An Introduction to the IAA Cecil Bykerk, President October 2011, Kuala Lumpur, Malaysia

Origins, mission and recognition • • • • Founded in 1895 Restructured in 1998 to serve as worldwide association of professional actuarial associations.

To encourage development of global profession • • technically competent and professionally reliable to ensure that the public interest is served Not-for-profit, non-political, Non-Governmental Organization • on the Roster of the Economic and Social Council of the UN • on the Special List of the ILO

Membership and representation • • • • Full Member Associations: 63 Associate Member Associations: 26 Assisting development of profession in 30 additional countries Fully qualified actuaries: 60,000+ in more than 100 countries

Membership and representation • • Institutional Members: – International Association of Insurance Supervisors (IAIS) – International Accounting Standards Board (IASB) – International Social Security Association (ISSA) – International Organization of Pension Supervisors (IOPS) – Organization for Economic Cooperation and Development (OECD) Observer Member: – Asian Development Bank (ADB)

IAA Membership Requirements • • For Full Member Association – Code of Conduct – Formal discipline process – IAA Education Guidelines and Syllabus – Formal process to adopt standards of practice, if and when national standards are created For Associate Member Association – Actuarial association not meeting all conditions above

Relationship between IAA, Sections and Congresses • • • • • • IAA: association driven, focusing on professionalism, standards, representation Sections: scientific, research and practical arm Congresses: a high point for both Section Colloquia: yearly or biennially Congresses: every 4 years Next Congresses: March-April 2014 (Washington, DC – USA) ; 2018 (Berlin, Germany)

Communication and Tools for Members • • • • Communication is electronic: List servers Quarterly Newsletters; Special Newsletter after each meeting News releases to external audiences to inform of important IAA initiatives Committee delegates and interested persons can join various list servers to participate / monitor work of committees

Communication and Tools for Members

(cont’d)

• • IAA Members’ Website contains: – specialized online translation tool in 8 pairs of languages – specialized search tool – Actuarial E-Library, specialized topic libraries – International Events Calendar Guidelines to facilitate participation of non-native English speakers and new delegates in work of IAA

Potentially Difficult Issues

• • • • • • • Potentially difficult issues for a small Association Governance Education Discipline cases Standards of Practice Promotion / marketing / engagement of relevant entities Member engagement Resources

Governance: leadership, strategic direction, decision-making • Issues  Leader burnout  Few members willing and able to take on leadership roles  Decisions seen as having commercial implications  Decisions taken very personally

Education – Basic and Continuing • Issues  Basic education materials o Current o Locally relevant  Exam creation, administration, grading  Professionalism course administration  Continuing education materials o Adequate scope

Education – Basic and Continuing • Issues – Basic education materials • Current • Locally relevant – Exam creation, administration, grading – Professionalism course administration – Continuing education materials • Adequate scope

Discipline cases • Issues  Finding a discipline panel o Experience o Relevant expertise o Clearly impartial (personal, commercial)  Cases are rare – new learning curve each time  Privacy of accused actuary

Standards of Practice • Issues  Local actuarial market may not have sufficient experience in key areas to define the standard of practice  Local practitioners may not have adequate experience and perspective to draft the standards  Need a formal process for drafting and adopting SOPs

Promotion, marketing, and engagement of other entities • Issues  Credibility o No long track record o Self-promotion  May require senior actuaries

Member engagement • Issues  Early career actuaries not ready to volunteer their time for the association  Lack of employer support

Association resources • Issues  Not enough people to do all the work  Heavy burden on a few people  Dues income not sufficient to cover necessary expenses  Inventing each program for the first time

Potential Resources

Leverage the IAA • • • • Samples and models of documents such as standards Local seminars – IAA Fund Professionalism seminar – IAA Fund Role of the Actuary seminar IAA Section webinars Advice & Assistance Committee – ask for help

Leverage mature associations • • • Basic education – Educational materials – Examinations – Credential – Perhaps focus local effort on educating and testing regarding local laws, regulations, products, business practices Standards (make local adjustments) Seminars, including webinars

Leverage the universities • Experts in education – – Develop an appropriate credential path Also a good mechanism for attracting additional students to the profession – – May be able to bring in lecturers from around the world Association may still need to cover some topics • Perhaps combine with internships at local insurance companies and consulting firms

Regulatory support • Very helpful to have the regulator supporting the role of the actuary – Informally – Formally (laws and regulations) • We have found it very useful to have local regulators attend Role of the Actuary seminars

Regulatory support • Very helpful to have the regulator supporting the role of the actuary – Informally – Formally (laws and regulations) • We have found it very useful to have local regulators attend Role of the Actuary seminars

Seek an association mentor • Find a mature association willing to partner  Exam materials and administration  Credentials  Professionalism education  Continuing education (seminars)  Ongoing advice

• Seek some individual actuary mentors from mature associations Mentor to your association  Provide ongoing advice and counsel  Help connect to other resources worldwide  Serve as a discipline panel when needed • Mentor to your members  Possibly connect your individual members with mentors around the world

Regional partnerships • Pool your resources with other associations in the region

Final thoughts • • • Even with a wide variety of resources, must have a core group of passionate leaders Pursue ambitious but realistic goals Begin involving the next generation of leaders

International Actuarial Association Secretariat: Ottawa – www.actuaries.org