1. LOOKING BACK…focused on the future
CIA Annual Meeting
LOOKING BACK…focused on the future

2. Chris Daykin CB, MA, DSc, FIA, FSA UK Government Actuary
Past-President, Institute of Actuaries

3. SYSTEMIC FACTORS
consolidation of insurance industry
growth of conglomerate groups
decline of defined benefit pensions
rise of international accounting standards
need for advanced solvency tools
emphasis on risk management
greater public expectations

4. PRESSURES ON THE ACTUARIAL PROFESSION
need to eradicate conflicts of interest
peer review will have to become routine
regular re-tendering of appointments
independent review of advice
whistle-blowing roles
external influences on standard-setting
demonstrably independent discipline

5. CONSEQUENCES FOR ACTUARIAL EDUCATION
strengthen understanding of and interaction with financial economics
need for familiarity with international accounting framework
ability to value complex embedded options
measurement and communication of uncertainty and risk
broader skills in risk management

6. IS ACTUARIAL PROFESSION UNDER THREAT?
Has it failed to adapt?
not enough expertise in related subjects
criticised for favouring certain groups
too dominated by commercial interests
not responsive to public opinion
self-serving and introspective

7. WHAT ARE OUR SKILLS?
mathematical modeling
understanding of probability and statistics
strong financial toolkit (discounted cash flow; pricing; setting provisions; risk; managing solvency)
helping companies to be profitable
protecting the interests of stakeholders
risk management of financial institutions

8. WHAT ARE OUR WEAKNESSES?
poor communication skills
capture by employers and clients
difficult to maintain multi-skilling
slow to change and adapt
poor level of implementation of intellectual capital
inadequate levels of academic research and linkage into profession

9. WHAT ARE THE OPPORTUNITIES? - 1
financial engineering
enterprise risk management
health care financing
design and management of retirement products
asset-liability modeling and management
banks and other financial institutions
personal financial advice

10. WHAT ARE THE OPPORTUNITIES? - 2
utility pricing
all types of financial management
design of frequent flyer/loyalty schemes
evaluating contingent liabilities
nuclear decommissioning
environmental liability issues
assisting the Courts in valuation
measuring and communicating risk

11. obstacles to financial stability need for immediate expertise
A GLOBAL ENVIRONMENT
global skill shortage
obstacles to financial stability
need for immediate expertise
skill transfer
support for education
development of professional bodies

12. A global profession

13. Survival of the fittest