Updating the CAA’s By-Laws
The Caribbean Actuarial Association’s Governance Committee is spearheading the effort to update the Association’s By-Laws and intends to present them for approval at the upcoming AGM.
In early 2018, the CAA Common Standards Committee started a new project to review all CAA Actuarial Practice Standards (APS) and the Glossary for consistency. The Committee's three main goals are:
- 1) To align APS0 with the International Actuarial Association's (IAA) International Standard of Actuarial Practice 1 (ISAP1) released in June 2018.
- 2) To reformat all CAA Standards into the same format as APS0 with regard to uniformity of layout and placement of content.
- 3) To ensure comprehension of information in all the CAA Standards such that a reasonable qualified actuary can understand the material even if he/she is not an expert in that particular field.
The status of the project is as follows:
- a) APS0, APS1, APS2, APS3, APS4 and the Glossary were submitted for review in early June - target completion by 2Q 2019.
- b) Review of the proposed APS5 (Released for Steering Committee review on June 13, 2019) will be underway soon - target completion by 3Q 2019
Drafting Actuarial Practice Standard 5
In addition to a valuation of claims liabilities, actuaries may also perform a valuation of premium related liabilities. This could be for many reasons such as financial reporting, management reporting, etc. The proposed APS 5 - General Insurance Premium Related Liabilities follows on from the work of the CAA Property & Casualty Committee on APS 4 - General Insurance Unpaid Claims Estimates. This document outlines the scope of APS 5 and covers all of the major elements that need to be considered for the valuation of premium related liabilities: data, assumptions and methodology. There is additional guidance for communication and disclosures. As with all Standards, this document is going through the necessary approval processes before being ratified.
Caribbean Actuaries Climate Index
The American Academy of Actuaries, the Canadian Institute of Actuaries, the Casualty Actuarial Society, and the Society of Actuaries have created the Actuaries Climate Index (ACI) to educate the public about climate change in the Canada-U.S. region. It is intended to serve as a tool to provide information about climate-related extreme events to the insurance industry and the general public. It is based on six key elements:
- High temperatures
- Low temperatures
- High precipitation
- Strong winds
- Sea level
Measures of these elements are combined into an index that looks at changes compared to the period from 1961 – 1990. Currently, the ACI covers only North America. The website www.ActuariesClimateIndex.org houses all of the information from the index and it was launched on November 30, 2016.
The Institute and Faculty of Actuaries (IFoA) commissioned a feasibility/scoping study to explore whether it would be possible to extend the ACI to cover the UK and Europe. The study concluded that an extension would be technically feasible, and that no changes to the formulation of the index would be required; the main challenge would be that of selecting the optimal datasets.
The following is a link to a copy of the IFoA’s feasibility study: https://www.actuaries.org.uk/learn-and-develop/research-and-knowledge/actuarial-research-centre-arc/commissioned-projects/actuaries-climate-index
Members of the US-Canada Actuaries Climate Index Working Party have offered the CAA technical assistance with the setting up of an index similar to the ACI for the Caribbean region. The CAA has accepted a proposal for a feasibility/ scoping study to explore whether it would be possible to extend the ACI to cover the Caribbean. We anticipate starting this Study in 2019.
Pensioner Mortality Study
The CAA is currently undertaking a Pension Mortality Study using Social Insurance data across the region.
This will be the first pension mortality study for the Caribbean and the results will have a broad range of potential applications for social security schemes, private pensions and life insurance.
Research work will be done in conjunction with the Society of Actuaries to produce a comparison between actual experience and that projected by mortality tables commonly used by pension actuaries in the Caribbean.
Call for Questions: IFRS 17 (Insurance Contracts)
The CAA Life Committee is soliciting questions from our membership in respect of IFRS 17. Your questions will assist the Committee to:
- identify the issues pertaining to topics specific to the Standard;
- place prioritized emphasis on the issues of importance and concern to members;
- assist the membership in addressing or clarifying these issues
Details of IFRS 17 are available at the IFRS and IAA websites.
Members should submit their questions to email@example.com. There is no time limit or deadline within which to submit questions. This is intended to be ongoing and the questions will be addressed as they emerge.
If you would like to volunteer to be a part of one of our projects please send us an email.