committee and KevinMcBrien, Chairman of the Organising Committee. Withouttheir unflagging commitment the Congress would not havebeen the success it was.

The UK profession was proud to play host to the Congressduring its 150th anniversary year and wishes the organisersof the 27th Congress all the best for the first Congress of thenew millennium.

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11. REPORT ON CAPE TOWN MEETINGS /RAPPORT SUR LES RÉUNIONS TENUES À CAPE TOWN

The Council of the IAA met on November 3, 1998 in CapeTown, South Africa in conjunction with the JubileeConvention of the Actuarial Society of South Africa. A fullreport on the meeting will be published in the April 1999issue of the Bulletin.

In addition to the Council, the following committees alsomet in Cape Town on November 2: Accreditation, Adviceand Assistance, Education, Executive, IASC InsuranceAccounting Standards, Insurance Regulation, Nominations,Services for Individual Members, Social Security.

The meetings attracted 50 participants (and 26 spouses) from13 countries representing 19 associations and 1 section. Atotal of ten conference call participants joined the meetingsof six committees. The delegates present and voting at theCouncil meeting represented 62.3% of the total voting rightswhich, when combined with the mail and electronic ballotsreceived, accounted for 73.6% of the total voting rights.

Le Conseil de l�AAI s�est rencontré le 3 novembre 1999 àCape Town (Afrique du Sud) conjointement avec laconférence du jubilé de l�Actuarial Society of South Africa.Le rapport de la réunion sera publié dans l�édition d�avril1999 du Bulletin.

Outre le Conseil, les comités suivants se sont rencontrés àCape Town le 2 novembre : Accréditation, Aide etconsultation, Éducation, Exécutif, Normes comptables surles assurances du CINC, Réglementation de l�assurance,Nominations, Services aux membres individuels, Sécuritésociale.

Cinquante participants et 26 conjoint(e)s représentant 13pays, 19 associations et une section ont assistés aux réunions.En outre, 10 individus ont participé par appel conférenceaux réunions de six comités. Les délégués ayant droit devote et qui ont participé à la réunion comptaient pour62,3 % de tous les votes. Ce pourcentage s�élève à 73,6 %si l�on tient compte des scrutins reçus par la poste ou parvoie électronique.

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12. RESEARCH IN PROGRESS

RECHERCHES EN COURS

NORTH AMERICA

CASUALTY ACTUARIAL SOCIETY

1100 North Glebe Road, Suite 600Arlington, VA 22201Phone: (703) 276-3100Fax: (703) 276-3108Web site: http://www.casact.orgE-mail: [email protected]

CALL PAPER PROGRAMS. Annually the CasualtyActuarial Society conducts four-five call paper programs onvarious topics. The papers accepted by these programs arepresented at a Society meeting or seminar and are publishedin the Discussion Paper Program or Forum. Currentprograms include:

1999 Discussion Program. Papers have been invited on�Securitization of Risk.� Accepted papers will bepresented at the 1999 CAS Spring Meeting in Orlando,Florida during May 16-19, 1999. The Michelbacher Prizeof $1,000 will be awarded to the author of the best paper.

1999 Committee on Reserves Call for Papers. The topicfor this call paper program is �Evaluation of Non-LossReserves.� Several authors will be invited to present theirwork at the 1999 Casualty Loss Reserve Seminar inScottsdale, Arizona during September 13-14, 1999. Aprize of $1,000 will be awarded to the author of the bestpaper.

1999 Ratemaking Call for Discussion Papers. Paperson any ratemaking topics are welcome, but papers arepreferred which focus on the considerations listed in theCAS Statement of Principles Regarding Property andCasualty Insurance Ratemaking. These topics include�Environmental Exposures in Personal Lines Policies,��Risk Securitization,� �Managed Care,� �Affordability/Availability,� and �Revisiting the Basics.� A few authorswill be asked to present their papers at the 1999Ratemaking Seminar in Nashville, Tennessee duringMarch 11-12, 1999. A $1,000 prize will be awarded tothe author of the best paper.

1999 Dynamic Financial Analysis Call for Papers. Thefocus of this call is estimating parameters for dynamicfinancial models. It is expected that each paper willinclude a) discussion of the theoretical considerationsused to identify the modeled relationship, b) specificexamples of the techniques used to derive the parameterestimates, c) the calculations performed to derive the

parameter estimates, and d) discussion and illustration oftests used to confirm the statistical significance of theestimated parameters. Authors may be invited to presenttheir papers at the 1999 CAS DFA Seminar in Chicago,Illinois during July 19-20, 1999. Prizes of up to $5,000will be awarded to the authors of the best papers.

REQUESTS FOR PROPOSALS. The Casualty ActuarialSociety conducts various funded research projects. Researchreports are published in the Forum. Research on �AggregateLoss Distributions: Convolutions and Time Dependency�sponsored by the Committee on Theory of Risk, has recentlybeen completed.

ACTUARIAL EDUCATION AND RESEARCH FUND.The CAS jointly sponsors the research work of the AERFwith other North American actuarial organizations.

PROCEEDINGS PAPERS. The CAS annually publishesrefereed papers which are accepted by the Committee onReview of Papers in the CAS Proceedings. These papersmay be on any property and casualty topic, and acceptedpapers are presented by the authors at the CAS Spring orAnnual Meetings. The 1997 Proceedings was published inOctober 1998, and the 15 research papers in this issue areon the CAS Web Site (http://www.casact.org).

CAS WEB SITE. An online catalog of research articlecitations is maintained in a searchable database on the CASWeb Site. Additionally, a download library is availablewhereby users can download full texts of research articles.

SOCIETY OF ACTUARIES

RESEARCH HIGHLIGHTS

Listed below are highlights of recent Research Departmentactivity, reflecting the status of activity in August 1998.

News from Committee on Knowledge ExtensionResearch (CKER)

Present Value Based Measurements In Actuarial Practice:This project is being monitored using SOA project oversightprocess but managed through Actuarial Education &Research Fund (AERF). The researcher, Irwin Vanderhoof,has selected a title for the book and has outlined the subjectsto be covered. He has completed the first chapter of thebook which has been forwarded to the POG.

Financial Markets Approach to Valuation: The researcher,Sam Cox, has forwarded the first report to the POG.

57

Empirical Likelihood in Insurance: Funding awarded forthis project is for graduate student, Louis Doray, and typingexpenses.

Random Mortality Rates And The Analysis Of SelectiveLapsation: The researcher, Bruce Jones, has completed theproject. The paper was published in the January 1998 issueof the North American Actuarial Journal (NAAJ).

Interaction Between Asset Liability Management AndRisk Theory: The POG and the CKER agree that the finalpaper submitted by the researcher, Professor Jacques Janssen,needs some editing before it can be approved as a final paper.Comments and suggestions are being compiled and will besent to the researcher.

The 1996 Accidental Death Mortality Table: AComprehensive Analysis of Recent Accidental DeathExperience: The CKER has approved the final paper byJay M. Jaffe and recommendations of the POG. The paper isavailable on the SOA Website. A copy of this paper is alsoavailable for a $5.00 from the SOA Books Department. Thefinal paper will be included in a future issue of the TSAReports. This research was the topic of a session at the first1998 Spring meeting in June.

Is Social Security A Regressive System?: The researcher,Robert L. Brown, has completed the project. The paper waspublished in the April 1998 issue of the North AmericanActuarial Journal (NAAJ).

Statistical Analysis of Small Size Insurance Data SamplesOn The Basis of The Sufficient Empirical Averaging(SEA) Method: The first draft has been reviewed by thePOG. The POG has forwarded its suggestions to theresearcher, Evgenity Chepurin.

An Actuarial Index of The Right-Tail Risk: The researcher,Shaun Wang, has completed the project. The paper waspublished in the April 1998 issue of the North AmericanActuarial Journal (NAAJ).

Bounding And Asymptotic Behavior of Ruin ProbabilitiesIn Collective Risk Theory: The researcher, VladimirKalashnikov, has completed the project. The paper has beenaccepted by the North American Actuarial Journal (NAAJ)for publication. The Abstract and Introduction section willbe included on the Society of Actuaries Website, with anotification that the complete paper has been accepted forpublication. Until published in the NAAJ, a photocopy ofthis paper will be available for $5.00 from the SOA BooksDepartment.

Credibility Using A Loss Function From Spline Theory:Practical Considerations: The researcher, Virginia Young,

has completed the project. The paper has been published inthe January 1998 issue of the North American ActuarialJournal.

Medical Savings Account Plans: A Theoretical andEmpirical Analysis: The POG, after reviewing the seconddraft, decided that it was necessary to cancel this project.The researcher was given a partial payment and given allintellectual property rights and the copyright to the work.The SOA and its Health Section were released from furtherfinancial obligations associated with the project.

Valuation of Credit Line Commitments Subject to CreditRisk: The researchers, Daniel Dufresne and J. P. Chateau,have submitted their final report for POG review.

The Cost of Mismatch in Stochastic Interest Rate Models:The first report by Michel Jacques was submitted for POGreview. The POG forwarded comments and suggestions forthe researcher to incorporate in the next report.

Generalized Cox, Ingersoll & Ross Model: Statistics andValuation of Interest Rate: The first report has beensubmitted by the researcher, Wojciech Szatzschneider, forPOG review.

Statistical Methods for Monitoring Health Care ProcessMeasurements: Consistent with the letter of agreement,the first payment has been forwarded to the University ofWisconsin for this research. The researcher, MarjorieRosenberg, intends to submit the final paper to the newjournal, Health Services and Outcomes ResearchMethodology.

Pricing Practices for Joint Last Survivor Insurance: Thethird report has been reviewed by the POG. The POG issubmitting its comments and suggestions to the researcher,Heekyung Youn.

Mathematical Models and Software For FinancialOrganizations at Risky Markets: A signed letter ofagreement has been received from the researcher, AlexanderVasin. Expected date of completion is summer of 1999.

Tight Approximation of Basic Characteristics of Classicaland non-Classical Surplus Processes: A signed letter ofagreement has been received from the researcher, VladimirKalashnikov. Time frame for this project is summer of 1999.

Application of Nonparametric (Model Free) Techniquefor Forecasting Big Jumps and Falls in Interest RateValues: The letter of agreement has been signed. Theresearchers are Faye Albert, Dr. Vladimir Cherepanov, andDr. Vladimir Ladyzhets. The first report has been receivedand will be reviewed by the POG.

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Inflation-Parameter Family of Discrete ProbabilityDistributions and Their Application in Analysis of Over-and Underdispersed Insurance Data: The researchers forthis project are Nikolai Valtchev Kolev, Leda DimitrovaMindova, and Plamen Nikolov Neytchev. A letter ofagreement is being drafted.

Asymptotic Behavior of Non-Homogeneous RiskProcesses and Ruin: The researchers for this project areVictor Korolev, Vladimir Bening, and Oleg Vinogradov. Theletter of agreement is being drafted.

Modern Modeling Technologies for Pension Actuaries:The researcher for this project is Arnold F. Shapiro. Theletter of agreement will be drafted once responses have beenreceived from the other possible funding sources.

Social Security System as a Part of Capital Markets: Theresearcher for this project is Krzysztof M. Ostaszewski. Thisproject has been approved for matching funding of up to$6,000 U.S. by the CKER if other funding sources supportthis project.

Application of Quasi-Monte Carlo Methods to ActuarialScience: The researchers for this project are Phelim Boyleand Ken Seng Tan. A letter of agreement is being drafted.

Robust Methods in Actuarial Science: The AERF ismanaging the oversight of this project. Based on the firstprogress report received in February 1998, the first paymentwas made to the researcher, Robert Serfling.

Credibility and Equity: The AERF managed the oversightof this project. The researchers, S. David Promislow andVirginia Young, have submitted their paper to theScandinavian Actuarial Journal for publicationconsideration. The research was also presented at the August1998 Actuarial Research Conference (ARC) at Georgia StateUniversity.

FINANCE NEWS

1986-94 Private Placement Study: This study is very nearcompletion. Additional analyses that have been performedwere reviewed in a conference call on August 24 and anintegrated draft of the report will be reviewed in a conferencecall on September 10. This material will be presented at asession at the annual meeting in New York in October.

1986-97 Private Placement Study: The next request fordata will be made when the 1994 study is essentiallycomplete. The instructions are being reviewed and expandedfor this purpose. They will be made year 2000 compliant.They are being expanded to reflect recent developments inthe Private Placement market. This will be discussed further

on the September 10 conference call (1986-94Private Placement Study).

Implications of Long-Term Interest Rate Guarantees inPensions & Insurance: Five papers were received by theMarch 31, 1998 submission deadline. Two $3,000 prizeswere awarded; one to Jacques F. Carriere for his paper titled�Long-Term Yield Rates for Actuarial Valuations� and oneto Yong Yao for �Term Structure Models: A Perspective fromthe Long Rate.� The prize-winning papers will be publishedin the North American Actuarial Journal.

�Value at Risk� Measurement Application to LifeInsurance: The POG decided to expand the scope of theresearch to investigate integrated approaches to riskmeasurement in the financial services industry. A call forpapers was released. Invited and accepted papers werepresented at a conference on December 8 and 9, 1997 inAtlanta, Georgia. Approximately 85 persons attended theconference. All papers presented at the conference areavailable through the Books Department of the SOA for$20.00. Tapes are available through Teach �Em. Selectedpapers will be published in a special issue of the NAAJ inJanuary 1999.

Study of the Use of Derivative Instruments by theInsurance Industry: The first paper, titled �CorporateHedging in the Insurance Industry: The Use of FinancialDerivatives by U.S. Insurers,� appeared in the first issue ofthe NAAJ in January 1997. The second paper, titled �TheUse of Financial Derivatives in Corporate Risk Management:Participation and Volume Decisions in the InsuranceIndustry,� has been submitted to the Journal of Risk andInsurance for publication consideration.

Boundaries of Risk - Follow Up: The call for papers on thetopic of �Expenses in Financial Analysis - Business andRegulatory Implications� has been completed. The prize-winning paper is a comprehensive review of life insurancecompany expenses as it relates to pricing and financialreporting. The paper was presented at the 1998 SOA SpringMeeting. It is being revised from comments received fromthe review panel and feedback from attendees at the SpringMeeting session. The Committee on Finance Research isworking with the Financial Reporting and ProductDevelopment Sections to publish the paper as a monograph.

Actuarial and Financial Modeling Conference II: Themodeling conference will be held on December 14 and 15,1998 in Orlando, Florida. Papers that won the Ed Lew awardin modeling research will be presented at the conference.Presentations on the practical use of models in solvencytesting will be made. Presentation and discussion of the

59

Course 7 (Modeling Seminar) in the new SOA Exam Systemwill also be featured at the conference.

Monograph on Stochastic Calculus and StochasticDifferential Equations: The monograph is intended tointroduce practicing actuaries and students to the rapidlyexpanding field of financial mathematics. X. Sheldon Linis the author. A first draft is expected in early September.

Fair Value Accounting: This is the next step in a processthat began with the December 1995 conference on Fair Valueof Insurance Liabilities. The goal is to extend and updatethe body of knowledge from the first conference; to highlightsimilarities in various theoretical developments; and worktowards resolution of differences and implementation issues.The Financial Reporting Section provided considerable helpin recruiting a project oversight group. A call for papers hasbeen released. The deadline for submission of papers isOctober 30, 1998. The conference will be held on March18 and 19, 1999 at NYU in New York. Association forInvestment Management Research (AIMR), FinancialAccounting Standards Board (FASB), Life OfficeManagement Association (LOMA), and InternationalAccounting Standards Committee (IASC) will alsoparticipate.

HEALTH BENEFIT SYSTEMS

Individual Disability 1992-?: A meeting was held inSeptember 1997 on the future direction of this study. It wasdecided the study should continue, but that extensive changesare necessary to reflect the current products and marketplace.This work will begin after production of the 1991 report andafter the Disability Valuation Task Force helps determinethe future data needs in this area.

Continuing Care Retirement Communities: A formal peerreview of this work was performed in July by Gary Brace,an F.S.A. at Milliman & Robertson and a member of thistask force. His report was distributed to the entire task forceat the end of July. The future of this project is on hold becauseof the untimely death of the lead researcher, Hal Barney, onAugust 5. Discussions to ensure the completion of this workare occurring.

Task Force to Recommend Morbidity Standards forValuation of Group & Individual Disability: The interimreport (dated May 26) of the task force was favorably receivedby the SOA Board of Governors at its June meeting. JuliaPhilips of the NAIC�s LHATF and a SOA Board memberindicated that the NAIC was happy with the direction takenso far and would continue to monitor the project closely.The Individual Disability subcommittee is following up onthe surveys they sent out to obtain as broad an industryperspective as possible.

Health Care Data Bases: Health actuaries looking for datashould visit the National Health Information Resource Center(NHIRC) web site. The NHIRC is an on-line interactiveresource (http:www.nhirc.org) for information about currenthealth data/information projects and data bases. The NationalAssociation of Health Data Organizations (NAHDO)developed the NHIRC and is enhancing it with funding fromthe SOA and the Robert Woods Johnson Foundation.

Managed Care Symposium: The day and a half symposiumwas held in Minneapolis on May 4-5, 1998. It includedpresentations of the two HEDIS studies and the ManagedCare Monograph. Tapes of the presentations are currentlyavailable, and a proceedings is being edited for publication.

Definition of Managed Care Effectiveness: This paperwas presented at a symposium in Minneapolis in May of1998, and at the workshop meeting of the Chicago ActuarialAssociation in March 1998. Jill Schield is revising the draftdocument for a final review by the Working Group onManaged Care Effectiveness.

Integrative Medicine: David Eisenberg, M.D., of the Centerfor Alternative Medicine Research at Harvard MedicalSchool, has completed a study of alternative medicine withfunds from the John E. Fetzer Institute and National Institutesfor Health. The SOA has contributed $25,000 toward thisstudy. The paper has been submitted to JAMA for publicationconsideration. The POG will have access to Dr. Eisenberg�sdata; they are also planning to collect data from health plans.

HEDIS® 3.0 Measures Study: This paper was presentedat a symposium in Minneapolis in May 1998. The researchersare preparing a final draft for review by the POG.

Credibility for Health Coverages: Tom Herzog and JimRobinson will present a seminar November 2-3 in Chicagocovering credibility theory using practical examples fromHealth Insurance. Dennis Tolley and Jim Robinson arepreparing an analysis of data from one large company. ThePOG is coordinating a data collection effort with the LargeClaims Database study.

The Relationship Between HEDIS® Measures and HealthPlan Choices: This paper was presented at a symposium inMinneapolis in May of 1998. The paper has been submittedto Medical Care Research and Review for publicationconsideration.

Large Claims Experience Study: A conference call washeld on May 27 to review the specifications that have beendeveloped. Specifications are in their near final form forcertain carriers, but need to be finalized for others.

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LIFE INSURANCE UPDATE

1985-90 Basic Tables: A draft of the 1985-90 Basic Selectand Ultimate Mortality Tables for Individual Life Insurancehas been placed on the SOA web site. Four tables havebeen produced for this report: age nearest birthday and agelast birthday for both males and females. The tables havebeen produced for individual issue ages 0 through 99 on a25-year select basis and for ultimate attained ages 25 through110. Smoking status tables were not produced.

Structured Settlements 1995: Tables representing this datawill be reviewed in the fall of 1998 and a decision madethen on producing a report or deferring a report until the1997 study. If the latter, the 1995 tables would be generallyavailable.

Preferred Underwriting Study Development: A reviseddraft specifications document was reviewed at a meeting onJuly 13 and 14 and is being distributed to the target group ofcontributors by the end of the summer. The next conferencecall is being scheduled for the end of August and the nextmeeting will be in San Francisco at the end of October.

Lyme Disease Study: In May 1998, Irwin Vanderhoofsubmitted a paper to the Journal of Spirochetal and TickDiseases containing the results of his lyme disease study.Currently further research is being done based on responsesto a follow-up questionnaire.

Actuarial Modeling: In phase one, the researchers analyzedthe impact of economic factors on the performance of lifeinsurers as a whole. Results of this analysis were presentedat the Western Risk and Insurance Association Meeting inJanuary. In phase two, the researchers constructed a databaseof annual statement fields using NAIC tapes for the past 12years with approximately 1,700 companies per year. Theyused the database to examine the impact of both firm specificand economic factors on the performance on individual lifeinsurance companies. The researchers expect to submit arevised paper by October 1998.

Gender Based Mortality Differences: A letter of agreementwas signed with Barbara Blatt Kalben to conduct researchon gender based mortality differences. The objective of theresearch is to prepare a statement reflecting current clinicaland insurance data regarding the mortality differencesassociated with gender and to investigate if there is abiological basis for the observed differences in mortality. Itis expected that the results of this research will be availableduring the first quarter of 1999.

Preferred Underwriting 1995: The report has beenpublished in the 1995-96 TSA Reports beginning on page

353 under the title �Reports of the Society of Actuaries TaskForce On Preferred Underwriting.�

Long Term Bond Yields of Life Companies with JunkBond Portfolios: This study is the extension of Long TermBond Yields of Life Companies with Junk Bond Portfolios1986-92 to cover experience of the 1993 to 1995 calendaryears. The researchers expect to have the first draft ready byOctober 1998. After the results are released this study willbe discontinued.

RETIREMENT SYSTEMS NEWS

Group Annuity 1993-94: Issues relating to calculation ofyear-to-year mortality rates are the only ones outstanding atthis time. It is scheduled for publication in the 1997-98Reports.

Group Annuity 1995-96: The next meeting is scheduledfor the Thursday after the Society�s Annual Meeting in NewYork in October. Preliminary results including 1997adjustments should be available at that time.

Macrodemographic Model Feasibility Study: Acompleted draft report is expected in September.

GATT Mortality Study: The Retirement Plans ExperienceCommittee (RPEC) has constructed base tables by genderand participant status and named them the RP-2000 tables.The final report is being drafted.

Canadian Pensioners Mortality Experience: 1983-1992:The Canadian Institute of Actuaries is pursuing a formal studyof private pension mortality in Canada.

Asset Valuation Methods: The researchers have completeda first draft of the final report. The POG will communicatetheir comments on the draft by the end of August.

Mortality Projections: The Mortality ProjectionsCommittee felt the reports produced by the Impact ofMortality Improvement on Social Security: Canada, U.S. andMexico address many of the goals of this project. Thiscommittee decided to focus on measuring the materiality ofthe mortality projection assumption in a pension planvaluation. The committee is looking for consulting firmsthat will be willing to run some sample projections andvaluations.

Actuarial Aspects of Cash Balance Plans: The RFP hasbeen approved for distribution to U.S. Pension Sectionmembers and academic researchers. The availability of thisRFP will be announced on the SOA web site.

Impact of Mortality Improvement on Social Security: TheUnited States, Canada, and Mexico: Phase 1 of the project

61

concentrated on a study of past experience and an analysisof current literature on mortality improvement in Canada,Mexico and the United States. Mountain View Researchand representatives from the Canadian and U.S. SocialSecurity Administrations produced the Phase 1 papers. Phase2, a seminar held on October 30, 1997, involveddemographers, economists, medical researchers and actuariesin considering mortality forecasting methodologies, factorsaffecting mortality change and mortality assumptions for eachof the three countries. The results of a survey of attendeesof the session served as a basis for Phase 3, a test of theimpact of various mortality improvement assumptions onthe financial status of social security. The results of Phase 3were presented during a February 17, 1998 session at theAmerican Association for the Advancement of ScienceMeeting. The project is complete and Mike Sze hasdischarged the committee with thanks.

Retirement Needs Framework Working Group: Sixteenabstracts have been accepted from a variety of disciplinesincluding actuaries and economists and discuss a variety ofissues. The papers will be presented and discussed at theRetirement Needs Framework conference in Orlando,December 10-11, 1998.

Asset Valuation Methods - Phase 2: The POG plans todistribute a Call for Papers.

Multivariate Analysis of Pension Plan Mortality Data:The researchers will present the results of their analysis tothe RPEC at a meeting in Hartford, CT, on September 14.

1990-94 Retirement Plans Experience Study: The RPEChas decided not to issue a separate report on this experience.The final report for the GATT Mortality Study will include acomplete discussion of this mortality experience, which isvery similar to UP94.

SPECIAL

Ph.D. Grants Program: The Ph.D. Grants Task Forcereceived twelve applications from new candidates and fourapplications from renewal candidates for the 1998-99 Ph.D.Grants competition. The Task Force awarded three newgrants and three renewal grants. New Grants: Kevin Ahlgrim,University of Illinois - Consolidating Risks in the Asset/Liability Management Process of Life Insurers; ChristianeLemieux, University of Montreal - Improving the Efficiencyof Estimators in Simulation; and Serena Ee Ik Tiong,University of Iowa - Deferred Annuities. Renewal Grants:Barbara Remmers, New York University - Valuation Modelfor Catastrophe Insurance Options; Krupa Subramanian,University of Pennsylvania - Competing Merit-RatingSystems in Automobile Insurance (funded by the Casualty

Actuarial Society [CAS]); and Julia Lynn Wirch, Universityof Waterloo - Risk Measures: Redefining Value at Risk.

Education and Research Section Council: The Educationand Research Section Council met in conjunction with theActuarial Research Conference at Georgia State University.Irwin Vanderhoof will be Chairperson for the 1998-99program year. The Section has established a moderated listserver. The purpose of the list server is to facilitatecommunication among the members of the Education andResearch Section and the academic community. The �join�button for the list server is on the Education and ResearchSection page of the SOA web site (under Special InterestSections). The Section is sponsoring the SOA Career Fairand a �teacher bank� for actuarial classes at foreignuniversities. The Council is supporting the Joint Task Forceon Academic Ties in its effort to strengthen the relationshipbetween the profession and the academic community.

Actuarial Research Clearing House (ARCH):Administration of ARCH has been transferred to theCommunications Department. ARCH 1998.1, theproceedings of the 32nd Actuarial Research Conference heldat the University of Calgary, has been distributed. Papers tobe published in ARCH 1998.2 are being compiled.

Actuarial Research Conference: Georgia State Universityhosted the 33rd Actuarial Research Conference from August6-8, 1998. The proceedings will be published in ARCH1999.1. The 34th conference is scheduled to be in DesMoines, Iowa from August 8-11, 1999. The conference isbeing sponsored jointly by Drake University and the PrincipalFinancial Group. The theme will be building bridges betweentheory and practice. The 35th conference is scheduled to beat the Universite Laval in Quebec City from August 10-12,2000. The conference theme is actuarial research at thethreshold of the new millennium.

Joint CAS/SOA Statement of General Principles ofActuarial Science: The August 15, 1998 Discussion Draftof General Principles of Actuarial Science was distributedto the members of the SOA, CAS, American Academy ofActuaries and Canadian Institute of Actuaries in mid-August.There will be sessions regarding the Discussion Draft at theSOA Annual Meeting in New York in October and at theCAS Annual Meeting in Atlanta in November. SamGutterman will present the Discussion Draft at a meeting ofthe Actuarial Society in South Africa the first week inNovember. The Institute of Actuaries in England hasexpressed interest in including the Discussion Draft as a topicat their October Sessional Meeting and has also forwardedthe document to the Chairman of their Education andContinual Professional Development Board. Written

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comments are due by October 15, 1998. The jointCommittees will begin discussion of comments received todate during an October 22 meeting in New York.

Experience Studies Oversight Subcommittee (ESOS):The Experience Studies Oversight Subcommittee met byconference call three times during the spring and summer.During the first call, it was decided that ESOS shouldcontinue with the implementation of the Guidelines forExperience Studies Committees and pursue implementationof other recommendations from the 1995 Experience StudiesTask Force Report. During the second call, participantsreviewed experience committee plans, including updates oncommittee activities. The third call focused on potentialrelationships with other organizations with respect toexperience studies.

UNITED KINGDOM

HERIOT WATT UNIVERSITY

DEPARTMENT OF ACTUARIAL MATHEMATICSAND STATISTICS

The actuaries in the Department are actively engaged inresearch on behalf of the profession in the United Kingdomas members of the following committees:

� The Faculty of Actuaries Bonus and Valuation ResearchGroup (A.S. Macdonald)

� The Faculty of Actuaries Mortality and WithdrawalsResearch Group (A.S. Macdonald and A.J.G. Cairns)

� The FTSE Actuaries Bond Committee (A.J.G. Cairns andA.D. Wilkie)

� The Mortality Sub-Committee of the ContinuousMortality Investigation Bureau (J.J. McCutcheon,Chairman)

� The Permanent Health Insurance Sub-Committee of theContinuous Mortality Investigation Bureau (H.R. Watersand A.D. Wilkie)

� The AIDS Sub-Committee of the Continuous MortalityInvestigation Bureau (A.S. Macdonald and A.D. Wilkie)

� The Minimum Funding Requirement Impact WorkingParty (A.J.G. Cairns)

� The Market Valuation of Pension Funds Working Party(A.J.G. Cairns)

In addition, research within the Department is continuing inthe following areas, in some cases in collaboration withcolleagues in other countries:

Life insurance:

� Stochastic evaluation of solvency valuations for lifeoffices (A.S. Macdonald and N. Katrakis)

� Optimal Asset Allocation (A. Berketi)

� Value at Risk (A.J.G. Cairns)

� Stochastic models for asset shares (Mark Willder)

Permanent Health Insurance:

� Development of a stochastic model for PHI separatingout different causes of sickness (I.M.F. Cordeiro and H.R.Waters)

� Analysis of the claim experience of individual offices(A.A. Korabinski and H.R. Waters)

Mortality:

� Survival analysis, particularly of HIV-infected individuals(W.F. Scott)

� Genetic testing (A.S. Macdonald)

Pensions:

� Stochastic modelling and optimal control of definedbenefit pension funds (A.J.G. Cairns)

� Stochastic modelling of the impact and consequences ofthe Minimum Funding Requirement (A.J.G. Cairns)

� Development of market related valuation methods forpension funds (A.J.G. Cairns)

� The State Earnings Related Pension Scheme (W.F. Scott)

Risk Theory

� Within-model randomness parameter uncertainty andmodel uncertainty (A.J.G. Cairns)

� Numerical algorithms for the calculation of the probabilityof ruin (H.R. Waters)

Investments

� Stochastic investment models and applications toinsurance portfolios (A.J.G. Cairns)

� Stochastic models for bond prices (A.J.G. Cairns)

� Autoregressive stochastic investment models (A.D.Wilkie)

� Continuous time analogues of the Wilkie investmentmodel (T. Chan)

63

UNITED KINGDOM

DEPARTMENT OF ACTUARIAL SCIENCE ANDSTATISTICS

CITY UNIVERSITY, LONDON

LINKS WITH THE PROFESSION

The actuaries in the Department are actively involved inresearch work on behalf of the actuarial profession in theU.K. as members of the following committees:

� AIDS Sub-Committee of the Continuous MortalityInvestigation Bureau investigating the AIDS-relatedmortality of assured lives (S. Haberman).

� Institute and Faculty of Actuaries Investment Group (P.Booth).

� Institute and Faculty of Actuaries Property InvestmentSub Committee (P. Booth)

� Institute and Faculty of Actuaries Banking Sub-Committee (P. Booth)

� Institute and Faculty of Actuaries Research Working Partyon Unitised With Profits Business (R. Chadburn).

� Institute and Faculty of Actuaries Research Working Partyon Investment Strategies for Defined Benefit contributionPension Schemes (Z. Khorasanee).

OVERVIEW OF RESEARCH ACTIVITY

In addition, research within the Department continuesactively in the following areas, in some cases in collaborationwith colleagues in the U.K. and overseas:

Investment

� Investment risk management for defined contributionpension schemes and life insurance companies (P. Booth,Z. Khorasanee).

� Property investment and valuation techniques (P. Booth).

Banking

� Pricing bank lending (P. Booth, I. Allan, R. Verrall, D.Walsh).

Life Insurance

� Stochastic modelling of life insurance companies (P.Booth, R. Chadburn).

� Comparison of unitised and traditional with profit contactsusing stochastic modelling (R. Chadburn).

� Sensitivity of life insurance models to changes inunderlying stochastic investment model (R. Chadburn,D. Wright).

Pensions

� Sensitivity of pension funding to changes in underlyingstochastic investment model (D. Wright).

� Stochastic models of defined benefit pension schemes(S. Haberman, I. Owadally, D. Wright).

� Investment strategies in defined contribution pensionsschemes (Z. Khorasanee).

� Alternative investment strategies for defined benefitschemes (Z. Khorasanee).

� Applying defined benefit principles to definedcontributions schemes (Z. Khorasanee).

� Pension scheme design for members with non-standardwork histories (D. Cooper).

� Taxation and pension scheme costs (P. Booth, D. Cooper).

Non Life Insurance

� Stochastic basis of claims reserving in non-life insurance(A. Renshaw, R. Verrall).

� Premium rating methods in motor insurance (R. Verrall).

� Applications of piecewise deterministic markov processes(I. Savoulli).

� Premium rating in competitive markets (S. Haberman, I.Savoulli).

Mortality and Morbidity

� Sensitivity analysis of a multiple state model forpermanent health insurance (B. Rickayzen).

� Models of mortality trends and of select mortality (S.Haberman, A. Renshaw).

� Trends in permanent health insurance transition intensities(S. Haberman, A. Renshaw, D. Walsh).

� Estimation of mortality rates and related indices (A.Puzey).

� Bayesian approach to graduate theory (R. Verrall).

History

� Historical review of development of actuarial ideas (S.Haberman).

� History of the contribution of women to the actuarialprofession (D. Cooper).

Research Funding

Members of the Department have been successful in gainingresearch support from the funds administered by the Instituteof Actuaries� Research Committee in respect of the followingprojects:

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a) Modelling long term care costs in Great Britain(B. Rickayzen, P. Booth, S. Haberman).

b) Applying actuarial techniques to the valuation of implicitoptions in freehold propery (P. Booth).

c) Testing the sensitivity of model life office simulationsresults to variations in asset model structure (R. Chadburn,D. Wright, P. Huber).

d) Investigation of the analysis of claims on an individualbasis, using Bayesian methods (R. Verrall).

The Department also continues to receive a grant from theContinuous Mortality Investigation Bureau to support itsresearch in the areas of mortality and morbidity.

The Department has been awarded a grant from the NationalAssociation of Pension Funds and Royal Sun Alliance toinvestigate the effect of taxation changes on pension fundcosts.

The Department has been awarded a grant from the Bank ofEngland to investigate the matching of the liabilities ofdefined benefit pension schemes, and from the Society ofActuaries to investigate optimal funding strategies in definedbenefit pension schemes.

The Department continues to receive grants from themembers of the Actuarial Research Club (CGU, Coopers &Lybrand, Government Actuary�s Department, Guardian,KPMG, Hymans Robertson, Munich Re, Swiss Re, WatsonWyatt) which underpin the actuarial research activity of theDepartment.

PUBLICATIONS

Further information on the Department�s research activitiescan be obtained from Steven Haberman. The Departmentproduces a series of research working papers and readers.Those interested in joining the circulation list should contactSteven Haberman. The Department maintains a world wideweb home page on http://www.city.ac.uk.actuarial wherefurther information can be found.

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13. REPORTS FROM MEMBER ASSOCIATIONSRAPPORTS DES ASSOCIATIONS MEMBRES

BRAZILThe Brazilian Institute of Actuaries (IBA)

1. Major Officers Address

President Newton Cezar CondeVice-President Severino Garcia Ramos

Rua da Assembléia, 10s/130420119-900 CentroRio de Janeiro - RJBrasilTelephone No.: 55-21-5312865Fax No.: 55-21-2703848

2. Membership in August, 1998

380 ordinary members,52 corporate members,2 benefactor members,3 correspondent members.

3. Lectures and Workshops

Some lectures and workshops were presented during thislast semester. They were:

� February 11

Lecture: �The Use of Derivatives in the Financial Market�Theodoro Arthur da Costa Messa

� February 9-10

Workshop: �Pension Funds � A Business View�Marilia Vieira Machado da Cunha CastroLuiz Eduardo Guimarães Rodrigues

� March 11

Lecture: �A Defined Contribution Plan � Social SecurityPhilips Association Experience�Carlos Roberto Céglia

� May 12

Lecture: �Reinsurance as an Option of Cost Reduction andRisk Minimization�Regina Célia Mello

� June 9

Lecture: �A Corporate Solution for Pension Funds�Stanley Fidalgo

� July 29-30

Workshop: �Defined Contribution�Newton Cezar CondeEliana SampaioLourival BenetonGeraldo Magela Xavier Lopes

� August 18

Workshop: �Project - Statistics for Actuaries�Ruy Donini Antunes

4. Congress

From August 26-28, the III Brazilian Congress of Actuaries,and the II Pan American Congress of Actuaries were held inRio de Janeiro. The congresses take place every other yearand, hopefully, for the following congresses, more colleaguesfrom other countries may participate and share theirexperience and expertise with us.

5. Seminar

On September 1, the Centre for Studies in Insurance of theFederal University of Rio de Janeiro promoted a seminartaught by Professor Steven Haberman from the CityUniversity of London. The seminar, entitled �How toEvaluate Health Insurance,� was of great value for theBrazilian market. Due to the progress of deregulation inBrazil, it is expected that this type of insurance will have abig increase in the market.

CANADACanadian Institute of Actuaries

September 1997-1998

Membership and enrolment in the Institute as of June1998 stands at

Member/Fellows ................................................. 2,198Students .............................................................. 1,201Correspondents ...................................................... 49

As a result of the election conducted by mail during Apriland May, Council for the 1998-1999 year consists of thefollowing members:

Officers:

President ........................................ Peter F. MorsePresident Elect ............................... Stuart F. WasonImmediate Past President .............. Harry H. PanjerVice-President ............................... Yves Charbonneau

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Vice-President ............................... William F. ChineryVice-President ............................... J. Helmut EngelsVice-President ............................... Patrick F. FlanaganVice-President ............................... Normand GendronVice-President ............................... Daniel L. McCaw

Councillors:

Shiraz Y. M. Bharmal .................... A. David PelletierJohn F. Brierley ............................. Hélène PouliotJames K. Christie ........................... Robert J. SharkeyC. Ian Markham ............................. Frederick J. ThompsonJosephine C. Marks ....................... François VachonMichael D. Mills ............................ Nancy A. Yake

Two seminars and a general meeting are scheduled throughDecember 1998:

� Appointed Actuary Seminar (incorporating both lifeand property/casualty practice) - Toronto, September17-18, 1998

� Investment Seminar - Toronto, November 17, 1998

� General Meeting of the Institute - Toronto, November18-19, 1998

The next Annual Meeting of the Institute will be held inWinnipeg, June 17-18, 1999. The annual Pension Seminaris expected to be held in April, 1999 in Toronto.

The Council of the Canadian Institute of Actuaries hasappointed separate Task Forces to address Flexible PensionPlans, Pension Plan Funding, Transfer Values, ProfessionalConduct, and IASC Insurance Accounting.

The Institute continues to devote time and effort to itsstandards of practice and related matters. The followingrecent documents are available from the CIA Secretariat:

� Report of the Task Force on Non-Traditional Practice -December 1997

� Second Exposure Draft - Consolidated Standards ofPractice - June 1998

� Discussion Draft - Valuation Technique Paper #11 -Valuation of Universal Life Policy Liabilities - June 1998

� Preliminary Report of the Task Force on ComplianceReview - June 1998

� Recommendations of the Task Force on ProfessionalConduct for Revisions to the Disciplinary System of theCanadian Institute of Actuaries - June 1998

� Second Exposure Draft - Dynamic Capital AdequacyTesting (DCAT) - July 1998

� Report of the Task Force on Compliance Review - July1998

� Final Standard - Valuation Technique Paper on Wind-upand Solvency Valuations of Registered Pension Plans -July 1998

The Canadian Institute has, over the past 12 months,submitted advice or comment on actuarial matters to severalgovernmental or professional entities as follows,

� submission to the Government of Ontario regarding thePension Benefits Act - August 1997.

� recommendations to the Québec Employment Ministerregarding Revisions to the Supplemental Pension BenefitsAct - September 1997.

� submission to the Canadian Institute of CharteredAccountants regarding their Exposure Draft onAccounting for Employees� Future Benefits - October1997.

� submission to the Office of the Superintendent ofFinancial Institutions on Reporting of Actuarial Liabilitiesfor P&C Insurance Companies and Branches in Canada- November 1997.

� comment to the Office of the Superintendent of FinancialInstitutions on Draft Guideline for Governance ofFederally Regulated Pension Plans - February 1998.

� comment to the Office of the Superintendent of FinancialInstitutions on Draft Guideline for Governance ofFederally Regulated Pension Plans - February 1998.

� response to the Office of the Superintendent of FinancialInstitutions to Draft Regulation on Prescribed SolvencyLevels for Pension Plans - March 1998.

� submission to the Financial Services Commission ofOntario regarding their Proposals for Delegation ofSuperintendent�s Authorities under the Pension BenefitsAct - April 1998.

� reply to the response of the Office of the Superintendentof Financial Institutions to comments on Draft Regulationon Prescribed Solvency Levels for Pension Plans - April1998.

� response to the Office of the Superintendent of FinancialInstitutions Draft Guideline on Annual DisclosureRequirements for Property/Casualty Insurance - June1998.

� response to Alberta on Draft Revisions to the AlbertaInsurance Act, September 1998.

Copies of any of these documents may be obtained bycontacting the CIA Secretariat, Suite 820, 360 Albert St.,Ottawa, ON, K1R 7X7, Canada. Many are availabledirectly from the CIA web site at <www.actuaries.ca>

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THE CZECH REPUBLICCzech Society of ActuariesJanuary 1 - June 30, 1998

The Czech social security system is to be reformed by addinga second wholly funded mandatory scheme to the basicscheme administered by the state. The Ministry of Labourand Social Affairs attempts to stimulate an extensivediscussion of the variants of the reform by specialists and byinterested public. To this purpose, it has commissioned aresearch team of Ceskoslovenská obchodní banka to preparea report evaluating analogous foreign social security schemestogether with an analysis of three forms of managing thescheme in the Czech Republic, namely by the state, by apublic institution or partially by private institutions. Theplenary meeting of the Czech Society of Actuaries in Aprilhad on its program a lecture by the head of the researchteam, Dr. Ivan Dvorák, entitled �An analysis of the capitalmarket from the viewpoint of the transformation of thepension scheme.�

On June 5, the Accreditation Subcommittee of the IFAAapproved the application of the Czech Society of Actuariesfor full membership in the Forum.

At the June meeting of the Society, the four members whoattended the International Congress of Actuaries reportedon their scientific and social program, on the reform of theIAA, as well as on the discussions concerning actuarialeducation. Only Vienna has a longer tradition in actuarialuniversity education than Prague. Therefore, the discussioncontributions at the Congress by Professors H. Bühlmann,S. Haberman, D. Wilkie and others, stressing the role of theuniversities were favourably accepted by Czech participants.In the second part of the Society meeting, Dr. DanaVorlícková, the head of the insurance supervision divisionof the Ministry of Finance, gave a brief survey of the actualprogress in approaching the Czech legislation on financialservices to that of the European Union.

The Seminar on Actuarial Sciences, jointly organized at theCharles University, had ten sessions in its summer term. ByJune 30, the Society had 101 members, of which 18 hadacquired full member status.

GERMANYDeutsche Aktuarvereinigung

(The German Association of Actuaries)

The German Association of Actuaries (DAV) was constitutedin 1993 with the aim of creating a professional representationof German actuaries. The predecessor of the DAV, the�Deutsche Gesellschaft für Versicherungsmathematik�(DGVM), founded in 1949, has specialised itself in the

scientific and educational tasks within the DAV. Thepublication of the scientific series �Blätter der DGVM� is afurther important task of the DGVM. Both associations areclosely linked and can be contacted under the followingaddress:

Komödienstr. 4450667 KölnGermany

Managing Director: Barbara Schneider

tel 49 912 554 0fax 49 912 554 44

E-mail [email protected]

The editor of the �Blätter der DGVM� can be contacted underthe following address:

Prof. Dr. Edgar NeuburgerSchneeglöckchenstr. 10380995 MünchenGermany

1. Committee of the DAV

President: Dr. M. BalleerVice-Presidents: Prof. Dr. K. Heubeck

Dr. G. RupprechtSecretary: K. AllerdissenMembers: Dr. H. Bauermeister

C. BeyeP. BraaP. BurghardProf. Dr. M. FeilmeierN. HeinenDr. A. HolzwarthProf. Dr. E. NeuburgerH. SchulzJ. StraußH. G. TimmerProf. Dr. K. Wolfsdorf

2. Committee of the DGVM

President: Dr. M. BalleerVice-Presidents: Prof. Dr. E. Helten

Prof. Dr. E. NeuburgerSecretary: K. AllerdissenMembers: Prof. Dr. P. Albrecht

Prof. Dr. Ch. HippK.-W. KunkelProf. Dr. H. LauxH. SchulzH. Wolff

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3. Membership in August, 1998

DAV:1304 ordinary members

DGVM:1349 ordinary members145 corporate members705 students

4. Annual Meeting

The annual meeting was held in Ulm on April 30, 1998 andwas attended by 600 members. The annual meetings of themain work groups of the DAV took place on April 29:ASTIN; AFIR; Life-, Pension- and Medical Insurance. Mostof the lectures being held have been published and areobtainable at the bureau of the DAV.

5. Publications

The DGVM has published the �Blätter der DGVM�, VolumeXXIII, Parts 1-3. The Bulletin �Der Aktuar� is published bythe DAV four times a year. A summary is presented in theTable of Contents.

6. Eastern-Europe seminars

In February and August 1997 two seminars for participantsfrom Eastern Europe were held in Tegernsee, Germany. Theseminars, a joint venture between the DGVM and the FederalSupervision Department for the Insurance Market, werefinancially supported by the Federal Ministry of Finance andenabled a productive exchange of knowledge andexperiences. The discussions with the participants revealedthat the development of the Eastern Insurance market is nothomogeneous: Poland, Hungary and Slovenia have analready well-developed insurance market, whereas in othercountries the markets are still very restricted. The lecturesconcentrated on practical actuarial knowledge like thefoundation of a life insurance company and had a specialapproach to participants from state supervision boards.

INDIAActuarial Society of India

The Annual General Meeting of the Actuarial Society of Indiawas held on August 8, 1998. The Executive Committee forthe year 1998-99 consists of the following members and eightother members:

President Mr. K.P. NarasimhanVice-President Mr. P.C. GuptaHon. Secretary Mr. K.S. GopalakrishnanHon. Jt. Secretary &Treasurer Mr. Arpan Thanawala

The membership of the Society as of March 31, 1998 was asfollows:

Fellows 143 (Active Fellows: 90)Associates 75Students 418

Our Vice-President, Mr. P.C. Gupta, attended theInternational Congress of Actuaries in Birmingham, U.K.,as well as the 150th Anniversary of the Institute of Actuariesin London, U.K. in June 1998. A memento was presentedto the Institute of Actuaries in London on this 150thanniversary.

ISRAELThe Israel Association of Actuaries

1. Committee members 1997-98

Avi Bar-Or PresidentDov Raphael SecretaryJonathan Lavie Education and trainingArie Wurzburger TreasurerSy Foguel Academic liaisonEdward Levay National Correspondent

The address of the Association is:

1 Goldberg St., Tel Aviv, Israel.

Telephone: +972 3 566 1155, fax +972 3 566 1177

Internet site: www.ibm.net.ll/actuaries

2. Membership in August 1998

Fellows 85Associate members 18Student members 35

An analysis of members of the Association was conductedbased on a questionnaire sent out in 1997. Total membershiphas increased from 56 in 1991 to 138 today. The proportionof women members has grown from 5% to 25% during thisperiod. About 40 members of the Association are alsomembers of other actuarial bodies, notably the Institute ofActuaries and the Society of Actuaries.

Analysis by occupation shows a marked increase in thenumber of actuaries employed in general insurance, pensionsand health insurance, although nearly half the active membersstill work predominantly in life insurance. Most membersare salaried employees, but a significant number areindependent consultants.

3. Professional meetings

Professional meetings are held several times a year with anaverage attendance of about thirty members. Insuranceexecutives and the Commissioner of Insurance frequently

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attend as guests. Some of the topics presented at meetingsin 1997-98 were

Lifetime customer value - Jay Jaffe

Report and discussion of PHI survey - David Serr

The Role of the Appointed Actuary in the U.K. -Nicholas Rhodes

Asset-liability modelling - Dr. Stewart Coutts

With-profits policies: an update - Dov Raphael

Details of past and forthcoming meetings are posted on theweb site of the Society of Actuaries.

The biennial dinner of the Association was held in January1998. The guest of honour was Mr. Doron Shorer, theCommissioner of Insurance.

4. Education and training

The Association maintains regular contact with theDepartment of Statistics at Haifa University which runs acourse in actuarial science in cooperation with the Instituteof Actuaries. The Department is currently planning to expandits activities and offer an MA course in actuarial science.

5. Legislation

The Association has been pressing for legal recognition ofthe profession in Israel for many years. In 1995, the Presidentof the Association wrote to the Commissioner of Insuranceand suggested appropriate definitions of �actuary� and�appointed actuary,� and proposed that the Commissionershould maintain a register of actuaries who would then beauthorized to fulfil their legal obligations. These proposalshave now been incorporated in a draft law which is currentlybeing discussed by the Finance Ministry. The Associationhas presented its comments on the draft.

6. Constitution

The Association completed the requirements for acceptanceas a full member of the IFAA (now IAA) by introducingchanges to the disciplinary process. These changes wereratified at a general meeting in May 1998.

JAPANThe Institute of Actuaries of Japan

1. The Main Topics of this Year

(1) The recent wave of internationalization of finance andeconomics has forced the Japanese insurance industry tochange.

In the course of deregulation and liberalization, newinsurance products have been developed to satisfy the

changing needs of the customer, all of which must be basedon principles of soundness and fairness. Revisions toJapanese insurance business law have strengthened the roleof the Actuary. It is now stipulated that the actuary of a lifeinsurance company must submit an actuarial opinionregarding the company�s solvency and equitable allocationof surplus for its policyholders to both the company�s boardand the minister of the appropriate regulatory office.

Thus, at no time prior has the level of specialization requiredof the Actuary been as high as it is now. To this end, ourInstitute not only wants to encourage our members to researchand study more actively as together with expressing opinionsbeneficial to society, but also to bolster stature and ability ofour members as the foundation for such activities. Forexample, we plan to revise our qualifying examination fromthe year 2000 and introduce a more rigorous system ofcontinuing education for our fellow professionals.

(2) The Institute of Actuaries of Japan is going to celebrateits centennial anniversary next year. As one of thecommemorative events, we will hold a Council meeting ofthe International Actuarial Association (IAA). There willalso be ASTIN/AFIR colloquia, and our centennialconvention next summer in Japan. Through communicationswith foreign actuaries, we hope to improve ourselves andidentify the objectives toward which actuaries should striveand attain in the 21st century.

We would like to ask our actuaries to continue with theirsupport us and to further deepen our relationship.

2. Schedule of Events for 1998

(1) Students Study Programs to Prepare for QualifyingExamination

Basic course from May 7 to December 8

Intermediate course from June 8 to August 31

(2) Qualifying Examination from December 17 to 21

(3) Actuarial Seminar of East Asia from July 23 toAugust 21

(4) Summer Seminar from September 3 to 4

(5) Annual Meeting from November 11 to 12

(6) System Committee�s Annual Meeting from October 21to 22

3. Introduction of Publications

We issued the following proceedings in 1997. All of themare written in Japanese.

(1) The Exercise for Qualifying Examination 1996extra proceeding No. 173

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(2) The 15th Summer Seminarextra proceeding No. 174

(3) The report on the 8th Special Seminar for Actuariesextra proceeding No. 175

(4) The 36th System Committee�s Annual Meetingextra proceeding No. 176

(5) Reports on AFIRextra proceeding No. 177

(6) Commentary for the Disciplinary Procedures Regulationof The Institute of Actuaries of Japanextra proceeding No. 178

4. Breakdown of Membership by type of Employment as ofMarch 31, 1998

Fellows Associates Students Total

Life Ins. Co. 403 418 804 1,634

Trust Banks 130 83 118 331

Non-Life Ins. Co. 122 133 323 578

Government 30 18 59 107

Co-operatives 8 33 69 110

Others 151 153 340 644

Total 844 838 1,713 3,404

5. The Board of Director�s Meeting was held on May 26,1998, and new Officers of the I.A.J. were elected.

The officers, including newly elected ones, are below:

President Masakatsu NishibeVice-President Junzo TanakaVice-President Yasuo AikawaVice-President Norimichi NonoguchiVice-President Satoru YonetaniVice-President Isao HayashiPast President Takashi Mitamura

THE NETHERLANDSThe Dutch Institute of Actuaries

(Het Actuarieel Genootschap)

During the first six months of 1998, the Institute held threegeneral meetings:

22 January

During this meeting the chairmen of the various sectionsgave an overview of the activities and plans for the comingyear. Mr. Kuys also gave a presentation on the restructuringof IAA. This plan was presented to the general meeting forapproval before the ICA congress in Birmingham. Followingthis a theme meeting was held which was organised by ASIP.

19 March

During this meeting a presentation was given by the Dutchrepresentatives in the various committees of the GroupeConsultatif. This was followed by a theme meeting organisedby the ASTIN section.

14 May

The permanent education working group gave a presentationon its plans for the future, which in part dealt with moralobligations. Following this a presentation was given on thefuture plans of the Dutch Institute of Actuaries. This wasfollowed by a theme meeting organised by AFIR.

� Reports of the various sections

ASLI (Life Section)No ASLI meetings were held during this period.

General information about this section can be obtained fromthe secretary:

Mrs. W.J.C. Speksnijder-DeelenCentraal BeheerP.O. Box 7007300 HC APELDOORNThe Netherlands

ASIP (Pensions Section)On 22 January a theme meeting was organised by ASIP onthe subject of �Universal Life and Pensions�. Three peopleexplained the underlying philosophy of a universal lifeproduct tailored to a pension scheme. Topics such asflexibility, funding and the differences in relation totraditional pension schemes were discussed.

General information about ASIP can be obtained from thesecretary:

Mr. N. MolTowers PerrinP.O. Box 842203009 CE ROTTERDAMThe Netherlands

ASTIN (Non-Life Section)

Two meetings of the ASTIN active members group wereheld during this period, as well as one theme meeting.

The first meeting of the ASTIN active members was held on25 February.

At this meeting Mr. P.L. Keller, who works for SwissReinsurance company, spoke about a model that can be usedto estimate the anti-selection effect of a prohibition onmedical examinations (the Van Boxtel Act).

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The second meeting was held on 13 May. Mrs. L.L.Decuypere of SCOR Nederland spoke first on alternativeforms of reinsurance. Following this, Mr H. Elderson ofNationale Nederlanden spoke on investment in insurancerisks.

The ASTIN theme meeting was held on 19 March on thesubject of solvency in non-life insurance.

General information about ASTIN can be obtained from thesecretary:

Mr. H.J. PrinsFortis NederlandP.O. Box 20723500 HB UTRECHTThe Netherlands

AFIR (Finance section)

No AFIR meetings were held during this period.

General information can be obtained from:

Mr. F.R. ValkenburgActuarieel bureau J.A.W. HammerP.O. Box 13643000 BJ ROTTERDAMThe Netherlands

KAA (Kring van Actuarieel Analisten, Circle of ActuarialAnalysts)

The Kring van Actuarieel Analisten (KAA) was formed in1997 as a platform for those who have completed a highereducation degree in Actuarial sciences (Actuarial Analysts).

Its members form a broad cross-section of the Dutch Instituteof Actuaries. In this respect the KAA section differs fromthe other sections, all of which focus on a particular part ofthe insurance industry in its broadest sense (i.e. life, general/non-life, pensions, financial risk).

Initially most of the activities of the KAA section thereforeconcentrated on defining a profile that was bothrepresentative of and appealing to Actuarial Analysts.

A distinguishing characteristic of those who work asActuarial Analysts is the breadth of their knowledge andtheir competence in disciplines that are closely related to theactuarial sciences. By contrast, actuaries are usuallyconsidered to have a depth of knowledge and to havespecialised in some area.

The KAA section cannot yet boast major achievements(although its formation could be considered as such), butthe future holds great promise.

The KAA section intends to increase the attractiveness ofstudying actuarial sciences at level of higher educationthrough its own code of conduct and a recognisable title forits members.

The KAA section will focus firstly on those who need aprofessional qualification in actuarial sciences but do notwish to complete the entire academic study and secondly onthose in related professions who consider it worth their whileto add actuarial sciences to their qualifications.

The KAA section also intends to promote the practicalapplication of the actuarial sciences. An obvious field ofapplication is government, where the process of policypreparation would benefit from the input of actuaries, if civilservants were aware of its availability.

Making academic knowledge available in a practical form,ready for application, is another means to the samepromotional end.

The overall effect which the KAA section hopes to achieveby positioning itself in this way and through undertakingthese promotional activities is a broadening of the base ofthe Dutch Institute of Actuaries. The section�s long-termambition is to familiarise Dutch society fully with the roleof actuaries and to accord actuaries a status possibly on apar with that of accountants.

General information about KAA can be obtained from:

Mr. J. SpeulmanStichting Sociaal Fonds BouwnijverheidN.V. Schadeverzekeringsmaatschappij sfbP.O. Box 574401040 BH AMSTERDAMThe Netherlands

� Permanent education

In co-operation with the various sections, four meetings ofpermanent education section were held in the first half of1998.

18 February

In close co-operation with KAA a programme was offeredwhich focused on the relevant aspects of calculatingprobabilities and statistics from the perspective of thecandidate actuary and the actuarial analyst.

22 April

�Costs and Cost Calculation: A Veritable Tower of Babel?�was the title of the session organised in co-operation withthe ASLI working group on costs. The issues discussedincluded such topics as �How do I define costs and coststructure?�, �What are variable costs?�, �What costs are

72

attributable to the production process?�, �How should costsbe analysed?� and �What is the unit of cost calculation?�.

On 14 May the permanent education section organised ameeting on ALM for insurers together with AFIR. Thetheoretical background to ALM was discussed and the resultsof a survey on the subject of ALM were also presented.

The reinsurance of data on the basis of stop-loss premiumswas the topic discussed at the meeting organised for 7 June.Attention was given to the theoretical background, afterwhich practical methods for calculating stop-loss premiumswere discussed. Finally, the participants workedindependently on two cases.

The annual summer meeting of the Dutch Institute ofActuaries was held on 29 May. After introductory speechesby the chairman and Mr S. van Vuure, Mr Van Vree, anexpert on conducting meetings, and Mr D.G.R. Ferguson,President of the Institute of Actuaries, the afternoonprogramme commenced. Various events had been organised,including a stroll through Wijk bij Duurstede, a paintingworkshop, a visit to an observatory, a brewery, and a golfclinic.

The Actuary

During the first half of 1998, three issues of the bulletin ofthe Institute of Actuaries were published.

January 1998, which included, amongst others, the followingarticles:

an article on whether �growing old is hereditary orenvironmentally determined�, by Mr D.L. Knook,Director of the TNO1 Ageing Research Project;

an article by Mrs P. van Koppenhagen which dealt withthe differences in mortality between European countries,as explained by demographic factors;

an interesting article by Mr P. van de Moolen in whichhe discussed �Mortality in a pension fund� and conceptssuch as quantitative mortality and mortality of insured(long-life risk);

an article by Mr J. Smeenk in which he discusseddifferences in relation to mortality amongst insured;

an article by Mrs J. Schoenmaker containing a reporton the symposium held on the occasion of the 75thjubilee, in which the topic of �opinions on the role ofthe certifying actuary� was discussed extensively.

March 1998, which included, amongst others, the followingarticles:

an article by Mr L. Traas with an extensive discussionof the function of the controller in modern businesses;

an article by Mr J.D. Recourt on the consequences forinsurance products of the Medical Examinations Act .

May 1998, which included, amongst others, the followingarticles:

an article on the cautious and slow response of insurersto the millennium problem by Mr F.W. Warmelink.

an article by Mr. G. Pluym on the three-party relationbetween the Dutch Insurance Supervisory Board, theaccountant and the actuary, and the role of the actuaryin this.

an article on the mortality tables of small groups by MrW.J. Willemse.

If you are interested in obtaining one or more of the abovearticles, kindly contact the national editor.

The number of actuaries and affiliated members is growing.On 1 March 1998 the membership was:

Actuaries: 682Affiliated members: 332

1 (Dutch organization for Applied Scientific Research)

NORTH AMERICACasualty Actuarial Society

1100 North Glebe RoadSuite 600

Arlington, VA 22201Phone: (703) 276-3100Fax: (703) 276-3108

Web Site: http://www.casact.orgE-mail: [email protected]

1. FUTURE MEETINGS AND SEMINARS OF THECASUALTY ACTUARIAL SOCIETY

SOCIETY MEETINGS

1998 Annual Meeting 1999 Spring MeetingNovember 8, 9, 10, 11 May 16, 17, 18, 19Sheraton Centre Toronto Disney�s ContemporaryHotel and Towers ResortToronto, Ontario Orlando, Florida

1999 Annual Meeting 2000 Spring MeetingNovember 14, 15, 16, 17 May 7, 8, 9, 10San Francisco Marriott The MirageSan Francisco, Florida Las Vegas, Nevada

2000 Annual Meeting 2001 Spring MeetingNovember 12, 13, 14, 15 May 6, 7, 8, 9J.W. Marriott Fontainbleau HiltonWashington, D.C. Miami, Florida

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2001 Annual Meeting 2002 Spring MeetingNovember 11, 12, 13, 14 May 19, 20, 21, 22Marriott Marquis Hotel del CoronadoAtlanta, Georgia Coronado, California

2002 Annual Meeting 2003 Spring MeetingNovember 10, 11, 12, 13 May 18, 19, 20, 21Marriott Copley Place Marriott�s Marco IslandBoston, Massachusetts Resort

Marco Island, Florida

2003 Annual Meeting 2004 Spring MeetingNovember 9, 10, 11, 12 May 16, 17, 18, 19New Orleans Marriott The BroadmoorNew Orleans, Louisiana Colorado Springs, Colorado

CASUALTY LOSS RESERVE SEMINAR

Jointly sponsored with the American Academy of Actuaries

1999 2000September 20, 21 September 11, 12Marriott�s Camelback Inn Hilton and TowersScottsdale, Arizona Minneapolis, Minnesota

2001September 10, 11Fairmont HotelNew Orleans, Louisiana

SEMINAR ON RATEMAKING

1999 2000March 11, 12 March 9,10Opryland Hotel Hotel del CoronadoNashville, Tennessee San Diego, California

2001March 12, 13The MirageLas Vegas, Nevada

SEMINAR ON REINSURANCE

1999 2000June 7, 8 June 15, 16Marriott Inner Harbor Boston Marriott CopleyBaltimore, Maryland Place

Boston, Massachusetts

SEMINAR ON FINANCIAL RISK MANAGEMENT

1999April 12, 13Denver MarriottDenver, Colorado

SEMINAR ON DYNAMIC FINANCIAL ANALYSIS

1999July 19, 20Drake HotelChicago, Illinois

2. 1997-98 OFFICERS

Mavis A. Walters PresidentSteven G. Lehmann President-ElectRobert A. Anker Immediate Past PresidentCurtis Gary Dean VP-AdministrationKevin B. Thompson VP-AdmissionsSusan T. Szkoda VP-Continuing EducationPatrick J. Grannan VP-Programs and CommunicationsRobert S. Miccolis VP-Research and Development

3. MEMBERSHIP STATISTICS (AS OF NOVEMBER1, 1997)

Associates 1273Fellows 1793Total 3066

NORTH AMERICAThe Society of Actuaries

Anna M. RappaportPresident, Society of Actuaries

Mailing address:William M. Mercer, Inc.10 South Wacker Drive, Suite 1500Chicago, IL 60606

Telephone: (312) 902-7518Facsimile: (312) 902-7626E-mail: [email protected]

Howard J. BolnickPresident-Elect, Society of Actuaries

Mailing address:Radix Health Connection LLC414 North Orleans Street, Suite 210Chicago, IL 60610

Telephone: (312) 396-1010Facsimile: (312) 396-1040E-mail: [email protected]

1. ELECTION RESULTS

The results of the election, as tallied on August 11, 1998, forthe 1998-99 year are as follows:

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President-Elect A. Norman Crowder, III

Vice-Presidents Nancy A. BehrensDouglas C. DollPeter Hepokoski

Board of Governors Robert M. BeuerleinAllan BrenderNeville S. HendersonDick LondonTimothy C. PfeiferLarry D. Zimpleman

The newly-elected officials will assume their newresponsibilities at the Society�s 1998 Annual Meeting in NewYork, New York.

2. NORTH AMERICAN ACTUARIAL JOURNAL

The Society of Actuaries is looking for authors to submitpapers and articles on a wide-range of topics. The NAAJpublishes papers from new and developing areas of actuarialpractice, including:

� Research on emerging public policy debates� Technology improvements� Demographic trends� Globalization issues� Multi-disciplinary topics providing useful insight to

practicing actuaries

The submission process is simple: submit two (2) copies ofyour paper along with a one-page abstract which outlinesthe scope and objectives of your paper, including author andpaper information and the names (and how to contact them)of up to three potential reviewers for the refereeing process.For a copy of the �Submission Guidelines for Authors,�please contact Cheryl Enderlein, CommunicationsCoordinator, at 847/706-3563, or via e-mail([email protected]).

Subscription Information

The North American Actuarial Journal is published quarterlyat the following rates: 1 year (4 issues) for $95.00, 2 years(8 issues) for $165, and 3 years (12 issues) for $250.00 (pricesin U.S. dollars). Send your name, company name, fullmailing address, and either a check or credit card information(MasterCard and Visa are accepted; include card number,expiration date, telephone number, and signature) to theBooks and Publications Department at the following address:

Society of ActuariesBooks and Publications Department475 North Martingale Road, Suite 800Schaumburg, IL 60173-2226

Remittance must accompany orders. For Canadian orders,please add 7% GST tax. For overseas orders, please add20% postage charge. U.S. funds drawn on U.S. currency onU.S. banks are preferred. If you have questions, pleasecontact the Books and Publications Department by phone(847/706-2526), fax (847/706-3599), or e-mail([email protected]).

3. FUTURE SOCIETY OF ACTUARIES MEETINGS

� Credibility SeminarNovember 2-3, 1998Chicago, Illinois

� Risk Adjusting SeminarNovember 3-4, 1998Chicago, Illinois

� Emerging Markets for the New Senior CitizenNovember 16-17, 1998Charleston, South Carolina

� Critical Issues in UnderwritingDecember 7-8, 1998Sarasota, Florida

� Retirement Needs FrameworkDecember 10-11, 1998Orlando, Florida

� Second Conference on Actuarial and FinancialModelingDecember 14-15, 1998Orlando, Florida

� Product Development PracticumDecember 14-15, 1998Orlando, Florida

� Risks in Investment Accumulation ProductsJanuary 14-5, 1999New York, New York

� The Annuity ConferenceMarch 24-26, 1999San Antonio, Texas

� SOA Spring Meeting(Financial Reporting, Product Development)May 24-25, 1999Atlanta, Georgia

� SOA Spring Meeting(Health & Pension)June 16-18, 1999Seattle, Washington

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� Valuation Actuary SymposiumSeptember 23-24, 1999Los Angeles, California

� SOA Annual Meeting(50 Year Anniversary)October 17-20, 1999San Francisco, California

For details on the above seminars and those underdevelopment, watch for future SOA mailings or call theContinuing Education Department at 847/706-3545 or 847/706-3540. The following seminar topic is in the planningstages for 1998-99. All dates/locations are tentative.

Health Affairs Conference (January or February)

4. ACTUARIAL FOUNDATION

Financial Economics with Applications to Investments,Insurance and Pensions

The Actuarial Foundation and Lincoln National Corporationare pleased to announce the publication of FinancialEconomics with Applications to Investments, Insurance andPensions. This text is designed to embed modern financialtheory into mainstream actuarial science. As such, it is atool kit for actuarial practice of the future.

The text is the work of an outstanding team of internationalscholars under the leadership of Harry Panjer, FSA, FCIA,Past-President Canadian Institute of Actuaries, Universityof Waterloo Department of Statistics and Actuarial Science.This authorship team was a far flung partnership withmembers from three continents, four nations and eight majoruniversities.

This text highlights the utility of the latest developments infinancial theory for actuarial practice and illustrates how thisfinancial economics theory-actuarial science synthesisprovides comprehensive approaches to market-baseddecision making. In providing a thorough understanding offinancial economic theory for actuaries, the text also providesthe opportunity for stronger management of insurance,investment and pension operations.

Financial Economics with Applications to Investments,Insurance and Pensions is a stellar example of the resultsthat are achieved when the Foundation builds partnershipsto advance the actuarial profession. The text is availablethrough the Society of Actuaries Books & PublicationsDepartment. The cost is $95.00 and the book can be orderedthrough the SOA Books Department (phone: 947/706-3526;fax: 847/706-3599; e-mail: [email protected]).

5. RECENT PUBLICATIONS

Actuarial Mathematics, Second Edition

Since the publication of the first edition of ActuarialMathematics in 1986, actuarial science has absorbedadditional ideas from economics and the mathematicalsciences. Although it would be impossible to capture thefull effect of all these changes in the revision of a basictextbook, this second edition is a step in an ongoing processof adaptation designed to keep the fundamentals of actuarialscience current with changing realities. At the same time,this second edition continues the philosophy of the firstedition in its presentation of what has come to be identifiedas the modern mathematical foundation of actuarial science.

Among the book�s key features is the probability approach,and the discussions build on the development of themathematics of probability and the entry of risk into decisiontheory. Another key feature is the integration of lifecontingency concepts with risk theory. The textbook is usedin SOA Courses 150 and 151 and is on the recommendedreading list for Seminar 152.

�We�re in a technological revolution, and we have to keepmoving ahead with new ideas. Time marches on,� said JamesC. Hickman, one of the book�s five original authors and oneof the three who revised the text.

Among the notable differences in the revised text are a newchapter on stochastic models of interest rates and theomission of commutation functions, no longer a staple ofactuarial calculations. In the new text, readers are insteadasked to use current software to complete exercises thatillustrate actuarial calculations. To this end, this secondedition takes advantage of the general availability of powerfulpersonal computers. The resulting freedom means that thereis no longer a single preferred method for computing resultsfrom actuarial models and also that more complex modelsare feasible. As a consequence, suggestions for computingare in Act Math and it is recognized that it is no longernecessary to be constrained to traditional computing methods.

Also, said Hickman, �The whole approach to regulation isentirely different in the second edition. Specific insuranceregulations and practices in Canada and the U.S. are relegatedto examples and exercises. The basic issues that motivateregulation and practice survive.� He added, �We�re goinginternational�this text has an audience in Mexico, Asia, andperhaps elsewhere. There are new ideas, new commercialpractices. One of them is the pension area: the decline ofdefined-benefit plans and the rise of defined contributionplans. But we didn�t change it; the world did. But we mustacknowledge these types of changes in our work.�

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In general, �we attempted to eliminate some of the productspeople have lost interest in and include current products,�said Newton L. Bowers, another of the revised text�s authors.�Retirement income policies, also known as incomeendowment policies, have been virtually unknown for 15years. Those and others may have historic interest, but thatisn�t the focus of Act Math.� New products includeaccelerated benefits for terminal illness and long-term care.

Donald A. Jones, another of the revised text�s authors,observed, �A lot of teaching is done by professors doingresearch because you can�t get cutting-edge developmentsinto print very quickly. We know that the publication processkeeps us from being as current as everyone would like, butwe believe the new edition of Act Math will be useful forteachers and students. It offers much of the latest thinkingin actuarial science.�

A textbook at the foundation of a profession also must bereadable. This one is. It contains a wealth of charts, graphs,tables, examples, and exercises clarifying the theory. ActMath is well suited to self-study and the immediateapplication of its tools.

The cost is $75.00 and the book can be ordered through theSOA Books Department (phone: 947/706-3526; fax: 847/706-3599; e-mail: [email protected]).

Transactions, Society of Actuaries, 1995-96 Reports

The TSA 1995-96 Reports varies slightly from previousvolumes. Volume XLVII (1995) of the Transactions wasthe last in that series. The TSA Reports will continue topresent mortality and experience studies, task force reports,and industry studies. Beginning with this volume, the TSAReports will also include the Presidential Address, FinancialReports, Obituaries, and any other studies deemed suitable.

The first two research papers to be published in the TSAReports appear in this volume:

� �Specifications for Calculating Life Insurance PolicyReserves under Sections 5 and 8 of the NAIC StandardValuation Law as Amplified by the Valuation of LifeInsurance Policies Model Regulation� by Peter G. Hendee

� �Continuing Care Retirement Community ResidentMortality and Life Expectancies� by Harold L. Barney

Included in the 1995-96 TSA Reports are the followingreports of the Society of Actuaries experience committees:

� 1988-89 Individual Life Mortality Experience� 1989-90 Individual Life Mortality Experience� 1983-88 Mortality by Cause of Death� 1991-92 Group Annuity Mortality Experience

The following reports generated by various Society ofActuaries research activities are also included:

� �Dynamic Solvency Testing: Boundaries of RiskDefinition Phase� by Donna R. Claire

� �Annuity 2000 Mortality Tables� by Robert J. Johansen

� �Plan Terminations in Ontario from 1988 to 1993�sponsored jointly by the Retirement Systems ResearchCommittee of the Society of Actuaries and the Task Forceon Pension Plan Coverage of the Canadian Institute ofActuaries

� Report of the Society of Actuaries Task Force on PreferredUnderwriting

� �Mortality under Structured Settlement Annuities for1990-93� by the Structured Settlements Valuation TaskForce

In addition, the following reports of experience studies ofinterest to actuaries, prepared by the Canadian Institute ofActuaries, are included:

� Report on the Canadian Institute of Actuaries GroupMortality Study for the 1989 Experience Year

� �Mortality under Canadian Standard Ordinary InsuranceIssues Studied between the 1991 and 1992 Anniversaries�Report of the Individual Life Section of the Committeeon Expected Experience

We express our thanks to LIMRA, International forpermitting us to reproduce the following studies of interestto actuaries, prepared by that organization:

� United States Lapses by Duration and Product Line:Long-Term Ordinary Lapse Survey

� Canadian Lapses by Duration and Product Line: Long-Term Ordinary Lapse Survey

� Universal Life Persistency Study (jointly sponsored byLIMRA and SOA)

� Annuity Persistency Study (jointly sponsored by LIMRAand SOA)

� Group Medical Insurance Large Claims DatabaseCollection and Analysis

($35.00-U.S. Dollars SOA Member)($75.00-U.S. Dollars Non SOA Member)

Group Medical Insurance Large Claims Database Collectionand Analysis

The purpose of this research project, which was jointlyfunded by the Health Section and the Society of Actuaries,was �To assemble and analyze a limited database which may

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serve as a model for expanded intercompany studies of healthcare benefits in the future.� The focus of the project was onthe types and incidence of large claims, defined as claimstotaling $25,000 or more for any one year.

SOA Monograph M-HB97-1 ($ 35.00-U.S. Dollars)

Securitization of Insurance Risk: The 1995 BowlesSymposium

During the late 1980s and early 1990s, we have seeninsurance and financial markets interact more closely thanever before. New tools for managing insurance risk emergefrequently, usually with roots in financial markets. A strongmotivating factor has been the record number of naturalcatastrophes and their impact on insured losses. The potentialfor earthquake and storm losses in the U.S. exceeds insurancemarket capacity. Reinsurers, banks, security exchanges, andothers are developing products, sometimes involving thecreation of new organizations or joint ventures, to profitablymeet this demand. The 1995 Bowles Symposium provideda forum for exploring some of these products and discussingnew possibilities.

The Chicago Board of Trade futures on catastrophic lossindices provided an early example of these products, perhapsthe first exchange-traded insurance derivative securities.Over-the-counter products such as bonds with coupons orprincipal payments tied to an insurance portfolio loss ratioare examples of privately placed insurance securities. Thereis more information available on the publicly tradedexamples, and naturally, the majority of the symposiumpapers treat these products. The symposium was organizedin three sessions, as follows:

� Interplay between Capital Markets and Insurance� Insurance Futures� Actuarial Bridge between Insurance and Finance.

The symposium was above all intended to promote anunderstanding of the basic ideas of securitization and todiscuss the fundamentals of new emerging products. Theinteraction between innovations in the financial markets andthe needs of the insurance sector has been a excellent topicfor bringing financial specialists and actuaries closer togetherso that they can learn from each other.

SOA Monograph M-F197-1 ($35.00-U.S. Dollars)

PORTUGALInstituto dos Actuários Portugueses

The Program Actuary 1997, the first non-life program inactuarial science in Portugal, finished on June 30 after 310

hours of classes and 10 examinations over three years. Ofthe 35 students in 1998, only 18 were successful.

At the same time, since June 30, 1998, non-life companiesare obliged to have a responsible non-life actuary certificateby the authority of control.

Meanwhile, the second program on non-life sciencecontinues with two disciplines:

� Risk Theory by Cristina Baptista� Times Series Analysis by Eduardo Pereira

NON-LIFE ACTUARIAL SCIENCE IN PORTUGALTHE FIRST GLOBAL PROGRAM 1995-1998:

EXPERIENCES AND CONCLUSIONS

In May of 1995, we launched the first global program ofnon-life actuarial science in Portugal. The course was createdafter a study of the existing examinations in the U.S.A. andthe U.K., and some conversations with representatives ofthose countries. We had strong support from everyone, andhave received important suggestions from actuaries from theU.S.A. and the U.K.

To help motivate the insurance companies to take this step,we invited the local association of insurers to participate ina joint venture with us. The Institute of Actuaries organizedthe program and the association of insurers provided thefacilities (classrooms, secretariat and computers). Marketingwas done by both institutions with the two labels.

Thirty-five people registered, especially young people, someof them without experience in non-life actuarial practice.

Perhaps some of the first implications of launching theprogram were that some companies took the opportunity toput some people who were attending the course to work innon-life products.

The examinations eliminated some people - something thatcannot be avoided in a course such as this one. In the end,more or less half of the students finished all ten disciplines.

The course was divided into two parts:

� the background

� the applications to the insurance sector

In the first part, there were five disciplines:

� Statistics and Probability

� Risk Theory

� Numerical Methods and Simulation

� Time Series Analysis

� Regression Models

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Teachers from these disciplines were from local universities.The second part also had five disciplines:

� Claims Reserving

� Pricing with Generalized Models

� Bonus Malus Systems

� Credibility Theory

� Reinsurance

The teachers from this second part were brought in fromother countries. The teachers were Jean Lemaire, RichardVerral, Gary Venter, and Paul Kneuer, who also brought theview of external markets.

The disciplines of the first part had classes once a week onMondays from 5:00-8:00 p.m. These students were giventhe opportunity to work and study. At the moment, Portugalhas a very competitive market and is in need of many youngpeople in insurance companies. This gave us the opportunityto demand a good level in the examinations.

The disciplines from the second part were given in a differentway due to the fact that teachers were coming from abroadto teach. Each discipline was given for one week, and therewas one, two, or three months between the disciplines.

The examinations were done between each discipline. If astudent failed, he could have a second and final chance torewrite the examinations. Failing these attempts, the studentwas obligated to register in the second course two years later.

The second course started in October of 1997 with 15 newstudents. Some students from the first course repeated thedisciplines that they could not finish before. This secondcourse was possible due to good cooperation between thePast President and the new President.

With that, it was possible to continue the work of the pastwithout losing what we had achieved.

People who left the first course had a long way to go beforebecoming actuaries. However, we could see a new attitudein many of these people after the course and those difficultten examinations.

The conclusion we drew from these experiences was thefollowing: we are glad to have done it and now, a new era ofactuarial sciences and actuaries has begun.

Luís [email protected]

Responsible from the Programs of Non Life EducationPresident of the Instituto dos Actuários Portugueses1995-1997

SOUTH AFRICAThe Actuarial Society of South Africa

Postal address: P.O. Box 4464Cape Town 8000Republic of South Africa

Fax: +27 21 509 0160

Internet: http://assa.org.za

1. Membership

The Actuarial Society of South Africa celebrates its 50th

anniversary this year, and it seems appropriate thatmembership figures broke through the 1 000 level for thefirst time this year, too. At the end of the financial year (30June 1998), the Society had 1 064 members, 408 of whomare Fellows.

A South African record number of 27 students qualified inthe April examinations of the UK-based Institute and Facultyof Actuaries.

2. Meetings

Regular sessional meetings were held to assist in thecontinuing professional development of members. Visitingactuaries from abroad also discussed issues such as actuarialinvolvement in healthcare in America. The social side ofthe programme comprised the annual mid-year dinners inCape Town and Johannesburg. Both functions wereexceptionally well attended.

Apart from the Actuarial Society�s Jubilee Convention inNovember, which was referred to in the previous Bulletin,the most important event on the 1998 programme was theGeneral Insurance Mini Convention. Actuarial involvementin general insurance has grown rapidly in South Africa duringthe past five years. The mini convention was addressed by,inter alia, Reg Munro (President of the Actuarial Society ofSouth Africa), Paolo Cavalierie (Joint MD of an insurancecompany), Prof Paul Embrechts (Head: Actuarial Studies,ETH Technical University, Zurich), Herman Schoeman(Financial Services Board), Prof Robert Vivian (Professorof Insurance and Risk Management, University of theWitwatersrand) and Gary Wells, (Actuary: HymansRobertson, UK). The mini convention was attended by 60actuaries, actuarial students and managers of insurers andreinsurers.

The Executive Committee of the Actuarial Society met withthe Financial Services Board (FSB) to discuss matters relatingto, inter alia, long term assurance, short term insurance,retirement funds and professional conduct. The next meetingwith the FSB will be after the convention in November.

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3. Strategic issues

The Council of the Actuarial Society of South Africa held astrategic planning exercise on 31 March 1998. The outcomeof these discussions was reviewed at a Council meeting inMay. Seven main development thrusts were identified. Adiscussion draft was sent to all members of the ActuarialSociety for comment. This led to a revised document beingdrawn up. Further discussions will follow, and it is hopedthat the first concrete results of the strategic plan willmaterialise within the next twelve months.

4. Future activities

A closer working relationship with the South African Instituteof Chartered Accountants (�SAICA�) is being established.A few actuaries serve on some SAICA committees. Thisposition will be discussed with SAICA representatives, andthe possible establishment of a joint ASSA/SAICAcommittee to deal with insurance accounting standards iscurrently being explored.

The Department of Health is expected to publish legislationdealing with medical schemes. The Actuarial Society�sHealthcare Committee will be monitoring developments andhas already requested an opportunity to give oral evidencebefore the parliamentary committee that will consider thelegislation.

The Actuarial Society looks forward to hosting the IAA on2 and 3 November. The IAA meeting will be followed bythe Actuarial Society�s Jubilee Convention.

TAIWANActuarial Institute of the Republic of China

1. 1997 Annual Convention

The Convention was held in Taipei on October 7-8, 1997.Over six hundred members attended the meeting. In additionto business sections, active reports and the presentation oftwenty-three certificates of new fellows (FAIRC), it was ourpleasure to have some special guests attend the Conventionand give the paper presentations for us. They were:

� Mr. Diane Chung Council MemberThe Actuarial Society of HongKong

� Mr. Satoru Yonetani Vice PresidentThe Institute of Actuaries ofJapan

� Mr. Masatoshi Kameda DirectorThe Institute of Actuaries ofJapan

� Mr. Yuan Chang Vice PresidentSociety of Actuaries

The sections and topics in this Convention were as follows:

Panel Discussion

Subject: The Problems Faced by InsuranceCompanies of Compulsory Insurance

Chairpersons: Mr. Mu-Shing Ko, Mr. Y.C. Chen

Speakers: Mr. H.P. Chen, Mr. Shih-Chieh ChangMr. F.S. Yang, Mr. Shuh-Yuan Liao

Keynote Speeches

(1) Subject: The Actuarial Profession and theTwenty-First Century

Speaker: Mr. Yuan ChangChairperson: Mr. Jung-Hui Huang

(2) Subject: The Rule of Law and the Promotion ofNational Competition

Speaker: Mr. Ying-Jeou Ma S.J.D.Chairperson: Mr. Won-How Lo

Overseas Papers

(1) Subject: The Changes and the Future of the LifeInsurance Industry in Japan

Speaker: Mr. Massatoshi KamedaChairperson: Mr. Wan-Chi MaInterpreter: Mr. C.T. Liu

(2) Subject: Insurance System Reform andLiberalization of Non-Life InsurancePremium Rates in Japan

Speaker: Mr. Satoru YonetaniChairperson: Mr. Chen-Ming FanInterpreter: Mr. Chen-Ming Fan

(3) Subject: Profit Testing in PracticeSpeaker: Ms. Diane ChungChairperson: Mr. Sheng-Yue Kuan

Presentation of Paper (Life Section)

(1) Subjects: (1) The Current Issues Regarding Taiwan�sPension Accounting and Valuation

(2) What We Need to Know About thePension Valuation and the RelatedIssues

Speakers: Mr. Magic Lin, Mr. Shih-Chieh ChangChairperson: Mr. Shih-Jiun Lin

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(2) Subject: Risk Capital ManagementSpeaker: Mr. K.L. LiChairperson: Mr. S.H. Huang

(3) Subject: The Feasibility of U.S. Dollar PolicySpeaker: Mr. F.H. TsaiChairperson: Mr. Ringo L.C. Choi

(4) Subject: Commissioners Annuity ReserveVoluation Method for Annuities

Speaker: Ms. Fanny L.F. LinChairperson: Mr. Clement H. Tseng

(5) Subject: The Application of Monte CarloMethod of Simulation in theDetermination of Retention Limits forLife Reinsurance

Speakers: Mr. Silvia Mei-Hui Huang, Mr. CheLin

Chairperson: Mr. Cheng-Yih Chang

Presentation of Papers (Non-Life Section)

(1) Subject: Dynamic Ratemaking in Property andCasualty Insurance

Speaker: Mr. Frank Kuen-Bao LingChairperson: Mr. Ray Chen

(2) Subject: Study in Reinsurer Security RatingScale

Speakers: Ms. Mei-Chin Hu, Mr. Samuel H.M.Ting

Chairperson: Mr. Ming-Yang Wu

(3) Subject: Application of the Optimal RetentionModel for Property and LiabilityInsurance Company

Speaker: Ms. Yu-Ching KuoChairperson: Mr. Shuh-Yuan Liao

(4) Subject: A Study for Establishing AdjustmentRule in Fire Insurance Extended Theft

Speaker: Mr. Jen-Chieh LeeChairperson: Mr. C.Y. Chen

(5) Subject: Managing Catastrophe Risk withFinancial Innovation

Speaker: Mr. Chiu-Cheng ChangChairperson: Mr. Fu-Sheng Shen

2. Projects and/or Assignments

� The Project �Actuarial Study on Premium Rates forLabour Insurance�s Old-age Benefit Adopted ByAnnuity Instead of Lump Sum System assigned byCouncil of Labour Affairs: is studied by our

Members of Pension Study Committee, AIRC and it isexpected to be complete on June 30, 1998.

3. Study Programs

� On July 29-31, 1997, a series of courses with regard to�Statement of Financial Accounting Standard Number18 � Accounting for Pension� were conducted by AIRCto help train and qualify actuaries for the new accountingstandard.

� From July 10, 1997 to November 20, 1997, a courseentitled, �Stock Market Analysis & Investment Portfolio�was conducted.

� From August 21, 1997 to September 18, 1997, a courseentitled �Life Insurance Cooperation FinancialManagement� was conducted.

� From April 7, 1998 to August 24, 1998, five actuarialstudy courses were conducted by AIRC. They were:Theory of Interest, Actuarial Mathematics, Foundationsof Casualty Actuarial Science and Pension Mathematicsfor Actuaries.

UNITED KINGDOMThe Faculty and Institute of Actuaries

SESSIONAL MEETINGS

SESSION 1997/98

Bulletin 26 contained information on papers submitted tothe Faculty and Institute of Actuaries in the last six monthsof 1996 and first six months of 1997. This report covers thelast six months of 1997 and the first six months of 1998.

The Institute of Actuaries held seven Sessional Meetings:

22 September 1997:

�Future Financial Regulation. An Actuary�s View� by A.S.Fishman, J.J. Daldorph, A.K. Gupta, T.W. Hewitson, M.R.Kipling, D.R. Linnell, S.R. Nutall

27 October 1997:

�The Report of the Fixed Interest Working Group�. by K.S.Feldman, B. Bergman, A.J.G. Cairns, G.B. Chaplin, G.D.Gwilt, P.R. Lockyer, and F.B. Turley

24 November 1997:

�Aspects of Pricing in the London Market� by D.E.A.Sanders, A.N. Hitchcox and R. Manjrekar

26 January 1998:

�Continuing Care Retirement Communities - Attractive toMembers, But What About Sponsors?� by R.A. Humble andD.G. Ryan

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23 February 1998:

�The Management of Risks in Banking� by J.N. Allan, P.M.Booth., R.J. Verrall and D.E.P. Walsh

23 March 1998:

�The Role of the State in Pension Provision� Debate by T.G.Arthur, P.M. Booth, B.H. Davis and C.D. Daykin

27 April 1998:

�A Review of the Statutory Valuation of Long-TermInsurance Business in the United Kingdom� by P.W. Wright,S.J. Burgess, R.G. Chadburn, A.J.M. Chamberlain, R.Frankland, J.E. Gill, D.G. Lechmere and S.F. Margutti

The Faculty of Actuaries held six sessional meetings:

6 October 1997 Panel discussion on genetics.

17 November 1998 Report of the Fixed-Interest WorkingGroup - a paper by Keith Feldmanet al.

19 January 1998 Traded endowments - a paper by PeterMcGurk.

16 February 1998 Future financial regulation: anactuary�s view - a paper by AlanFishman et al.

16 March 1998 A review of the statutory valuationof long-term insurance business in theUnited Kingdom - a paper by PeterW. Wright et al.

20 April 1998 Effective and ethical institutionalinvestment - a paper by Anthony Asher.

In addition to the Sessional Meetings, a programme ofresidential and non-residential conferences on the followingsubjects of importance to actuaries were organized jointlyby the Faculty and Institute of Actuaries.

� Capital Management for Life Offices

� Consultation Meeting on GN7 & GN15

� Mortgage Indemnity Guarantee

� Pensions Convention

� The Sales Actuary

� General Insurance Convention

� Accounting for the Reporting Actuary

� Fund Management Risk Control

� Life Convention

� Asset Liability Modelling Seminar

� Personal Injury Awards

� Individual Savings Account Seminar

� 1998 Current Issues in Pensions

� Portfolio Performance Measurement

� Update on Stochastic Reserving Methods

� Analysis of Reinsurance Security

� Pensions Convention

� Consultation meeting on Exposure Draft 31 -Professional Conduct Standards

� Europe - The Changing Markets

� Pensions Scheme Wind-ups

� Current Issues in Life Assurance

� Consultation meeting on Exposure Draft 33 - ActuariesAdvising Long Term Insurers on Financial Soundnessin Countries with non-UK Head Office (GN5)

� Investment Indices Seminar

� Capital Requirements and allocation between classes ofbusiness

� Banking Seminar

� Actuaries in Risk Management

The Faculty and Institute published the British ActuarialJournal Volume 3, Parts II, III, IV and V and Volume 4 Part1. These contain the papers and reports of the discussions atSessional Meetings of the Institute and the Faculty from June1997 to June 1998.

Copies of the British Actuarial Journal can be obtained fromthe Institute of Actuaries, Napier House, 4 Worcester Street,Oxford OX1 2AW, UK price £95 per volume plus £15postage and packing, or £25 per part plus £3 for postage andpacking.

The officers elected to the Institute of Actuaries and theFaculty of Actuaries for 1998/99 are:

INSTITUTE

President P.N. Thornton

Vice-Presidents M. ArnoldJ. Goford

Honorary Secretaries M.R. KiplingN.B. Masters

Treasurer B.J. Brindley

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FACULTY

President C.W.F. Low

Vice-Presidents T.D. KingstonC.G. KirkwoodM.J. LevettM.D. Ross

Honorary Secretaries W.W. StewartP.J.F. Taylor

Honorary Treasurer R.M. Budge

Membership Statistics

Institute as at Faculty as at Total28.2.98 28.1.1998

Fellows

Home 3608 692 4300Overseas 1019 255 1274

Total 4627 947 5574

Note: �Home� encompasses Fellows resident in Europe.

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14. TABLE OF CONTENTS OF ACTUARIAL JOURNALS

TABLES DES MATIÈRES DE REVUES ACTUARIELLES

INTERNATIONAL SOCIAL SECURITYASSOCIATON

International Social Security ReviewNo 3/98

� Harvey LAZAR and Peter STOYKO (Canada) �Thefuture of the Welfare State�

� Théopiste BUTARE (ISSA) �Social needs and the rolesof governments and markets: The case of retirementpensions�

� Roger BEATTIE (ILO) �Pension systems and prospectsin Asia and the Pacific�

Worldview

� Viet Nam �The development of national healthinsurance�

No 4/98

� John WILLIAMSON and Fred C. PAMPEL (UnitedStates) �Does the privatization of social security makesense for developing nations�

� Jon KVIST (Denmark) �Complexities in assessingunemployment benefits and policies�

� Bernard A. CASEY (United Kingdom) �The publicfinance implications of private pensions: An analysiswith special reference to the United Kingdom�

� Y. STEVENS, L. VAN ROMPAEY, V. HUBER and V.VAN BUGGENHOUT (Belgium) �Issues incomplementary health insurance in Belgium�

Worldview

� Netherlands �The context of change: Social securityreform in the Netherlands�

No 1/99: Special issue on self-employment and socialsecurity, featuring articles by Anne Corden (UK), DavidWilliams (UK), Wouter Van Ginneken (ILO) and others, plusselect bibliography.

No 3/99 Special issue to commemorate the International Yearof Older People.

Other publications:

Older and Wiser, by Lawrence Thompson, published by theUrban Institute, Washington D.C. as part of the ISSAStockholm Initiative.

The following books are planned for publication in late 1998/early 1999 in co-operation with Transaction Publishers:

Targeting social benefits, edited by Neil Gilbert (USA);

Developments and Trends in Social Security 1998, editedby Dalmer Hoskins, Donate Dobbernack and ChristianeKuptsch (ISSA);

Work, poverty and the Welfare State: Policies of socialinclusion (provisional title), edited by Béa Cantillon(Belgium) with Richard Levinsky (ISSA);

Evaluation of welfare-to-work policies, edited by Neil Gilbert(USA).

ISSA publications may be obtained from:

ISSACase postale 1CH-1211 Geneva 22Switzerland

Fax: + 41 22 799 8509

GERMANY

Deutsche Gesellschaft für Versicherungsmathematik(DGVM)

Blätter der DGVM

Volume XXIII, n° 1, April 1997

� Werner Hürlimann: On Quasi-Mean ValuePrinciples ..................................................................... 1

� Erhard Kremer: A Characterization of the GeneralizedPareto-Distribution with an Application toReinsurance ................................................................ 17

� Burkhard Disch: An Approximation Method forComputing Present Values ......................................... 21

� Michael Pannenberg: Statistical Safety Margins forCalculation Bases in Life Assurance ......................... 35

� Harald Jaeger: About the Difficulties Programming theNet Premium Reserve ................................................ 65

� Börge Thiel: Calculation of Tariff Rates for TariffChange in Health Insurance ....................................... 75

84

� Miscellaneous ............................................................ 85

Volume XXIII, n° 2, October 1997

� Alois Pichler: Construction of Life Tables .............. 107

� Burkhard Disch: On determination the Rates ofWithdrawal ............................................................... 121

� Erhard Kremer: Robust Langfactors ........................ 137

� Gerhard Siegel: Estimations of Variances forHealth Costs per Head ............................................. 147

� Raimund Rhiel: Actuarial Problems inCalculations According to FAS 87 and IAS 19 ....... 173

� Edeltraud Trapp and Erich Walter: Bonus Annuityas a Form of Participation in Profits during theAnnuity Period ......................................................... 187

� Miscellaneous .......................................................... 199

Volume XXIII, n° 3, April 1998

� Werner Hürlimann: On Mean Scaled InsuranceRisk Models ............................................................. 251

� Klaus D. Schmidt and Angela Wünsche: ChainLadder, Marginal Sum and Maximum LikelihoodEstimation ................................................................ 267

� Erhard Kramer: Largest Claims ReinsurancePremiums for the Weibull Model ............................ 279

� Axel Wolfstein: Supplements to �Extensions ofthe Negative Binomial Model for Bonus-MalusSystems� .................................................................. 285

� Dirk Jens F. Nonnenmacher: Pricing of Equity-linkedLife Insurance Products in Terms of the IndexParticipation Rate .................................................... 293

� Stefan Förster: Monte Carlo Simulation ofCorrelated Random Variables .................................. 305

� Ulrike Bauer and Hans Laux: Actualized Indicesfor the German Building Societies .......................... 313

� Burkhard Disch: Numerical Segmentation of LifePortfolios ................................................................. 345

� Robert Holz: Rating, Ranking, Scoring and FuzzySets ........................................................................... 363

� Klaus Engelhardt: The Valuation of Widow�sPension Expectancies with Guaranteed PensionIncreases in a Fixed Period of Several Years ........... 385

� Miscellaneous .......................................................... 395

German Association of Actuaries (DAV)Der Aktuar

Volume 4, n° 1, March 1998

� Klaus Allerdissen: Kosten und Wachstum in derLebensversicherung ..................................................... 3

� Christian Hipp and Dietmar Pfeifer: Risiko-theoretische Konzepte unter Maple und Excel .......... 11

� Rainer Sauerwein, Volker Pahlkötter, P. O. Roll:Cash-flow-Profile bei Leibrentenversicherungengegen Einmalbetrag - Illustrationen derWechselwirkungen von Aktiv- und Passiv-Seite ....... 17

� Peter Albrecht: Was ein Aktuar überInvestmentmathematik wissen sollte (I): Durationund Konvexität .......................................................... 23

� Frank Corell: Value Based Management (VBM) I:Zielsetzung und Einsatzmöglichkeiten in derVersicherungswirtschaft ............................................. 27

� Claudia Cottin: Bericht von der Herbsttagung derLebens-Gruppe der DAV am 18. November 1997in München ................................................................ 34

� Thomas Mack: Gemeinsame Tagung der deutschenund der Schweizer ASTIN-Gruppe ........................... 36

� Verschiedenes ............................................................ 38

Volume 4, n° 2, June 1998

� Niederschrift über die 50. ordentlicheMitgliederversammlung der DGVM am 30.04.98in Ulm ........................................................................ 46

� Niederschrift über die 5. ordentlicheMitgliederversammlung der DAV am 30.04.98in Ulm ........................................................................ 50

� Hans Laux: Das deutsche Bausparen - einInstrument der Vorsorge, des Sparens und derFinanzierung .............................................................. 53

� Peter Albrecht: Was ein Aktuar überInvestmentmathematik wissen sollte (II): Matchingund Immunisierung .................................................... 61

� Frank Corell: Value Based Management (VBM)II: Fallstudie Schaden- und Unfallversicherer ........... 66

� Jochen Hönicke: Geometrische Darstellung vonLebensversicherungen ............................................... 78

� Verschiedenes ............................................................ 84

85

NORTH AMERICACASUALTY ACTUARIAL SOCIETY

1997 Proceedings of the Casualty Actuarial Society(Volume LXXXIV)

� Homeowners Ratemaking Revisited (Use of ComputerModels to Estimate Catastrophe Loss Costs)Michael A. Walters and François Morin

� Surplus � Concepts, Measures of Return, andDetermination (Russell E. Bingham - May 1993)Discussion by Robert K. Bender

� Funding for Retained Workers Compensation ExposureBrian Z. Brown and Michael D. Price

� Measurement of Asbestos Bodily Injury LiabilitiesSusan L. Cross and John P. Doucette

� The Profit Provision in the Ratemaking FormulaStephen P. D�Arcy and Michael Dyer

� The Insurance Expense Exhibit and the Allocation ofInvestment IncomeSholom Feldblum

� Retrospective Rating: Excess Loss FactorsWilliam R. Gillam and Jose Couret

� Balancing Development and Trend in Loss ReserveAnalysisSpencer M. Gluck

� On Approximations in Limited Fluctuation CredibilityTheoryVincent Goulet

� Parameter Uncertainty in (Log) Normal DistributionsRodney E. Kreps

� A Markov Chain Model of Shifting Risk ParametersHoward C. Mahler

� Workers Compensation and Economic Cycles: ALongitudinal ApproachRobert P. Hartwig, William J. Kahley, Tanya E.Restrepo, and Ronald C. Retterath

� Application of the Options Market Paradigm to theSolution of Insurance ProblemsMichael G. Wacek

� Adjusting Indicated Insurance Rates: Fuzzy RulesThat Consider Both Experience and Auxilliary DataVirginia R. Young

� Workers Compensation Experience Rating: WhatEvery Actuary Should Know(William R. Gillam - May 1991)Discussion by original author

UNITED KINGDOM

British Actuarial JournalVolume 3, Part I, No. II

� Address by the President of the Institute of Actuaries:For Goodness Sake. By Duncan George RobinFerguson, M.A., Dip.Ag.Sci., F.I.A. ............................ 1

� Annual General Meeting of the Institute ofActuaries .................................................................... 27

� Address by the President of the Faculty of Actuaries.By Paul Henry Grace, B.Sc., F.F.A ............................ 29

SESSIONAL MEETING: PAPER AND ABSTRACTOF DISCUSSION

� Actuaries and Derivatives. By M.H.D. Kemp,M.A., F.I.A. ................................................................ 51

� Abstract of the Discussion on the precedingheld by the Institute of Actuaries ............................. 163

SUBMITTED PAPERS

� A Review of Wilkie�s Stochastic Asset Model.By P.P. Huber, B.Sc., F.I.A. ..................................... 181

� Notes on the FTSE Actuaries Share Indices(United Kingdom Series) in 1996. By J.C.H.Brumwell, M.A., F.I.A., M.S.I. ............................... 211

REPORT OF CONVENTIONS, CONFERENCES,SEMINARS, ETC.

� Actuaries in Pensions � Facing Fresh Challenges.Conference, 9-11 June 1996 .................................... 237

� 6th AFIR International Colloquium, Nürnberg,1-3 October 1996 ..................................................... 241

� Derivatives in Practice. Seminar, 21 November1996 ......................................................................... 243

OTHER MATTERS

� Articles, Papers and Publications of ActuarialInterest ..................................................................... 247

REVIEWS

� Investment Mathematics and Statistics. ByAndrew Adams, Della Bloomfield, Philip Booth& Peter England ....................................................... 249

86

� Life Insurance Mathematics (Second Edition).By H.U. Gerber ........................................................ 250

� CORRIGENDA ....................................................... 253

Volume 3, Part II, No.12

SESSIONAL MEETINGS: PAPERS ANDABSTRACTS OF DISCUSSIONS

� Ownership of the Inherited Estate (the OrphanEstate). By S.L. Smaller, M.A., F.I.A., F.P.M.I., P.Drury, B.Sc., A.R.C.S., F.I.A., C.M. George, B.Sc.,F.I.A., J.W. O�Shea, B.A., D.R.L. Paul, B.Sc.,F.F.A., C.V. Pountney, B.Sc., F.I.A., J.C.A.Rathbone, F.I.A., P.R. Simmons, B.Sc., A.K.C.,F.I.A. and J.H. Webb, M.A., F.I.A. Abstract ofthe Discussion held by the Faculty of Actuaries ..... 255

� Notes for a Discussion on the European SingleCurrency. By A.D. Wilkie, M.A., F.F.A., F.I.A. ..... 277

� Abstract of the Discussion on the preceding heldby the Institute of Actuaries ..................................... 300

� An Actuarial Theory of Option Pricing. By R.S.Clarkson, B.Sc., F.F.A. ............................................ 321

� Actuaries and Derivatives. By M.H.D. Kemp,M.A., F.I.A. and An Actuarial Theory of OptionPricing. By R.S. Clarkson, B.Sc., F.F.A. Abstractof the Discussion on the preceding two papersheld by the Faculty of Actuaries .............................. 381

SUBMITTED PAPER

� Maturity Guarantees Revisited: allowing forExtreme Stochastic Fluctuations using StableDistributions. By G.S. Finkelstein, B.Sc.,M.Bus.Sc., F.I.A. ..................................................... 411

OTHER MATTERS

� Continuous Mortality Investigation Reports.Number 15 ............................................................... 483

REVIEWS

� Financial Calculus. By M. Baxter & A. Rennie ..... 485

� Options, Futures and other Derivatives(Third Edition). By J.C. Hull .................................. 485

� Stochastic Calculus applied to Finance. ByD. Lamberton & B. Lapeyre .................................... 485

� The Mathematics of Financial Derivatives.By P. Wilmott, S. Howison & J. Dewynne .............. 485

Volume 3, Part III, No.13


� Pension Funding and Expensing in the MinimumFunding Requirement Environment. By P.M.Greenwood, B.Sc., F.I.A. and T.W. Keogh,M.A., F.F.A. ............................................................. 497


� Abstract of the Discussion on the precedingheld by the Faculty of Actuaries .............................. 569

� Modelling the Impact of Reinsurance onFinancial Strength. By S.M. Coutts, M.Sc.,Ph.D., F.I.A. and T.R.H. Thomas, B.Sc., F.C.A. ..... 583

� Abstract of the Discussion on the preceding ........... 637

SUBMITTED PAPERS

� Life Insurance Accounting at Current Values:a Danish View. By H. Ramlau-Hansen, D.Sc.,Ph.D. ........................................................................ 655

� The Political Economy of Regulation. By P.M.Booth, B.A., F.I.A., F.S.S. ....................................... 675

� Notes on the FT/S&P Actuaries World Indicesin 1996. By J.C.H. Brumwell, M.A., F.I.A.,M.S.I. ....................................................................... 709

REPORTS OF CONVENTIONS, CONFERENCES,SEMINARS, ETC.

� 1995 General Insurance Convention. 18-21October 1995 ........................................................... 745

� 1996 General Insurance Convention. 2-5October 1996 ........................................................... 751

OTHER MATTERS

� Notes on the Transcriptions of the Faculty ofActuaries .................................................................. 761

� Articles, Papers and Publications of ActuarialInterest ..................................................................... 763

Volume 3, Part IV, No. 14


� Notes for a Discussion on the European SingleCurrency. By A.D. Wilkie, M.A., F.F.A., F.I.A.Abstract of the Discussion held by the Facultyof Actuaries .............................................................. 765

87

� Development of Education and ContinuingProfessional Development Strategy ......................... 785


� Abstract of the Discussion on the precedingheld by the Faculty of Actuaries .............................. 818

� The Financial Theory of Defined Benefit PensionSchemes. By C.J. Exley, B.Sc., F.I.A., S.J.B.Mehta, M.A., F.I.A. and A.D. Smith, B.A. .............. 835

� Abstract of the Discussion on the preceding ........... 939

REVIEW

� Mathematical Methods in Risk Theory. ByHans Bühlmann ....................................................... 967

Volume 3, Part V, No. 15

SESSIONAL MEETING: PAPERS AND ABSTRACTSOF DISCUSSIONS

� Human Genetics and Financial Services. ADiscussion Meeting with Supporting Papers ........... 969

� Mutuality and Solidarity: Assessing Risksand Sharing Losses. By A.D. Wilkie, M.A.,F.F.A., F.I.A. ............................................................ 985

� Actuarial Considerations on Genetic Testing.By D.J. Le Grys, F.I.A. ............................................ 997

� How will Improved Forecasts of IndividualLifetimes affect Underwriting? By A.S.MacDonald, B.Sc., Ph.D., F.F.A. ........................... 1009

� The Likely Financial Effects on Individuals,Industry and Commerce of the use of GeneticInformation. By T.M. Ross, B.Sc., F.F.A.,F.C.I.A., A.S.A. ..................................................... 1027

� Abstract of the Discussion on the precedingfour papers held by the Institute of Actuaries ........ 1044

� Business Ethics: the New Bottom Line. ByS. Carmichael, Abstract of the Discussion onthis paper ................................................................ 1059

SUBMITTED PAPER

� Minimum Funding Requirement: SpecimenCalculations ........................................................... 1077

REPORT OF CONVENTIONS, CONFERENCES,SEMINARS, ETC.

� 1997 Investment Conference -25-27 June 1997 .................................................... 1085

OTHER MATTERS

� Papers presented to the Staple Inn ActuarialSociety, to the Faculty of Actuaries Students�Society and to Regional Actuarial Societies:1996-97 .................................................................. 1089

� Articles, Papers and Publications of ActuarialInterest ................................................................... 1091

MEMOIR

� David Alison Brown Scrimgeour .......................... 1093

THE INSTITUTE OF ACTUARIES AND THEFACULTY OF ACTUARIES

� The Institute of Actuaries. General Information,1996-1997 .............................................................. 1095

� The Faculty of Actuaries. General Information,1996-1997 .............................................................. 1107

Volume 4, Part I, No. 16

PAPER PRESENTED TO THE 26THINTERNATIONAL CONGRESS OF ACTUARIES

� Introduction ................................................................. 1

� An International Comparison of Recent Trendsin Population Mortality. By A.S. MacDonald,A.J.G. Cairns, P.L. Gwilt and K.A. Miller ................... 3

EDITORIAL NOTE .................................................... 143

SOCIETY OF ACTUARIES

NORTH AMERICAN ACTUARIAL JOURNAL

Contents of the April 1998, Volume 2, Number 2 issue bythe Society of Actuaries

Feature Articles

� Social Security: Regressive or Progressive? ................ 1Robert L. Brown

� Discussions ................................................................ 23� Author�s Reply ........................................................... 31

� Relative Importance of Risk Sources in InsuranceSystems ...................................................................... 34Edward W. Frees


� Designing Effective Graphs ....................................... 53Edward W. Frees and Robert B. Miller


88

� A Statistical Control Model for UtilizationManagement Programs .............................................. 77Marjorie A. Rosenberg

� An Actuarial Index of the Right-Tail Risk ................. 88Shaun Wing

Practice Issues

� Overview of Reserving Practices for SubstandardLife Policies ............................................................. 102Alfred Raws III

DepartmentsResearch

� Managed Care Effectiveness .................................... 109Alastair G. Longley-Cook

� Discussions of Papers Already Published ................111�Risk-Adjusted Economic Value Analysis�Discussion by David L. Creswell

�Skewness and Stock Option Prices�Discussion by Kenneth O. Kortanek andV. G. Medvedev

�Current Actuarial Modeling Practice and RelatedIssues and Questions�Discussion by John Pemberton

�Complex Dynamics, Market Medication and StockPrice Behavior�Discussion by Joseph K. Wang

Book Review

� Fermat�s Enigma: The Epic Quest to Solve theWorld�s Greatest Mathematical Problem, reviewedby Barnet Berin ........................................................ 119

Contents of the July 1998, volume 2, Number 3 Issue bythe Society of Actuaries

Feature Articles

� Economic Valuation Models for Insurers .................... 1David F. Babbet and Craig Merrill

� Discussion .................................................................. 15� Authors� Reply ........................................................... 16

� New Salary Functions for Pension Valuations .......... 18Jacques F. Carriere and Kevin J. Shand

� Discussion .................................................................. 26� Authors� Reply ........................................................... 27

� Representative Interest Rate Scenarios ...................... 29Sarah L.M. Christiansen

� On a Class of Renewal Risk Processes ...................... 60David C.M. Dickson

� Discussions ................................................................ 68� Authors� Reply ........................................................... 72

� Utility Functions: From Risk Theory toFinance ....................................................................... 74Hans U. Gerber and Gérard Pafumi

� Discussions ................................................................ 91� Authors� Reply ........................................................... 96

� Representative Interest Rate Scenarios ...................... 29Hans U. Gerber and Elias S.W. Shui

� Discussions .............................................................. 108� Authors� Reply .......................................................... 111

� A Logical, Simple Method for Solving theProblem of Properly Indexing Social SecurityBenefits .................................................................... 113Robert J. Myers

� Discussion ................................................................ 116� Author�s Reply ......................................................... 117

Practice Issues

� Reserves for Policies with Nonannual Premiums .... 118Keith P. Sharp

� Discussions .............................................................. 125� Author�s Reply ......................................................... 127

� The Actuary�s Role in Managed Care ...................... 128Actuary�s Role in Manage Care Working Group

Departments

� Letters to the Editor ................................................. 137

RESEARCH� Social Security�s Rate of Return .............................. 138

Alastair G. Longley-Cook

� Discussions of Papers Already Published ............... 141� �Application of Risk Theory to Interpretation

of Stochastic Cash-Flow-Testing Results�Discussion by Beda Chan

� �Understanding Relationships Using Copulas�Discussion by Christian Genest, Kilani Ghoudi, andLouis-Paul Rivest

� Obituary ................................................................... 150Gilbert Wright Fitzhugh

The Actuary, Vol. 32, No. 4, April 1998

� Rate making under pressure ......................................... 2Janet M. Carstens

� Arkansas and HIPAA ................................................... 3by John Hartnedy

� Managed care conference ............................................ 6

89

� Safest Annuity Rule Study ........................................... 8by Zenaida Samaniego and Richard Schreitmueller

� Social Security testimony ............................................ 9

� Research corner ......................................................... 12

� On the lighter side: The science of exam success ..... 13by Chuck Adrian

� Dear Editor ................................................................ 14

� Puzzle ......................................................................... 16

The Actuary, Vol. 32, No. 5, May 1998

� Facing the revolution ................................................... 2by Robert Shapiro

� Products yes, industry no ............................................. 7by Jacqueline Bitowt

� Navigating technology ................................................. 8by Ronald J. Helow

� 21st-century leaders ................................................... 10by Michael J. Corey

� The distribution �tug of war� ..................................... 11by Marvin Meyer

� DB or DC plans and Social Security ......................... 12by Anna M. Rappaport

� E&E corner ................................................................ 13

� On the lighter side: Actuarial Speculative Fiction ... 14

� Dear editor ................................................................. 15

� In memoriam .............................................................. 15

� Puzzle ......................................................................... 16

The Actuary, Vol. 32, No. 6, June 1998

� Editorial: Articulating our value ................................. 2by Walter S. Rugland

� The Year 2000 Problem ............................................... 4by Tapen Sinha

� Setting the pace: John Boermeester ............................ 6by Jacqueline Bitowt

� Report to members ....................................................... 7by Anna M. Rappaport

� Profession�s ties to academia ..................................... 10

� Report: actuaries and managed care ......................... 12

� Research corner ......................................................... 16

� On the lighter side ...................................................... 18

� Dear editor ................................................................. 19

� Puzzle ......................................................................... 20

Section Newsletters

A Special Interest Section is a group of Society membersorganized to study and discuss their common function andprofessional interests and to contribute information to theactuarial profession. Sections are successful because theirmembers get involved. They are structured but flexible soas to be responsive both to the needs of the profession andto the specific needs of their members. Society memberscan discuss their special interests at the Section level withother members and still be served professionally throughthe Society structure.

Sections publish newsletters and special reports, plan Societymeetings and seminars, hold breakfasts and luncheons withguest speakers at Society meetings and support actuarialresearch efforts. Section members are eligible to vote inCouncil elections and to hold office in the Section to whichthey belong.

People in the actuarial profession and related fields in theUnited States, Canada, and other countries who are notmembers of the Society of Actuaries have the opportunity totake advantage of these special interest groups. Nonmemberscan subscribe to one or more special interest Sections inorder to receive their mailings and to be invited to participatein seminars and other Section-sponsored programs. It is agood opportunity to keep abreast to actuarial advancementsand activities in North America.

Section Dues Subscription$ $

Actuary of the FutureSection $10.00 $15.00Computer Science Section 10.00 10.00Education & Research Section 15.00 15.00Futurism Section 10.00 15.00Health Section 20.00 20.00Individual Life Insurance andAnnuity Product DevelopmentSection 10.00 20.00International Section 15.00 15.00Investment Section 15.00 15.00Life Insurance CompanyFinancial Reporting Section 10.00 15.00Nontraditional Marketing Section 12.00 15.00Pension Section 15.00 15.00Reinsurance Section 10.00 15.00Smaller Insurance CompanySection 10.00 10.00

90

ACTUARY OF THE FUTURE SECTION

ACTUARY OF THE FUTURE, JUNE 1997

� Actuary of the Future Section Sessionsat the Annual Meetingby William R. Horbatt .................................................. 3

� Book Review: Generations, The History of America�sFuture, 1584-2069by Ralph J. Braskett ................................................... 13

� Editor�s Voiceby John Christensen .................................................... 1

� Exploring Profit Opportunities and ApplyingActuarial Skills in the Banking Marketplace ............... 5

� Final Tribute to Paul M. Kahn ..................................... 2

� An Invitation .............................................................. 16

� A Market Perspectiveby Joseph M. Rafson .................................................... 1

� A Nontraditional Profile: Paul Bruce ........................ 12

� Staying Ahead of the Pack: A Recruiter�sOutlook on Entry-Level Hiringby Sally Ezra .............................................................. 11

� Upcoming Section Elections ....................................... 3

ACTUARY OF THE FUTURE, DECEMBER 1997

� 1998 Actuary of the Future Sessions in Hawaii .......... 8

� Actuarial Careers in Softwareby Douglas S. Van Dam ............................................... 5

� Actuary of the Future Sessions at the AnnualMeeting ........................................................................ 6

� Actuary of the Future Sessions at the 1997Spring Meetings ......................................................... 11

� Chairperson�s Cornerby Paul V. Bruce .......................................................... 2

� Considerations for an Ambassador Programby Joe Rafson ............................................................. 10

� Editor�s Voiceby John C. Christensen ................................................ 1

� Election Results ........................................................... 6

� Finding Employment... the �Nontraditional� Wayby John C. Christensen ................................................ 7

� Let�s Make a Deal � Life and Health Mergers andAcquisitionsby William R. Horbatt ................................................ 10

� A Nontraditional Profile�Robert Meyerhoff ............... 9

� Trends in Actuarial Positions: Looking Aheadto the Year 2000 and Beyondby Deborah Murray ..................................................... 1

� Where Might the Future Take Us?by Anna Rappaport ...................................................... 3

COMPUTER SCIENCE SECTION

COMPACT, JANUARY 1997

� Actuaries Online to Move to the Internetby Stephen J. Strommen ............................................... 3

� Call for Papers ............................................................. 2

� Chairperson�s Cornerby Michael F. Davlin ................................................... 1

� Editor�s Noteby Brian Pollack .......................................................... 2

� Looking Forward-A Dialogue on �The Year2000 Problem�by Carol Marler and Jim Toole ................................... 7

� Warehouses and Websby Michelle D. Smith ................................................... 1

� Who�s New on Our Section Council? ......................... 5

COMPACT, MAY 1997

� Actuaries and APL-97 ............................................... 11

� And the Survey Says ...

compiled by Rebecca Ann Evans ................................. 9

� Bean Counting with Java

by Scott T. Parkinson ................................................... 8

� Business Risks and the Internet

by Brian S. Pollack ...................................................... 4

� Editor�s Note: It�s the Internet, Stupid!

by Brian S. Pollack ...................................................... 1

� Election Time Is Coming! .......................................... 11

� Here Comes the Future... Again!

by Carol Marler ........................................................... 2

� Insurance on the Web

by Jean C. Gora ........................................................... 1

� The Net for Employee-Benefit Communicationsby Cynthia Jeness ........................................................ 3

91

NEWS AND INFORMATION FOR ACTUARIALEDUCATORS

CONVERSATIONS, WINTER 1997-98

� Calculus Reform and the SOA Examinations ............. 3

� Information Session on Actuarial Education atthe National AMS/MAA Meetings in Baltimore ......... 4

� A Letter to Conversations � The Text Changefor Course 150 ............................................................. 4

� Strategies for Transition to the Year 2000Examinations�Courses 1 and 2 ................................... 1

� Working Toward the Year 2000 Examinations:

� What Exams Employers Should Expect NewHires to Have Passed in the Year-2000 System ........... 1

EDUCATION AND RESEARCH SECTION

EXPANDING HORIZONS, OCTOBER 1997

� 32nd Actuarial Research Conferenceby David P.M. Scollnik ................................................ 6

� Chairperson�s Cornerby S. David Promislow ................................................ 2

� Georgia State University Announces BowlesSymposium Speakers ................................................... 3

� Highlights of the 31st ARC: What�s New inActuarial Education and Research�InteractiveCD-ROM?by Arnold F. Shapiro and Edward B. Kleinman .......... 8

� Highlights of Education and Research SectionCouncil MeetingsApril 18, Chicago O�Hare; August 6, Universityof Calgary .................................................................... 9

� Input Needed for Continuing Educationby Esther Portnoy ........................................................ 9

� Musings from Margieby Marjorie A. Rosenberg ............................................ 1

� P-O-G... What Does That Spell? ................................. 7

� Redesigning University Actuarial Curriculaby Edward W. (Jed) Frees, Marjorie A.Rosenberg, and Virginia R. Young ............................... 1

FUTURISM SECTION

ACTUARIAL FUTURES, JANUARY 1998

� The Actuary as Futuristby Robert G. Utter ....................................................... 1

� Actuarial Assumptions and the Futureby W. Harold Phillips ................................................... 7

� Book Review: �Foundations of FuturesStudies: Human Sciences for a New Era�by Peter C. Bishop ..................................................... 12

� Chairperson�s Corner: Who Are We and WhatDo We Do?by Albert E. Easton ...................................................... 1

� Futurism Bibliography ............................................... 16

� Futurist Quizby Peter C. Bishop .................................................... 11

� How to Deal with the Futureby Tom Hughes ............................................................ 2

� An Introduction to Visioning: Part IIby Peter C. Bishop ....................................................... 3

� Minutes of the Futurism Section CouncilConference Call, September 17, 1997 ....................... 10

HEALTH SECTION

HEALTH SECTION NEWS, FEBRUARY 1998

� Adjusting the 1985 NAIC Cancer Claim CostTables for Inflationby Peter G. Hendee ...................................................... 3by W. Keith Sloan ......................................................... 3

� Alternative Care?A Defining Moment inHealth Careby Lee Eric Launer .................................................... 12

� A Call for Papers ....................................................... 11

� Chairperson�s Cornerby Thomas R. Corcoran ............................................... 1

� DSIG Seeks New Blood ............................................ 15

� EBRI Databook on Employee Benefits, 4thEdition Now Available ............................................... 15

� Special Report: The LTD Market�A 1997 Updateby Michael D. Lachance .............................................. 1

INDIVIDUAL LIFE INSURANCE AND ANNUITYPRODUCT DEVELOPMENT SECTION

PRODUCT DEVELOPMENT NEWS, OCTOBER 1997

� The Academy of Life Underwriting Issues a Call forArticles ......................................................................... 8

� Are You Getting What You Pay For?by Roger B. Heath and Larry N. Stern ........................ 9

92

� Chairperson�s Cornerby John M. Fenton ....................................................... 1

� Editor�s Noteby David G. Whittemore .............................................. 2

� Errata ............................................................................ 2

� Georgia State University Announces BowlesSymposium Speakers ................................................... 5

� Letter to the Editor ....................................................... 2

� Product Development CD-ROMby Alan Ryder ............................................................ 13

� Rider Attachments and Illustration Testingby Karen K. Rudolph ................................................... 1

� Special Considerations for Equity-IndexedAnnuities in New Yorkby Daniel Theodore and Steven I. Schreiber ............... 7

� Statutory Valuation Interest Ratesby David G. Whittemore .............................................. 6

� Ten Years Ago...by Deborah Sloan ...................................................... 12

� Underwriter�s Corner�The Medical InformationBureauby Rick Bergstrom ........................................................ 3

INTERNATIONAL SECTION

INTERNATIONAL SECTION NEWS, FEBRUARY 1998

� 1997/1998 International Section ProposedBudget ........................................................................ 27

� 34th Annual International Insurance SocietySeminar � Creating Success in a GlobalMarketplace ............................................................... 16

� The Actuarial Profession in Hong Kongby C.F. Yam ................................................................ 13

� Book Commemorates SOA-Nankai 10thAnniversary ................................................................ 14

� Call for Papers ........................................................... 10

� Chairperson�s Cornerby Michelle Chong Tai-Bell ......................................... 1

� Columbia Ambassador�s Reportby Luis Gabriel Caro ................................................. 21

� Editor�s Notesby Kevin M. Law .......................................................... 2

� Hong Kong Ambassador�s Reportby Dominic Lee .......................................................... 18

� Hong Kong Insurance Ordinance Amendmentby Peter Luk ............................................................... 16

� International Accounting Standards for theInsurance Industry

by Bruce D. Moore ...................................................... 3

� International Forum of Actuarial Associations

by Chris Daykin ........................................................... 1

� Korea Ambassador�s Report

by Stephan Rajotte ..................................................... 19

� Minutes of the International Section CouncilMeeting ...................................................................... 25

� New Zealand Ambassador�s Report

by Richard Geisler ..................................................... 20

� Observations on a Trip to China

by Harold G. Ingraham Jr. ........................................ 22

� Puebla, Mexico Actuarial Conference Report

by Jim Toole ............................................................... 17

� Recognition of Actuaries and Competition inEuropeby Wilhelm S. Meijer .................................................... 7

� Report on SOA Joint Subcommittee to StudyForeign Resident Issuesby Marina Adelsky ..................................................... 12

� The Role of the Appointed Actuary in theUnited Kingdom ........................................................ 10

� Underwriting and Risk Classificationby Chris Cook and Vera Dolan .................................. 14

INVESTMENT SECTION

RISKS AND REWARDS, SEPTEMBER 1997

� 1997 Economic Triathlon Entries Are In! ................... 2

� Assessing the Option Premium in Pension Plans

by Michael Cohen and Marlyn Bilodeau .................. 15

� Back-to-Basics?Which Duration Is Best? ................. 19

� A CPI-Based Bias for GDP?

by Peter Yoo ............................................................... 11

� Election Results ......................................................... 21

� Measuring and Communicating Risk/ReturnPerformance

by David N. Becker ...................................................... 3

� Portfolio Insurance?Revisiting Paradise Lostby Nino Boezio ............................................................. 1

93

� Report from the SOA Spring Meeting in Montrealby Vic Modugno ......................................................... 24

� Investment Sessions Set for the Annual Meeting ...... 23

� Review of Financial Journalsby Edwin A. Martin and William L. Babcock ............ 20

� Risk/Reward Tradeoffs among Equity-IndexedAnnuitiesby Richard D. Farrell ................................................ 22

� Taking Stock: Equitiesby Anthony Dardis ....................................................... 2

� Time to Dig Out the Old Dividend DiscountModel?by Anthony Dardis and Adam DeLisse ........................ 1

LIFE INSURANCE COMPANY FINANCIALREPORTING SECTION

THE FINANCIAL REPORTER, SEPTEMBER 1997

� 1997 Valuation Actuary Symposium Offers Tracksby Charles D. Friedstat ............................................... 2

� Academy Valuation Task Force Progress Reportto the NAIC LHAFT�June 1997 ............................... 16

� Accountant�s Corner: What Is this Thing Called a�Mutual Insurance Holding Company?�by Carl M. Harris, Donald H. Pond, and JohnF. Bevacqua ................................................................. 8

� Adoption of Revised Actuarial Guideline 33by James W. Lamson .................................................. 12

� Changing Tomsby G. Thomas Mitchell ................................................ 1

� COLIFR Cornerby Harold Forbes ....................................................... 11

� Data on Demand: Web Sites Offer a Wealth ofInformation for Financial Reporting Actuariesby Michelle D. Smith ................................................... 3

� Highlights of the NAIC Life and Health ActuarialTask Force Meeting�June 1997by Raymond (Ted) Schlude ........................................ 13

� Request for Proposal (RFP)�Financial ReportingSection Council .......................................................... 20

� The Use of Letters of Credit in Life Reinsurance�The Debate Continuesby Hank Sulikowski ...................................................... 1

THE FINANCIAL REPORTER, DECEMBER 1997

� Adoption of Actuarial Guideline 34 (MMM)by James W. Lamson .................................................. 14

� Are Insurance Contracts Derivative Instruments?Questions Raised by the FASB 13X Exposure Draftby David H. Jungk ....................................................... 1

� Challenging Times�Seminars in Asiaby Shirley Shao .......................................................... 16

� Choosing a DAC Amortization Periodby Akiva Zohar ............................................................ 6

� Economic Value-Added for a Life Insurance Companyby Wayne E. Stuenkel ................................................... 3

� Election Results ......................................................... 12

� From the Editorby G. Thomas Mitchell ................................................ 2

� International Accounting Standards for theInsurance Industryby Bruce D. Moore .................................................... 13

� Montreal Speakers�Thanks! ...................................... 17

� Mutual Insurance Holding Companies�An Alternative Approachby E. Tom Hughes ........................................................ 8

� Passing the Batonby R. Thomas Herget ................................................... 1

� Report on the AAA Valuation Task Forceby Veeta Ewan .............................................................. 9

� Risk-Based Capital for 1997 and Beyondby Cande Olsen .......................................................... 11

Nontraditional Marketing Section

NewsDirect, Fall 1997

� Attention! NTM Section Members Attending theAnnual Meeting ........................................................... 1

� Chairperson�s Cornerby Ronald L. Wobbeking .............................................. 2

� Component Rating in Credit Insuranceby Gary Fagg ............................................................... 6

� Editor�s Noteby Curtiss S. Sheldon ................................................... 3

� Nontraditional Marketing Sessions at theAnnual Meeting ........................................................... 8

94

� Summaries of NTM Section Workshops inMontrealby Robert J. Butler ....................................................... 3

� Welcome New Council Members ................................ 5

� Worksite Marketing: What�s Happening in theIndustry?by Curtiss S. Sheldon ................................................... 1

NewsDirect, Winter 1997/98

� Announcing a NewsDirect Articles Contest! ............... 1

� Autumn (of 1998) in New York (NontraditionallySpeaking)by Carl E. Meier .......................................................... 4

� Chairperson�s Cornerby David A. Seidel ....................................................... 1

� Editor�s Note: Oh, to Live in Exciting Times!by Kiran Desai ............................................................. 2

� Information Exchange on Direct ResponseMarketing ..................................................................... 3

� NTM Sessions at the Annual Meeting

� Bank Alliance Niche for Insurers ........................... 6

� Credit Insurance Workshop�How to CalculatePrima Facie Premiums in the CIEE ........................ 7

� Evolving Markets in Payroll Deduction ................. 6

� FBI Field Trip ......................................................... 7

� Hot Topics in Credit Insurance ............................... 7

� Lead Generation ...................................................... 8

� Preneed, Burial, and Final-Expense LifeInsurance ................................................................. 8

� Selling Life Insurance over the Internet ................. 8

� Wine and Cheese Reception?Alias, NTMSection Meeting ...................................................... 9

� Oh, the Places You�ll Goby Peggy Grillot ........................................................... 5

� Past-Chairperson�s Column: A Look Back(As We Actuaries Have a Tendency To Do)by Ronald L. Wobbeking .............................................. 3

� Seminar on Emerging Markets�EmergingMarkets for the New Senior Citizenby Richard Bergstrom .................................................. 4

Pension SectionPension Section News, September 1997

Special Report

� HI Trust Fund: Actuarial Methodology andPrincipal Assumptions ................................................. 3

� OASDI Trust Fund: Principal Economic andDemographic Assumptions .......................................... 5

� SMI Trust Fund: Estimates under Alternative IIAssumptions for Aged and Disabled (ExcludingEnd-Stage Renal Disease) Enrollees ........................... 8

� Articles Needed for the News .................................... 10

� Book Review: EBRI Databook on EmployeeBenefits ........................................................................ 2

� Chairperson�s Cornerby James A. Kenney ..................................................... 1

� Changes in the Québec Pension Planby J. Bruce MacDonald ............................................. 18

� Conflict of Interest and the Theory of Dualityby Theodore W. Konshak ........................................... 19

� Continuing Education Updateby Barbara S. Choyke ................................................ 28

� Election Results Announced ........................................ 2

� Letters to the Editor/Actuaries Online

� The Future of Social Security for thisGeneration and the Next ........................................ 25

� ASOP No. 27 .......................................................... 26

� Retirement Plans Experience Committee .............. 26

� Plan Termination Date ........................................... 26

� Economically Targeted Investing ........................... 26

� A Market Perspectiveby Joseph M. Rafson .................................................. 20

� Minutes of the Committee on SocialSecurity Retirement and Disability IncomeTeleconference ........................................................... 24

� Minutes of the Retirement Needs FrameworkWorking Group Meeting ............................................ 27

� Minutes of the Retirement Systems MortalityProjections Working Group Meeting ......................... 23

� Minutes of the Retirement Systems PracticeAdvancement Committee ........................................... 21

95

� Old-Age Survivors and Disability InsuranceProgram........................................................................ 1

� PBGC Needs Your Help ............................................ 10

� Recent Trends in, and Characteristics of,Major Canadian Pension Plansby J. Bruce MacDonald ............................................. 15

� Should Commutation Functions Still BeTaught?by Ho Kuen Ng .......................................................... 12

� Study Note Corner: Labor Market Plans(Course P 567 Study Note) ........................................ 14

Pension Section News, January 1998

� 1998 Enrolled Actuaries Meeting ................................ 7

� Call for Papers ........................................................... 27

� Chairperson�s Cornerby Carol E. Zimmerman .............................................. 1

� Conflict of Interest Notifications Aid Client�sFiduciary Obligationsby Theodore Konshak ................................................ 19

� Continuing Education Updateby Barbara S. Choyke ................................................ 29

� The Critic�s Cornerby Joel I. Rich ............................................................ 23

� Forecasting Retirement Needs and RetirementWealth Conference ..................................................... 30

� Hope to See You in Hawaii! ...................................... 30

� John Hanson Memorial Prize .................................... 10

� Letters to the Editor

� Conflict of Interest and the Theory of Duality ....... 27

� Letters to the Editor ............................................... 27

� Chairperson�s Corner ............................................. 28

� LIMRA Study: A Guide to Helping EmployeesPreserve Their Pension Benefits .................................. 1

� Measuring the Rate of Retirement in an IntervalBeginning with an Eligibility Change Pointby William H. Blake, Jr. ............................................. 13

� Minutes of the Committee on Social SecurityRetirement and Disability Income MeetingOctober 29, 1997 ....................................................... 24

� Minutes of the Pension Section Council MeetingsJune 29, 1997, Denver ............................................... 25September 29, 1997, Chicago .................................... 26

� Minutes of the Retirement Plans ExperienceCommittee Meetings � July 24, September 24, and November 12, 1997 ........................................... 20

� Randolph�s Bonanza Bigger than Expectedby M.D. Drysdale ....................................................... 16

� Study Note Corner: Securing SupplementalRetirement Arrangements (Course P 361C StudyNote) .......................................................................... 12

� Summary of 1998 IRC, PBGC, Federal IncomeTax, Social Security, and Medicare Amountsby Heidi R. Dexter ....................................................... 3

� Turnover and Retirement Rates Study Available ....... 20

Reinsurance SectionReinsurance Section News, November 1997

� 41st Annual Canadian Reinsurance Conference ......... 1

� Due Diligence and Acquisitionsby Thomas K. Pennington Sr. .................................... 13

� Dear Ms. Re ................................................................. 2

� Highlights of the 1997 Manulife Large Amountand Older Age Mortality Study ................................... 7

� Letters to the Editor

� How Safe Are Your YRT Reinsurance Rates? ........... 17

� Life Reinsurance Data from the Munich AmericanSurveyby James L. Sweeney and David M. Bruggeman ........ 3

� Regulatory Updateby G. Michael Higgins ................................................. 1

� The Use of Letters of Credit in Life Reinsurance�The Debate Continuesby Hank Sulikowski .................................................... 11

� The Value of Party-Appointed Non-NeutralArbitratorsby Vince Vitkowsky ....................................................... 9

Smaller Insurance Company Sectionsmall talk, November 1997

� Equity-Indexed Annuities: Feasible or Flawedfor Small Insurers?by Andrew S. Chow ...................................................... 3

� Excerpts from the NALC Newsletter (September30, 1997) .................................................................... 20

96

� From the Editorby James R. Thompson ................................................ 1

� Indexed Annuity and Life Products ............................. 1

� Life Insurance Sales and Market Conductby Scott J. Cipinko ..................................................... 21

� Minutes of the Smaller Insurance CompanySection Council Teleconference (August 28,1997) .......................................................................... 11

� NAIC Third Quarter Meeting Updateby James N. Van Elsen ............................................... 16

� The New Life Insurance Illustration Regulationand Payroll-Deduction Marketingby Curtiss S. Sheldon ................................................. 15

� Pitfalls in Indexed Productsby Anson J. Glacy ........................................................ 7

� Reinsurance Is an Option to Consider for ManagingRisks in Equity-Indexed Productsby Philip A. Velazquez ................................................. 9

� Reinsurers: What Can or Should They Do forthe Small Insurance Company?by Lori Truelove ........................................................... 8

� SEC and Equity-Indexed Productsby John M. O�Sullivan ................................................. 2

� Status of the AAA Committee on Revisingthe Standard Valuation Law and Its Relation tothe Status of XXXby James R. Thompson .............................................. 12

� What Is IMSA?by David A. Christopher ............................................ 19

� XXX Implementationby Peter G. Hendee .................................................... 13

97

15. REPORTS ON ACTUARIAL MEETINGSCOMPTES-RENDUS DE RÉUNIONS ACTUARIELLES

HOT TIME IN LAUSANNE

You may have recently noted the record temperatures inthe beautiful lakeside city of Lausanne that is located in thesouthwest part of Switzerland. On 21 July 1998, thetemperature soared to 37 degrees C. The temperatures werenot the only hot thing in Lausanne in mid-summer; 20-22July marked the meeting of the Second InternationalCongress on Insurance: Mathematics & Economics.

Over one hundred meeting participants gathered to celebratethe congress. Meeting participants had an opportunity toshare a broad diversity of ideas. This diversity was due inpart to the strong international flavor of the congress.Participants from twenty-two countries attended thecongress.

The diversity was also due to the broad range of topicspresented at the congress. In all, fifty-three papers werepresented. Many papers concerned financial management,investments and financial risks, a theme of the congress.Specifically, three invited papers and fifteen contributedpapers concerned various aspects of finance. However,more traditional technical areas were also well represented.There were six papers on credibility theory, seven on ruintheory, three on stochastic ordering, as well as a host ofother mathematical topics. Further, several practice paperswere presented, including three from the health area, twoon employee benefits/pensions, and three from the lifeinsurance area.

Professors Shiu, Cox and Hipp gave the three invited papers.Elias Shiu of University of Iowa presented a talk entitled,�Insurance and Finance: Deferred Annuities.� Thispresentation explained the various financial options grantedby an insurance company in its assets and liabilities, andpoint out some applications of modern financial theory toinsurance and annuity products. Sam Cox of Georgia StateUniversity presented �Insurance Derivatives: Securitizationand other Recent Developments.� In this lecture, ProfessorCox described some recent innovations in securitization ofinsurance risk and financial risk management. In particular,he discussed a rationale for the continued developmentof these activities, which is consistent with modernfinancial economics. Christian Hipp of the Universityof Karlsruhe presented a talk entitled �Stochastic ControlTheory with Applications to Hedging and Ruin Problems.�Stochastic control theory and its basic Bellman-Hamilton-

Jacobi equation were discussed in the context of (1) hedgingand (2) risk management problems.

Intellectual stimulation was achieved not only by attendinglectures, but also with the ample opportunities to interactwith colleagues on a social basis. After the first day of theconference, a �raclette party� was held at the Universitywith a beautiful view on the Lake of Geneva and the Alps.(Raclette is a cheese specialty of the French-speaking partof Switzerland.) For a dozen or so intrepid conferenceparticipants, the Tuesday evening conference banquet wasa mere eight kilometres hike along a beautiful lakeside path(others took the bus or city metro).

At the closing session, the applause was loud and strongfor the conference organizers, Professors François Dufresne(chairman), André Dubey, and Hans U. Gerber, all membersof the Institute of Actuarial Science of the University ofLausanne (ISA). Participants also had the opportunity tothank Professor Goovaerts for his efforts in initiatingInsurance: Mathematics and Economics. In addition tothe enthusiastic round of applause, Professor Goovaertsreceived a beautiful ISA tie that sparkled with the Institute�sacclaimed logo, made of 100% silk in Lyon (France).

In the near future, invited and other selected papers will,after a refereeing process, appear in the journal Insurance:Mathematics & Economics. Also developing are plans forthe Third International Congress on Insurance:Mathematics & Economics. This congress is scheduledfor 19-21 July 1999 at the City University in London,England. The conference organizer is Richard Verrall whohas already acknowledged the challenge of arranging ameeting as successful as its predecessor.

Edward W. FreesUniversity of Wisconsin

98

INTERNATIONAL SOCIAL SECURITYASSOCIATION

The Second Seminar for Social Security Actuaries andStatisticians from Industrialized Countries took place inTokyo, Japan on 20-21 May 1998. A number of excellentpapers were presented and discussed on the followingtopics:

* pension reform and funding alternative

* health care schemes: statistical and actuarialconsiderations

* methods of financing work injury schemes

* methods of financing unemployment insurance

There were participants from 45 countries, including a goodattendance from the host country.

A Seminar on Social Security Actuarial and StatisticalTechniques for Countries in the Southern Cone took placein Buenos Aires, Argentina on 13-14 November 1997. Afurther meeting in this series is planned to take place inMontevideo, Uruguay in November 1998, followed by asimilar seminar for actuaries of the Central American regionin Managua, Nicaragua. The Second Interregional TrainingSeminar on Actuarial and Statistical Techniques for English-speaking Countries will be held in Manila, The Philippinesin September 1998.

The 26th General Assembly of the ISSA will be held inMarrakech, Morocco from 25-31 October 1998. Changesare expected to be made to the constitution of the ISSA,which, among other things, will replace the PermanentCommittee structure by a new and more flexible structure ofExecutive Committees. Since the Permanent Committee forStatistical, Actuarial and Financial Studies has been operatingwith an Executive Committee for the last three years, littlechange will be required - in effect the rest of the ISSA isfollowing the example of the actuaries.

At the General Assembly, a half-day meeting to be presentedby the Permanent Committee for Statistical, Actuarial andFinancial Studies will take as its topic �Standards ofPractice for Social Security Actuaries�. It is hoped toprogress this topic through co-operation between the ISSAand the newly formed Social Security Sub-committee ofthe IFAA.

ISSA has supported the writing of a textbook on ActuarialMathematics of Social Security by the former Chief Actuary

of the ILO Social Security Department, Mani Iyer. It is hopedthat this will be published shortly in English and that atranslation into Spanish will be made available in due course.

The ISSA has established a web site (http://www.aiss.org)and an increasing number of ISSA technical papers will befound there in the four official languages of the ISSA.

99

16. INTERNATIONAL SUMMER SCHOOL ÉCOLE D�ÉTÉ INTERNATIONALE

15th International Summer Schoolof the Swiss Association of Actuaries

Modelling Extremal Events for Insurance and Finance

École d�été 1999 du Groupe Consultatif des Associationsd�Actuaires des Pays des Communautés Européenes

École des Hec, University of Lausanne, August 9-13, 1999

Lecturers:

Prof. Paul Embrechts, ETHZ (Scientific Director),Dr. Alexander McNeil, ETHZ,others to be announced.

Course outline:

� An overview of extreme value theory (EVT) will begiven. The newly introduced methodology isexemplified via S-Plus software programs speciallywritten for this purpose.

� The EVT results are used to complement existing riskmanagement (RM) techniques in finance and insurance.After giving an overview of current best practice inRM, we discuss the ways in which EVT offers a usefultool to go beyond the existing measures, such as Value-at-Risk (VaR). Various examples based on data frominsurance and finance are given.

� We also discuss the necessary RM methodologyunderlying an Integrated Risk Management System (theintegration standing for underwriting as well asinvestment risk). The usefulness for finance of classicalactuarial tools will be highlighted.

� Some common caveats based on the use of correlationin finance and insurance will be presented.

Language: English

Course text: Embrechts, P., Klueppelberg, C., andMikosch, T. (1997) Modelling ExtremalEvents for Insurance and Finance, Springer,Berlin.

Participants: Actuaries. The participants are expected tobe familiar with basic probability theory.

Fee: Swiss Francs 1290.-This price includes tuition, the course text,hotel accommodation (single room), and halfboard.

Location: Institute of Actuarial Science, École des HEC,University of Lausanne.

Dates: Monday, August 9 (morning) to Friday, August13 (noon) 1999. The participants are expectedto arrive on Sunday, August 8, 1999.

Remark: The number of participants is limited. Shouldyour application be accepted, your registrationwill be confirmed by the end of April 1999.

Hans U. Gerber Herbert LüthyResponsible for the President of the SwissInternational Summer School Association of Actuaries

100

15TH INTERNATIONAL SUMMER SCHOOL 1999

OF THE SWISS ASSOCIATION OF ACTUARIES

MODELLING EXTREMAL EVENTS FORINSURANCE AND FINANCE

ÉCOLE D�ÉTÉ DU GROUPE CONSULTATIF 1999

UNIVERSITY OF LAUSANNE, AUGUST 9-13, 1999

REGISTRATION FORM

I plan definitely to attend the course

I plan tentatively to attend the course

Mr. Ms. Please type or use block letters!

Name: First Name:

Mailing Address:

Education, Age:

Employer, Present Function:

Telephone (Work): FAX (Work):

E-mail address:

Date and Signature:

This form should be submitted by April 15, 1999, to

Professor Hans U. GerberÉcole des HECUniversity of LausanneCH-1015 LausanneSwitzerland

FAX: 0041 21 692 33 05

Documents

ASSOCIATION ACTUARIELLE INTERNATIONALE INTERNATIONAL ... · RÉDACTEUR EN CHEF/ CHIEF EDITOR: Jean Lemaire Insurance and Risk Management Department University of Pennsylvania 3641