International Actuarial Association Association Actuarielle Internationale WHAT HAPPENED AT THE IAA COUNCIL & COMMITTEE MEETINGS IAA Newsletter IN INDIA LAST MONTH December 2009 For an update on the discussions and action items • WHAT HAPPENED AT THE IAA COUNCIL & arising from the recent IAA Council and Committee COMMITTEE MEETINGS IN INDIA LAST MONTH meetings held in Hyderabad, India from November • IAA COUNCIL AND COMMITTEE MEETINGS, 12-15, 2009, please read our Special December MARCH 2010 – CAPE TOWN, SOUTH AFRICA • JOIN OVER ONE THOUSAND ACTUARIES AT ICA Newsletter issued on December 10. 2010 IN CAPE TOWN • IAA VIRTUAL LIBRARY: A MUST KNOW FOR ALL IAA COUNCIL AND COMMITTEE ACTUARIES MEETINGS, MARCH 3-7, 2010, CAPE • COMING SOON – A NEW IAA BOOK • FAST TRACK PROCEDURE – SUBMISSIONS IN THE TOWN, SOUTH AFRICA WORKS • SUBMISSIONS ISSUED SINCE JULY • UPCOMING EVENTS • THE IAA AROUND THE WORLD • IAA SECTION ACTIVITIES • NEWS FROM MEMBER ASSOCIATIONS • MISCELLANEOUS The meeting program for our upcoming meetings in • SECRETARIAT NEWS Cape Town is now available. OFFICERS — 2009 Useful details for travel to Cape Town, including Katsumi Hikasa, President Yves Guérard, Secretary General information on making your bedroom reservation, Paul Thornton, President-Elect on alternate hotels in the area and of tours have David G. Hartman, Immediate Past President already been communicated to you and are available online. OFFICERS — 2010 Paul Thornton, President These meetings are taking place immediately prior Yves Guérard, Secretary General to the 29th International Congress of Actuaries in Cecil Bykerk, President-Elect the same venue (see below). Plan on attending Katsumi Hikasa, Immediate Past President both! JOIN OVER ONE THOUSAND The theme for this Congress, United in our Diversity, is accompanied by an exciting program. ACTUARIES AT ICA 2010 IN CAPE Experience firsthand the many benefits of attending TOWN! an International Congress of Actuaries and take advantage of this You read right, join the thousands! Over one thousand individuals from 93 countries have tremendous th opportunity to discover registered for the upcoming 29 International Congress of Actuaries that will take place in Cape a fascinating country Town, South Africa from March 7-12, 2010. and nation. It is not too late to join them. Register online at www.ica2010.com/info.php. International Actuarial Association / Association Actuarielle Internationale 800 - 150 Metcalfe, Ottawa, Ontario K2P 1P1 Canada +1-613-236-0886 +1-613-236-1386 www.actuaries.org [email protected] December 2009 1 International Actuarial Association Association Actuarielle Internationale IAA VIRTUAL LIBRARY: A MUST Actuaries, Casualty Actuarial Society, Financial KNOW FOR ALL ACTUARIES Reporting Section of the Society of Actuaries, Het Actuarieel Genootschap, and the Institute of We learned that many actuaries are interested in Actuaries of Australia. an actuarial library that would regroup actuarial publications globally. Well, look no further; there is In recent years, the IAA published two other books such a tool already in place on the IAA Website. which are available for purchase online: Explore this tool through our home page. To learn more about how it works and what documentation Measurement of Liabilities for Insurance Contracts: is available, logon to the following presentation Current Estimates and Risk Margins [Order Form]; given in Hyderabad: and - newly available in the Spanish language - Un www.actuaries.org/CSO/Documents/Hyderabad_Virtual marco global para la evaluación de la solvencia del Library.pdf asegurador (A Global Framework for Insurer Solvency Assessment) [Order Form]. We are most COMING SOON – A NEW IAA BOOK grateful to our colleagues Rosa María Mayoral The IAA's eagerly awaited publication on stochastic Martínez, Rafael Moreno Ruiz, and Andrés Dan modeling is set to be released next month. This Lerner Waen for their work in translating the Blue book is intended for actuaries, actuarial students Book. and other readers involved in actuarial modeling in both the life and non-life sectors. It illustrates FAST TRACK PROCEDURE (FTP) – commonly used methods employed in risk SUBMISSIONS IN THE WORKS assessment and covers the following five major sections: Federation of European Accountants: • General methodology, including a discussion of Discussion Paper on Integrity in Professional “risk-neutral versus real-world” scenarios, Ethics. The response is being prepared by the techniques used, distributions and fitting, random number generation, and risk measures. Professionalism Committee under the chairmanship of Michael Pomery. This FEE paper agrees with the • Current applications, including economic IAA position that integrity is a core principle of scenarios, life, health, and casualty models, professional behaviour. We will suggest that the and country- or region-specific issues. public interest be emphasized as the principal • Evaluation of results, including calibration, reason why professional activity should be validation, audit, peer review, and underpinned by ethics and integrity. communication. Deadline for objection to use of FTP: 26 January • Seven case studies that show various 2010 applications of scenario development in real situations, including pricing, economic capital IASB Exposure Draft on Management analysis, and embedded value analysis. Commentary. • References and additional resources available The response is being prepared by the Insurance to the reader. Accounting Committee, chaired by Sam Gutterman. This exposure draft presents the IASB's proposals Please go to www.actuaries.org/stochastic to for a broad framework for the preparation and register your interest in this upcoming publication presentation of management commentary to and add your name to our release day accompany financial statements prepared in announcement list. This groundbreaking project accordance with IFRSs. received funding and support from The Actuarial Deadline for objection to use of FTP: 24 February Foundation (United States), Canadian Institute of 2010 International Actuarial Association / Association Actuarielle Internationale 800 - 150 Metcalfe, Ottawa, Ontario K2P 1P1 Canada +1-613-236-0886 +1-613-236-1386 www.actuaries.org [email protected] December 2009 2 International Actuarial Association Association Actuarielle Internationale SUBMISSIONS ISSUED SINCE JULY With many MNCs seeing their pension funds being depleted in the crisis, the calls for urgent steps to • November 30: Comments on IASCF Review of be taken to ensure good governance, proper the Constitution: Proposals for Enhanced Public supervision, and sound risk management Accountability. The comments were prepared by practice to be in place have intensified. the Insurance Accounting Committee, chaired by Governments are being asked to take on a more Sam Gutterman. active role to accelerate and strengthen the • September 30: Comments on IASB Exposure process? Draft on Discount Rate for Employee Benefits. The comments were prepared by the Pensions and th Employee Benefits Committee, chaired by Esko Asia Insurance Review is putting together the 6 Kivisaari. Asian Pensions Conference, with the theme • September 28: Comments on IASB Exposure “Seeking Sustainable Strategic Solutions for the Draft on Fair Value Measurement. The Pensions Crisis”, to look at the renewed concerns comments were prepared by the Insurance on pension security and adequacy issues, Accounting Committee, chaired by Sam Gutterman. regulatory framework, structural reforms for • September 21: Comments on IASB Exposure pensions, evaluating and redesigning pension Draft on Financial Instruments: Classification schemes and the ongoing debate issues on rising and Measurement. The comments were prepared living costs, inflation, interest rates, and longevity by the Insurance Accounting Committee, chaired by risks that are adding pressure on pensions plans Sam Gutterman. and activities. The focus will look at the unique role • September 18: Comments on BAS Consultation of life insurers in the pensions market to see what Paper on Pensions. The comments were prepared more they can do and what opportunities are there by the Pensions and Employee Benefits Committee, for life insurance in the pensions and retirement chaired by Esko Kivisaari. planning arena to ensure that people have enough • September 1: Comments on IASB Discussion savings to last a lifetime. Paper Credit Risk in Liability Measurement and its accompanying staff paper. The comments The two day conference for life insurers, were prepared by the Insurance Accounting intermediaries, bankers, regulators and pension Committee, chaired by Sam Gutterman. policy planners, pension fund operators and • July 31: The Global Financial Crisis – What professionals serving the pensions market, will Next? The comments were prepared by a subgroup explore new methods of managing pensions, as of the Enterprise and Financial Risk Committee, well as innovative solutions and strategies to tackle chaired by Tony Coleman. today’s complex pension challenges. UPCOMING EVENTS The IAA is pleased to once again support this 6th Asian Conference on Pensions & Conference. Secretary General Yves Guérard will represent the IAA and give a presentation on Retirement Planning – February 1-2, 2010 – Pension Reforms in Current Economic Climate: Singapore International trends. The global financial crisis has brought the spotlight on Pensions with some plans facing a crisis. With The early bird registration fee is