Update on CAS Activities

1
Update on CAS Activities

• by Bob Conger

Casualty Actuaries of Greater New York
May 29, 2002
2
Outline

• Exam Issues
• Continuing Education
• Roles of Regional Affiliates
• Expanding Practice Areas
• International Issues
• CAS Election Process
• CAS Web Site
• Getting involved in CAS
• Your input

3
Exams - Travel Time

• Travel time (approx. sittings) ACAS FCAS
• 1980-81 9 13
• 1989-90 11 15
• 1998-99 14 17
• 2000-01 15 18
• Board guidance to Admissions Committees Expect
  5 to 7 years as median time from first actuarial
  employment to FCAS

4
Exams - Progress per Sitting

• Exam Progress
• Avg. of Exams Passed per Sitting
• Avg. of Exams Taken X Pass Ratio
• Exam Progress on CAS Exams (excl. 1-4)
• 1983-89 1.01 x .37 .37
• 1991-99 0.79 x .38 .30
• 2000- 1.01 x .38 .38

5
Exams 1 2

• Pass Ratios from first sittings May 00 Nov
  00 May 01 Nov 01
• Exam 1 23 34 33 34
• Exam 2 27 32 32 41
• Some possible causes
• Insufficient advance information
• Required mastery of more material
• Word problems
• First time exam

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Exam 3

• Pass Ratios from first sittings
• May 00 Nov 00 May 01 Nov 01
• Overall 32 36 43 42
• CAS Workers 15 20 33 34
• Non-CAS Workers 29 31 38 36
• Students 44 54 60 54

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Exam 4

• Pass Ratios from first sittings
• May 00 Nov 00 May 01 Nov 01
• Overall 34 37 41 43
• CAS Workers 23 30 35 39
• Non-CAS Workers 29 34 40 38
• Students 69 59 54 56

8
Exam 3 and 4 Key Issues

• Most learning objectives okay, but some go beyond
  what casualty actuaries need
• Too much material some pruned
• Need better material study notes commissioned
• Students perform better than workers for various
  reasons

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Exam 3 and 4 Key Issues (cont.)

• CAS Policy Pass marks reflect sufficient grasp
  of material. No predetermined pass mark.
• CAS Policy Achieving CAS learning objectives is
  more important than having joint exams
• Task Force working on development of Exams 3 and
  4 that meet CAS needs. Can be joint with SOA

10
Exams - Other Changes

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

11
Exams - Long Term

• Discussions with SOA, FA/IA, IAAust
• Convergence of syllabus desirable if consistent
  with our needs
• Learn from one another
• Wide interest in QRA (2005)
• CAS involved in ongoing QRA discussion
• Education Policy Committee - overall structure
• Syllabus learning objectives
• Educating testing method, always keeping in
  focus the education needed by casualty actuaries

12
Continuing Education Issues

• What is the right mix of basic education and
  continuing education?
• Should we increase the scope and magnitude of
  continuing education requirements?
• What delivery mechanisms will work for CAS
  continuing education in the future?

13
Roles of Regional Affiliates

• Social and networking
• Continuing education
• Leverage existing resources
• Exam seminars
• University/college relations
• Entre into CAS network
• Meeting attendance
• Involvement and leadership

14
Expanding Practice Areas

• DFA
• Concept Theoretical tool Practical application
• Seminar expanded to Risk and Capital
  Management
• New Advisory Committees
• Asset/Liability Management Investment Policy
• Enterprise Risk Management
• Securitization/Risk Financing
• Valuation of P/C Insurance Companies

15
International Issues

• Historically, CAS predominantly North American
• 95 of members live and practice in North America
• Many papers and syllabus materials use U.S.
  examples
• Major meetings and seminars
• Board approved international strategyTo be
  pre-eminent global resource . . .
• Support of CAS Members working abroad
• Support basic education process in various
  countries
• Exam waivers and mutual recognition
• Practice rights for CAS members (Ireland,
  Australia, India)
• Increase information and involvement among NA
  members
• Participation in international actuarial community

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International Issues - Mutual Recognition

• 1999 Board action
• Not pursue bilateral agreement
• Work to ensure practice rights globally
• Subsequent developments
• CAS members may be excluded from certain
  practices in Australia, Ireland, India
• AAA mutual recognition not a likely solution in
  near future
• November 2001 - Board creates Task Force to
  revisit

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International Issues - Next Steps

• More specifics
• Highly developed actuarial organizations (IA/FA)
• Developing organizations
• Emerging markets (China)
• Prioritization
• Countries
• Activities
• Resources
• People
• Cost

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CAS Election Process

• Reviewed by Task Forces 2000 and 2002
• Nomination and Petition processes continue, but .
  . .
• Petitioning now occurring before Nominating
  Committee
• Nominating Committee completes the slate (? 1
  8)
• Always can name 1 PE, 4 Board candidates
• Change in the required number of signatures
• Nominating Committee membership
• Will include majority of at large members

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CAS Election Process (cont.)

• Candidate information
• Why I want to serve
• Statement on issues
• Runoff procedures

20
CAS Web Site

• WWW.CASACT.ORG
• Syllabus, study materials, past exams, study
  notes
• All PCAS (1914), CAS Forums (1987) and Discussion
  paper programs (1979)
• ASOPs, Casualty Reserve Practice Note
• Discussion forum
• Member Services
• Membership Directory
• CAS Board QA
• Board minutes

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Getting Involved in CAS

• Why
• Learn
• Make useful contacts
• Contribute to your profession
• How
• Pick committees/topic(s) that interest you most
• Respond to Participation Survey or contact
  committee chair directly
• Write papers
• Give presentations
• Regional Affiliate involvement

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I would like your input regarding . . .

• Continuing Education requirements
• Board and President-Elect nomination process
• Expansion beyond ratemaking and reserving
• CAS role internationally
• Mutual recognition
• Exams
• Whats on your mind?
• Questions?