Update on CAS Activities by Bob Conger May 29, 2002 Casualty Actuaries of Greater New York.

Update on CAS Activities

by Bob Congerby Bob Conger

May 29, 2002

Casualty Actuaries of Greater New York

Outline Exam IssuesExam Issues Continuing EducationContinuing Education Roles of Regional AffiliatesRoles of Regional Affiliates Expanding Practice AreasExpanding Practice Areas International IssuesInternational Issues CAS Election ProcessCAS Election Process CAS Web SiteCAS Web Site Getting involved in CASGetting involved in CAS Your inputYour input

Exams - Travel Time

Travel time (approx. # sittings)Travel time (approx. # sittings)ACASACAS FCASFCAS

1980-81 1980-81 9 9 13 13 1989-901989-90 11 11 15 15 1998-991998-99 14 14 17 17 2000-012000-01 15 15 18 18

Board guidance to Admissions Committees: Expect 5 Board guidance to Admissions Committees: Expect 5 to 7 years as median time from first actuarial to 7 years as median time from first actuarial employment to FCASemployment to FCAS

Exams - Progress per Sitting

Exam ProgressExam Progress

= Avg. # of Exams Passed per Sitting= Avg. # of Exams Passed per Sitting

= Avg. # of Exams Taken X Pass Ratio= Avg. # of Exams Taken X Pass Ratio

Exam Progress on CAS Exams (excl. 1-4)Exam Progress on CAS Exams (excl. 1-4) 1983-89: 1983-89: 1.01 x .37 = 1.01 x .37 = .37.37 1991-99: 1991-99: 0.79 x .38 = 0.79 x .38 = .30.30 2000-:2000-: 1.01 x .38 = 1.01 x .38 = .38.38

Exams 1 & 2

Pass Ratios from first sittingsPass Ratios from first sittingsMay ‘00May ‘00 Nov ‘00Nov ‘00 May ‘01May ‘01 Nov ‘01Nov ‘01

Exam 1Exam 1 23%23% 34%34% 33%33% 34%34% Exam 2Exam 2 27%27% 32%32% 32% 32% 41%41%

Some possible causesSome possible causes Insufficient advance informationInsufficient advance information Required mastery of more materialRequired mastery of more material Word problemsWord problems First time examFirst time exam

Exam 3

Pass Ratios from first sittingsPass Ratios from first sittings

May ‘00May ‘00 Nov ‘00Nov ‘00 May ‘01May ‘01 Nov ‘01Nov ‘01

OverallOverall 32% 32% 36%36% 43%43% 42%42%

CAS Workers CAS Workers 15%15% 20%20% 33% 33% 34%34%

Non-CAS Workers Non-CAS Workers 29%29% 31%31% 38%38% 36%36%

Students Students 44%44% 54%54% 60%60% 54%54%

Exam 4

Pass Ratios from first sittingsPass Ratios from first sittings

May ‘00May ‘00 Nov ‘00Nov ‘00 May ‘01May ‘01 Nov Nov ‘01‘01

OverallOverall 34%34% 37%37% 41%41% 43%43%

CAS Workers CAS Workers 23%23% 30%30% 35%35% 39%39%

Non-CAS Workers Non-CAS Workers 29%29% 34%34% 40%40% 38%38%

Students Students 69%69% 59%59% 54%54% 56%56%

more . . .

Exam 3 and 4 Key Issues

Most learning objectives okay, but some go beyond Most learning objectives okay, but some go beyond what casualty actuaries needwhat casualty actuaries need

Too much material Too much material some prunedsome pruned Need better material Need better material study notes commissionedstudy notes commissioned Students perform better than workers for various Students perform better than workers for various

reasonsreasons

Exam 3 and 4 Key Issues (cont.)

CAS Policy: Pass marks reflect sufficient grasp of CAS Policy: Pass marks reflect sufficient grasp of material. No predetermined pass mark.material. No predetermined pass mark.

CAS Policy: Achieving CAS learning objectives is CAS Policy: Achieving CAS learning objectives is more important than having joint examsmore important than having joint exams

Task Force working on development of Exams 3 and Task Force working on development of Exams 3 and 4 that meet CAS needs. Can be joint with SOA4 that meet CAS needs. Can be joint with SOA

Exams - Other Changes

Hired Education Consultant to help:Hired Education Consultant to help: Construct appropriate learning objectivesConstruct appropriate learning objectives Train to develop good thinking questionsTrain to develop good thinking questions Help with methods for setting pass scoreHelp with methods for setting pass score Provide input on evaluating exam length and difficultyProvide input on evaluating exam length and difficulty

Exams - Long Term

Discussions with SOA, FA/IA, IAAustDiscussions with SOA, FA/IA, IAAust Convergence of syllabus desirable if consistent with Convergence of syllabus desirable if consistent with

our needsour needs Learn from one anotherLearn from one another Wide interest in QRA (2005)Wide interest in QRA (2005) CAS involved in ongoing QRA discussionCAS involved in ongoing QRA discussion

Education Policy Committee - overall structureEducation Policy Committee - overall structure Syllabus & learning objectivesSyllabus & learning objectives Educating & testing method, always keeping in focus Educating & testing method, always keeping in focus

the education needed by casualty actuariesthe education needed by casualty actuaries

Continuing Education Issues

What is the “right” mix of basic education and What is the “right” mix of basic education and continuing education?continuing education?

Should we increase the scope and magnitude of Should we increase the scope and magnitude of continuing education requirements?continuing education requirements?

What delivery mechanisms will work for CAS What delivery mechanisms will work for CAS continuing education in the future?continuing education in the future?

Roles of Regional Affiliates

Social and networkingSocial and networking Continuing educationContinuing education

Leverage existing resourcesLeverage existing resources Exam seminarsExam seminars University/college relationsUniversity/college relations Entre into CAS networkEntre into CAS network

Meeting attendanceMeeting attendance Involvement and leadershipInvolvement and leadership

Expanding Practice Areas

DFADFA ConceptConcept Theoretical toolTheoretical tool Practical Practical

applicationapplication Seminar expanded to “Risk and Capital Management”Seminar expanded to “Risk and Capital Management”

New Advisory CommitteesNew Advisory Committees Asset/Liability Management & Investment PolicyAsset/Liability Management & Investment Policy Enterprise Risk ManagementEnterprise Risk Management Securitization/Risk FinancingSecuritization/Risk Financing Valuation of P/C Insurance CompaniesValuation of P/C Insurance Companies

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

Board approved international strategyBoard approved international strategy“To be pre-eminent global resource . . .”“To be pre-eminent 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) Increase information and involvement among NA Increase information and involvement among NA

membersmembers Participation in international actuarial communityParticipation in international actuarial community

International Issues - Mutual Recognition

1999 Board action1999 Board action Not pursue bilateral agreementNot pursue bilateral agreement Work to ensure practice rights globallyWork to ensure practice rights globally

Subsequent developmentsSubsequent developments CAS members may be excluded from certain practices CAS members may be excluded from certain practices

in Australia, Ireland, Indiain Australia, Ireland, India AAA mutual recognition not a likely solution in near AAA mutual recognition not a likely solution in near

futurefuture November 2001 - Board creates Task Force to revisitNovember 2001 - Board creates Task Force to revisit

International Issues - Next Steps

More specificsMore specifics Highly developed actuarial organizations (IA/FA)Highly developed actuarial organizations (IA/FA) Developing organizationsDeveloping organizations Emerging markets (China)Emerging markets (China)

PrioritizationPrioritization CountriesCountries ActivitiesActivities

ResourcesResources PeoplePeople CostCost

CAS Election Process

Reviewed by Task Forces – 2000 and 2002Reviewed by Task Forces – 2000 and 2002 Nomination and Petition processes continue, but . . .Nomination and Petition processes continue, but . . .

Petitioning now occurring before Nominating Petitioning now occurring before Nominating CommitteeCommittee

Nominating Committee completes the slate (Nominating Committee completes the slate ( 1 + 8) 1 + 8) Always can name 1 PE, 4 Board candidatesAlways can name 1 PE, 4 Board candidates

Change in the required number of signaturesChange in the required number of signatures Nominating Committee membershipNominating Committee membership

Will include majority of “at large” membersWill include majority of “at large” members

CAS Election Process (cont.)

Candidate information Candidate information ““Why I want to serve”Why I want to serve” Statement on issuesStatement on issues

Runoff proceduresRunoff procedures

CAS Web Site

WWW.CASACT.ORGWWW.CASACT.ORG Syllabus, study materials, past exams, study notesSyllabus, study materials, past exams, study notes

All PCAS (1914), CAS Forums (1987) and Discussion All PCAS (1914), CAS Forums (1987) and Discussion paper programs (1979)paper programs (1979)

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

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 Write papersWrite papers Give presentationsGive presentations Regional Affiliate involvementRegional Affiliate involvement

I would like your input regarding . . .

Continuing Education requirementsContinuing Education requirements Board and President-Elect nomination processBoard and President-Elect nomination process Expansion beyond ratemaking and reservingExpansion beyond ratemaking and reserving CAS role internationallyCAS role internationally Mutual recognitionMutual recognition ExamsExams What’s on your mind?What’s on your mind? Questions?Questions?