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

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

Exams - Travel Time n Travel time (approx. # sittings) ACASFCAS u u u u n Board guidance to Admissions Committees: Expect 5 to 7 years as median time from first actuarial employment to FCAS

Exams - Progress per Sitting n Exam 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 n Exam Progress on CAS Exams (excl. 1-4) u : 1.01 x.37 =.37 u : 0.79 x.38 =.30 u 2000-: 1.01 x.38 =.38

Exams 1 & 2 n Pass Ratios from first sittings May ‘00Nov ‘00May ‘01Nov ‘01 u Exam 123%34% 33%34% u Exam 227%32% 32%41% n Some possible causes u Insufficient advance information u Required mastery of more material u Word problems u First time exam

Exam 3 Pass Ratios from first sittings May ‘00Nov ‘00May ‘01Nov ‘01 Overall32% 36% 43%42% CAS Workers 15%20% 33%34% Non-CAS Workers 29%31% 38%36% Students 44%54% 60%54%

Exam 4 Pass Ratios from first sittings May ‘00Nov ‘00May ‘01Nov ‘01 Overall34%37% 41%43% CAS Workers 23%30% 35%39% Non-CAS Workers 29%34% 40%38% Students 69%59% 54%56%

more... Exam 3 and 4 Key Issues n Most learning objectives okay, but some go beyond what casualty actuaries need n Too much material some pruned n Need better material study notes commissioned n Students perform better than workers for various reasons

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

Exams - Other Changes n Hired Education Consultant to help: u Construct appropriate learning objectives u Train to develop good thinking questions u Help with methods for setting pass score u Provide input on evaluating exam length and difficulty

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

Continuing Education Issues n What is the “right” mix of basic education and continuing education? n Should we increase the scope and magnitude of continuing education requirements? n What delivery mechanisms will work for CAS continuing education in the future?

Roles of Regional Affiliates n Social and networking n Continuing education u Leverage existing resources n Exam seminars n University/college relations n Entre into CAS network u Meeting attendance u Involvement and leadership

Expanding Practice Areas n DFA u ConceptTheoretical toolPractical application u Seminar expanded to “Risk and Capital Management” n New Advisory Committees u Asset/Liability Management & Investment Policy u Enterprise Risk Management u Securitization/Risk Financing u Valuation of P/C Insurance Companies

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

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

International Issues - Next Steps n More specifics u Highly developed actuarial organizations (IA/FA) u Developing organizations u Emerging markets (China) n Prioritization u Countries u Activities n Resources u People u Cost

CAS Election Process n Reviewed by Task Forces – 2000 and 2002 n Nomination and Petition processes continue, but... u Petitioning now occurring before Nominating Committee u Nominating Committee completes the slate (  1 + 8) F Always can name 1 PE, 4 Board candidates u Change in the required number of signatures n Nominating Committee membership u Will include majority of “at large” members

CAS Election Process (cont.) n Candidate information u “Why I want to serve” u Statement on issues n Runoff procedures

CAS Web Site n u Syllabus, study materials, past exams, study notes n All PCAS (1914), CAS Forums (1987) and Discussion paper programs (1979) n ASOPs, Casualty Reserve Practice Note n Discussion forum n Member Services: u Membership Directory u CAS Board Q&A u Board minutes

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

I would like your input regarding... n Continuing Education requirements n Board and President-Elect nomination process n Expansion beyond ratemaking and reserving n CAS role internationally n Mutual recognition n Exams n What’s on your mind? n Questions?