Professional Development

Seminar for the Appointed Actuary

Montréal: Hôtel Bonaventure Montréal

September 17-18, 2015

Program (PDF version)

Thursday, September 17, 2015

07:45 – 17:30  Registration and CIA Information Desk

07:45 – 08:45  Hot Buffet Breakfast

08:45 – 10:15  Joint Session

Session 1 (Joint) • The Evolution of ORSA in Canada
Diane Gosselin (FCIA), actuarial specialist, Office of the Superintendent of Financial Institutions (OSFI)
Diane Gosselin
Darrell Leadbetter*, director, OSFI
Mario Robitaille (FCIA), director of capital supervision of financial institutions, Autorité des marchés financiers (AMF)

Insurance companies have begun documenting their Own Risk and Solvency Assessment (ORSA) process in reports to their boards, and sending a key metrics report (KMR) to the Office of the Superintendent of Financial Institutions (OSFI) that provides an overview of the results of their ORSA process for determining their capital needs and internal targets. In this session, OSFI will share its benchmarking survey of the characteristics of life and P&C insurers' 2014 ORSA reports and KMRs. The survey features feedback on the reports, their evolution, and supervisory considerations. Moreover, as part of their ORSA, a challenge faced by insurance companies and their actuaries relates to the evaluation of operational risk. The Autorité des marchés financiers will share the results of its survey on sound business practices completed by all life and P&C insurance companies licensed in the province of Québec. This will provide insights into the overall self-assessment of this risk by insurers doing business in Canada.

10:15–10:30  Refreshment Break

10:30–12:00  Concurrent Sessions

Session 2 (Life) • IFRS
Denise Lang (FCIA), chief actuary, Canadian Mortgage and Housing Corporation
Gordon Creber (FCIA), GGY
Matthew Garnier (FCIA), assistant vice-president, actuarial advocacy, Manulife
Lesley Thomson (FCIA), vice-president, actuary, Sun Life Financial

This session will cover various International Financial Reporting Standards (IFRS) topics, including education on IFRS 9, current issues regarding insurance contract liabilities under IFRS (such as par products, aggregation, and contractual service margins), and an update on the International Accounting Standards Board’s schedule.

Session 3 (P&C) • Updates from the Committee on P&C Insurance Financial Reporting
Houston Cheng (FCIA), senior manager, KPMG
Sarah Bhanji (FCIA), RBC Insurance
Houston Cheng
Michel Dionne (FCIA), vice-president and Appointed Actuary, Intact Financial Corporation

Members of the committee will provide an update on its latest projects.

12:00 – 13:00   Luncheon

13:15 – 14:15  Keynote Speaker – Dan Roam

The Back of the Napkin:  Solving Strategic Problems with Pictures

In our increasingly complex world, it is more critical than ever to be able to quickly and simply summarize our business message. At the same time, recent breakthroughs in neurobiology confirm that a simple picture is the clearest and most memorable way to convey a concept. In this fast-paced interactive session, Dan will show how anyone – regardless of artistic talent, training or confidence – can use a simple set of powerful visual thinking tools to create and sell game-changing strategic ideas through the use of simple pictures.

14:30 – 16:00   Concurrent Sessions

Session 4 (Life) • CLIFR, Valuation and Experience Developments

Rebecca Rycroft (FCIA), principal, Oliver Wyman
Emile Elefteriadis (FCIA), senior vice-president, pricing, Swiss Re
Dominic Hains (FCIA), vice-president and chief financial officer, RGA
Josephine Marks (FCIA), principal, Eckler
Rebecca Rycroft 

This session will provide an update on current Committee on Life Insurance Financial Reporting (CLIFR) initiatives, including Fall Letter guidance, the base scenario for year-end 2015, selective lapsation (Old Valuation Technique Paper #2), and mortality improvement.

Session 5 (P&C) • IBC Discussions on the Auto Regulatory Environment, Recent Economic Developments, and the Impact on P&C Insurance
Houston Cheng (FCIA), senior manager, KPMG 
Nadja Dreff*, director, economics, and assistant chief economist, Insurance Bureau of Canada (IBC)
Ryan Stein*, director of policy, IBC

The Insurance Bureau of Canada will discuss the evolving auto regulatory environment across the country, review how the P&C industry is affected by recent changes in general trends, oil prices, and bond yields, and examine international developments in solvency regulation.

16:00 – 16:15  Refreshment Break

16:15 – 17:45 Concurrent Sessions

Session 6 (Life) • Risk Management in Segregated Funds

Mathieu Boudreault (AICA), professor, Université du Québec à Montréal
Maciej Augustyniak*, assistant professor, Université de Montréal
Mathieu Boudreault

This presentation will address three issues related to risk management in segregated funds. First, it will investigate the importance of hedging interest rate risk in stable, rising, or volatile interest rate environments, and study the robustness of interest rate hedges to model risk. Second, the speakers will examine the importance of hedging dynamic lapses, and evaluate the impact of not hedging them and of hedging them with the wrong assumptions. Finally, they will study how the fee structure and surrender charges affect surrender incentives, and propose using product design to mitigate policyholder behaviour risk.

Session 7 (P&C) • On the Record: A Former Chief Actuary Shares her Eventful Ten-Year Journey at the Insurance Corporation of British Columbia
Rachel Dutil (FCIA), KPMG
Camille Minogue, president, Camille Minogue and Associates

Former chief actuary of the Insurance Corporation of British Columbia (ICBC) Camille Minogue will tell of the most memorable actuarial challenges of her time at the organization. The general requirement that the ICBC operate with openness and transparency has implications for what actuarial methods can be used and still be understood; it also means that the actuarial work product is under an intense public magnifying glass. Ms. Minogue will provide explanations, grounded in accepted actuarial practice, of how she developed relationships of trust and credibility with the regulator and others.

18:00–19:30  Delegates’ Networking Reception

Friday, September 18, 2015

07:45 – 15:00  Registration and CIA Information Desk

07:45 – 08:45  Hot Buffet Breakfast

 08:45 – 10:15  Concurrent Sessions

Session 8 (Life) • Modelling: Standards, Validation, and Stochastic Aspects of Modeling
Steve Prince (FCIA), partner, Collins Barrow, Toronto Actuarial Services
Richard Brown (FCIA), principal, Eckler
Steve Prince
Nazir  Valani (FCIA), national leader, life actuarial practice, KPMG Canada

This session will provide an update on the proposed changes to the Canadian modelling standards of practice, plus insight into the educational note that will be published. As well, internal vs. external model vetting, best approaches, and the role of vetting in overall financial reporting quality control will be covered. The stochastic aspects of modelling will be discussed, including how to calibrate and validate model volatility and model outliers, and how to persuade users of your model results that your calibrations are appropriate.

Session 9 (P&C) • Reinsurance and Alternative Capital

François Dagneau (FCIA), senior vice-president, Aon Benfield Canada 
François Dagneau
Philippe Trahan (FCIA), director, insurance-linked securities group, Ontario Teachers’ Pension Plan
Mark van Zanden (FCIA), chief executive, ceded reinsurance, XL Catlin Group

Although we have yet to see a major development in the Canadian market, the increasing use of catastrophe bonds and collateralized reinsurance vehicles has led to alternative capital increasing its share of the global reinsurance market. This panel will discuss how this is impacting the market, and provide insight into alternative forms of capital from both a placement and an investment perspective. This session will also provide an update on other factors driving current reinsurance market conditions heading into the 1/1 renewal season.

10:15 – 10:30  Refreshment Break

10:30 – 12:00 Joint Session

Session 10 (Joint) • Disruptive Technologies and Other Trends

Joan Strothard (FCIA), senior vice-president, finance reinsurance, Swiss Re
Nancy Bewlay*, managing director, head of underwriting casualty, U.S. and Canada, Swiss Re
Cindy Forbes (FCIA), executive vice-president and chief actuary, Manulife

This session will explore how disruptive technologies such as the mobile internet, the automation of knowledge work, the internet of things, cloud technology, and next generation genomics, as well as trends in consumer preferences and the regulatory environment, could impact the business of insurance and the actuarial profession in the future.

12:00 – 13:00  Luncheon

13:15 – 14:45  Concurrent Sessions

Session 11 (Life) • Recent Developments in Pricing and Product Development, and their Implications for Risk and Capital Management and Reserving

André Piché (ACIA), chief pricing officer , Aurigen Re
Elizabeth Boulanger (FCIA), vice-president, corporate actuarial, RGA
André Piché
Gaurav Upadhya (FCIA), senior vice-president, product and insurance risk management, Manulife

This session will explore examples such as T10/T20 renewal lapses, where emerging experience indicates that initial pricing may have significantly underestimated the renewal lapse experience. The presenters will also talk about the mortality experience after renewal that has started to emerge on these products in the Canadian and American markets. The discussion will cover the implications for reserving, risk and capital management with respect to legacy blocks, and the potential impacts for term re-pricing. Impacts of international developments in the regulatory and business environment for life insurance on new business development will also be discussed.

Session 12 (P&C) • Modelling Floods

Satnam MacLean (FCIA), senior manager, actuarial rewards and analytics, Deloitte Canada 
Satnam MacLean
Anya Sri-Skanda-Rajah (FCIA), managing director, Guy Carpenter
Jane Toothill*, director, JBA Risk Management

This session will feature discussions of hazard maps and event sets as they relate to flood modelling; the challenges of designing, calibrating, and implementing flood-specific vulnerability curves in flood models; and the application of flood models for the primary insurance marketplace.    

*Not a member of the CIA.