CAS Board Approves Proposal for Affiliate Membership

by Mary Frances Miller

The Board of Directors approved a proposal to provide for a nonvoting membership class ("Affiliate") at its May meeting. Affiliate membership would be extended to actuaries who are members of other actuarial organizations and who practice in the general insurance field. If approved by a vote of the membership, this new class of membership will be used to serve qualified actuaries who have established their qualifications to practice in the property/casualty field and wish to participate as active, but limited CAS members, without becoming Associates or Fellows of the CAS, Members of the American Academy or Fellows of the Canadian Institute of Actuaries.

The proposal for an Affiliate Membership class was developed to address the CAS Strategic Plan item that calls for "establishing a type of non-voting, correspondent membership or affiliation that recognizes the training, experience, and interests of actuaries practicing casualty work solely outside of the U.S. and Canada." The final proposal prepared by the Education Policy Committee and adopted by the Board is broader than called for by the Strategic Plan, in that it addresses all qualified actuaries practicing in the casualty area without regard to geography. Following are some basic questions that outline the logic behind the proposal.

Who will be eligible for Affiliate Membership, and how will they participate in the CAS?

Affiliate Membership is for those who have attained the highest actuarial designation of an organization that is a member of the IAA and who practice in the property/casualty or general insurance fields. Affiliate Members will pay the same dues ($270) as Associates or Fellows. They will receive literature, get notices, and may attend meetings. Affiliates will be able to participate in all programs and committees with the exception of the Board and Admissions Committees. Granting Affiliate Membership will not bestow CAS professional status, but it will recognize that the candidate has been granted professional status as an actuary by another actuarial society and practices in the casualty field.

Does the CAS need a new membership class?

There is a global thrust to most social, political, and economic endeavors that tends to melt borders and require professional people to perform in a more general and international way. CAS members are subject to these changing demands as are the clients and employers they serve. This implies a need for established actuaries to engage at a professional level in new jurisdictions without passing another lengthy series of exams. The new membership class is in line with similar conventions that are in place around the world. For example, the Institute of Actuaries in the U.K. has an affiliate program with 151 members. While it seems that the demand for affiliate membership will come from actuaries practicing outside the U.S. and Canada, it is interesting to note that 54 (or one-third) of the current 151 Affiliates of the Institute of Actuaries are residents of the U.K. North American enterprises, including those that need property/casualty actuarial services, are globalizing and the CAS needs to be structured so that it can respond to the needs of prospective as well as current members and audiences. Affiliate Membership is a tool that will help open channels abroad and facilitate the free flow of these services to wherever they are needed.

How would it affect practice rights?

There needs to be a clear understanding of what happens if an "Affiliate" practices in the U.S. or Canada. There would be no automatically enhanced status. The CAS Code of Conduct requires that members practice only when qualified to do so and refers to AAA and CIA qualification standards to determine eligibility to practice. Since the Code would apply to Affiliate Members, acceptance of Affiliate Membership places a requirement on the actuary to adhere to U.S. or Canadian qualification standards.

How does this new membership class apply to members of the Society of Actuaries?

Fellows of the Society of Actuaries who practice in casualty insurance would be eligible to apply for Affiliate status. Currently, the American Academy and the Canadian Institute of Actuaries permit these actuaries to practice in the casualty field if they are qualified to do so. Affiliate membership in the CAS would not affect the actuary's qualification to practice, but would encourage participation in CAS activities, including continuing education and membership in technical committees.

Would it dilute professional capabilities?

There is a legitimate concern that use of the Affiliate Membership could dilute the professional capabilities of CAS members and compromise the esteem currently attached to our initials. Letting in unqualified affiliates would dilute the expertise of the CAS membership and how we are perceived by the public. Affiliate Membership does not imply a complete CAS skill set or practice rights. It merely allows the CAS to give some level of recognition to those who have achieved the highest general insurance actuarial qualification outside the U.S. or Canada. Generally speaking, the qualifications required for Affiliate Membership should be consistent with those contemplated for foreign practice under NAFTA. Essentially, a person would have to be the equivalent of a Fellow in his or her own country in order to apply.

Would it enhance professional capabilities?

Casualty actuaries who trained outside the U.S. and Canada can bring unique insight to our profession. The Affiliate Membership option will encourage them to bring this value added knowledge to the CAS membership and receive recognition from their U.S. and Canadian peers for doing so. It is desirable for all actuaries doing property/casualty work to be affiliated with the CAS. This is particularly true for work being done in the U.S. or Canada. Affiliation increases awareness of state-of-the-art techniques and motivation to adhere to the CAS Code of Conduct and Actuarial Standards Board and Canadian Institute of Actuaries Standards of Practice.

How will the program be administered?

The proposal recommends that the Board of Directors adopt an application form that incorporates sponsorship by an FCAS, including a letter of recommendation from the sponsoring Fellow, evidence of attaining the highest actuarial designation of an organization that is a member of the IAA, and evidence of significant practice in the property/casualty field.

Fellowship and Associateship will retain a special place in the CAS. Only Fellows can vote and Associateship is required for members to append CAS initials to their names. Board members and officers must be Fellows.

Other actuarial societies provide ways to recognize qualifications other than their own. As we go forward, the CAS must do as good a job of recognition as it does in the technical arena. The Affiliate Membership accomplishes that for the CAS without compromising the value of the ACAS and FCAS designations.