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The article offers information concerning the broader approach and some considerations for actuaries who are engaged in the pricing of treaty reinsurance business. The actuary must understand the reinsurance cover contemplated and the underlying primary insurance exposure within the context of data offered to price the insurance business. The communication from underwriters on changing reinsurance terms and conditions, the intent and underlying exposures is invaluable to the work of actuaries.

The article discusses the traditional methods actuaries use in the business. Mortality is measured by life actuaries through a direct calculation of deaths divided by exposure or through a comparison of the annual number of people who actually die with the annual number of people who are expected to die. Property and casualty actuaries employ a statistical tool called Generalized Linear Modeling, which caters to statistical fluctuation and independent variable interactions.

The article provides information for actuaries on the value that can be attained towards pharmacy benefit decision-making and the basic concepts on health-related quality of life as an outcome measure to assess value. Pharmaceuticals are essential elements in health care management. Pharmacy decision benefit decision-making begins with the evaluation of clinical and financial data. One of the methods is by conducting a cost-utility analysis, resulting to a cost per quality-adjusted life-years.

The article discusses the discretion of the Actuarial Standards Board (ASB) in providing standards that is viewed as the best practice. The ASB usually codifies generally accepted practice in its standards and believes that it should uphold an actuary's professional judgment in adopting standards. ASB aims to comply with the legal duties of due processes including procedural due process and substantive due process. The Code of Professional Conduct requires actuaries to satisfy ASB standards.

The article talks about the importance of communication to actuaries in the U.S. Actuaries must take cautious steps to set their own pace as a profession and ensure that the message they offer is strong, direct and accurate. The actuarial profession's value to the news media is its credibility. Actuaries need to successfully meet the challenges of communicating the value of the profession through the public media.

The article discusses which Group Annuity Mortality Table is most appropriate to use for the valuation of pension actuaries in the U.S. Survey conducted by Watson Wyatt & Co. on which mortality table is widely used; Introduction of new tables; Research from the Federal Civil Service Retirement System that compares mortality rate.

Reports on the recommendation of professor Derek Morris to restructure the actuarial governance in Great Britain. Acceptance of Morris' recommendation by the Great Britain Chancellor of the Exchequer in Parliament; Weaknesses of the self-regulated policies; Proposal of Morris for pension fund actuaries.

Explains the importance of the role of actuaries as a company chief risk officer in the U.S. Perception of the public and corporate America about the actuarial profession; Capability of the profession to help companies deal with varied business situations; Ability to initiate diplomacy to deal across business lines.

Discusses the trends in the actuarial profession in North America. Tendency for actuarial students to be tempted by Wall Street offers than with actuarial firms; Structure of the examination process of the profession; Likelihood for current students to pass actuarial examinations than candidates who are not students.

Presents a directory of companies offering actuarial computer software in the U.S.

Narrates the author's foreign employment as an actuarial professor at Cairo University in Cairo, Egypt. Pattern of the actuarial subject that he taught to his students; Impression on the lack of experience with insurance among students; Tendency for graduates of the actuarial science program to work in the insurance industry.

Focuses on the history and the theory behind the concept of Islamic insurance or takaful. Identification of the various facets of insurance; Basic principle of investment in Islam; Provision of a contract law as rules for various kinds of contracts.

Focuses on role of an actuary on the board of an insurance company in order to improve the quality of its governance. Estimation of oil and gas reserves by insurance companies, the petroleum industry and trade professionals; Reliance of the board and audit committees on the opinion of the actuary; Benefits of the presence of an independent actuary on a board; Need of an actuary to possess other attributes beyond technical expertise.

The estimated cost of the newly enacted Medicare prescription drug benefit was now substantially greater than the $400 billion limit set by the congressional appropriations committees. Many articles claimed that the Bush administration's own cost estimates had been purposely withheld from Congress. And, without exception, all of these stories mentioned me (sometimes favorably, sometimes not). This article summarizes what happened in 2003 when Congress requested actuarial assistance from the Centers for Medicare and Medicaid Services (CMS) during development of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003. It describes the dilemma I faced and how I responded. Here I will also try to place this sequence of events in the context of a broader and fundamentally more important issue. [ABSTRACT FROM AUTHOR]

Reported developments over the past several months in the United Kingdom and elsewhere have raised questions about the actuarial profession's responsibility to the public interest. An article in the last tissue of Contingencies discussed how professions in general have approached this matter, and it comes as no surprise that they've struggled with the same questions actuaries now face. In this article, I will look at this struggle from the perspective of the U.S. actuarial profession. [ABSTRACT FROM AUTHOR]

A directory of companies that attended the Society of Actuaries annual meeting is presented.

The article relates an actuary's experiences during the 2006 Capitol Hill Visits of the Health Practice Council. The council is considered the best source of information on insurance-related issues. Together with other actuaries, the author met with congressional leaders and other government officials. The actuaries presented a list of key health policy issues for 2006 to policy-makers.

The articles features the new opportunities for the actuary profession and the skills they demand. Actuaries are involve in understanding the statistical records of one company and offer some probabilities. The risk management career path offers related job openings for them including chief risk officer, financial engineer, market research and client relationship manager, modeler and personal actuary. These works challenge the actuarial organization to develop new tools for training.

The article focuses on the Precept 10 of the code of professional conduct for actuaries. The said provision of the conduct encourages actuaries to observe courtesy and professionalism as well as cooperation with other actuaries with the intent of preserving and fulfilling the principal's interest. Replacement or acquisition of another actuary occurs when the replacing actuary has had a closer rapport with the principal or due to a more attractive fee arrangement.

The article comments on the actuarial analysis and modeling of proposals for extending or replacing the Terrorism Risk Insurance Act (TRIA) of 2002. Among the proposals were an extension of the existing TRIA and an attempt to establish a market-based permanent solution concerning terrorism insurance. U.S. President George W. Bush has already approved the Terrorism Risk Insurance Extension Act of 2005. Several guidelines for actuarial work on future terrorism insurance legislation are provided.

The article talks about the aid of actuaries in helping companies clear accounting cost for employee stock options (ESO) in the U.S. Actuaries could assist issuing companies in the improved disclosure of ESO. New financial accounting standard is implemented that would require companies to recognize a fair value expense for ESO. The fair value of an ESO grant is measured as of the date of issuance.

Discusses the state of professionalism of actuaries in Canada. Reference to the investigation of Willard Estey, justice of the Supreme Court of Canada, on the professionalism of key members of management of companies involved in two bank failures in the country; Expectation for actuaries to discharge their responsibilities professionally; Stand of the Canadian Institute of Actuaries on the issue of professionalism of actuaries.

Discusses an outline of likely Actuarial Board for Counseling and Discipline analysis regarding guidance on the selection of a discount rate for a pension plan in the United States. Applicable code of professional conduct precepts; Application of the Actuarial Standards of Opinion; Presentation by the actuary of the arguments to the auditor.

Part I. Discusses the Actuarial Board for Counseling and Discipline's response requesting on the selection of a discount rate for a pension plan in the United States. Discount rate scenarios; Discussions with the auditor; Interest rates.

Examines various economic and social issues that the American Academy of Actuaries in the United States. Social Security solvency; Medicare solvency; Asbestos reform; Medical malpractice reform.

The article discusses dilemma faced by actuaries when they are offered projects that are completely or partly outside their scope of practice in the U.S. When projects outside the scope of practice are offered, actuaries may decline or follow the qualification standards to develop an actuarial team to accommodate the scope of work. The article cites case studies involving post employment benefits and government pension plan.

The article presents the lessons that should be learned from the ancients that have relevance to the actuarial profession and to its role in public policy. The chance to analogize over disciplines is appropriate because the first Academy was founded in Athens by Plato which served as a place to discuss, teach, raise consciousness and influence the politics. It is considered that the greatest gift from ancient Greeks is the democratic government that provides power and authority to the people.

The article features actuaries working in software companies. These software tools designed by the actuarial professionals are created to help those practicing counterparts who are of little knowledge in computer usage. They formatted ready to access actuarial standards of practice and principles for those who are in the field. The author invites professionals of the same expertise to consider the option of working in this line of career.

The article features the role of pension actuaries on the future of the defined benefit pension plans. It asserts their importance in the retirement industry and insists their responsibilities in providing clear reasons and policy for the public why these pension plans beneficial to the society. The innovation in the pension field calls for a change on the part of the actuaries.

The article features the real works of the actuaries and the false impressions credited to their profession. Actuaries are known to be dense and labeled as ill mannered merchants of mathematical probability but the author proved who really they are. More than just calculating numbers in the insurance companies, some of them are working as financial consultants or advisers. Now, new areas are open to them like executive compensation, pricing energy, and forecasting the growth of forestry.

Reports that American Academy of Actuaries has offered its expertise to legislators and regulators who are serious about public policy in the U.S. Amount spend in 2004 for lobbying; Policy problems that the academy can help legislators; Willingness of the Academy members to contribute their expertise.

Focuses on the issues regarding the credibility of financial actuaries in the U.S. Failure of the traditional actuarial practice to incorporate many lessons from financial economics; Reports from the Standard &3x0026; Poor's Corp.; Definition of actuarial approach.

Presents steps an actuary can take in order to make working with a recruiter easier and more successful. Broader knowledge of actual open positions, not just potential employers; Types of recruiters to be avoided; Professional advice on presenting the self to potential employers.

Shares the author's experience using his actuarial training to perform the job of an underwriter. Benefits of combining his actuarial and underwriting training; Duties of an underwriter; Role of involving an actuary in the underwriting process in broadening the actuary's exposure within the underwriting organization and with clients.

Focuses on different approaches used by employers for selecting and hiring successful actuarial candidates in the United States. Actuarial development program; Actuarial Summer Internship program; Encouragement of candidates to apply directly on-line rather than through specialized recruiting agencies.

Discusses basic information regarding the personal retirement actuarial (PRA) profession. Role of a PRA; Technical knowledge needed by a PRA; Skills and mind-set need by a PRA; Number of places where a PRA would be useful; Professional liability.

Focuses on the role of actuaries in enterprise risk management programs. Uniqueness of actuaries in dealing with financial uncertainty; Efforts in putting together a list of all the risks a company faces; Acquisition of a technical depth in statistics and risk modeling.

Focuses on the commitment of volunteers from the American Academy of Actuaries in Washington D.C. to help the association. Ability to make time for multiple conference calls, meetings and projects; Management of time to talk through an issue with one or two persons; Creation of a model for the individual health insurance market by the Health Rate Filing Task Force.

Comments on the struggle of actuaries to deal with a series of examinations to advance their profession in the U.S. Number of tests that an actuary has to pass in order to attain fellowship in the Casualty Actuary Society; Advantage of being single in preparing for the tests; Support of companies throughout the examination process.

Focuses on the convergence of domestic and national accounting standards, faced by the actuaries in the U.S. Implications of a change on how numbers can be interpreted for professional practices; Production of International Financial Reporting Standards 4 by the International Accounting Standards Board; Terms and conditions under the International Financial Reporting Standards 4.

Part II. Discusses the response of the Actuarial Board for Counseling and Discipline surrounding the selection of the discount rate for a pension plan under Statements of Financial Accounting Standards 87 and 106 in the United States. Summary of hypothetical scenarios; Questions regarding the hypothetical scenarios; Materiality of any breach of the code.

Discusses lessons learned by three female actuaries who become presidents of three of the five national organizations that represent the male-majority actuarial profession in the United States. Importance of taking the initiative; Balance between work and family; Professional visibility; Support system; Perseverance.

The article presents the views of several actuaries in different fields in the U.S. on whether the one percent doctrine makes sense actuarially. According to Robert Rietz, large employers are freezing or terminating their underfunded pension plans. David Shea shared his views by giving an analogy from the health insurance field.

The article reflects on the value of curiosity to the actuarial profession. According to the author, curiosity is about being inquisitive and wanting to continually learn new things wherein it includes a bit of skepticism regarding the current practice and ideas. A person needs to keep up to date with the technologies and techniques regarding the different areas in his practice.

The article reports on the letters that was received by the author of the "Contingencies" journal in the U.S. The letter received by the author had signatures of 26 people, which these people are all actuaries and members of the Academy. The letter was a response to the article "In the Eye of the Beholder: Why 'Best Practice' Standards of Practice May Not Be Best," by Lauren Bloom and Michael Lamonica in the March/April 2006 issue.

The article comments on the second order effects of various pension reforms and regulatory efforts in the U.S. The probable second- and third-order effects should be included by the actuaries in the analysis of proposed new or modified pension programs. In dealing with the problems that arise from these effects, explicit and transparent assumptions should be used in communicating with decision makers to analyze adverse incentives and reactions of all affected stakeholders.

The article discusses reports published within the issue including one by Kevin Bingham, John Lucker and Mo Masud on new data mining techniques that would help insurers detect shady behavior and another by Patricia Grossi and Howard Kunreuther on the factors that insurers use when modeling for natural disasters and acts of terrorism.

The article focuses on the interpretation of probability and statistics when dealing issues about man-made and natural catastrophes. Risk assessment has captured the public's attention and the tenets of sound risk management practice. Conditional probabilities and secular trends play a role in risk assessment. The Society of Actuaries and the Casualty Actuarial Society envision the creation of an Actuarial Risk Index to help with the assessments.

Presents a tribute to local elementary school volunteer Morris Gutterman. Work as a teacher at the age of 93; Fear of being fired from work; Implication of Gutterman's experience to actuarial planning.

Reports that actuarial profession outside Great Britain can have opportunity from the report submitted by British actuarial expert Derek Morris. Evaluation of the Society of Actuaries' strategic plan basing on the Morris Report; Comments on the British actuarial education system; Questions raised by the Morris Review for actuarial profession.