October 2017 Board of Directors Meeting
Schaumburg, IL (Nov. 7, 2017) – The Society of Actuaries (SOA) Board of Directors (Board) met October 14 - 15, 2017 in its regular fourth-quarter in-person meeting.
The SOA Board approved the 2018 Strategic Initiatives proposed by the Issues Advisory Council (IAC):
- InsurTech and the Actuarial Model (New) – Learn more about InsurTech, understand the impact on actuaries and develop a strategic response.
- Long Term Growth Strategy (New) – Study what is changing (InsurTech, data scientists, outsourcing, etc.) and consider how opportunities for actuaries shift over time to insure long term relevancy of actuaries. We will utilize internal and external view points and expertise to develop a long term strategy.
- Adapting SOA Education to International Markets (Continuing) - Develop a set of international education principles and recommend a strategy, analyze nation specific vs. international education across the pre-qualification spectrum and analyze language strategies.
- Decision Governance (Continuing) – Determine process for addressing “big bet” decisions that are broad in scope and impact, unfamiliar and made infrequently, and can change organizational direction.
The SOA Board reviewed and approved the 2018 budget and membership dues increase. The 2018 budget will fund ongoing operational initiatives including Information Governance (General Data Protection Regulation - GDPR) Compliance, Record Retention Implementation, Learning Strategy, Opportunities for Actuaries, and Strategic Research Programs as well as the strategic initiatives mentioned above.
Approval of the 2018 budget included a recommendation from the Finance Committee for small, regular annual dues increases to reduce reliance on the candidate pool, and a recommendation from the Experience Studies Executive Committee’s (ESEC) to eliminate the Experience Studies assessment method. As a result, Experience Studies will be incorporated into the operating budget beginning in 2018.
The 2018 dues increase is $30 FSA ($630) and is $15 ASA ($315.)
The SOA Board heard an update on CAA Global, the joint venture between the SOA and the Institute and Faculty of Actuaries (IFoA). The CAA Global mission is to build the CAA Global brand around the world, raise awareness of the CAA and its benefits as well as drive registrations of new candidates. The SOA Board reviewed the first-year of operations, heard about candidate demographics, exam pass rates, and the financial state of the venture.
Enhanced Environmental Scanning
The SOA Board provided feedback on the environmental scanning process and how it helps the SOA recognize change and act on it in a timely manner as well as how the process prepares the SOA Board to act on opportunities when presented. They also provided feedback on the follow-through needed for issues identified.
Strategic Research Programs
The SOA Board reviewed and approved strategic research programs for Mortality/Longevity, Health Care Cost Trends, Aging and Retirement, Catastrophe/Climate, and Actuarial Innovation and Technology. These strategic research programs are designed to cover a variety of practice areas, international applicability, research methods and SOA stakeholders.
Adapting SOA Education to International Markets
The SOA is examining its approach to curriculum development and assessment for credentialing and professional development education for candidates and members outside of North America. The goal is to develop a strategy to ensure the education the SOA provides to candidates and members is relevant to their professional needs. At this meeting, the SOA Board reviewed the foundation of SOA education principles and philosophy with the strategic goal to develop international education principles and recommend strategy. The next steps for the initiative include further information gathering and preliminary findings regarding a universal vs. localized approach, language strategy, costs and member, candidate and employer feedback. A draft recommendation will be presented at the March 2018 SOA Board meeting with final recommendations to follow in June 2018.
The SOA Board approved changes to the Leadership Team structure and operations (SOA Bylaws, Article VI, Officers, and Article VIII, Committees of the Board.) Structurally, the change added an Elected Board Member to the Leadership Team. Operationally, advice and consent of the SOA Board for appointment of the Elected Board Member and Secretary/Treasurer is required.
The SOA Board reviewed the Decision Authority grid designed to make lines of authority clear and define consistent terminology. The grid was created based on review of Bylaws, Policy and committee charters. The grid illuminates:
- The role of the Board in creating strategy
- Board committees as “arms and legs” to help the Board fulfill fiduciary duties
- Board delegation of member and candidate services to operational committees and Sections (e.g. education, research), and
- The staff role to provide assurance that policies are followed and to elevate issues requiring Board attention.
Predictive Analytics Overview and Certificate Pilot
The SOA Board accepted the report and recommendations of the Professional Development Committee (PDC) and authorized implementation of a permanent Predictive Analytics Certificate Program. The SOA Board authorized the PDC to develop and offer additional certificate programs in accordance with an appropriate decision framework to be developed. The PDC is to report certificate program results to the SOA Board through its Consent Agenda.
Outgoing Board Members
The SOA Board recognized the service of the outgoing board members. SOA Board members rolling off include:
- Vice Presidents, Joan C. Barrett, FSA, MAAA; Gaetano Geretto, FSA, CERA, FCIA; and Teresa R. Winer, FSA, MAAA;
- Penultimate President, Errol Cramer, FSA, MAAA; and
- Elected Board Members, August C. Chow, FSA, FCIA, CERA; Sara Wiese Goldberg, FSA, MAAA; Paula M. Hodges, FSA, MAAA; Ronald L. Klein, FSA, MAAA; and Olga T. Jacobs, FSA, MAAA.
“I want to thank all the outgoing board members, particularly Penultimate President Errol Cramer, for their volunteerism and commitment to the SOA and the actuarial profession,” said 2016-2017 SOA President Jeremy Brown, FSA, MAAA.
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