04.10.2024
Quarterly Newsletter
www.caribbeanactuaries.com
AMESSAGEFROMTHECAABOARD
Dear CAA Members,
October 2024
As we embark on the final quarter of 2024, we are reminded of the ever-present need for resilience both personally and professionally This has been a transformative year, with actuaries across the Caribbean rising to meet new challenges in the wake of global economic shifts, climate changes, and regulatory developments
We are proud to introduce our 34th Annual Caribbean Actuarial Association Conference, where we will dive deep into the theme “Resilience: A Stronger Tomorrow.” This will be a pivotal opportunity for us to come together in Nassau, Bahamas, share insights, and collectively build a more sustainable future for our profession.
Thank you for your continued dedication to advancing actuarial practice in our region. We look forward to seeing many of you in Nassau this December.
Warm regards, Board
Caribbean Actuarial Association
We are thrilled to officially launch the 34th Annual CAA Conference, scheduled to take place from December 4th to 6th, 2024, at the Margaritaville Resort in Nassau, Bahamas. This year ’ s theme, Resilience: A Stronger Tomorrow, is a testament to the evolving role of actuaries in a world that demands adaptability and forward-thinking solutions
What to Expect:
Keynote Speaker: Mr. Matt Aubry, Executive Director of Organization for Responsible Governance, on the topic Governance in the Caribbean Expert Speakers & Sessions on topics including: Blacklisting and its impact on Insurance Industry & Economy
Should I Bring My Authentic Self to Work?
IFRS 17: Business As Usual AI in your Daily Life Networking: Multiple opportunities, with our customary Caribbean hospitality
Margaritaville Beach Resort, Nassau, Bahamas: Dec 4-6th, 2024
Quarterly Newsletter
CelebratingYourSuccesses!
Associates&FulbrightScholars
Mr Resan Pakeerah, the first graduate from the actuarial science program at St. Augustine to become an Associate of the Institute and Faculty of Actuaries (AIA), completed his master's in actuarial science at the University of Kent in 2017. Currently an actuarial analyst at Maritime Financial, Mr. Pakeerah played a key role in developing the presentation "Zombie Hunts and Other Adventures in the Construction of a Trinbagonian Mortality Table," which was presented at the 2019 Caribbean Actuarial Association's conference in Curacao www.caribbeanactuaries.com
Mr Justin Cabrera, a 2020 graduate of the Actuarial Science Programme, has made significant contributions in data visualization and automation at KR Services and currently at Republic Bank's Data Governance Unit.
With a Masters in Data Science, he aims to advance the data science industry in Trinidad and Tobago’s financial sector, focusing on machine learning applications in finance Mr Cabrera credits the interdisciplinary nature of the Actuarial Science Programme for his professional development
Resan Pakeerah, AIA
JustinCabrera
Quarterly Newsletter
2024 has been a significant year for regulatory changes across the Caribbean, particularly in the implementation of IFRS 17 for insurance contracts, which is reshaping how insurers report their financials and handle accounting for contracts. This standard, which came into effect at the start of 2023, continues to challenge insurers as they transition from older frameworks like IFRS 4. The regulatory landscape is evolving, with key developments across various jurisdictions.
IFRS 17 in the Caribbean
Many Caribbean nations have been actively working toward full compliance with IFRS 17 However, its implementation has not been without difficulties. The demands for more granular data, upgraded systems, and new actuarial methodologies have posed challenges for insurers throughout the region
Insurers have struggled with resource-intensive processes and the need for extensive data cleansing and integration, which have led to longer close cycles and significant manual workarounds These challenges are compounded by inconsistencies in how local regulators are engaging with the implementation process In some cases, local regulators have required financial impact assessments or pro forma financial statements, while others have been less demanding, creating uncertainty for insurers.
Quarterly Newsletter
Regulatory Engagement and Local Adaptations
While most Caribbean regulators have mandated compliance with IFRS 17, the level of enforcement and support varies. For instance, the Central Bank of Trinidad and Tobago has aligned its requirements with IFRS 17, ensuring that insurers adhere to the global standard for insurance contracts Trinidad and Tobago regulators have required insurers to submit pro forma statements, driving early adoption
In other countries, insurers have faced fewer immediate pressures but are still working towards full compliance. The introduction of IFRS 17 is expected to improve financial transparency and comparability, but it will take time before insurers are fully comfortable with the new system
Creating Value Beyond Compliance
Beyond the regulatory requirements, IFRS 17 presents opportunities for insurers to enhance their financial operations Companies that invest in automating their processes and modernizing their systems can gain long-term advantages This is not just about compliance; it’s about creating more robust business intelligence and improving the accuracy of financial reporting. The shift to IFRS 17 is an opportunity to rethink internal controls, governance, and data management(KPMG).
Other Notable Regulatory Changes in 2024
In addition to IFRS 17, there have been broader regulatory adjustments in the Caribbean:
Pension Reforms: Some countries have introduced reforms aimed at enhancing the sustainability of pension funds. For example, Barbados has taken steps to amend its pension laws to ensure better long-term sustainability, which will have a direct impact on actuarial practices.
Insurance Access and Equity: Several Caribbean nations have focused on improving access to insurance, particularly for marginalized groups. This includes initiatives to address gaps in health insurance coverage and to ensure that vulnerable populations, such as those living with HIV, have access to life insurance policies.
Quarterly Newsletter
ActuarialNewsAcrosstheCaribbean IAAAITaskForce
The IAA has established an AI Task Force (AITF) to spearhead these initiatives. Notably, from a range of candidates, two members from the Caribbean Actuarial Association (CAA) were selected by the IAA for the AITF - Constance Hall (Jamaica) on the Governance Workstream and Pedro Medford (Barbados) on the Innovation Workstream.
As an initial step, the IAA hosted a global AI Summit in Singapore on April 4th and 5th, 2024 Pedro Medford represented the CAA and confirmed that it was a very successful summit with two exciting days of plenary sessions and concurent workstreams, with 50+ delegates coming together from 17 different countries to discuss AI and the future for the actuarial profession. The tone for the summit was set by two great presentations on “Real World AI” by Frank Chang (Casualty Actuarial Society) and “Reflections On Deep learning and the Actuarial Profession” by Ronald Richman (Old Mutual Insure / Actuarial Society of South Africa).
The various work streams also met and discussed desired outcomes, action plans and key milestones required to advance the work and objectives of the AITF. By taking a proactive stance, the IAA is ensuring actuaries have a seat at the table in the AI conversation.
Constance Hall, FSA
Pedro Medford
Quarterly Newsletter
ActuarialNewsAcrosstheCaribbean
ProfessorColinRamsay
Professor Colin Ramsay of the University of Nebraska conducted a workshop at the University of the West Indies, St. Augustine from 24-27th June 2024
Professor Colin M. Ramsay was born and raised in the Caribbean country of Guyana He earned his Ph D from the University of Waterloo and his BSc from City University, London. His teaching interests include life contingencies, pensions, and actuarial risk theory. His current research interests focus on the application of the economics of insurance to actuarial science. These include working on problems associated with adverse selection and moral hazard, the annuity puzzle, absenteeism and presenteeism, and peer-to-peer insurance Professor Ramsay also interested in applications of micro-insurance and crop insurance to the problem of food security and food sovereignty in the developing world
Workshop a Success!
The workshop exposed participants to some of the basic actuarial cost methods used for private defined benefit pension plan valuation. We covered individual and group cost methods to determine employer normal cost and accrued liability for both salary-dependent and salary-independent benefits. Additionally, we touched on (i) experience gains and losses, (ii) employee contributions, and (iii) early and late retirement benefits. Participants worked on examples in class using spreadsheets and calculators to apply these concepts.
Professor Colin Ramsay
Quarterly Newsletter
ActuarialNewsAcrosstheWorld CasualtyActuarialSociety-DEI
Breaking Barriers and Stereotypes in the Actuarial Profession:
Reflections from the Diversity Symposium
The Casualty Actuarial Society and Society of Actuaries Joint Committee on Inclusion, Equity, and Diversity (JCIED) recently hosted their Diversity Symposium in Philadelphia in July 2024
The symposium served as an important space to reflect on the barriers and stereotypes that continue to challenge the diversity and inclusion of actuaries, both within and outside the profession
A key takeaway from the discussions was the recognition that breaking stereotypes within the profession is just as critical as addressing external perceptions. Actuaries from various backgrounds face unique challenges, and while some are well-known, others require further attention and action.
The Sexuality & Gender Alliance of Actuaries (SAGAA) raised the issue of regulatory reforms to support fair access to insurance for HIV+ individuals. This echoed past experiences in countries like South Africa, where insurance regulations were reformed to address these disparities It highlights the ongoing need for advocacy and policy changes to create more inclusive insurance frameworks globally
The symposium also discussed the recent pushback on diversity initiatives in the US, particularly in light of the 2023 Supreme Court decision that prohibits race-based university admissions This has led to many corporations reducing or restructuring their diversity programs, including scholarships for minority groups This pullback poses a challenge to maintaining momentum in diversity efforts within the actuarial profession
Quarterly Newsletter
www.caribbeanactuaries.com
ActuarialNewsAcrosstheWorld CasualtyActuarialSociety-DEI
Programs like Oliver Wyman’s Actuarial Boot Camp were also mentioned as valuable tools for promoting the profession and engaging international candidates The boot camp, held virtually, has been shared with Caribbean actuarial students in the past, and will likely continue to be a resource in building future talent. Boot Camp
The symposium wasn’t just about recognizing challenges it was a call to action for all of us to work toward dismantling barriers and stereotypes that prevent the profession from being fully inclusive. Visibility plays a crucial role in this process Whether through liking or reposting content on social media, we can collectively raise awareness and amplify the voices working to make the actuarial profession more diverse.
As we look forward, initiatives like the “Be an Actuary” website, produced by the SOA and CAS, continue to serve as valuable resources for prospective actuaries Promoting such platforms can help demystify the profession and encourage a more diverse pool of candidates.
In closing, the symposium provided a powerful reminder: diversity and inclusion are not passive goals, but active commitments. Breaking down the internal and external barriers facing actuaries requires a shared effort one that challenges stereotypes and pushes us all to embrace a profession where everyone feels welcomed and empowered to succeed.
Let’s continue the conversation and take steps toward building a stronger, more inclusive actuarial community.
Quarterly Newsletter
WhatWe’veBeenUpTo:IfYouMissedIt
International Actuaries Day Celebration
On International Actuaries Day, we celebrated with a special message from our President, reflecting on the contributions of actuaries globally and within our region Watch the full video here
CAA Guy Carpenter Internship
The CAA proudly announces the organization's first summer internship. CAA member, Sabrina Sprissler, Managing Director at Guy Carpenter in London, and Nicola Barrett, CAA President-Elect and Membership Committee chairperson, collaborated for over two years to bring this opportunity to fruition.
Candidates were sourced and recommended by Actuarial Science professors at UWI Mona, UWI St Augustine and UTech. Chrisanae Foster, recommended by her UWI Mona professor, Horace Johnson, successfully obtained the position after first being interviewed by Jodi Arthurton and Adolex Grant of the CAA Membership Committee, and has been on the job in Miami for a few weeks.
According to Sabrina, Chrisanae is appropriately overwhelmed by a steep learning curve, as every new intern should be. Not surprisingly, Sabrina is confident Chrisanae will excel.
Please join us in congratulating Chrisanae, and thanking Sabrina and Horace for their partnership.
Quarterly Newsletter
WhatWe’veBeenUpTo:IfYouMissedIt
New CAA Committee - Banking Committee led by Mike McLaughlin
The committee explores opportunities for actuaries in banking and financial institutions, particularly for those transitioning from traditional roles or early in their careers. Interested in joining? Reach out to the Secretariat!
SOA Ambassadors
Bahamas DeAndrea Lewis, FSA
Barbados Lisa Wade, FSA, FIA
Bermuda Scott Selkirk, FSA, MAAA
Cayman Island Rachel Funk
Jamaica Cathy Lyn, FSA, FIA
Puerto Rico Pablo J. Olmo Rodríguez, FSA, CERA, MAAA, JD
Trinidad & Tobago Kyle Rudden, FSA, FIA, ACAS
What'sHappening Quarterly Newsletter
IAA Banking Virtual Forum
Unlocking New Horizons: Actuaries Beyond Insurance and Pensions The Fundamental Review of the Trading Book (FRTB) was introduced by the Basel Committee on Banking Supervision (BCBS) in the years following the Great Financial Crisis of 2007-2009, with the aim of completely revamping the approach to calculating market risk-based capital requirements for trading activities (market risk capital). This webinar is a two-part series. The first offers the opportunity to learn about market risk management and measurement in banking, and how actuaries can assist banks with the measurement of market risk in the trading book, and the second offers an introduction to the Basel III FRTB regulation and provides an overview of the core elements of the FRTB reform package
www.caribbeanactuaries.com
Finally, we present a hypothetical case study for the calculation of Market risk Capital under the fundamental review of trading book Standardized based approach, which is the default market capital requirement for all banks that fall within the scope of the FRTB
Register for the IAA Banking Virtual Forum:
Part I – Introduction to Market Risk Management in Banking
Date: 22 October 2024 Time: 11.00am UTC / 07.00am
AST
REGISTER HERE FOR PART I
Part 2 – Market Risk Management in Banking: Application of FRTB Standardized Approach for the Calculation of Market Risk Capital
Date: 5 November 2024
Time: 11.00am UTC / 07.00am
AST
REGISTER HERE FOR PART II
Quarterly Newsletter
Thank you for taking the time to read our quarterly newsletter. We look forward to engaging with you at the upcoming conference and throughout the year If you have any feedback or ideas for future newsletters, please don’t hesitate to reach out.
CAA Communications Team
www.caribbeanactuaries.com CONTACT US:
www.caribbeanactuaries.com
caa.communications@caribbeanactuaries.com
@caribbeanactuarialassociation