Notice of Intent

Review the Standards of Practice for

Consistency with ISAP 6 – Enterprise
Risk Management Programs and IAIS
Insurance Core Principles

Actuarial Standards Board

September 2020

Document 220138

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© 2020 Canadian Institute of Actuaries
MEMORANDUM
To: All Fellows, Affiliates, Associates, and Correspondents of the Canadian
Institute of Actuaries, and other interested parties
From: Josephine Marks, Chair
Actuarial Standards Board
Mario Robitaille, Chair
Designated Group
Date: September 25, 2020
Subject: Notice of Intent to Review the Standards of Practice for Consistency
with ISAP 6 – Enterprise Risk Management Programs and IAIS Insurance
Core Principles
Comment deadline: November 30, 2020

Introduction
On December 1, 2018, the International Actuarial Association Council approved
International Standard of Actuarial Practice 6 (ISAP 6) – Enterprise Risk Management
Programs and IAIS Insurance Core Principles. The Actuarial Standards Board (ASB) agrees
in principle that Canadian standards should be substantially consistent with
international standards of actuarial practice. The ASB therefore established a designated
group (DG) to review the Canadian Standards of Practice (SOP) for consistency with
ISAP 6.
Background
The SOP do not currently have specific guidance for actuaries practicing in enterprise
risk management (ERM). Over the years, the number of actuaries practicing in this field
has been steadily growing. The proposal to incorporate ERM-related guidance within the
SOP reflects this practice area’s current state of evolution and the need to develop
common terminology within the Canadian Institute of Actuaries (CIA), and will
ultimately contribute to defining this practice area. The DG believes that the
introduction of ISAP 6 in the Canadian standards would not put actuaries at a
disadvantage compared to other professions, but would demonstrate the profession’s
leadership. In addition, the principles-based content of ISAP 6 is consistent with
recognized ERM practice.

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Notice of Intent September 2020

Although ISAP 6 focuses mainly on insurance, its principles also apply to other areas of
practice. We are proposing to modify its content to eliminate reference solely to
insurance and to ensure that it applies to other actuarial practice areas.
We are recommending that an educational note be developed to provide practical
examples of the principles.
Timeline
The ASB hopes to publish an exposure draft by early 2021. Final SOP would be effective
thereafter.
Your feedback
The ASB is soliciting feedback on this notice of intent (NOI) from members of the CIA
and other stakeholders. Comments on the proposed changes are invited by November
30, 2020. Please email them to Mario Robitaille at mario.c.robitaille@desjardins.com,
with a copy to Chris Fievoli at chris.fievoli@cia-ica.ca. No other forums for gathering
feedback are currently contemplated.
Feedback is particularly invited on the following issues:
1. Should the ASB include guidance related to ERM within the Canadian SOP?
2. Do you agree that the SOP should cover practice areas beyond the ISAP 6 main
focus area of insurance?
3. Are there situations where ISAP 6 may not be appropriate and modifications may
be needed?
4. Would the introduction of an ERM standard of practice put the actuarial
profession at a disadvantage compared to practitioners that are not actuaries?
The ASB’s due process has been followed in the development of this NOI.
The ASB has created a DG which will be responsible for developing these changes to the
SOP. It includes Michel Dionne, Sharon Giffen, Bruce Langstroth, Étienne Massicotte,
Altaf Rahim, Jean-Yves Rioux, Mario Robitaille (Chair), Sheldon Selby, and Lisa Zwicker.

JM, MR