1. The Personal Actuary SOA Initiatives Remarks by James C. Brooks IABA 2006 Meeting

2. Challenges No organized SOA support Liability/E & O insurance Lack of public recognition/understanding Affordability-compensation models Credentialing and licensing issues Lack of a clearly proven business model

3. The Personal Actuary Task Force Began in Finance Practice Area in 1992, moved to the Actuary of the Future Section in 2005 Meets by conference call monthly 12 core members plus 9 passive participants

4. PATF Accomplishments Refine definitions, terminology Increase visibility, PR, find synergies Created and maintained web pages Personal Actuary Guidebook created Market research undertaken 1999/2000 Life settlement research undertaken 2003 Investment regulatory study in 2004 – will be published in new Actuarial Practice publication

5. PATF Accomplishments Presentation to Marketplace Strategic Action Team Sponsored sessions at SOA meetings in 2005 and 2006 May 2005 session published in The Record Numerous articles in the Actuary of the Future newsletter, The Future Actuary, and The Actuary 2006 survey of actuaries doing personal actuarial work Support from Risk Management and Small Consulting Firms sections

6. Proposal to Issues Advisory Council 1.Formal declaration of the existence of personal actuarial services as a viable area of practice within the profession 2.Study of other “personal” professionals for keys to success, compensation models, gaps in our knowledge base 3.Explore prototype educational program with appropriate credentialing 4.Create a substantial PR program 5.Develop E&O coverage proposals

7. IAC Response Magnitude of the opportunity needs further research Focus on personal retirement actuarial services to conduct market research tied to SOA new Marketing thrust (“Image Campaign”) Pension section to lead project oversight $20,000 to fund the research Make a go/no-go call by 12/31/2006

8. Conclusion Personal actuarial work is being performed today by many actuaries across a wide spectrum of individual circumstances The opportunity for Personal Risk Management (PRM) could be even larger than for Enterprise Risk Management (ERM) The actuarial professional organizations must shift from a reactive to a proactive mode to capture these opportunities for members of our profession Personal Actuaries are truly actuarial pioneers and actuaries of the future

9. QUESTIONS AND DISCUSSION