1. Current CAS Issues and Directions Roosevelt C. Mosley, FCAS, MAAA SWAF Summer 2007 Meeting June 5, 2007, Austin, TX

2. 2 Agenda CAS Education Strategy – Update CAS Education Strategy – Update Other Education Issues Other Education Issues CAS Centennial Goal CAS Centennial Goal ERM Initiatives ERM Initiatives Other News Other News Your Input Your Input

3. 3 Update on Education Strategy – Background Task Force on Review of Education and Examination Process and Procedures – 1998 Task Force on Review of Education and Examination Process and Procedures – 1998 Chauncey Group – 2000 Chauncey Group – 2000 Future Education Task Force – 2002 Future Education Task Force – 2002 Task Force on FCAS Education – 2004 Task Force on FCAS Education – 2004 Board Task Force on FCAS Education - 2005 Board Task Force on FCAS Education - 2005 Special Board Meeting – January, 2006 Special Board Meeting – January, 2006 Produced White Paper Based on Board Discussion Produced White Paper Based on Board Discussion

4. 4 Update on Education Strategy White Paper on CAS Education Strategy Released in November 2006 Released in November 2006 Feedback invited via online survey through January 2007. Feedback invited via online survey through January 2007. Several significant proposed changed to education Several significant proposed changed to education Board discussed feedback in March 2007. Board discussed feedback in March 2007.

5. 5 Update on Education Strategy Reasons for New Strategy Reasons for New Strategy Expanding scope of practices Expanding scope of practices Some new areas are not conducive to traditional testing Some new areas are not conducive to traditional testing Not all skills need same level of mastery Not all skills need same level of mastery Balance of increasing syllabus materials and travel time Balance of increasing syllabus materials and travel time

6. 6 Update on Education Strategy White Paper on Education – Proposals White Paper on Education – Proposals Mastery vs. familiarity Mastery vs. familiarity Optional elective capabilities Optional elective capabilities Optional tracks for Fellowship Optional tracks for Fellowship Enhanced continuing education program Enhanced continuing education program Non-exam evaluation methods Non-exam evaluation methods Improved education material Improved education material

7. 7 Update on Education Strategy Summary of Feedback: Fellowship tracks did not garner broad support – concern with impeding career mobility. Fellowship tracks did not garner broad support – concern with impeding career mobility. Providing more rigorous continuing education offerings was strongly supported. Providing more rigorous continuing education offerings was strongly supported. Required workshops for basic education – some support for testing knowledge and skills. Required workshops for basic education – some support for testing knowledge and skills. Other feedback: Other feedback: Desire for improved study materials Desire for improved study materials

8. 8 Survey of Stakeholders- Results More than 8 in 10 agreed with Mastery of some material, familiarity with others. More than 8 in 10 agreed with Mastery of some material, familiarity with others. Only 10% disagreed with more rigorous CPD opportunities Only 10% disagreed with more rigorous CPD opportunities Certificates of Achievement in specialty areas: 45% agreed, 44% disagreed, 22% no opinion Certificates of Achievement in specialty areas: 45% agreed, 44% disagreed, 22% no opinion Plus 206 written comments! Plus 206 written comments!

9. 9 Survey Comments- Themes 1.Survey was “slanted” towards favorable answers. 2.Specialization certificates would make it hard to move into other areas. move into other areas. 3.VEE not a good idea- people will “shop” for easiest courses, career-changers don’t want to/can’t go courses, career-changers don’t want to/can’t go back to college back to college 4.We have a lot to gain if we just improve current exams. 5.Give upper exams twice a year. 6.Why are we using the SOA as a role model?

10. 10 Comments- More Themes 7.Exams are a barrier to entry designed by a small group of elites who want to keep themselves expensive and don’t want to dilute the ACAS/FCAS designation. 8.Make sure this credential means something. 9.Exams cannot make people experts- only experience can. 10.We need other delivery methods besides closed-book exams. 11.CPD requirements- good or bad? 12.Stop jerking us around!

11. 11 Update on Education Strategy Next Steps: Board held lengthy discussion during meeting in March. Board held lengthy discussion during meeting in March. Small task force of the Board formed to review the feedback to the White Paper in more detail and consider the comments of the Board. Small task force of the Board formed to review the feedback to the White Paper in more detail and consider the comments of the Board. Board will discuss issue again in June 2007. Board will discuss issue again in June 2007.

12. 12 Update on Education Strategy No implementation timeline has been contemplated at this point. No implementation timeline has been contemplated at this point. We will not have details on implementation until we first agree on the strategy that is to be implemented. We will not have details on implementation until we first agree on the strategy that is to be implemented. Implementation will not occur for several years. Implementation will not occur for several years. Implementation plan will include a transition strategy designed to minimize disruption for candidates. Implementation plan will include a transition strategy designed to minimize disruption for candidates.

13. 13 Other Education Issues - Improved Educational Materials Board established the Task Force on Developing Education Materials. Board established the Task Force on Developing Education Materials. Task Force issued two Requests For Proposals for authors to create educational publications on (1) ratemaking and (2) reserving. Task Force issued two Requests For Proposals for authors to create educational publications on (1) ratemaking and (2) reserving. Proposals were due March 30, 2007. Proposals were due March 30, 2007. Board to decide on awarding contracts during June 2007 meeting. Board to decide on awarding contracts during June 2007 meeting.

14. 14 Other Education Issues - Candidate Code of Conduct Board approved adoption of a Code of Professional Ethics for Candidates, and Rules of Procedure for Disciplinary Actions Involving Candidates Board approved adoption of a Code of Professional Ethics for Candidates, and Rules of Procedure for Disciplinary Actions Involving Candidates Purpose: to require Actuarial Candidates to adhere to the high standards of conduct, practice, and qualifications of the actuarial profession. Purpose: to require Actuarial Candidates to adhere to the high standards of conduct, practice, and qualifications of the actuarial profession. Effective: with registration for the 2008 Spring exam sitting. Effective: with registration for the 2008 Spring exam sitting.

15. 15 CAS Centennial Goal March 2003 March 2003 CAS Board adopted the Centennial Goal. CAS Board adopted the Centennial Goal. November 2006 November 2006 LRPC presented its annual report to the Board; Board agreed to revisit the goal. LRPC presented its annual report to the Board; Board agreed to revisit the goal. March 2007 March 2007 Board reaffirmed the long-term vision for CAS; approved refreshed wording for the Goal. Board reaffirmed the long-term vision for CAS; approved refreshed wording for the Goal.

16. 16 CAS Centennial Goal The CAS will be recognized globally as a leading resource in educating casualty actuaries and conducting research in casualty actuarial science. CAS members will advance their expertise in pricing, reserving, and capital modeling; and leverage their skills in risk analysis to become recognized as experts in the evaluation of enterprise risks, particularly for the property and casualty insurance industry.

17. 17 ERM Initiatives ERM Vision ERM Vision 2007 ERM Symposium 2007 ERM Symposium Online Course: Introduction to ERM Online Course: Introduction to ERM 2007 CAS Spring Meeting – ERM track (six sessions) 2007 CAS Spring Meeting – ERM track (six sessions) CAS ERM Committee CAS ERM Committee

18. 18 CRUSAP Critical Review of the U.S. Actuarial Profession (CRUSAP) Task Force issued its final report (see www.crusap.net). Critical Review of the U.S. Actuarial Profession (CRUSAP) Task Force issued its final report (see www.crusap.net).www.crusap.net Board discussed report in March 2007. Board discussed report in March 2007. Agreed that Council of US Presidents (CUSP) will focus on profession’s reaction to the report. Agreed that Council of US Presidents (CUSP) will focus on profession’s reaction to the report. Board to receive and review CUSP proposed responses at future Board meetings. Board to receive and review CUSP proposed responses at future Board meetings.

19. 19 Board Governance Fellows approved changes to the Constitution in 2006 to allow the CAS to appoint additional board members to the CAS Board of Directors. Fellows approved changes to the Constitution in 2006 to allow the CAS to appoint additional board members to the CAS Board of Directors. Board approved the appointment of Mark Vonnahme to the Board in March, making him the first non-actuary to serve the CAS in this capacity. Board approved the appointment of Mark Vonnahme to the Board in March, making him the first non-actuary to serve the CAS in this capacity.

20. 20 New CAS Journal www.VarianceJournal.org

21. 21 Image of the Actuary Campaign Profession-wide campaign. Image Advisory Group, made up of members from each of the North American actuarial organizations, oversees campaign. www.imageoftheactuary.org/ for more information. www.imageoftheactuary.org/

22. 22 2007 Calendar of Events Spring Meeting June 17-20, 2007, Orlando Spring Meeting June 17-20, 2007, Orlando ASTIN Colloquium June 19-22, 2007, Orlando ASTIN Colloquium June 19-22, 2007, Orlando Limited Attendance Reinsurance Seminar July 16, 2007, London Limited Attendance Reinsurance Seminar July 16, 2007, London CLRS September 10-11, 2007, San Diego CLRS September 10-11, 2007, San Diego Annual Meeting November 11-14, 2007, Chicago Annual Meeting November 11-14, 2007, Chicago

23. 23 ASTIN 2007 CAS is host of the 2007 ASTIN Colloquium – ASTIN’s 50 th Anniversary! Immediately follows the 2007 CAS Spring Meeting, with a joint day of sessions. http://www.actuaries.org/ASTIN2007/

24. 24 I welcome your input regarding... CAS Education Strategy CAS Education Strategy CAS Centennial Goal / ERM Initiatives CAS Centennial Goal / ERM Initiatives CAS Publications and Research CAS Publications and Research Image of the Actuary Campaign Image of the Actuary Campaign 2007 Calendar of Events 2007 Calendar of Events Other Topics Other Topics Questions? Questions?

25. Thank You! Roosevelt C. Mosley, FCAS, MAAA SWAF Summer 2007 Meeting June 5, 2007, Austin, TX