The Crucial Issue

Venter, Gary ( (no email) )
Thu, 4 Sep 1997 10:48:48 -0700

The August Actuarial Review contained a number of different views about
the relationship among actuarial societies. In trying to make sense of
it all, a crucial issue that stands out is uniqueness. How unique is the
FCAS? Let me propose a metric: the number of exams an FSA or FCAS should
have to take to get the other designation. From the exchanges in the
newsletter, it appears the CAS feels this is seven, while the SOA feels
it is three. Call the right number N.

If a mutual agreement could be reached on this issue, I think the other
hurdles in the way of closer association could be overcome. In fact, we
already agree in principal, it's just a quibble over N.

Some of the benefits of a closer association could include:

Professionalism in the exam process. Casualty actuaries are
professionals at actuarial work but amateurs at making up exams. Even if
this is better than ever, there is still criticism about emphasis and
consistency in the exams. Using a core group of educational
professionals, under the review of actuarial content specialists, might
be easier to achieve if closer affiliation were at hand.

International influence. The CAS is a North American body but is
offering exams at other locations. The SOA and Institute of Actuaries
are in many more countries. If the North American model including N is
the best balance professionally, then other countries would benefit if
the CAS and SOA worked together in every country. Otherwise the
Institute approach becomes the standard outside of North America.

Better access to theorists. Some of the actuaries most knowledgeable
about theory in the P&C area are actuarial professors who happen to be
FSA's. A closer affiliation would probably improve access to this group.

I'm not including having the profession speak as one voice as an
advantage, as the AAA and CIA do this well in their countries, and I'm
not sure this is needed internationally. However, there may be benefits
I haven't thought of.

gary

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