Evolution of the Society of Actuaries in Ireland Presentation to the IAA Presidents Forum, 29 th October 2007 Philip Shier President, Society of Actuaries in Ireland
The Society s role Inaugural meeting in May 1972 17 members Now approximately 600 Fellows, 300 Students Originally a debating and social club now the professional body representing the actuarial profession in Ireland Objectives: Develop the role and standing of the actuarial profession and enhance its reputation Serve the public interest through: The provision, by the profession, of actuarial services and advice of the highest quality Contributing to public debate on matters where our actuarial expertise adds value Support members in delivering on regulatory obligations Support members in delivering skills, both technical and nontechnical, to enhance actuarial careers
Structure Established under the Companies Act Memorandum & Articles of Association Governing body is the Council President, Vice President, Immediate Past President, Hon. Secretary, Treasurer and up to 12 elected members Actuarial Matters Committee Professional and Technical issues Member Services Committee Administration, Finance, Education and CPD, PR, Internal communication, Functions etc Director of Professional Affairs & Director of Member Services
Structure (continued) Practice Committees: Life Pensions General Insurance Finance & Investment Health Care & Social Policy International Committee Professional Affairs Committee Practising Certificates Committee Education Committee Other Committees, Sub-Committees & Working Parties
Fostering quality Professional Conduct Standards Actuarial Standards of Practice Professionalism Course CPD programme, discussion forums, research Practising Certificates Disciplinary Scheme
Education and examinations In general, Society does not provide education or examinations Strong links with Irish universities offering actuarial degree/diploma courses CPD Research
Factors that contributed to expansion of role Demand for actuaries: Economic growth, strong financial services market Reserved roles (Appointed Actuary; Scheme Actuary; Signing Actuary Non-life Direct; Non-Life Reinsurance; Life Reinsurance; PRSA Actuary) IFSC Senior positions in business -> high reputation Supply: High reputation (& remuneration) -> attracted students Universities actuarial degrees and diplomas 40 50 new qualifiers per annum Highest number of actuaries per capita -> generated our own market
Factors that contributed to expansion of role Internal factors: Valued for debating / networking opportunities -> most actuaries joined Membership is obligatory for reserved roles High level of active participation from members, with employer support Good relationships, no major internal divisions, good communications with members Strong relationships with regulators Establishment of secretariat Relationship with UK Actuarial Profession: Heavy reliance on Actuarial Profession for education of students In the early days, looked largely to the UK to learn about standard-setting International recognition derived from UK qualification
Key developments Formation of constitution Establishment of secretariat Development of Practice Standards Reserved roles natural development, reflecting what was happening in practice Own designatory letters - FSAI University courses
Challenges faced along the way Finances Pressure on volunteer resources Representation on government agenda Developing relationships with pensions and insurance regulators Peer review/compliance monitoring debate
Current issues Lack of independent oversight for standard setting Lack of compliance monitoring framework (except for pensions) Disciplinary investigations Whistle-blowing Education Exams - divergence of UK and Irish regulatory regimes CPD buy-in Research - resources
Current issues (continued) Role of the actuary Impact of Solvency II? Keeping up to date with skills required Expansion into new areas Engagement of members, esp. on international issues Risks to fulfilling public interest role: Time demands Risk of commercial capture in standard setting Consensus-based standards -> lowest common denominator Finances
International involvement: Groupe Consultatif Actuariel Européen Strong involvement Currently Ireland provides the Second Vice-Chairman and the Chair of the Pensions Committee (2 out of 8 officers) Achievements Actuarial input to development of EU Directives Mutual recognition agreements movement of profession Education - setting standards Effective body, involvement is beneficial for us
International involvement: International Actuarial Association Significant level of involvement Benefits Debate on international issues (particularly useful when small) Networks Education - setting standards Per head of membership, Society s engagement with IAA is declining as Society grows Time demands Little direct relevance to ordinary members Groupe Consultatif has greater direct relevance IASPs no real standing (perhaps because we have our own)
Are the Society s experiences transferable? Backdrop may be different e.g. different regulatory frameworks and pensions regimes Same need for well-knit professional body? Where does responsibility for actuarial standards lie? Europe: Solvency II, Pensions Directive -> convergence of actuarial practice? Smaller role for individual associations?
Society of Actuaries in Ireland