Seminar for the Appointed Actuary

Montreal - September 26-27, 2013

THURSDAY, SEPTEMBER 26, 2013

07:00 – 18:00 Registration and CIA Information Desk

07:45 – 08:45 Hot Buffet Breakfast

08:45 – 10:15  Joint Session

Session 1 (Joint) • Own Risk and Solvency Assessment (ORSA)
Moderator:       
Marco Fillion (FCIA), partner, PricewaterhouseCoopers
Speakers:           
Christine Thibault*, Office of the Superintendent of Financial Institutions (OSFI)
Catherine Tremblay (FCIA), Autorité des marchés financiers (AMF)

Own Risk and Solvency Assessment (ORSA) is gaining momentum internationally. Regulators around the world have implemented or are drafting new ORSA guidance, expected to provide management and regulators with a prospective view of an insurer’s own assessment of its risk and solvency. This session will provide a general overview of ORSA as well as specific related developments at the federal level and in Québec. Christine Thibault will discuss key components of OSFI’s ORSA guidance and its planned interaction with OSFI’s Supervisory Review. Catherine Tremblay from the AMF will present the AMF’s position and targeted developments with regards to ORSA.

10:15 – 10:30 Refreshment Break

10:30 – 12:00 Concurrent Sessions

Session 2 (Life) • Educational Note on Participating Insurance, and OSFI On Actuarial Oversight of ALM
Moderator:       
John Dark (FCIA), actuarial and product, Co-operators Life Insurance Company
Speakers:             
John Dark on the Dividend Educational Note 
Nadine Gorsky (FCIA), Office of the Superintendent of Financial Institutions (OSFI) on Actuarial Oversight of ALM

Educational Note 
There have been a number of developments in the area of participating insurance. The CIA is drafting an educational note on dividends which will replace the current standard, and this session will provide details of the work to date and potential changes we can expect. (Draft educational note attached as an exhibit.)

OSFI on Actuarial Oversight of ALM
Life insurance companies in Canada sometimes use non-fixed income (NFI) assets to support non-indexed non-participating insurance contracts, especially when cash flows are projected beyond the horizon of fixed income assets. The Office of the Superintendent of Financial Institutions will discuss the potential implications of NFI practices and the need for clear linkage with good risk governance when developing investment assumptions for these products.

Session 3 (P&C) – Using Predictive Modelling Techniques in Reserving
Moderator:       
Ming Zhang*, senior manager, reserving, Aviva Canada
Speaker:           
Chris Gross*, Gross Consulting

All too often, insurers silo the use of predictive modelling as an aid to determine pricing, product selection, and underwriting decisions. When it comes to actuarial reserve estimates, aggregate techniques such as triangle analysis dominate current actuarial practice. There is talk of moving beyond them to estimate reserves using individual claim details, but for the most part the traditional techniques remain. However, this need not be an either/or choice and much can be gained in reserve analysis by disaggregating reserving data to investigate issues in a multivariate framework. Examples include analyzing changes in case reserve adequacy and determining appropriate segmentation of reserve analysis data. Chris Gross will illustrate such approaches and the benefits of using predictive modelling techniques in conjunction with traditional reserving techniques, as well as the potential for more comprehensive predictive modelling approaches, such as the building of an individual claim life cycle model for developing actuarial reserve estimates.

12:15 – 13:15 Luncheon

13:30 – 14:30 Keynote Speaker: Marcel Côté

Strategy Formulation in an Increasingly Unpredictable World
In this luncheon keynote session, Marcel Côté will discuss our increasingly complex world, plus the evolution of strategic planning and the important role it plays in how an organization adapts to the environment. M. Côté will highlight the various assets that actuaries can leverage to secure their position as a key contributor to the future of business, as experts on the environment who validate assumptions and as professionals who can provide beliefs or predictions from an economic, technological, and business perspective.

14:45 – 16:15 Concurrent Sessions

Moderator:       
Jean-Yves Rioux (FCIA), senior manager, Deloitte & Touche
Speakers:           
Jean-Yves Rioux
Stephanie Banfield (FCIA), vice-president and pricing actuary, Swiss Re Life and Health Canada
Chris Stehno*, senior manager, Deloitte Consulting

Predictive modelling based on advanced data mining is taking hold in various industries to improve analytic and decision-making capabilities. While significant progress has already been achieved in the P&C industry, it has yet to gain significant traction in the life industry. In this session you’ll learn more about what predictive modelling is and how these techniques can be used to improve actuarial analysis and modelling.

Session 5 (P&C) • Reinsurance Market Conditions and Capital Tranching
Moderator:       
France Fortin (FCIA), senior vice-president, Guy Carpenter
Speakers:
Jamie Lyons*, vice-president, Guy Carpenter and Company
Donald F. Mango*, vice-chair and head of enterprise analytics, Guy Carpenter and Company

This session will provide an update on current reinsurance market conditions in anticipation of the upcoming renewal season. It will also present capital tranching, a new approach to assessing reinsurance cost effectiveness.

16:15 – 16:30 Refreshment Break

16:30 – 18:00 Concurrent Sessions

Moderator:       
Ty Faulds (FCIA), vice-president and corporate actuary, London Life
Speakers:           
Robert Berendsen (FCIA), principal, Oliver Wyman
Ty Faulds (FCIA)
Alexis Gerbeau (FCIA), associate vice-president, actuarial finance and modelling, corporate actuarial, Standard Life

The ASB has released revisions to certain standards that relate to reinvestment assumptions and investment strategies under CALM for long-dated liabilities. Based on results of the first Quantitative Input Study (QIS), a second QIS has been requested. The ASB will discuss the status of the latest work, any outstanding issues, and the next steps.

Session 7 (P&C) • What Have We Done for You Lately? An Update from the Committee on Property and Casualty Insurance Financial Reporting
Moderator:       
Isabelle Périgny (FCIA), La Capitale assurances générales
Speakers:     
Isabelle Périgny
Cynthia Potts (FCIA), Eckler
Julie-Linda Laforce (FCIA), consulting actuary, Dion, Durell and Associates

This session will review the current work of the Committee on Property and Casualty Insurance Financial reporting (PCFRC). The focus will be on its work on discounting, premium liabilities, and the upcoming year-end memorandum on guidance for the valuation of insurance contract liabilities and DCAT for property and casualty insurers. Questions from members directed to the PCFRC in recent years will also be presented.

18:00 – 19:30 Networking Reception

Join your colleagues in the Bonaventure Room (lobby level) to socialize and make new contacts after a busy day of informative sessions.

FRIDAY, SEPTEMBER 27, 2013

07:00 – 15:00 Registration and CIA Information Desk

07:45 – 08:45 Hot Buffet Breakfast

The Friday breakfast will have tables set aside where conference attendees can gather in small groups to discuss specific items in a casual environment. The organizing committee is identifying topics, but attendees should feel free to contact Nathalie Begin (P&C – [email protected]) or Ralph Ovsec (Life – [email protected]) with suggestions.

08:45 – 10:15 Concurrent Sessions

Session 8 (Life) • IFRS Phase II Standards – An Update on the Latest Release
Moderator:       
Simon Curtis (FCIA), chief financial officer for North America, Munich Reinsurance
Speakers:           
Micheline Dionne (FCIA), senior vice-president and chief actuary, RGA Life Reinsurance Company of Canada
Johanne Papillon (FCIA), vice-president and chief actuary, Sun Life Financial Canada

CIA representatives will discuss the latest version of the IFRS Phase II Draft Standard, which was released in June. Included will be discussions on the significant industry issues and concerns that still remain, possible transition issues, and the potential need for actuarial standards and/or guidance notes to supplement the standards.

Session 9 (P&C) • Proposed Regulatory Capital Framework—Status Update and Implications
Moderator:       
Christopher Townsend (FCIA), managing director, Office of the Superintendent of Financial Institutions (OSFI)
Speakers:    
Nathalie Bégin (FCIA), senior actuarial consultant, Towers Watson
Judith Roberge*, director, P&C insurance capital, Office of the Superintendent of Financial Institutions (OSFI)

In May, P&C insurers were invited to comment on the proposed changes to the Minimum Capital Test (MCT), and to estimate their capital impact through participation in a Quantitative Impact Study (QIS). OSFI is reviewing the QIS results and the industry’s comments on the discussion paper. Our first panellist will present OSFI’s preliminary findings. Our second will present views from a consultant’s perspective on the implications of the proposed formula change for companies and the actuaries who support them.

10:15 – 10:30 Refreshment Break

10:30 – 12:00 Concurrent Sessions 

Session 10 (Life) • Developing Solvency Frameworks in Canada and Europe
Moderator:       
Hélène Pouliot (FCIA), Canadian leader, risk consulting services and software, Towers Watson
Speakers:    
James Malin (FCIA), Manulife
Sylvain St-Georges (FCIA), analyst in actuarial standardization, Autorité des Marchés Financiers

In the context of the development of the new Canadian solvency framework by the Standard Approach Advisory Committee (SAAG), the Office of the Superintendent of Financial Institutions and the AMF recently conducted a Quantitative Impact Study (QIS) on the capital standardized approach. In this session, a representative of the SAAG will discuss the results of QIS #4 and areas of solvency that are receiving its attention, and provide updates on the development of the new solvency framework. Representatives from the industry will share their insight QIS #4, their views on the potential impact on Canadian insurers, and lessons that can be learned from the implementation of Solvency II.

Session 11 (P&C) • A P&C Perspective of IFRS Phase II Standards—An Update on the Latest Release
Speakers:    
Jacqueline Friedland (FCIA), partner, actuarial practice leader, KPMG
Neil Parkinson*, partner, audit, national leader, insurance sector, KPMG
Jonathan Turner*, senior vice president and chief financial officer, Swiss Re Canada

A new accounting and reporting model for insurance contracts was proposed by the International Accounting Standards Board in its re-exposure draft of International Financial Reporting Standards Phase II Standards, released on June 20. In addition to considering the specific application of these revised standards to the P&C insurance industry, our speakers will discuss the significant industry issues and concerns that still remain.

12:00 – 13:15 Luncheon

13:30 – 15:00 Concurrent Sessions

Session 12 (Life) • CLIFR - News and Views
Moderator:       
Rebecca Rycroft (FCIA), principal, Oliver Wyman
Speakers:           
Rebecca Rycroft 
Alexis Gerbeau (FCIA), associate vice-president, actuarial finance and modelling, corporate actuarial, Standard Life
Nikolai Serykh (FCIA), assistant vice-president, biometric research, Munich Reinsurance

The CLIFR will highlight key aspects of its work during the year and notable updates that the membership can expect for 2013 reporting. The presentation will touch on calibration criteria to complement prescribed rates discussions. In addition, it will include an update from the Research Committee regarding recent and upcoming studies.

Session 13 (P&C) • DCAT to ORSA and Internal Capital Models—How Do We Get There?
Moderator:       
Bill Weiland (FCIA), principal, Eckler
Speakers: 
Jean-Marc Léveillé (FCIA), vice-president, corporate actuarial, modelling, and research, Desjardins General Insurance
André Racine (FCIA), principal, Eckler

Increasingly, insurers are making use of partial (and sometimes full) economic capital models an integral part of their risk management processes. The Office of the Superintendent of Financial Institutions (OSFI) and the industry in Canada are developing guidelines and standards to be used in building and applying internal capital models. OSFI also expects insurers to conduct an Own Risk and Solvency Assessment (ORSA). The speakers will explore the practical aspects of conducting ORSA in a company, and discuss using economic scenario generators to strike assumptions for understanding events that have a strong economic component, and using stochastic techniques (such as bootstrapping) to understand insurance risk.


 *not a member of the CIA