erm webcast december 10, 2015 actuarial consulting congress of asia presented in cooperation with...

ERM WebcastERM WebcastDecember 10, 2015December 10, 2015

Actuarial Consulting Congress of Asiapresented in cooperation with Society of Actuaries (SOA)

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If you have specific questions, seek guidance from your own legal counsel or from the SOA’s Executive Director or legal counsel.

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• Presentations are intended for educational purposes only and do not replace independent professional judgment. Statements of fact and opinions expressed are those of the participants individually and, unless expressly stated to the contrary, are not the opinion or position of the Society of Actuaries, its cosponsors or its committees. The Society of Actuaries does not endorse or approve, and assumes no responsibility for, the content, accuracy or completeness of the information presented. Attendees should note that the sessions are audio-recorded and may be published in various media, including print, audio and video formats without further notice.

DisclaimerDisclaimer

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Tomoya Nomura, PwC JapanTomoya Nomura, PwC Japan Julia Zhang, EY ChinaJulia Zhang, EY China Frank Ashe, Independent ConsultantFrank Ashe, Independent Consultant Paul King, Review Panel of CERA BoardPaul King, Review Panel of CERA Board

Raymond Cheung, ERM Webcast ChairRaymond Cheung, ERM Webcast ChairHideyuki Yoshida, ACCA Chair Hideyuki Yoshida, ACCA Chair Sanchit Maini, Aviva SingaporeSanchit Maini, Aviva SingaporeEric Lu, Deloitte ChinaEric Lu, Deloitte ChinaLiyaquat, ACCA Executive DirectorLiyaquat, ACCA Executive Director

Presenters and ModeratorsPresenters and Moderators

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• ERM Webcast Chairman introduction speech

• ACCA Chairman introduction speech• Regulatory Update – ORSA, Q&A• C-ROSS, Q&A• Strategic Decision Making and ERM: risk

assessment with no models and no data, Q&A

• CERA: Preparing ERM Professionals, Q&A

AgendaAgenda

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• WELCOME• Actuarial Consulting Congress of Asia

• Not-for-profit, non-political, non-government and non-religious organisation created with the key objective of strengthening the subject of consulting in general and delivery of actuarial advice in particular in the Asia Region

• History – IAA, APACA, ACCA

• www.accaasia.org

Introducing ACCAIntroducing ACCA- Hideyuki Yoshida, Chair- Hideyuki Yoshida, Chair

ORSA - updatesORSA - updates

Presented in cooperation with

Tomoya Nomura

PwC, Japan

Actuarial Consulting Congress of Asia ERM Webcast

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Risk environment and overview of ORSA

Risks change time to time and geographical environment

2015 Asia-Pac* 2015 Global 2013 Global

1 Change management 1 Regulation (1) 1 Regulation (1)

2 Cyber risk 2 Macro-economy (3) 2 Investment performance (4)

3 Distribution channels 3 Interest rates (-)3 Macro-economic environment (3)

4 Human talent 4 Cyber risk (-) 4 Business practices (18)

5 Regulation 5 Investment performance (2) 5 Natural catastrophes (5)

6 Interest rates 6 Change management (15) 6 Guaranteed product (-)

7 Natural catastrophes 7 Guaranteed products (6)7 Quality of risk management (15)

8 Investment performance 8 Distribution channels (11) 8 Quality of management (14)

9 Macro-economy 9 Natural catastrophes (5) 9 Long tail liabilities (7)

10 Quality of risk management10 Quality of risk management (7)

10 Political interference (11)

*Australia, China, Hong Kong, Japan, Malaysia, New Zealand, Singapore, South Korea, Taiwan, Vietnam

Japan

Australia

Malaysia

Singapore

Points of Focus

•ORSA has already implemented in these countries

•Communication start with regulator

•ORSA “Use” in business is more focused.

•ORSA comes with market – consistent based liability valuation as risk sensitive measurement.

ORSA readiness

Current status in each county

Australia

All insurers**Exemption for run-off companies Execution of ICAAP (GPS para11)

Preparation of ICAAP summary statement (GPS para12)

Annual ICAAP report filing to APRA (GPS para 14 / 15)Jan. 2013 -

Singapore

All insurers**Depending on the size & risk profile etc.

Mandatory (MAS notice 126 para 10 – 46)・ Risk identification and measurement・ Risk management policy・ Risk appetite statement etc.Voluntary (MAS notice 126 para 47-) Jan. 2014

Malaysia

All insurers Execution of ICAAP (Guideline on ICAAP for insurers)

・ Internal governance, risk management and internal audit of risks.

・ Measurement of risks and quantification of the capital needed to cover them etc.

Sep. 2012

Japan

All insurers** Exemption for small insurers(SMST)

ORSA report filing (IBA para 128)・ Business strategy and recognition of risks・ Risk management policy・ Risk profile and risk measurement・ Use in business etc.March. 2015

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ORSA in Japan as one example of Asian situation

PwC survey unveils the detail situation in Japan

Industry

Number Group1*

Group2

Life 33 12 21

Non-life 31 8 23

Total 64 20 44* Life group 1 defined as companies over 5trillion yen assets. Non-life group 1 defined as companies over NPW 100billion yen targeting scope of ERM interview by FSA.

Scope

Soundness(Risk & Capital)

Profitability(Capital & Profit)

Stability of Profit(Risk & Profit)

Liquidity

Operational

Others

95%

59%

59%

34%

37%

12%

RiskAppetite

Source:PwC survey

Source:PwC survey

Ineffective SMR during the financial crisis Yamato Life went bankrupt a half year after it counts 555% SMR in March, 2008. AIG showed the importance of group perspective.

Change in assets allocationIn Yamato Life

Dynamic change in assets allocation in Dynamic change in assets allocation in Yamato life.Yamato life.Seeking high return to compensate guaranteed Seeking high return to compensate guaranteed rate in the insurance contract. Especially, equity rate in the insurance contract. Especially, equity and foreign stock has been increased. Then, the and foreign stock has been increased. Then, the financial crisis struck Yamato life through change financial crisis struck Yamato life through change in price of equity and foreign structured bond etc. in price of equity and foreign structured bond etc.

SMR didn’t work as an early alarm in solo.SMR didn’t work as an early alarm in solo.March, 2008, SMR counted as over 500%, which March, 2008, SMR counted as over 500%, which means TMA is over 2 times larger than TRA.means TMA is over 2 times larger than TRA.But a half year later, Yamato went bankrupt.But a half year later, Yamato went bankrupt.

SMR didn’t work as an early alarm in group.SMR didn’t work as an early alarm in group.AIG shock showed the importance of group AIG shock showed the importance of group perspective.perspective.

Unit In million yen

Prepared by speaker

ERM interview & New supervisory guideline

ERM interview in 201322 companies joinedRisk appetite concept gradually penetrates into the center of risk management

ERM interview in 2011Number of companies undisclosed, majors involvedTechnical development (VaR ／ Market consistent valuation) has proceeded already.

ERM interview in 201422 companies joined8 items released as the potential contents of the ORSA report

ERM interview in 201223 companies joinedInternal rules for ERM has been developed dramatically

ORSA officially implemented through filing ORSA report until the end of Sep. 2015(Based on status on March 2015.)

FSAPFSAP : Financial Sector Assessment : Financial Sector Assessment ProgramProgram

A comprehensive and in-depth analysis of a A comprehensive and in-depth analysis of a country's financial sector. FSAP assessments are country's financial sector. FSAP assessments are the joint responsibility of the IMF and World Bank the joint responsibility of the IMF and World Bank in developing and emerging market countries and in developing and emerging market countries and of the Fund alone in advanced economies.of the Fund alone in advanced economies. G20 supports FSAP activities and FSB member G20 supports FSAP activities and FSB member jurisdictions commit to implement international jurisdictions commit to implement international financial standards and undergo an assessment financial standards and undergo an assessment under the FSAP every five years.under the FSAP every five years.Japan undergo the FSAP in very first time since Japan undergo the FSAP in very first time since New ICPs, the benchmark for FSAP, released in New ICPs, the benchmark for FSAP, released in Oct, 2011Oct, 2011

Valuation (ICP14)…this (CF over the full time horizon

consideration) is not necessarily the case in the subsequent testing of their sufficiency,….as well as the absence of an explicit valuation of some options and guarantees, create the possibility that liabilities might be understated.

New IAIS rule hit Japanese solvency regimeBig challenge to current SMR regime not only SMR itself but also reform of the risk management framework including ORSA

ERM for solvency purpose (ICP16)…It (the FSA) should also provide more

explicit guidance regarding the performance of own risk and solvency assessment.

Capital Adequacy (ICP17)The required solvency margin should include

risk margins for any mismatching of assets and liabilities, not just a risk margin for interest-rate risk.

Materiality drives companies investment

KPIsin ERM

RORACRAROC

Economic valueadded

EconomicCapital

EmbeddedValue

Return onCapital (non-adjusted)

Traditional Measurement

25%

29%

83%

58%

33%

17%

InternalModel

Insurance Risk

Market Risk

Credit Risk

Operational Risk

67%

75%

63%

41%Source:PwC survey

Source:PwC survey

The introduction of ERM makes possible comprehensive assessment and more rational management decision-making in determining whether risk is excessive vis-à-vis capital and whether capital policies and revenue management are adequate.

T&D CEO Kenji Nakagome http://www.td-holdings.co.jp/en/csr/message/

As we plan to accelerate growth in line with our medium-term management plan, our business expansion should correspond to the evaluation based on the ERM framework. Our ERM framework not only focuses on internal control and risk management but also emphasizes risk-taking when implementing our strategy.

Dai-ichi life CEO Koichiro Watanabehttp://www.dai-ichi-life.co.jp/english/investor/event.html#a27

Top management initiatives

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Q&AQ&A

Opportunity and Opportunity and ChallengeChallenge


C-ROSS Introduction

Julia Zhang

EY ChinaActuarial Consulting Congress of Asia ERM Webcast

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1. Background

2. Development

4. Opportunity and Challenge

3. Framework

AgendaAgenda

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Life Insurance The past ten years have been the golden era for

the rapid growth of the life insurance market in China.

Main drivers were:• Continuous high growth in GDP• Aging population• Urbanization• Change in the social benefits.

Insurance premium mainly came from participating business and bancassurance channel

Non-Life Insurance Motor insurance has dominated the Chinese

non-life market. Commercial property insurance, agriculture insurance and liability insurance are the next three most significant product lines.

Motor insurance class of business will continue to dominate given the enormous growth in the motor industry and high demand from consumers for car ownership.

Natural catastrophe events in China in recent years have raised awareness of the need for property insurance and catastrophe insurance.

Overview of China Insurance Market

CAGR=16% CAGR=20%

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Total Asset Under ManagementTotal Asset Under Management

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propro

propro

TraditionalTraditional

Chinese insurance risks have become more versatile and complex

Products

Invested Assets

Market Participants

• Participating (cash dividend / reversionary bonus) • Universal life• Unit linked• Variable annuity

• Insurance asset managers• Health insurers• Pension companies• Insurance groups• Conglomerates• Mutual insurers

Cash Government bond Term deposit

Cash Government bond Term deposit

• Corporate bond• Mutual fund• Stock• Real estate• Private equity• Oversea investments

170 Insurers• Life insurers• P&C insurers• Reinsurers

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• Deregulation of Investment：• Relax the different asset classes for investment choices

• Release the upper limits of investment restrictions

• Investment regulatory on investment products change from approval process to registration only

• Deregulation of Pricing：• Traditional life （ 2013）• Universal life （ 2015）• Participating life （ 2015）• Auto insurance （ 2015）

• Deregulation of Investment：• Relax the different asset classes for investment choices

• Release the upper limits of investment restrictions

• Investment regulatory on investment products change from approval process to registration only

• Deregulation of Pricing：• Traditional life （ 2013）• Universal life （ 2015）• Participating life （ 2015）• Auto insurance （ 2015）

Market Oriented Reform of China’s Insurance Industry

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C-SI Facts

The Facts and Main Issues of “C-SI”

Main Issues

Does not comprehensively reflect risks

Low sensitivity to risks Capital requirement rather

than risk management

Does not comprehensively reflect risks

Low sensitivity to risks Capital requirement rather

than risk management

Prudent asset and liability valuation

Volume based fixed ratio capital requirement

• 16%/18% of non-life insurance net premium

• 4% of life insurance reserve

Difficult to meet the requirements of:• The management and regulation on more versatile and complex risk profile.• Market oriented reform of insurance market.• Sustainable and healthy growth of insurance industry

Difficult to meet the requirements of:• The management and regulation on more versatile and complex risk profile.• Market oriented reform of insurance market.• Sustainable and healthy growth of insurance industry

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Worldwide Reforms of Solvency Regulation

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Initiation of C-ROSS

The increasing risk scale and difficulty of risk management of insurance industry

Market-oriented strategy of “release the top-end, hold the back-end”

International insurance regulatory rules become increasingly convergent.Banking has unified regulatory rules.There is no unified rules for insurance industry all over the world

C-SI is not suitable for emerging market.It is urgent to enhance risk management of insurance industryDevelop a risk oriented solvency system

Full name：中国风险导向的偿付能力体系Simplified name：偿二代Full name：中国风险导向的偿付能力体系Simplified name：偿二代

ChineseChinese

Full name ： China Risk Oriented Solvency System

Simplified name ： C-ROSSC-ROSS

Full name ： China Risk Oriented Solvency System

Simplified name ： C-ROSSC-ROSS

EnglishEnglish

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1. Background

2. Development


3. Framework

AgendaAgenda

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Goals and Principles of C-ROSS

• Scientifically measure risks

• Promote effective risk and capital management

• Mechanism to enhance enterprise risk management

• Provide useful experience to other emerging markets

Overall Goals

Core Principles

• Risk oriented

• Characteristics of China’s market

• Internationally comparable

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Technical Process

Parameter Testing Calibration TestingSample Testing Alternatives Testing

Sample companies run quantitative testingSample companies run quantitative testing

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Timetable of C-ROSS

3333

1. Background

2. Development


3. Framework

AgendaAgenda

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Risk Stratification

Pillar I

Pillar II

Pillar III

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Regulatory Rules

Solvency Risk ManagementStrategic/ Asset/ Liability/ Asset-liability management / Capital Management/ Solvency Risk Management

► No. 1 ： Actual Capital► No. 2 ： Minimum Capital► No. 3 ： Liability Assessment

under Life Insurance Contract► No. 4 ： Minimum Insurance

Risk Capital (For Non-Life Insurance Business)

► No. 5 ： Minimum Insurance Risk Capital (For Life Insurance Business)

► No. 6 ： Minimum Insurance Risk Capital (For Reinsurance Companies)

► No. 7 ： Minimum Market Risk Capital

► No. 8 ： Minimum Credit Risk Capital

► No. 9 ： Stress Test

► No. 1 ： Actual Capital► No. 2 ： Minimum Capital► No. 3 ： Liability Assessment

under Life Insurance Contract► No. 4 ： Minimum Insurance

Risk Capital (For Non-Life Insurance Business)

► No. 5 ： Minimum Insurance Risk Capital (For Life Insurance Business)

► No. 6 ： Minimum Insurance Risk Capital (For Reinsurance Companies)

► No. 7 ： Minimum Market Risk Capital

► No. 8 ： Minimum Credit Risk Capital

► No. 9 ： Stress Test

Risk Management Requirement

Risk Management Requirement

Risk-based Practicability Comparable

► No. 10: Comprehensive Risk Rating (Classified Regulation)

► No. 11: Solvency Risk Management Requirements and Assessment

► No. 12: Liquidity risk

► No. 13: Solvency Information Disclosure

► No. 14: Solvency Information Exchange

► No. 15: Credit Ratings of Insurance Companies

No. 16 Solvency Report No. 17: Insurance groups

Capital RequirementCapital Requirement Information Disclosure Requirement

Information Disclosure Requirement

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Pillar I – Total Balance Sheet Approach

CSI C-ROSS CAS

Asset: admitted value

Statutory liability: 1.Net premium based2.Overly conservative assumptions

Minimum capital: fixed ratios of reserve and premium size

Asset: market and amortised

Policy liability: 1.Gross premium based2.BEL+Risk Margin (assumptions subject to certain regulatory requirements) ， should cover the cost of guarantees

Minimum capital: quantify the risk capital more elaborately

Asset: market and amortised

Policy liability: 1.Gross premium based2.BEL+Risk Margin +Residual Margin (assumptions based on best estimates)

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Pillar I – Capital Requirement

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Pillar I - MC Calculations

Composite factor based method:

MC=EX × RF

which: EX is the risk exposure;

RF is the risk factor; RF = RF0× (1+K)

RF0 is the base risk factor, K is the characteristic factor

Ki is the characteristic factor based on specific risk or entity , n is the number of characteristic factors

Scenario based method:

Used to calculate one year VaR;

Applied on catastrophe risk for non-life, interest rate risk and insurance risk for life insurers

3939

Regulator assesses the overall risk of the insurance company quarterly

Integrated Risk Rating

A B C D

Pillar II Qualitative Risks•Operation Risk•Strategy Risk•Reputation Risk•Liquidity Risk

Pillar I Quantitative Risks•Insurance Risk•Market Risk•Credit Risk•Pro-Cyclical Risk•Systemically Important Risk

Pillar II - Integrated Risk Rating (IRR)

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Pillar II - Solvency Aligned Risk Management Requirement and Assessment (SARMRA)

4141

Pillar III – Market Discipline

Insurance Company

Credit Rating

4242

1. Background

2. Development


3. Framework

AgendaAgenda

4343

► The increase of solvency ratio for some companies is mainly due to release of life insurance product policy reserve. The decrease of solvency ratio for some other companies is from higher minimum capital requirement, especially from interest rate risk and counterparty default risk.

► The volatility of both available capital and minimum capital increase under C-ROSS, which makes the solvency ratio difficult to manage.

► The increase of solvency ratio for some companies is mainly due to release of life insurance product policy reserve. The decrease of solvency ratio for some other companies is from higher minimum capital requirement, especially from interest rate risk and counterparty default risk.

► The volatility of both available capital and minimum capital increase under C-ROSS, which makes the solvency ratio difficult to manage.

C-ROSS Opportunities and Challenges--Capital release, no pressure of financing, largely develop business

4444

► Assess the relationship between actual capital and the minimum capital contribution occupation,

balanced products business value and competitive new products between

► Not only concerned about the business value of the product itself, but also need to assess the

impact of new products on the solvency of the company's business portfolio level

► How to adjust the new pricing index (NBV factor) and new business assessment index

Critical illness insurance High cash value products

C-ROSS Opportunities and Challenges--Comprehensive consideration of liability end product design and product strategy

C-SI C-ROSSC-SI C-ROSS

Reserve MC Reserve+MCReserve MC Reserve+MC

4545

► Asset-side minimum capital requirements: a good balance of investment assets categories, asset accounting

classification, counterparty, duration, and credit rating

► Need to evaluate alternative investments (such as debt plan, trust schemes, unlisted equity investments,

subsidiaries and other equity investments, foreign currency assets and investment real estate, etc.) for the impact of

the minimum capital requirement, the minimum capital requirement to balance income and investment objectives

and requirements

C-ROSS Opportunities and ChallengesComprehensive consideration of the asset side of asset allocation and accounting classification

4646

C-ROSS Opportunities and ChallengesNecessity of risk management construction and embedding business decisions

4747

Q&AQ&A

Strategic Decision Making and ERM: risk assessment

with no models and no data


Frank Ashe


4949

Q&AQ&A

The CERA The CERA Qualification Qualification for Actuariesfor Actuaries


Paul King, Chair Review Panel

Global CERA Board


CERA Global Association

(CGA)

Chartered Enterprise Risk Analyst

Chartered Enterprise Risk Actuary

Dedicated to promoting and administering the CERA qualification worldwide

CERA Global AssociationCERA Global Association

Creating A Global CredentialCreating A Global Credential– Standardisation of ‘ERM toolkit’Standardisation of ‘ERM toolkit’– Standardisation of educationStandardisation of education– Rapid spread of ERM skills for actuariesRapid spread of ERM skills for actuaries– International mobilityInternational mobility– International recognitionInternational recognition– Globalisation of the Globalisation of the riskrisk profession profession

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Our history and what Our history and what have we achieved so far?have we achieved so far?

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Hyderabad Treaty (Nov Hyderabad Treaty (Nov 2009)2009)

13 Actuarial associations signed a Treaty in Hyderabad, 13 Actuarial associations signed a Treaty in Hyderabad, India – 13 November 2009 globalizing SOA credentialIndia – 13 November 2009 globalizing SOA credential

There are now 19 members of CERA Global Association There are now 19 members of CERA Global Association (registered in Switzerland)(registered in Switzerland)

Original CGA members:Original CGA members: Institute of Actuaries of Australia, Institute of Actuaries of Australia, Canadian Institute of Actuaries, Institut des Actuaires (France), Canadian Institute of Actuaries, Institut des Actuaires (France), Deutsche Aktuarvereinigung e.V.(Germany), Israel Association of Deutsche Aktuarvereinigung e.V.(Germany), Israel Association of Actuaries, Institute of Actuaries ofJapan, Mexico, Het Actuarieel Actuaries, Institute of Actuaries ofJapan, Mexico, Het Actuarieel Genootschap (Netherlands), Actuarial Society of South Africa, Genootschap (Netherlands), Actuarial Society of South Africa, Swenska Actuarieföreningen (Sweden), Institute and Faculty of Swenska Actuarieföreningen (Sweden), Institute and Faculty of Actuaries (UK), Casualty Actuarial Society (USA) and Society of Actuaries (UK), Casualty Actuarial Society (USA) and Society of Actuaries (USA)Actuaries (USA)

5454


The qualificationThe qualification

5555

5656

One qualification based on mastery of one set of learning objectives with

accreditation applied on a consistent basis

worldwide

The CERA qualification has the most rigorous and advanced The CERA qualification has the most rigorous and advanced curriculum underpinned by actuarial science, with an curriculum underpinned by actuarial science, with an emphasis on ERM and professionalism emphasis on ERM and professionalism

There are now 16 actuarial associations who can accredit There are now 16 actuarial associations who can accredit CERA (using a common syllabus but administered locally CERA (using a common syllabus but administered locally and in many languages) and in many languages)

Recognised and portable internationally Recognised and portable internationally Consistent with modern, effective methodologies Consistent with modern, effective methodologies Applies both qualitative and quantitative insight to ERMApplies both qualitative and quantitative insight to ERM Instills the highest professional standards, with an Instills the highest professional standards, with an

impeccable code of ethics and unparalleled educational impeccable code of ethics and unparalleled educational requirements requirements

Best equips risk management professionals to empower Best equips risk management professionals to empower better business decisions better business decisions

5757

SyllabusSyllabus

Seven topics:Seven topics:ERM concept and frameworkERM concept and frameworkStructure of the risk management functionStructure of the risk management functionRisk categories and identificationRisk categories and identificationRisk modelling and aggregationRisk modelling and aggregationRisk measuresRisk measuresRisk management tools and techniquesRisk management tools and techniquesCapital managementCapital management

5858

SyllabusSyllabus

Forty five detailed learning objectives:Forty five detailed learning objectives:

5959

Bloom’s Level No. Objectives

Understand 1

Understand / apply 3

Apply 3

Apply / analyse 21

Analyse 1

Analyse / evaluate 12

Evaluate 1

Evaluate / synthesize 2

Synthesize 1

Key aims of the syllabusKey aims of the syllabus

The CERA qualification encompasses a world-The CERA qualification encompasses a world-class curriculum that combines actuarial class curriculum that combines actuarial science with the theoretical, practical and science with the theoretical, practical and professional principles of ERMprofessional principles of ERM

The curriculum instils in successful candidates The curriculum instils in successful candidates the key principles underlying the the key principles underlying the implementation and application of ERM within implementation and application of ERM within an organisation, including governance and an organisation, including governance and process as well as quantitative methods of risk process as well as quantitative methods of risk measurement and modellingmeasurement and modelling

6060

6161

Our advice to all candidates, make sure you

get a good education in ERM and get your CERA as part of that. You can take

your CERA anywhere………….


CERA Quality CERA Quality AssuranceAssurance

6262


The CGA Board is committed The CGA Board is committed to maintaining the CERA to maintaining the CERA

qualification as being at a qualification as being at a very high standard within the very high standard within the

risk management worldrisk management world

6363


The treaty includes a strong quality assurance program to The treaty includes a strong quality assurance program to maintain the high quality of the qualificationmaintain the high quality of the qualification

The initial evaluation process, conducted by trained external The initial evaluation process, conducted by trained external reviewers, includes a review of participating associations’ reviewers, includes a review of participating associations’ processes to award the qualification and a thorough review processes to award the qualification and a thorough review of the learning objectives, syllabus and learning material on of the learning objectives, syllabus and learning material on which each association’s award will be based which each association’s award will be based

Accredited organisations are required to undergo an annual Accredited organisations are required to undergo an annual review of testing processes, pass rates and quality review of testing processes, pass rates and quality assurance, and will undergo a much more in-depth review assurance, and will undergo a much more in-depth review every three years every three years

6464


What value do CERAs What value do CERAs bring to an bring to an

organisation?organisation?

6565

6666

CERA Global Association• CERAs make confident decisions related to complex financial challenges

affecting business by applying qualitative and quantitative insights to risk management

• CERAs add value to enterprise risk management through their rigorous training, making them the best equipped to provide a 360-degree view of an organisation’s risk profile

• As actuaries, CERAs are bound by a code of professional conduct to act with integrity, care and competence

• CERAs are trained through a rigorous multi-year examination process to identify, measure, and manage risks and opportunities within complex enterprises

• CERAs are equipped to develop models which reflect the real world and can inform strategic decisions

CERA SuccessCERA Success

2910 CERAs worldwide2910 CERAs worldwide CERAs filling senior risk positions CERAs filling senior risk positions

within insurance and financial within insurance and financial services industries including Chief services industries including Chief Risk OfficerRisk Officer

Gaining recognition amongst Gaining recognition amongst employers as credential with employers as credential with appropriate risk trainingappropriate risk training

6767


Why Become a CERA?Why Become a CERA?

6868

CERA AdvantagesCERA Advantages A CERA, because of their training and experience, can A CERA, because of their training and experience, can

assess and manage the entire risk spectrum of an assess and manage the entire risk spectrum of an organisation, including financial, operational and organisation, including financial, operational and strategic riskstrategic risk

CERAs are well-qualified for more strategic risk CERAs are well-qualified for more strategic risk mangement positions such as risk analyst, risk mangement positions such as risk analyst, risk manager, chief risk officer, and are contributing in a manager, chief risk officer, and are contributing in a broad range of fields, including:broad range of fields, including:

Life insurance; General insurance; Banking; Life insurance; General insurance; Banking; Asset Asset

management; Pension funds; Other financial management; Pension funds; Other financial services; Technology; Consulting; Energy; services; Technology; Consulting; Energy; Transportation; HealthcareTransportation; Healthcare

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Update at December Update at December 20152015

7070

CERA Global AssociationCERA Global Association After passing tough global quality assurance After passing tough global quality assurance

(“QA”) tests, 16 CERA signatory associations have (“QA”) tests, 16 CERA signatory associations have already been granted power to award CERAalready been granted power to award CERA

16 CGA members from: Australia, Canada, Chinese 16 CGA members from: Australia, Canada, Chinese Taipei, Denmark, France, Germany, India, Israel, Taipei, Denmark, France, Germany, India, Israel, Japan, Netherlands, South Africa, Sweden, Japan, Netherlands, South Africa, Sweden, Switzerland, UK, USA(2)Switzerland, UK, USA(2)

Over 2900 CERA-holders Over 2900 CERA-holders worldwide!worldwide!

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CERA Holders December CERA Holders December 20152015

7272

• Australia – A1 241

• Canada – CIA 8

• France – IA 119

• Germany – DAV 143

• Japan – IAJ 33

• Netherlands – AG 27

• South Africa – ASSA 57

• Sweden 5

• Switzerland 6

• UK – IFoA 429

• USA – CAS 144

• USA – SOA 1,698

• TOTAL 2,910


For more information on the For more information on the curriculum and paths to curriculum and paths to

CERA visit the CERA global CERA visit the CERA global website website

www.ceraglobal.orgwww.ceraglobal.org 7373

7474

Hire a CERA; we can assure you that they have been properly trained and educated

CERA Global Association

7575

Q&AQ&A

Closing RemarksClosing Remarks


Raymond Cheung

ERM Webcast Chair


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Thank you!Thank you!

erm webcast december 10, 2015 actuarial consulting congress of asia presented in cooperation with...

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