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About the Canadian Institute of Actuaries (CIA)

Charles McLeod

November 14, 2005

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Topics

• Some differences between Canada and USA

• CIA – size, structure

• Main functions of the CIA

• “Interesting things we are doing”

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Some differences between Canada and USA

• Single actuarial body in Canada

• Most insurance regulation in Canada is at the federal level

• Generally good relations between the CIA and the regulators

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Differences Canada/USA (continued)

• Role of the Chief (Appointed) Actuary in an insurance company is broader in Canada

• “Principles” based valuation system

• Single set of accounts for shareholders/analysts and regulators

• Canadian GAAP v U.S. GAAP

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About the CIA

• Formed in 1965• 2750 Fellows, 900 Associates, 30 Correspondents• Annual fees for a Fellow are about Canadian

$1,000 per year• Office in Ottawa (18 staff, none are actuaries –

yet)• Bilingual – English and French• Only actuarial body in Canada

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About the CIA (continued)

• Elected Board of Directors (16 members)

• 3 Councils

• About 30 committees

• About 10 task forces

• Most actuarial work for the CIA is done on a volunteer basis.

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Main functions of the CIA

• Education (before and after Fellowship) – shared with CAS and SOA

• Rules of Professional Conduct• Standards of Practice• Educational Notes• Continuing Professional Development

(CPD)• Discipline of members

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Main functions (continued)

• Meetings (general and specialty)

• Training sessions (e.g. communications)

• Experience studies

• Submissions (usually to government bodies)

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Ongoing priorities

• Public interest

• Helping to ensure that actuarial work is of a high quality (e.g. “narrowing the range”)

• Growing the profession

• Speaking out on public issues where we have special expertise (e.g. pensions)

• Making good use of volunteers

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Specific priorities at present

• Corporate Governance

• Pensions

• Risk management/ broadening the range of work of actuaries

• Research

• International developments

• Health/Medicare

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Corporate governance

• Moving towards an independent standard setting process

• Reviewing CPD requirements

• Non-actuaries on our discipline committee

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Pensions

• Standards of practice/educational notes

• External reviews

• Surplus ownership and other external issues

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Enterprise Risk Management

• How to expand role of actuaries

• Special accreditation?

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Research

• How do we maintain our intellectual capital?

• Financial economics

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International

• International Financial Reporting Standards – especially for insurance

• IAA standards

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Health/Medicare

• Role for private insurance in Canada is very small

• Cost of public insurance keeps rising

• How can actuaries help?

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Questions?