By William J. Michalisin
The Academy focuses primarily on the United States, including policy issues, professionalism topics, and the many actuaries practicing in the U.S. who choose to join as MAAAs. However, the actuarial profession is global, and our work, the issues and topics we cover are all relevant and applicable to the global marketplace. While each country has its own legislative and regulatory environments and unique challenges, the core role of actuaries—to provide expert risk analysis and support financial security systems—remains universal.
This past fall, then President Darrell Knapp and I attended the Actuarial Association of Europe (AAE) Annual Meeting, where this shared purpose was on full display. The meeting brought together volunteer and staff leaders from across Europe, including country-specific actuarial bodies like the Academy, to discuss pressing issues shaping the profession. Those discussions, which included multiple references to Academy work, covered the following key themes.
Sustainability and Climate-Related Risks: Actuaries are increasingly called upon to model and manage the financial implications of climate change, a challenge that transcends borders.
Artificial Intelligence (AI): The impact of AI on actuarial work, including ethical considerations and regulatory developments, continues to be top of mind and critical to the profession’s ability to navigate this rapidly evolving technology.
Pensions, Social Security, and Public Policy: Discussions emphasized the actuarial role in ensuring the sustainability of pension systems and social programs. This continues to be relevant here in the U.S. as discussions about the solvency of social programs and potential impact on recipient benefits continue to garner attention and concern.
Professionalism and Education: Reinforcing high standards of qualification and continuous professional development remains a cornerstone of the AAE’s work, just as it is for us at the Academy. Given the Academy’s solid professionalism structures and experience supporting the profession’s self-regulation, our voice is valuable and sought out.
Operations and Strategic Focus: The AAE discussed and voted on a new model to improve operating efficiencies during its General Assembly, including the need and opportunity to define an actuary, and clarify/amplify our value to public stakeholders—topics that resonate here in the U.S. and in stakeholder discussions.
The AAE also reaffirmed its role as an independent voice providing actuarial advice to European institutions on issues like insurance, pensions, financial regulation, and demographic trends, always with the public interest in mind and acting as a unified voice for its many country members. As the professional body focused solely on the U.S., the Academy also maintains its focus on being an objective, independent, and balanced voice for the actuarial profession and public policy stakeholders we serve and engage with in the United States.
Shared Goals Around the Globe
It’s not surprising (maybe it is to some) that there would be so much overlap and relevance between the AAE and its country-focused member organizations and what the Academy is focusing on. Again, our focus is the U.S., but our reach and relevance are far greater, coupled with a profession and membership that transcend borders globally. At the Academy, our mission aligns closely with the AAE and other country organization priorities:
Advancing the Profession and Our Members: We develop, maintain, and promote rigorous standards, a code of conduct, a discipline process, content, publications, and educational tools and resources to ensure actuaries remain trusted experts.
Supporting Professionalism and Qualification: We emphasize ethics, competence, and lifelong learning. A core strength of the Academy is our professionalism structure and approach to maintaining those elements, including the Code of Professional Conduct, actuarial standards of practice, U.S. Qualification Standards, and the counseling and discipline process.
Clarifying the Actuarial Role: We work to ensure policymakers, stakeholders, and the public understand what actuaries do and why our expertise matters to the issues they face. An opportunity is how we achieve this in terms that the public understands and can easily relate to the value we provide, a challenge our staff and volunteers address each day.
Serving the Public Good: Through objective analysis and public policy engagement, we help strengthen systems that millions rely on for financial security. Our ability to amplify this role and the impact we have is another opportunity that the Board is focused on enhancing through the stakeholder strategy and our continued efforts to reinforce the value an actuarial perspective brings to today’s pressing issues.
Enhancing Operations and Strategic Focus: We continue to enhance our governance structure through new committees and an ongoing review of governance, along with internal efforts to elevate our impact through new technology, process improvement, and greater investment in and development of our professional staff.
Why Global Engagement Matters to Us
The challenges we face—climate risk, demographic shifts, technological disruption, and organizational effectiveness—are not confined by geography. By engaging with and monitoring the efforts of regional organizations[1] such as the AAE, other country actuarial organizations such as the CIA, IFoA, and DAV, supranational bodies such as the IAIS, ISSB, and OECD, and global organizations such as the IAA, SOA, and CAS, we share knowledge, learn from diverse perspectives, and develop innovative solutions to common problems. These collaborations, and others, can lead to greater creativity, awareness, and opportunities to ensure that the actuarial profession remains relevant and resilient in a rapidly changing world. Whether in Washington, D.C., London, Riyadh, or Beijing, actuaries are united by a common purpose: to apply our expertise for the benefit of society.
Together, we are stronger and better equipped to serve the public good. Our ability to stay connected and aware of each other’s efforts can lead to enhanced knowledge and collaboration that ultimately elevates and strengthens the actuarial profession for us all.
William J. Michalisin is the Academy’s executive director and CEO.
Endnotes
[1] CIA—Canadian Institute of Actuaries; IFoA—Institute and Faculty of Actuaries (UK); DAV—German Association of Actuaries; IAIS—International Association of Insurance Supervisors; ISSB—International Sustainability Standards Board; OECD—Organisation for Economic Co-operation and Development; IAA—International Actuarial Association; SOA—Society of Actuaries; CAS—Casualty Actuarial Society
COMING SOON!
Here’s what we’re working on:
- The retirement crisis through multiple actuarial lenses
- Global trade dynamics and their impact on risk and insurance
- Key concepts for understanding long-duration insurance contracts
- The value of Academy membership
Stay tuned for in-depth insights and expert analysis on the issues shaping the actuarial profession.
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