Decennial Report - International Actuarial Association

69 Pages·2008·0.97 MB·English

INTERNATIONALACTUARIALASSOCIATIONDECENNIALREPORT
A Profession
Poised for
the Future
InternationalActuarialAssociationDecennialReport
AProfessionPoisedfortheFuture
May2008
Althoughseveralindividualscontributedtothisreport,specialrecognitionisgiventothemainauthor,
WalterS.Rugland(UnitedStates),apastPresidentoftheInternationalForumofActuarialAssociations.
InternationalActuarialAssociation
150MetcalfeStreet,Suite800
Ottawa,Ontario,Canada K2P1P1
Telephone: [phone]
Facsimile: 1-613-236-1386
Email: [email protected]
Website: www.actuaries.org
©2008InternationalActuarialAssociation
IAA DECENNIAL REPORT
Table of Contents
1. 1998–2008..................................................................................................................................................................3
CelebratetheTenthAnniversaryoftheRenewedIAA!......................................................................................3
Professionalismandthe21stCentury......................................................................................................................3
2. ACentury-plusofGlobalConnections..................................................................................................................4
1895:TheIAABeginnings.........................................................................................................................................4
1995:TheInternationalForumofActuarialAssociations(IFAA).......................................................................5
1998:ARenewedInternationalActuarialAssociation........................................................................................7
2008:TenYearsLater.................................................................................................................................................8
3. CreatingaSustainableGlobalProfession...........................................................................................................9
ProfessionalGroundings..........................................................................................................................................9
TheIFAALegacy........................................................................................................................................................9
TransitioningThroughBarriersofSovereigntyandPoliticalVariation..........................................................10
4. AcceleratingActivity..............................................................................................................................................12
CouncilMeetingsandaGlobalFocus..................................................................................................................12
SectionGrowth.........................................................................................................................................................12
AnExpandingProfession........................................................................................................................................13
ConvergencefortheFuture...................................................................................................................................14
InternationalCooperationandCollaboration......................................................................................................15
5. TenYearsandCounting:APoisedProfession...................................................................................................16
AddressingthePublicInterest..............................................................................................................................16
AddressingtheInterestsoftheIAAMemberAssociations............................................................................16
AddressingtheInterestsofthePracticingActuary..........................................................................................17
Appendices
1.Timeline..................................................................................................................................................................20
2.Membership..........................................................................................................................................................21
3.Officers...................................................................................................................................................................25
4.CouncilandtheExecutiveCommittee..............................................................................................................27
5.Committees,Subcommittees,TaskForces,WorkingGroups......................................................................31
6.IAAFundActivities..............................................................................................................................................45
7.InternationalCongresses...................................................................................................................................47
8.DelegatestoSectionsandExternalOrganizations.......................................................................................48
9.Sections.................................................................................................................................................................50
10.OutreachActivities............................................................................................................................................56
11.Guidelines,StandardsofPractice,PublicStatementsandPublications................................................69
12.PastPresidents..................................................................................................................................................64
13.SecretariatandWebsite...................................................................................................................................65
14.Tables,Graphs,Statistics.................................................................................................................................66
A PROFESSION POISED FOR THE FUTURE 1
IAA DECENNIAL REPORT
1. 1998–2008
CelebratetheTenthAnniversaryoftheRenewedIAA!
As we come to the tenth year from the restructuring of the International Actuarial Association (IAA), we
acknowledge the historical significance of that event in June 1998 and take stock of the impact it has had on the
professionanditsmembers.Theimpactisamazing!Ahugeexpansionofthegeographicalscopeoftheprofession
has taken place. Participation from associations — involving countless actuaries addressing complex global issues
fromastrongbaseofprofessionalism—hasbecomethenorm.
Celebration is appropriate. From a profession that, like many others, fostered embedded national differences and
localtraditions,theIAAhasemergedasahealthyentityservingasaglobalmeetingplacewhereissueshistorically
neverwithinthegraspofactuariesortheirassociations,areabletosurface.Astheseissueshavebeenandcontinue
to be resolved, they contribute to the profession’s pride, vitality and growth. Through the IAA, the actuarial
professionnowhasthehallmarksofatrulyglobalprofession.Opportunitiesforfuturedevelopmentareboundless.
Thispaperrecountsthefar-sightedrestructuringoftheIAA,notestherapidevolutionofourprofession’ssubsequent
rolesandreach,andcelebratesthepromiseofitsfuture.
Professionalismandthe21stCentury
TheprimaryroleoftheIAAistofocustheactivityoftheglobalprofessioninsupportofthepublic’sinterest.By
offeringaglobalinterface,itextendsserviceinsupportofthepublicinterestbeyondtheconfinesofanyonecountry
andensuresthattheactuarialpracticeplatformsofthefuturecanmaintainthatrole.
Inanenvironmentofinternationaltransactionsandpersonalmobility,thecontributionsofactuariestotheanalysis
andquantificationoffinancialriskemergeasimportantconsiderations.Users’trustinthisanalysisisparamountto
thesuccessoftheprofessionaladvice.Globalconsistencyofprofessionalcompetenceandpractice,inpreparationof
thatadvice,augmentsthetrustandrelianceplacedupontheactuarialadvisor.
Stepbystep,theIAAcontinuesthepathsetoverthepast10years,buildingontheunderstandingsgainedandthe
respect developed among the member associations. As the future opens opportunities for increased public service
withoutborderconstraintsandwithinnovationsfreelyshared,theprofessionalforumofferedbytheIAA—withits
freesharingofinnovations—increasesinscopeandvalue.
Demandsontheinternationalrealmofeachassociation’sactivityarebeginningtoberecognizedasimportanttothe
successofthelocalindividualprofessional.The21stcentury,amysteryinmanyrespects,isalreadyidentifiedasafocal
point for actuarial skills in terms of issues of humanity and risk. These will require a global approach to actuarial
researchandpractice.
A PROFESSION POISED FOR THE FUTURE 3
IAA DECENNIAL REPORT
2. A Century-plus of Global Connections
1895:TheIAABeginnings
Inthelate19thcentury,actuariesinBelgiumrecognizedthevalueofatextbookpreparedbytheInstituteof
ActuariesinLondonandsoughttogainpermissiontotranslateit.Butfirst,theywantedtobesuretherewasa
marketlargeenoughtowarrantaFrenchversion.ThenewlycreatedAssociationFrançaisedesActuairesinFrance
providedthemarketassuranceandtheInstitute’sDr.Kinggavepermissionforthetranslation.Theresultwasa
friendlyrelationshipamongtheactuariesofthethreenations.
Afewyearslater,adraftlawwassubmittedtotheBelgianParliament.Inthistext,theroleofcontrollerwas
assignedtoactuaries.Duringthediscussion,amemberofParliamentaskedwhatanactuaryactuallywas,saying
hehadnotfoundadefinitionoftheword“actuary”inthemostrecentdictionaries.Thewordwasdroppedand
theBelgianactuarieswereomitted.
Todemonstratethatactuariesexistedinothercountries,theBelgianactuariesorganizedameetingofactuariesin
Brussels and succeeded in convincing some members of the Belgian government to invite other nations
throughouttheworldtosenddelegatestoBrussels.Asaresult,the1895CongressofActuarieswasaninitiativeofa
smallactuarialgroupinBelgiumsupporteddiplomaticallyundertheauspicesoftheBelgiangovernment.Thepurpose
wastoprovetothegovernmentthatactuariesexistedandperformedalegitimateandneededfieldofwork.
Thisbecamethefirstinternationalactuarialcongress.Theformatofthecongresswasintheacademicmodelofthe
time;paperswerepreparedforpriorcirculationandon-sitepresentation.Proceedingsweredocumentedandprinted.
ThefirstCongressdidnotdiscusscreatinganorganization;onlythewishtomeetagainwasexpressed.In1896,
the Belgian organizers invited French and British actuaries to Brussels to discuss the possibility of creating a
permanentstructureforfutureCongresses.Theymetandagreedtodosoandwrotethebylawsofthe“Comité
permanentdescongrèsinternationauxd’actuaires”tobelocatedinBrussels.Thename“Comitépermanent”was
inuseformorethan50years;itwasduringthe1960swhenthenameInternationalActuarialAssociation(IAA)
wasadopted.
ItwasinitiallyagreedtorepeattheCongresseverythreeyearsandinvitationsfromrepresentedassociationswere
solicitedtoprovidehostingduties.
TheCongresseswerestructuredaroundindividualmembershipsinacorporationsetupinBelgium.TheBelgian
associationvolunteeredtoprovidetheSecretariat.Actuariesfromaroundtheworldcouldapplyforamembership
that gave them the right to attend Congresses. Eligibility was determined by whether the local definition of an
actuarywasacceptabletotheComité.
GovernanceoftheIAAwasbyaCouncil.ThetermsofreferencefortheCouncilweretoplanforthenextCongress
and,eventually,toreceiveanddistributereportsofactuarialhappeningsfromthevariouscountriesrepresented.Over
time,theIAAadoptedadditionalpurposes—toconvenespecialty“Section”colloquiaandestablishCommittees,
electedbytheirindividualmembers,todirecttheSection’sactivitiesandprograms,andtopromotetheirdefined
specialtyinterests.
4 A PROFESSION POISED FOR THE FUTURE
IAA DECENNIAL REPORT
The Council was made up of individuals, some appointed by associations, some volunteering after personal
solicitation by retiring Council members. The number of individuals on the Council from a country tended to
dependontheheritageoftheprofessioninthatcountry.Somememberswereappointedbyandspokefortheir
home associations, while others acted independently. The practice of the Council was to meet annually, at a
CongressorinBrussels.
Throughout the 20th century, the IAA held Congresses around the world, apart from during times of global
conflicts.Italsopublishedproceedingsandbulletins.
Thecentralcharacteristicofthefirst100yearsoftheIAAwasthatitwasanorganizationofindividualmembers
meetingtogetherfordiscussionoftechnicaladvancesofactuarialresearchandpractice.Therewasnogoverning
linkdirectlytoactuarialassociationsthatwouldhaveenabledittoaddressprofessionalismandthepublicinterest.
Thiswasconsistentwiththetimes.
Actuaries from around the world embraced the IAA with varying degrees of allegiance; for some it was the
hallmarkoftheirprofessionalstanding,whileforothersithadlittlerelevance.Assuch,andwithoutstrong
associationlinks,theIAAwouldhavehaddifficultyservingasaplatformfor21stcenturyprofessionalism.
1995:TheInternationalForumofActuarialAssociations(IFAA)
Intheearly1990s,recognizingtheincreasedfreedomofgeographicbordertransparencyandtheglobalizationof
manyaspectsofactuarialpractice,NorthAmericanandEuropeanactuarialleadersbegandiscussingapproachesthat
couldbetakentoestablishaninternationalframeworkofprofessionalism.Twomodelswereavailable.InEurope,
national actuarial associations joined forces in the Groupe Consultatif to interface with the bureaucracy of the
EuropeanUnion.InNorthAmerica,whereseparateactuarialassociationsrepresentedspecialtypracticesandnational
interests,agreementhadbeenreachedtocombineeffortsforthepublicgoodwhereverpossible.
Discussionsbeganatthe1992CongressinMontréalandcontinuedinvariousworldwidevenues.
Recognizing the tradition of the IAA as an individual-based association, it became apparent that the discussion
neededtofocusonanew,separateinternationalassociationofassociationswithanemphasisonthepublicinterest
andglobalprofessionalism.
Asdiscussionsmovedtowardaconcludingproposal,leadersoftheIAAsuggestedthattheIAAsponsortheproposed
associationofassociationsasaSectionoftheIAA.Thisideawasembracedandresultedintheestablishmentofthe
InternationalForumofActuarialAssociationsSectionin1995attheBrusselsCongress.
Withinthecontextofprofessionalism,theconsistentgoalsofthediscussionsweretwo-fold:toencourageactuarial
associations worldwide to talk to each other, and to further the profession and enable jurisdictional borders to be
crossedinactuarialpractice.
A PROFESSION POISED FOR THE FUTURE 5
IAA DECENNIAL REPORT
ThesegoalswererefinedandexpandedasthediscussioncommitteewrotethestatutesfortheIFAA.Thetaskwas
delicate,sincelongtraditionsexistedandaglobalmodelofanotherprofessionwasnotavailableasatemplate.
Somefoundingprinciplesbecameimplicitinthecraftingoftheorganizationstructureandtheresultingprotocols.
Allofthesewerereflectionsofafuturethatwasdifficulttodefine.
Theresultwastocreateanassociationofmemberassociationsratherthananassociationofindividuals.Delegates
wouldrepresentandspeakonbehalfoftheconstituentIFAAmemberassociation.Everymemberassociationwas
given an opportunity to be at the table of the IFAA Committee (the governing body) and most IFAA
subcommittees.EachassociationwouldappointitsdelegatestotheCommitteeandsubcommittees,andtheIFAA
protocolsweretoallowenoughtimeforthosedelegatestobeinstructedbytheirindividualassociationswithrespect
to the issues at hand,whether at the Committee or at the subcommittees. Agenda structures needed to allow for
associationconsultationandadvicetodelegates.
Theresultingorganizationwastobeaccessibleandtransparenttothememberassociationsinallrespects,exceptfor
theareasofauditandnominations.Itwasrecognizedthattherewasgreatpotentialfordisinterestordisassociation,
soampleopportunityhadtobemadeavailableforbothawarenessandinvolvement.
There neededto be substantial consensuson allpositions taken.A statementof positionof theIFAA wouldbe a
statement of position of the associations combined. For many issues, a majority of votes would govern; for more
importantissues,asuper-majoritywouldbenecessary.
Atargetofdiscussionswastohaveastructurethatwouldsearchforattainmentofaconsensus,sothatthevoting
stepwouldbeaconfirmationratherthanadecisivestepinaddressingtheissues.Thiswasthereasonforweighted
votevalues;whileeachmemberassociationhadonedelegateintheCommittee,thevoteofthatdelegatecarrieda
weight ranging from one to four. As a result, no geographic or linguistic cluster of associations would be able to
dominatedecision-making.
Theprincipleof“subsidiarity1,”aconceptfrominternationaldiplomacy,wastheresultofconcernaboutpotential
overlappingjurisdictions.ItsoriginalintentwastorecognizethattheIFAAshoulddefertolocalgroupswhenever
thelatterwerebetterequippedtoaddressanissue.
1 Statutes—Article8Co-operation:TheIAAwillrestrictitsactivitiestostrategiesandprogrammeswhichrequireinternational
co-ordination or direction, or can be handled more efficiently across national and regional boundaries. It will not
become involved with actions at the level of the Member Associations or regional groups of actuarial associations,
exceptattheexpressinvitationofsuchanassociationorgroup.TheIAAwillthereforetakeanymeasuresnecessaryto
avoidduplicationoroverlapwiththeactivitiesofMemberAssociationsorregionalgroupsofactuarialassociations.
6 A PROFESSION POISED FOR THE FUTURE
IAA DECENNIAL REPORT
TheIFAAestablishedmembershipconditionsforassociationsanditsAccreditationSubcommitteebeganaddressing
themembershipstatusofapplyingassociations.
Withinweeksofitsformation,theIFAArespondedtoproposedrevisionsininternationalpensionaccounting
standards by recruiting key actuaries from North America and Europe to represent the profession in subsequent
discussions.Thisresultedinnewlyfoundrespectfortheprofession.Inmid—1997,severalpractice-oriented
subcommitteeswereestablished.Onethatcametobeofparticularsignificancewasasubcommitteetointerfacewith
thegeneralinitiativetoenhanceinternationalaccountingstandardsthathadbeenmandatedbyregulatorsofsecurity
exchanges. It focused on developments relating to insurance companies and insurance contracts. This was closely
followed by the formation of a subcommittee to interface with the recently formed International Association of
InsuranceSupervisors(IAIS).
TheIFAAestablishedaSecretariatinCanadaandaduesstructureformemberassociations.Protocolsforselection
ofOfficersandsubcommitteeleadershipweresetwithintheNominationsCommittee.
1998:ARenewedInternationalActuarialAssociation
In1995,after100yearsofBelgianvolunteerserviceandrecognizingthatthefuturescopeofworkwasbeyondthe
levelappropriateforavolunteerorganization,theIAACouncildecideditwouldbeappropriatetoreceiveproposals
frominterestedassociationstohosttheSecretariatinthefuture.Aspecialcommitteewasdelegatedtorecommend
analternativelegalandadministrativestructure.Thespecialcommitteewascomposedofmembersofseverallarge
associationsandothers;allhadbeenactiveovertheyearsintheIAACouncil.
AssociationswereinvitedtosubmitproposalstoserveinaSecretariatrole.Eventually,Canadawasagreedtobethe
localefortheSecretariatwithSwitzerlandtobethecountryofincorporation.
ApartofthediscussionofthespecialcommitteewastoexaminetheviabilityoftheongoingIAAstructuregiven
thenewexistenceoftheIFAAwithinitasaSection.In1995,areviewofthisissuehadbeenrequestedbyseveral
IAACouncilmembers.Asitwasdiscussedbythespecialcommittee,theconclusionbecameclearthatitwas
appropriatefortheIAAitselftobecomeanassociationofassociationsbasedonastrongplatformofprofessionalism,
withopportunitiesforindividualstorelatetooneanotherinternationallyatCongressesandthroughtheactivityof
Sections.
The acceptability of this idea was in large part due to the respect in which the members of the special committee
wereheldbyCouncilmembers.
TheresultwasaproposaltohavetheIAAadoptanewsetofgoverningdocumentsthatwouldembracethefeatures
oftheIFAASectionaswellasotherfeaturesappropriatefortheIAAheritageofbeinganindividualmember-based
organization.ThisincludedthetraditionofcommunicatinginbothEnglishandFrench.Theproposalalsowould
disbandtheIFAAandmovetheIAAforwardasanassociationofassociations.
A PROFESSION POISED FOR THE FUTURE 7
IAA DECENNIAL REPORT
TheproposalwasagreedtoattheBirminghamCongressin1998.TheIAASecretariatmovedtoCanadaandthe
newstructure—arenewedIAA—wasestablished.
2008:TenYearsLater
In the decade following the restructuring, the renewed IAA has focused on its service to the public and to the
profession through member associations, as well as to the profession’s members through congresses and the IAA
Sections.ExpectationsweresetoutintheaimsadoptedintheStatutesoftherestructuredIAA.Althoughnoten-
yeartargetswerestatedin1998,2008findstheIAAoperatingatasurprisinglymulti-dimensionallevelofactivity
that interfaces with a broad set of international organizations, while developing a deeper sense of global
professionalismamongmemberassociations.
Notsurprisingly,tensionsarepresentrelatedtotheneedforchangestotheIAA’soperationstoreflecttheenhanced
internationalpresenceoftheprofessionandthemanyactionsunderconsideration.
Intenseefforthasbeenexpendedtoaidinthenurturingoftheprofessioninemergingeconomies,withprodigious
resultsintermsofnewassociationsincountrieswheretherewerenoactuariesatalluntilrecentyears,orinsome
casesonlyinthedistantpast.
Committeesaddresslongagendasandaggressivelyseekconsensusonitemsthatmovetheprofessionforward
internationally.
TechnologyisappliedtothefullestextentavailablewithinIAAoperationstoreducecommunicationlagandgenerate
fiscalprudence.
ActuarialassociationsnowaspiretoIAAmembership.ItsmembershipcriteriaaretakenseriouslybyboththeIAA
anditsmemberassociations.
8 A PROFESSION POISED FOR THE FUTURE
IAA DECENNIAL REPORT
3. Creating a Sustainable
Global Profession
ProfessionalGroundings
Fundamental to the IAA restructuring is the recognition of the components of a profession: a unique field of
knowledgegroundedinongoingresearchandeducation,acertificationprocessforthosewhopossessamasteryof
the field of knowledge, a code of conduct that provides assurance of dedication to the public good and of skilled
competence,anarticulatedsetofpracticestandardsthathelpensuretheproperuseofappropriatemethodologyand
practice,andanactiveprofessionalorregulatorydisciplineprocessthatprovidesmotivationforcomplianceby
individualpractitioners,combinedwithajustrouteforappeal.
Thecomponentsofprofessionalismdeemednecessaryineachapplyingassociationprovideforrealizationofthegoals
oftherestructuredIAAandthebasisforthecontinuingIAAmemberassociationaccreditationprocess.
Withthestructurefocusedonprofessionalissues,theIAAispoisedtointerfacewithbothusersofactuarialcounsel
andotherinternationalprovidersofcomplementaryservices.
TheIFAALegacy
Inthethree-yearwindowfrom1995to1998,theIFAAinitiatedactivityonseveralfronts.Applicationsfrom
associationswereprocessedandmembershipgranted.Criticalcomponentsforadmissionofanassociationincluded
acodeofconductthatmetthetenetsoftheGroupeConsultatifCode,publicarticulationanddueprocessforlocal
standards of practice if they existed, an active discipline process with an independent appeal mechanism, and an
adequateeducationrequirementforadmissionofnewlyqualifyingactuaries.Thesecontinuedwiththerestructured
IAA.
Theemphasisoftheaccreditationprocessontheprofessionalstructureofmemberassociationswasenhancedasthe
decadeadvanced.Associationsunableinitiallytocomplyfullycanbegrantedtermwaiversastheyundertakethe
necessaryinitiativestobringthemselvesintolinewithIAArequirements.
Connections with other international groups of interest, especially the then International Accounting Standards
Committee,werealsoacontinuingcomponentoftheIFAAlegacytotherenewedIAA,followedbyevenfurther
enhancedrelationswithitssuccessororganization,theInternationalAccountingStandardsBoard(IASB).
Thissawthebeginningofacontinuingseriesofpublicstatementsmadeinresponsetowhathavebecomefrequent
invitationstocommentondiscussionpapersandexposuredraftsfromseveralsupranationalorganizations.TheIAA
hasbeenabletodemonstratethattheinternationalactuarialprofessioncanprovideobjectiveadviceinareasinwhich
actuarieshaveaninterest.
These statements and the development of close ties between IAA representatives and these organizations have
providedactuariesaseatatthetableinareasinwhichactuarieshavedevelopedexpertise.
A PROFESSION POISED FOR THE FUTURE 9