IAA Releases the Exposure Draft of International Standard of Actuarial Practice 1
Dear CAS Members:
The International Actuarial Association (IAA) has released an Exposure Draft of International Standard of Actuarial Practice 1 (ISAP 1) – General Actuarial Practice. As described in the cover letter for the exposure draft, the IAA has requested that its member associations distribute the exposure draft widely within our organizations, and we are pleased to share the exposure draft with CAS members at this time.
The IAA is developing International Standards of Actuarial Practice as model standards intended to be suitable for adoption by actuarial standard setting organizations. (In the U.S., that organization is the Actuarial Standards Board. In Canada, that organization is the Canadian Institute of Actuaries. The CAS does not currently issue actuarial practice standards.) Those associations that already have standards of practice in place will not necessarily be expected to adopt these IAA standards, which are intended to fill gaps among actuarial organizations that may not have the resources to develop their own standards, or to fill gaps arising from new areas of practice.
The current exposure draft of ISAP 1 was developed after comparing the current standards in the United States, Canada, Australia, and other countries. CAS members were actively involved in developing this standard. In fact, I would like to take this opportunity to acknowledge the volunteers efforts of CAS Fellow Jacqueline Friedland, who served on and contributed greatly to the IAA task force that developed the exposure draft.
The IAA welcomes comments from individual members on both the content and format of the exposure draft. The deadline for comments is 1 December 2011. Instructions for submitting comments are included in the exposure draft. We suggest that anyone providing a comment to the IAA may also want to forward the comment to his/her local standard setting body (such as the ASB or CIA). In addition, I invite you to also provide a copy of your comments to the CAS Office (attention: Sue Grossi) to aid our leadership in tracking any casualty-specific issues that may surface.
The IAA has plans to continue developing International Standards of Actuarial Practice, with future standards addressing ERM, IFRS 4 (international accounting for insurance contracts), IAIS 19 (international accounting for employee benefits), and Social Security. The CAS’s participation with the IAA allows the CAS to contribute to the development of standards that affect casualty actuaries around the world.
President, Casualty Actuarial Society