Current CAS Issues Current CAS Issues and Directions and Directions Roosevelt C. Mosley, FCAS, MAAA

SWAF Summer 2007 MeetingJune 5, 2007, Austin, TX

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AgendaAgenda CAS Education Strategy – UpdateCAS Education Strategy – Update

Other Education IssuesOther Education Issues

CAS Centennial GoalCAS Centennial Goal

ERM InitiativesERM Initiatives

Other NewsOther News

Your InputYour Input

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Update on Education Update on Education Strategy – BackgroundStrategy – Background

Task Force on Review of Education and Task Force on Review of Education and Examination Process and Procedures – 1998Examination Process and Procedures – 1998

Chauncey Group – 2000Chauncey Group – 2000 Future Education Task Force – 2002Future Education Task Force – 2002 Task Force on FCAS Education – 2004 Task Force on FCAS Education – 2004 Board Task Force on FCAS Education - 2005Board Task Force on FCAS Education - 2005 Special Board Meeting – January, 2006Special Board Meeting – January, 2006 Produced White Paper Based on Board Produced White Paper Based on Board

DiscussionDiscussion

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Update on Update on Education StrategyEducation Strategy

White Paper on CAS Education StrategyWhite Paper on CAS Education Strategy Released in November 2006Released in November 2006 Feedback invited via online survey Feedback invited via online survey

through January 2007.through January 2007. Several significant proposed changed Several significant proposed changed

to educationto education Board discussed feedback in March Board discussed feedback in March

2007.2007.

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Update on Update on Education Strategy Education Strategy

Reasons for New StrategyReasons for New Strategy Expanding scope of practicesExpanding scope of practices Some new areas are not conducive to Some new areas are not conducive to

traditional testingtraditional testing Not all skills need same level of masteryNot all skills need same level of mastery Balance of increasing syllabus materials Balance of increasing syllabus materials

and travel timeand travel time

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Update onUpdate onEducation StrategyEducation Strategy

White Paper on Education – ProposalsWhite Paper on Education – Proposals Mastery vs. familiarityMastery vs. familiarity Optional elective capabilitiesOptional elective capabilities Optional tracks for FellowshipOptional tracks for Fellowship Enhanced continuing education programEnhanced continuing education program Non-exam evaluation methodsNon-exam evaluation methods Improved education materialImproved education material

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Update on Update on Education StrategyEducation Strategy

Summary of Feedback:Summary of Feedback: Fellowship tracks did not garner broad Fellowship tracks did not garner broad

support – concern with impeding career support – concern with impeding career mobility.mobility.

Providing more rigorous continuing Providing more rigorous continuing education offerings was strongly education offerings was strongly supported.supported.

Required workshops for basic education – Required workshops for basic education – some support for testing knowledge and some support for testing knowledge and skills.skills.

Other feedback:Other feedback: Desire for improved study materialsDesire for improved study materials

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Survey of Survey of Stakeholders- ResultsStakeholders- Results

More than 8 in 10 agreed with More than 8 in 10 agreed with Mastery of some material, familiarity Mastery of some material, familiarity with others.with others.

Only 10% disagreed with more Only 10% disagreed with more rigorous CPD opportunitiesrigorous CPD opportunities

Certificates of Achievement in Certificates of Achievement in specialty areas: 45% agreed, 44% specialty areas: 45% agreed, 44% disagreed, 22% no opiniondisagreed, 22% no opinion

Plus 206 written comments!Plus 206 written comments!

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Survey Comments- Survey Comments- ThemesThemes

1.1.Survey was “slanted” towards favorable answers.Survey was “slanted” towards favorable answers.2.2.Specialization certificates would make it hard to Specialization certificates would make it hard to move into other areas.move into other areas.3.3.VEE not a good idea- people will “shop” for easiest VEE not a good idea- people will “shop” for easiest courses, career-changers don’t want to/can’t go courses, career-changers don’t want to/can’t go

back to collegeback to college4.4.We have a lot to gain if we just improve current exams.We have a lot to gain if we just improve current exams.5.5.Give upper exams twice a year.Give upper exams twice a year.6.6.Why are we using the SOA as a role model? Why are we using the SOA as a role model?

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Comments- More Comments- More ThemesThemes

7.7. Exams are a barrier to entry designed by a Exams are a barrier to entry designed by a small group of elites who want to keep small group of elites who want to keep themselves expensive and don’t want to dilute themselves expensive and don’t want to dilute the ACAS/FCAS designation.the ACAS/FCAS designation.

8.8. Make sure this credential means something.Make sure this credential means something.

9.9. Exams cannot make people experts- only Exams cannot make people experts- only experience can.experience can.

10.10. We need other delivery methods besides closed-We need other delivery methods besides closed-book exams.book exams.

11.11. CPD requirements- good or bad?CPD requirements- good or bad?

12.12. Stop jerking us around!Stop jerking us around!

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Update on Update on Education StrategyEducation Strategy

Next Steps:Next Steps: Board held lengthy discussion during Board held lengthy discussion during

meeting in March.meeting in March. Small task force of the Board formed Small task force of the Board formed

to review the feedback to the White to review the feedback to the White Paper in more detail and consider Paper in more detail and consider the comments of the Board.the comments of the Board.

Board will discuss issue again in June Board will discuss issue again in June 2007.2007.

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Update on Update on Education StrategyEducation Strategy

No implementation timeline has been No implementation timeline has been contemplated at this point.contemplated at this point.

We will not have details on We will not have details on implementation until we first agree on implementation until we first agree on the strategy that is to be implemented. the strategy that is to be implemented.

Implementation will not occur for Implementation will not occur for severalseveral years. years.

Implementation plan will include a Implementation plan will include a transition strategy designed to transition strategy designed to minimize disruption for candidates.minimize disruption for candidates.

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Other Education Issues - Other Education Issues -

Improved Educational Improved Educational MaterialsMaterials

Board established the Task Force on Board established the Task Force on Developing Education Materials.Developing Education Materials.

Task Force issued two Requests For Task Force issued two Requests For Proposals for authors to create Proposals for authors to create educational publications on educational publications on (1) ratemaking and (2) reserving.  (1) ratemaking and (2) reserving. 

Proposals were due March 30, 2007.Proposals were due March 30, 2007. Board to decide on awarding contracts Board to decide on awarding contracts

during June 2007 meeting.during June 2007 meeting.

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Other Education Issues - Other Education Issues -

Candidate Code of Candidate Code of ConductConduct

Board approved adoption of a Code of Board approved adoption of a Code of Professional Ethics for Candidates, and Professional Ethics for Candidates, and Rules of Procedure for Disciplinary Rules of Procedure for Disciplinary Actions Involving CandidatesActions Involving Candidates

Purpose: to require Actuarial Candidates Purpose: to require Actuarial Candidates to adhere to the high standards of to adhere to the high standards of conduct, practice, and qualifications of the conduct, practice, and qualifications of the actuarial profession.actuarial profession.

Effective: with registration for the 2008 Effective: with registration for the 2008 Spring exam sitting.Spring exam sitting.

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CAS Centennial GoalCAS Centennial Goal

March 2003 March 2003 CAS Board adopted the Centennial Goal.CAS Board adopted the Centennial Goal.

November 2006November 2006 LRPC presented its annual report to the LRPC presented its annual report to the

Board; Board agreed to revisit the goal.Board; Board agreed to revisit the goal. March 2007March 2007

Board reaffirmed the long-term vision for Board reaffirmed the long-term vision for CAS; approved refreshed wording for the CAS; approved refreshed wording for the Goal.Goal.

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CAS Centennial GoalCAS Centennial Goal

The CAS will be recognized globally as a The CAS will be recognized globally as a leading resource in educating casualty leading resource in educating casualty actuaries and conducting research in actuaries and conducting research in casualty actuarial science. CAS members casualty actuarial science. CAS members will advance their expertise in pricing, will advance their expertise in pricing, reserving, and capital modeling; and reserving, and capital modeling; and leverage their skills in risk analysis to leverage their skills in risk analysis to become recognized as experts in the become recognized as experts in the evaluation of enterprise risks, particularly for evaluation of enterprise risks, particularly for the property and casualty insurance industrythe property and casualty insurance industry..

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ERM InitiativesERM Initiatives

ERM VisionERM Vision 2007 ERM Symposium2007 ERM Symposium Online Course: Introduction to ERMOnline Course: Introduction to ERM 2007 CAS Spring Meeting – ERM 2007 CAS Spring Meeting – ERM

track track (six sessions)(six sessions)

CAS ERM CommitteeCAS ERM Committee

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CRUSAPCRUSAP

Critical Review of the U.S. Actuarial Critical Review of the U.S. Actuarial Profession (CRUSAP) Task Force issued its Profession (CRUSAP) Task Force issued its final report final report (see (see www.crusap.netwww.crusap.net).).

Board discussed report in March 2007.Board discussed report in March 2007. Agreed that Council of US Presidents Agreed that Council of US Presidents

(CUSP) will focus on profession’s reaction (CUSP) will focus on profession’s reaction to the report.to the report.

Board to receive and review CUSP proposed Board to receive and review CUSP proposed responses at future Board meetings.responses at future Board meetings.

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Board GovernanceBoard Governance

Fellows approved changes to the Fellows approved changes to the Constitution in 2006 to allow the CAS Constitution in 2006 to allow the CAS to appoint additional board members to appoint additional board members to the CAS Board of Directors. to the CAS Board of Directors.

Board approved the appointment of Board approved the appointment of Mark Vonnahme to the Board in Mark Vonnahme to the Board in March, making him the first non-March, making him the first non-actuary to serve the CAS in this actuary to serve the CAS in this capacity.capacity.

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New CAS JournalNew CAS Journal

www.VarianceJournal.org

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Image of the Actuary Image of the Actuary CampaignCampaign

Profession-wide campaign.Profession-wide campaign. Image Advisory Group, made up of members Image Advisory Group, made up of members

from each of the North American actuarial from each of the North American actuarial organizations, oversees campaign.organizations, oversees campaign.

www.imageoftheactuary.orgwww.imageoftheactuary.org// for more for more information.information.

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2007 Calendar of 2007 Calendar of EventsEvents

Spring MeetingSpring MeetingJune 17-20, 2007, OrlandoJune 17-20, 2007, Orlando

ASTIN ColloquiumASTIN ColloquiumJune 19-22, 2007, OrlandoJune 19-22, 2007, Orlando

Limited Attendance Reinsurance Limited Attendance Reinsurance SeminarSeminarJuly 16, 2007, LondonJuly 16, 2007, London

CLRSCLRSSeptember 10-11, 2007, San DiegoSeptember 10-11, 2007, San Diego

Annual MeetingAnnual MeetingNovember 11-14, 2007, ChicagoNovember 11-14, 2007, Chicago

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ASTIN 2007ASTIN 2007

CAS is host of the 2007 ASTIN Colloquium CAS is host of the 2007 ASTIN Colloquium – – ASTIN’s 50ASTIN’s 50thth Anniversary! Anniversary!

Immediately follows the 2007 CAS Spring Immediately follows the 2007 CAS Spring Meeting, with a joint day of sessions.Meeting, with a joint day of sessions.

http://www.actuaries.org/ASTIN2007/http://www.actuaries.org/ASTIN2007/

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I welcome your I welcome your input regarding . . .input regarding . . .

CAS Education StrategyCAS Education Strategy

CAS Centennial Goal / ERM InitiativesCAS Centennial Goal / ERM Initiatives

CAS Publications and ResearchCAS Publications and Research

Image of the Actuary CampaignImage of the Actuary Campaign

2007 Calendar of Events2007 Calendar of Events

Other TopicsOther Topics

Questions?Questions?

Thank You!Thank You!

Roosevelt C. Mosley, FCAS, MAAASWAF Summer 2007 Meeting

June 5, 2007, Austin, TX