Mutual Recognition

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Mutual Recognition

• Casualty Actuaries of Greater New York

June 11, 2003 Gail M. Ross
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What is Mutual Recognition?

• A bilateral agreement, between the CAS and
  Actuarial Society X whereby an FCAS could be
  granted Fellowship in Society X (subject to
  terms of the agreement).

• In turn, an actuary achieving Fellowship in
  Actuarial Society X could be granted Fellowship
  in the CAS.

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Your View

• Should the CAS be willing to enter into mutual
  recognition agreements with selected actuarial
  organizations?

• All those in FAVOR of the concept of MR

• All those OPPOSED to the concept of MR

• All those UNCERTAIN about the concept
  of MR

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Historical Background

• 1999 Board action
• Not pursue bilateral agreements
• Work to ensure practice rights globally
• Subsequent developments
• CAS members were being excluded from certain
  practices in Australia, Ireland, India
• CAS Board set an international strategy to be an
  active participant in the global community of P/C
  actuaries
• November 2001 - Board created a MR Task Force to
  revisit the issue

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The CAS Boards Vision (11/02)

• The actuarial profession is an increasingly
  global community. The CAS seeks to foster a
  vibrant and effective global community of P/C
  actuaries, to be an active participant in this
  global community, and to promote casualty
  actuarial science.
• The vision of the CAS is to be a global resource
  for education, knowledge, experience and applied
  research for P/C actuaries. We seek to
  collaborate with other organizations that
  research and educate in this field.
• The CAS desires that CAS members and other
  actuaries be recognized as qualified actuaries
  and be able to practice in all countries and on
  all assignments where they have appropriate
  knowledge and experience.
• The CAS desires to attract future members with
  diverse backgrounds, including future members
  from around the globe.

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The CAS Boards Recent Action (11/02)

• CAS Board voted to endorse the concept of
  entering into MR agreements with other actuarial
  organizations that have specialty exam tracks in
  general (P/C) insurance.
• CAS Board recognizes that
• Constitutional amendment will be required
• Member support is necessary
• Member education/feedback is underway

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Big Audacious Goal (March 03)

• The CAS will be globally recognized as the
  preeminent resource in educating casualty
  actuaries and conducting research in casualty
  actuarial science. CAS members will be
  recognized as the leading experts in the
  evaluation of hazard risk and the integration of
  hazard risk with strategic, financial and
  operational risk.

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The Mutual Recognition Opportunity

• Facilitates our members ability to practice in
  various jurisdictions
• Increases attractiveness of our exams to students
  in other countries
• Get the CAS P/C education
• Become FCAS
• Use FCAS to gain admission in local actuarial
  organization
• Improves CAS visibility, stature, and influence
  as an active player in the global actuarial
  community

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The Controls Being Discussed

• MR agreements are only being considered with
  organizations that have rigorous
  property/casualty educational, testing and
  continuing education processes similar to the
  CAS.
• Institute of Actuaries
• Faculty of Actuaries
• Institute of Actuaries of Australia
• Individual actuaries applying for FCAS by mutual
  recognition
• Must demonstrate knowledge and experience in P/C
  field, e.g.,
• Took P/C specialty track in home organization
• N out of M most recent years working in field
• Take CAS Course on Professionalism
• Letters of reference

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The Controls Being Discussed

• FCAS by Mutual Recognition is subject to
• Code of Conduct
• Standards of Practice
• Qualification Standards
• Candidates would not be allowed to use a derived
  qualification to apply for membership in the CAS

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Major Objections / Responses

• There will be a flood of actuaries from other
  organizations applying for the FCAS designation
• There are only 200 members of the IA/FA that have
  completed the P/C track.
• SOA and CIA have had MR agreements with the
  IA/FA/ IAA for a number of years and have had
  less than 25 MR applicants.

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Major Objections / Responses

• The other actuaries applying will be less
  qualified since the examination path will not be
  identical
• Different does not imply Less Rigorous
• The IA/FA/IAA offer education and exams in areas
  that we dont (e.g., actuarial control cycle)

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Major Objections / Responses

• MR will be a distraction and will divert CAS
  resources from focusing on issues that face our
  members in the US
• Will give us additional resources to achieve our
  goals

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Whats In It For Me?

• Being associated with the worldwide leader in
  casualty actuarial science
• Broader job opportunities
• An opportunity to further develop skills and
  expertise

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What Are The Implications of Not Pursuing MR?

• Undermines the BAG
• Isolates the CAS from the rest of the world
• The actuarial community might perceive the CAS as
  not interested in the concerns of other countries
• Someone else will likely fill our spot

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Your Turn

• Questions?
• Concerns?
• Issues the Board should be certain to address?
• Other ideas/comments

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Your View

• Should the CAS be willing to enter into mutual
  recognition agreements with selected actuarial
  organizations?

• All those in FAVOR of the concept of MR

• All those OPPOSED to the concept of MR

• All those UNCERTAIN about the concept
  of MR

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THANK YOU !!!!!