NOTES (DRAFT 1)  Using PowerPoint to draft to try to create a more graphic heavy / click friendly web format as opposed to creating a word heavy framework  The main graphic format is text with “rotating” pie charts that show what people think on a particular topic – I’ve essentially pulled information across the four questions as it relates to 4 key topics, with some framing information about process.  It is light on information on key trends – that’s the only one where I feel we should have more in the main presentation. I can add a slide about that “other key trends” with some observations. The thing is we didn’t get anything on that in interviews. Text titled NOTES ON DESIGN will give information about text to hover, etc. - are not to appear on the pages Note that we’re mentioning the change agenda on a few slides. I’m not at this stage sure we will be disclosing that to members – we can find another placeholder for that if we need to, and it’s not a big element of design, but just FYI.

SOA Strategic Plan Development Part I: Environmental Observations October 2015

Gather information Introduction  The SOA Board uses a strategic plan to guide its work. The strategic plan describes what the organization wants to achieve over a specific period of time. The current plan covers 2013 through  The process of establishing a strategic plan has four phases – phase I is gathering information: about the trends in the environment, the actuarial skill set, roles and opportunities for actuaries, and what that might mean for the work of the SOA. EXPOSE DRAFT PLAN Scheduled to be released to members for comments in July DEVELOP CHANGE AGENDA What are the critical changes needed to meet vision and mission? FINALIZE PLAN Scheduled to be approved by the Board at its October 2016 meeting Expose draft plan for comments Develop change agenda Finalize plan & initiatives

Talking to Members, Employers, Leaders The Strategic Planning Task Force had conversations with members, employers, industry leaders and volunteer leaders. They identified key trends affecting the profession and the industries it serves, as well as opportunities and challenges for the profession. NOTES ON DESIGN This text to appear when you hover over the boxes. Board of Directors: “Board members gave input at their March 2015 meeting.” Employers’ Council: “ The XX member Employer’s Council meets semi-annually and is comprised of actuaries and non-actuaries representing insurance companies, consulting firms, etc.. “ GET TEXT FROM SHEREE Section Council Leaders: “ Section Council chairs and vice-chairs get together twice a year to discuss key issues for the sections; Section council chairs met in April 2015.” Key Industry Leaders: “Academics, leaders in insurance and consulting, actuaries in key government roles, SOA presidential officers and other leaders in the US, Canada and Asia participated in one-on-one in-depth interviews.” SOA member panel: “249 members of the SOA member survey panel gave their insights on key trends, opportunities for actuaries, and strengths and weaknesses of the profession. Key results from their survey are shown on the next panels.” Board of Directors Employer’s Council Section Council Leaders SOA Member Panel Key Industry Leaders Board members gave input at their March 2015 meeting The 26 member Employers Council represents insurance companies, consulting firms, and recruiting firms; they provided input at their February 2015 meeting. Section Council chairs and vice-chairs meet biannually to discuss key issues for the sections; Section council chairs met in April Academics, C-suite leaders in insurance and consulting, regulators, SOA presidential officers and other leaders in the US, Canada and Asia participated in one-on-one in- depth interviews. 249 members of the SOA member survey panel gave their insights on key trends, opportunities for actuaries, and strengths and weaknesses of the profession. Key results from their survey are shown on the next panels.

Common Threads The information gathered covered a wide range of topics – from economic and social forces shaping insurance, pensions and health care to how the profession can continue to attract strong candidates. Four key themes are highlighted. NOTES ON DESIGN This text to appear when you hover over the circles. Trends: Member survey panelists were asked “Thinking of the trends that are driving the actuarial profession today, which of the following are most important?” They were able to select up to 5 trends from a list of 16. Opportunities: Member survey panelists were asked “Which of the following do you feel represent the most important opportunities for the actuarial profession?” They were able to select up to 4 opportunities from a list of 13. Strengths: Member survey panelists were asked “Which of the following do you believe reflect the actuarial profession’s greatest strength(s)?” They were able to select up to 3 strengths from a list of 10. Weaknesses: “Which of the following do you believe reflect the actuarial profession’s greatest weakness(s)?:” They were able to select up to 3 weaknesses from a list of 8. Section Council Leaders Big Data, Predictive Analytics Regulatory Environment Actuarial Skill Set Strategic Thinking

Member Panel Survey In addition, results from four questions posed to the member panel are shown side by side with the common threads. NOTES ON DESIGN This text to appear when you hover over the circles. Trends: Member survey panelists were asked “Thinking of the trends that are driving the actuarial profession today, which of the following are most important?” They were able to select up to 5 trends from a list of 16. Opportunities: Member survey panelists were asked “Which of the following do you feel represent the most important opportunities for the actuarial profession?” They were able to select up to 4 opportunities from a list of 13. Strengths: Member survey panelists were asked “Which of the following do you believe reflect the actuarial profession’s greatest strength(s)?” They were able to select up to 3 strengths from a list of 10. Weaknesses: “Which of the following do you believe reflect the actuarial profession’s greatest weakness(s)?:” They were able to select up to 3 weaknesses from a list of 8. Opportunities Trends Weaknesses Strengths Member survey panelists were asked “Thinking of the TRENDS that are driving the actuarial profession today, which of the following are most important?” They were able to select up to 5 TRENDS from a list of 16 Member survey panelists were asked “Which of the following do you believe reflect the actuarial profession’s greatest STRENGTH(s)?” They were able to select up to 3 STRENGTHS from a list of 10. Member survey panelists were asked “Which of the following do you feel represent the most important OPPORTUNITIES for the actuarial profession?” They were able to select up to 4 OPPORTUNITIES from a list of 13 “Which of the following do you believe reflect the actuarial profession’s greatest WEAKNESS(es)?:” They were able to select up to 3 WEAKNESSES from a list of 8. MEMBE R PANEL SURVE Y

Tapping into Big Data, Predictive Analytics The rise of big data and predictive analytics was brought up by all parties interviewed: employers, industry leaders and members. It was identified as the number one trend driving the profession – and our number one opportunity – but also the area where actuaries need to catch up:  Actuaries haven’t shifted their techniques to respond to the new era of cheap, fast data. The actuarial insights may be sharper, but C-suite officers noted that the actuaries’ analysis is late in coming to the table, closing actuaries out of the decision making loop.  The power in data analysis is moving from finding trends in the past to being able to predict trends and model the future. NOTES ON DESIGN In this & future pages, rotate through the graphs. Graphs are COLOR CODED by question. BLUE = “Trends driving the actuarial profession”; RED = “Opportunities for the actuarial profession”; GREEN = “Profession’s greatest strengths”; PURPLE = “Profession’s greatest weaknesses” It would be interesting if the graphs could be animated – morph from one to the other, or click and see the pie shape appear. 57% of members surveyed identified Big data/data analytics as one of the most important trends driving the actuarial profession 57% of members surveyed identified predictive modeling/new uses for actuarial models as one of the most important opportunities for the actuarial profession 46% of members surveyed identified big data/data analytics as one of the most important opportunities for the actuarial profession

Adjusting to Changing Regulatory Environment The increasing effect of regulation has several implications for the profession: Actuaries struggle to keep up with changing regulatory requirements. Evolving regulatory frameworks drive new reporting and analysis. Some interviewees questioned whether actuaries had the right level of technical skills to meet the new regulatory challenges. The profession – and professional organizations – need to provide socially relevant information to policymakers and regulators. SOA research reports were cited as a good way for SOA to provide that information to those audiences. 50% of members surveyed identified increasing effect of regulation as one of the most important trends driving the actuarial profession 31% of members surveyed identified increasing effect of regulation on actuarial work as one of the most important opportunities for the actuarial profession 34% of members surveyed identified research aimed at policymakers, regulators and/or the general public as one of the most important opportunities for the actuarial profession

62% of members surveyed identified the ability to solve complex problems as one of the actuarial profession’s greatest strengths 37% of members surveyed identified competition for roles from non-actuaries as one of the most important trends driving the actuarial profession Promoting the Value of the Actuarial Skill Set Actuarial skill set isn’t well understood – by the public, employers, regulators, or policymakers.  The public does not think of actuaries as key players in risk management  Actuaries are not seen as the profession that can go beyond finding the data relationships and think about how the insights can be applied to business.  Actuaries’ technical skills may need to evolve to keep their professional advantage. One interviewee expressed it as “the mushy middle” - not technical enough for the new quantitative and regulatory demands, but too technical to frame business decisions. 32% of members surveyed identified lack of recognition/ respect across industries as one of the actuarial profession’s greatest weaknesses

Encouraging Actuaries to Think Strategically The profession continues to be criticized for – and to be self-critical of – its communication skills. The interviews highlighted that actuaries are focusing on communicating process and data, rather than recommendations and context:  Actuaries aren’t providing strategic insights. One interviewee said some of his actuarial colleagues were the most “thoughtful, intellectually grounded and strategic thinkers” – but that didn’t get unleashed unless someone else was asking them the right questions.  Some members and interviewees suggested incorporating more business skills into the actuarial credentialing process. More business focus in the credential might attract entrepreneurs and leaders whose interests lie beyond the quantitative education. 62% of members surveyed identified actuaries reputation for poor communication skills as one of actuarial profession’s greatest weaknesses 28% of members surveyed identified adding business skills into the actuarial designation as one of the most important opportunities for the actuarial profession 30% of members surveyed identified lack of actuaries in C- suite roles in traditional industries as one of actuarial profession’s greatest weaknesses

Next Steps  The Strategic Planning Task Force is refining the SOA mission – what we do – and vision – what we’ll achieve by  Look for more updates and polls from the Strategic Planning Task Force throughout the process. The strategic plan is about you and your profession. Your participation is an important part of the process.  We hope to report regularly to you through the strategic planning process until the release of the exposure draft for your comments in July Gather information EXPOSE DRAFT PLAN Scheduled to be released to members for comments in July DEVELOP CHANGE AGENDA What are the critical changes needed to meet vision and mission? FINALIZE PLAN Scheduled to be approved by the Board at its October 2016 meeting Expose draft plan for comments Develop change agenda Finalize plan & initiatives