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CAS Update Where We’ve Been, Where We Are and Where We’re Going. Casualty Actuaries of Greater New York June 3, 2004. Agenda. CAS Centennial Goal Two Important Task Forces Research Working Parties Educational Process Getting Involved in CAS CAS Web Site Your input. CAS in 2014. - PowerPoint PPT Presentation
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CAS UpdateWhere We’ve Been, Where We Are and Where We’re Going
Casualty Actuaries ofCasualty Actuaries of
Greater New YorkGreater New York
June 3, 2004June 3, 2004
Agenda CAS Centennial GoalCAS Centennial Goal
Two Important Task ForcesTwo Important Task Forces
Research Working PartiesResearch Working Parties
Educational ProcessEducational Process
Getting Involved in CASGetting Involved in CAS
CAS Web SiteCAS Web Site
Your inputYour input
CAS in 2014
The CAS will be 100 years old!The CAS will be 100 years old!
The Planning Horizon Core IdeologyCore Ideology
Core purpose Core purpose A concise statement of the organization’s reason for A concise statement of the organization’s reason for
beingbeing Core values Core values
Essential and enduring tenets of the organization Essential and enduring tenets of the organization 10-30 Years: Envisioned Future10-30 Years: Envisioned Future
Big audacious goalBig audacious goal 5-10 Years: Critical Factors5-10 Years: Critical Factors 3-5 Years: Strategic Planning3-5 Years: Strategic Planning 1-2 Years: Action Planning1-2 Years: Action Planning
Centennial Goal (March ‘03)
The CAS will be The CAS will be globallyglobally recognized as the recognized as the preeminent resource in educating casualty preeminent resource in educating casualty actuaries and conducting research in casualty actuaries and conducting research in casualty actuarial science. CAS members will be actuarial science. CAS members will be recognized as the leading experts in the recognized as the leading experts in the evaluation of hazard risk and the evaluation of hazard risk and the integrationintegration of hazard risk with strategic, financial and of hazard risk with strategic, financial and operational risk.operational risk.
International Issues Historically, CAS predominantly North AmericanHistorically, CAS predominantly North American
95% of members live and practice in North America95% of members live and practice in North America Many papers and syllabus materials use U.S. examplesMany papers and syllabus materials use U.S. examples Major meetings and seminarsMajor meetings and seminars
““Preeminent global resource”Preeminent global resource” Support of CAS Members working abroadSupport of CAS Members working abroad Support basic education process in various countriesSupport basic education process in various countries Exam waivers and mutual recognitionExam waivers and mutual recognition Practice rights for CAS members (Ireland, Australia, Practice rights for CAS members (Ireland, Australia,
India)India) Participation in international actuarial communityParticipation in international actuarial community
Risk Integration
Aspects of risk addressed by a multitude of professionsAspects of risk addressed by a multitude of professions Financial, Operational, Hazard , StrategicFinancial, Operational, Hazard , Strategic
Actuaries can be uniquely positioned to integrate the risksActuaries can be uniquely positioned to integrate the risks Tools in our Education ProcessTools in our Education Process ProfessionalismProfessionalism
Coordinating activities with the SOACoordinating activities with the SOA Joint ERM Seminar summer ’03 (CAS led)Joint ERM Seminar summer ’03 (CAS led) ERM and RCMS merge in ’04 under CAS leadershipERM and RCMS merge in ’04 under CAS leadership In conjunction in ’04 with GA State Bowles Research In conjunction in ’04 with GA State Bowles Research
SymposiumSymposium
Implementing the Centennial Goal
Traditionally Vice Presidents and Committee Chairs Traditionally Vice Presidents and Committee Chairs have annual goalshave annual goals To do listTo do list Only occasionally connected to long range plans Only occasionally connected to long range plans
LRPC working with other CAS leaders to change our LRPC working with other CAS leaders to change our short- and medium-term planning processesshort- and medium-term planning processes Does my goal support the Centennial Goal?Does my goal support the Centennial Goal? What does my committee need to be doing in the next What does my committee need to be doing in the next
three years to support the Goal?three years to support the Goal?
CAS Board
This is where policy is madeThis is where policy is made Board meets 4 times per yearBoard meets 4 times per year
May and November at the CAS meetingsMay and November at the CAS meetings March and SeptemberMarch and September
Board meetings are open to the membership!Board meetings are open to the membership! Come and see how decisions are made in the CASCome and see how decisions are made in the CAS Next Board Meeting – Sept. 9-10, Niagara FallsNext Board Meeting – Sept. 9-10, Niagara Falls
Two Important Task Forces
Classes of membershipClasses of membership How many classes should the CAS have?How many classes should the CAS have? How should these classes be defined?How should these classes be defined?
What governance rights should ACAS’s have in the What governance rights should ACAS’s have in the CAS?CAS? Vote? All ACAS’s? After N Years?Vote? All ACAS’s? After N Years? Chair committees? Which ones?Chair committees? Which ones? Serve as a VP?Serve as a VP? Serve on the Board?Serve on the Board?
Historical Perspective on Associates
Since inception, two classes of membershipSince inception, two classes of membership Associate/Fellow designations have changed over the Associate/Fellow designations have changed over the
yearsyears Initially, company responsibilitiesInitially, company responsibilities Beginning in 1915, examsBeginning in 1915, exams
Number and content of exams has changedNumber and content of exams has changed Two exam differential today is lowest everTwo exam differential today is lowest ever
For 70%, designation of Associate is temporary; the For 70%, designation of Associate is temporary; the remaining 30% will not complete the Fellowship remaining 30% will not complete the Fellowship exams and are/will be career Associatesexams and are/will be career Associates
Task Force on ACAS Governance Rights
Right to voteRight to vote should be given to members upon attainment of should be given to members upon attainment of Fellowship or five years after they are recognized as Associates, Fellowship or five years after they are recognized as Associates, whichever comes first. Right to vote should be unrestricted.whichever comes first. Right to vote should be unrestricted.
All voting members should be allowed to stand for the All voting members should be allowed to stand for the Board of Board of DirectorsDirectors
Voting Associates may hold all Voting Associates may hold all officer positionsofficer positions, with the , with the exception of:exception of: President / President ElectPresident / President Elect Vice President - Admissions Vice President - Admissions
Committee Membership is to remain restricted to Fellows for:Committee Membership is to remain restricted to Fellows for: DisciplineDiscipline Education PolicyEducation Policy SyllabusSyllabus
Classes of Membership Task Force
Task Force recommendations include:Task Force recommendations include: One and only one class of membership - FellowshipOne and only one class of membership - Fellowship Certificate of Achievement in Casualty Actuarial Science Certificate of Achievement in Casualty Actuarial Science Bring all candidates under the Code of Professional ConductBring all candidates under the Code of Professional Conduct Transitional IssuesTransitional Issues
Current AssociatesCurrent Associates• Automatic Transition (Preferred)Automatic Transition (Preferred)• Completion of some Additional Requirement(s)Completion of some Additional Requirement(s)
Students on the Road to ACASStudents on the Road to ACAS• Continue to offer Associate designation until 2008Continue to offer Associate designation until 2008
Retain common set of examinations (ideally 8 exams total)Retain common set of examinations (ideally 8 exams total) Action expected at September Board meetingAction expected at September Board meeting
Research Working Parties
Traditional CAS ApproachTraditional CAS Approach Focused on individual researchFocused on individual research Call paper programsCall paper programs
No interaction among researchersNo interaction among researchers
Working Parties Working Parties Focused topicFocused topic Collaborative, interactive processCollaborative, interactive process Short (1 year) time frame with report at next meetingShort (1 year) time frame with report at next meeting First parties formed at CLRS ‘03First parties formed at CLRS ‘03
Changes to Preliminary Education
CurrentCurrent Prerequisites: Linear Algebra and Statistics Prerequisites: Linear Algebra and Statistics Exam 1: Calculus and Probability (4 hours)Exam 1: Calculus and Probability (4 hours) Exam 2: Interest Theory, Economics, Finance (4 hours)Exam 2: Interest Theory, Economics, Finance (4 hours) Exam 3: Actuarial Models– NOT JOINT (4 hours)Exam 3: Actuarial Models– NOT JOINT (4 hours) Exam 4: Actuarial Modeling (including Applied Stats) (4 hours)Exam 4: Actuarial Modeling (including Applied Stats) (4 hours)
Changes to Preliminary Education
Approved March 2004 Board MeetingApproved March 2004 Board Meeting Starting Spring 2005Starting Spring 2005
Prerequisites: Linear Algebra and CalculusPrerequisites: Linear Algebra and Calculus Exam 1: Probability (with Supporting Calculus) (3 hours)Exam 1: Probability (with Supporting Calculus) (3 hours) Exam 2: Interest Theory (2 hours)Exam 2: Interest Theory (2 hours) Exam 3: Actuarial Models & Statistics – NOT JOINT (4 hours)Exam 3: Actuarial Models & Statistics – NOT JOINT (4 hours) Exam 4: Actuarial Modeling (4 hours)Exam 4: Actuarial Modeling (4 hours) Validation by Educational Experience: Economics, Finance, Validation by Educational Experience: Economics, Finance,
Applied Statistics Applied Statistics
Validation by Educational Experience
Option 1: Submit a grade of B- or better on approved coursesOption 1: Submit a grade of B- or better on approved courses Micro and Macro EconomicsMicro and Macro Economics Intermediate Corporate FinanceIntermediate Corporate Finance Regression and Time Series (could be separate courses)Regression and Time Series (could be separate courses)
Option 2: Pass an appropriate exam, such as the AP exams for Option 2: Pass an appropriate exam, such as the AP exams for Economics, CFA exams, etc. Economics, CFA exams, etc.
Option 3: Pass exams offered by the CAS. CAS is committed Option 3: Pass exams offered by the CAS. CAS is committed to offering these for at least 2 yearsto offering these for at least 2 years
Option 4: Other experiencesOption 4: Other experiences College distance-learning coursesCollege distance-learning courses Courses/seminars designed specifically for VEE creditCourses/seminars designed specifically for VEE credit
Transition
2000 Syllabus2000 Syllabus Exam 1 Exam 1 Exam 1 Exam 1 Exam 2 Exam 2 Exam 2 + VEE for Economics & Finance Exam 2 + VEE for Economics & Finance Exam 3 Exam 3 Exam 3 Exam 3 Exam 4 Exam 4 Exam 4 + VEE for Applied Stats Exam 4 + VEE for Applied Stats
Pre-2000 SyllabusPre-2000 Syllabus Part 3A Part 3A VEE for Applied Stats VEE for Applied Stats Part 4A Part 4A Exam 2 Exam 2 Part 4B Part 4B Exam 4 Exam 4 Part 5A Part 5A VEE for Economics VEE for Economics Part 5B Part 5B VEE for Finance VEE for Finance
Why VEE?
Most candidates take Economics and/or Finance Most candidates take Economics and/or Finance No need to examine topics that require background but No need to examine topics that require background but
not masterynot mastery But verification is needed to meet international But verification is needed to meet international
standardsstandards Exam questions for Applied Stats stress memorization Exam questions for Applied Stats stress memorization
rather than applicationrather than application Our candidates need to learn how to appropriately Our candidates need to learn how to appropriately
apply regression and time series models to real dataapply regression and time series models to real data This competency cannot easily be validated in a timed This competency cannot easily be validated in a timed
paper-and-pencil exam paper-and-pencil exam
Impact on Travel Time
Actuarial Science majors often graduate with two or Actuarial Science majors often graduate with two or more examsmore exams Unlikely to have much effect on these candidatesUnlikely to have much effect on these candidates
Other majors who take VEE courses in school benefitOther majors who take VEE courses in school benefit Candidates who did not have VEE courses in schoolCandidates who did not have VEE courses in school
Can tackle VEE while studying for interest examCan tackle VEE while studying for interest exam Or between exam “seasons”Or between exam “seasons” VEE pass rates on first attempt should be very highVEE pass rates on first attempt should be very high
Increases predictability of travel timeIncreases predictability of travel time
Other Ways to Reduce Travel Time
Computer Based TestingComputer Based Testing Targeting 2005 pilot for Exam 1Targeting 2005 pilot for Exam 1 Expand to 4-6 computer-based administrations in 2006Expand to 4-6 computer-based administrations in 2006 Candidates will receive results immediately Candidates will receive results immediately
(beginning in 2006)(beginning in 2006) Will expand to other exams if successfulWill expand to other exams if successful
Approved May 2004 Board Meeting. Awaiting Approved May 2004 Board Meeting. Awaiting approval by SOA.approval by SOA.
Other Ways to Reduce Travel Time
More Efficient Study MaterialMore Efficient Study Material Too much material not written for study purposesToo much material not written for study purposes Institute of Actuaries (UK) hired one vendor to produce Institute of Actuaries (UK) hired one vendor to produce
all study materialall study material Material written specifically for study purposesMaterial written specifically for study purposes Enabled increased pass rates despite expanded syllabus Enabled increased pass rates despite expanded syllabus
breadthbreadth CAS Task Force determined that this could work for usCAS Task Force determined that this could work for us Syllabus Committee charged to try this on a pilot basisSyllabus Committee charged to try this on a pilot basis
Modeling Workshop
Education in Risk Integration Techniques is consistent Education in Risk Integration Techniques is consistent with Centennial Goalwith Centennial Goal DFA added to Syllabus in 2000DFA added to Syllabus in 2000 DFA taken off Part 8 in 2003 due to inability to test in a DFA taken off Part 8 in 2003 due to inability to test in a
paper-and-pencil environmentpaper-and-pencil environment Modeling Workshop Task Force establishedModeling Workshop Task Force established
Pilot a hands-on workshop experience in late 2004Pilot a hands-on workshop experience in late 2004 Consider adding this as a future FCAS requirement Consider adding this as a future FCAS requirement
and/or continuing education opportunityand/or continuing education opportunity
Getting Involved in CAS
Why:Why: LearnLearn Make useful contactsMake useful contacts Contribute to your professionContribute to your profession
How:How: Pick committees/topic(s) that interest you mostPick committees/topic(s) that interest you most Respond to Participation Survey or contact committee chair Respond to Participation Survey or contact committee chair
directlydirectly Join a working partyJoin a working party Write papersWrite papers Give presentationsGive presentations Regional Affiliate involvementRegional Affiliate involvement
CAS Web Site (www.casact.org)
Syllabus, study materials, past exams, study notesSyllabus, study materials, past exams, study notes All PCAS (1914), CAS Forums (1987) and All PCAS (1914), CAS Forums (1987) and
Discussion paper programs (1979), ASTIN JournalsDiscussion paper programs (1979), ASTIN Journals ASOPs, Casualty Reserve Practice NoteASOPs, Casualty Reserve Practice Note Discussion forumDiscussion forum Member Services:Member Services:
Membership DirectoryMembership Directory CAS Board Q&ACAS Board Q&A Board minutesBoard minutes
We welcome your input regarding . . .
Centennial GoalCentennial Goal CAS role internationallyCAS role internationally CAS role outside traditional p/c insuranceCAS role outside traditional p/c insurance Exams and Education ProcessExams and Education Process Travel timeTravel time MembershipMembership Research working partiesResearch working parties What’s on your mind?What’s on your mind? Questions?Questions?
THANK YOU !!!!!