An Experience with My Caribbean Actuarial Family
By John W. Robinson
International News, March 2024
Introduction
In my first ambassadorial assignment as past president of the Society of Actuaries (SOA), I represented the SOA at the Annual Meeting of the Caribbean Actuarial Association (CAA), November 29 to December 1, 2023. The meeting was held in Port-of-Spain, Trinidad. I will provide a little background information and then share my thoughts on selected sessions.
Background
My actuarial career started in Jamaica in 1982. While I was there, the Jamaican actuarial community met occasionally (officially quarterly) for networking under the informal guidance of Daisy McFarlane-Coke, FIA. Following Daisy’s pioneering lead, a few bright mathematics students in the region accepted the challenge of becoming fellows of either the Institute of Actuaries (England), the Faculty of Actuaries (Scotland) or the Society of Actuaries (US). The CAA was founded in 1991 with Daisy as a founding member. The association currently has 133 fellows as members. It is a full member of the IAA and influential beyond its size.
While Caribbean actuaries may carry the same designations as others, they are a unique brand. Their uniqueness lies in their deep understanding of the fundamental drivers of their small economies. I contrast this to an actuary in the US who may spend a career working on variable annuities, with limited interest in—or grasp of—significant drivers outside of that domain.
Although I left Jamaica in 1985, I have maintained contact with my Caribbean actuarial family. My election as SOA president-elect in 2021 was and is a great source of pride for the CAA and its members. At the 2022 CAA Annual Meeting in Barbados, which I attended as SOA president, I was made an Honorary Member of the CAA.
The 2023 CAA Annual Meeting
The theme for the conference was “Balancing the Equation: Shaping a Sustainable Future.” The problem of sustainability carries a unique flavour for a collection of small island nations. The theme reflects the Caribbean actuarial community’s strong engagement with these complex issues.
Day 1
The first event of the meeting was an SOA Associateship Professionalism Course (APC). Lan Tong, FSA, FCIA, led a group of 12 near-ASAs in discussions of professionalism. My role was to add “colour commentary” from time to time. APCs rarely involve an SOA presidential officer, and the students appreciated my presence. For my part, it was a great privilege to participate in a key point in their career journey.
After lunch we had another session on professionalism, this time for the entire conference. For this session, we invited CAA Past President Kyle Rudden, FSA, FIA, ACAS, to provide a case study in the Caribbean context. This was important, because conflicts of interest and other dilemmas can arise in small countries that one might not think of in large countries. Lan, Kyle and I led the discussions.
One hallmark of all CAA Annual Meetings is that they throw a good party. That evening, we were entertained by Sam Broverman, ASA, who is both a professor at the University of Toronto and a professional singer.
Day 2
The second day featured presentations and discussions on sustainability, related first to environmental issues and secondly to the state of the social security program in Trinidad and IFRS 17.
As to environmental issues, there is a great global debate on the relative importance of adaptation and mitigation. The debate in the Caribbean starts with the fact that they are affected by factors well beyond their control and which they have limited resources to address. For example, as the seas warm, coral reefs off the islands are under threat of extinction. The question, then, is which of adaptation and mitigation should be the priority. CAA members, most notably Bertha Pilgrim, FIA, are very much engaged in this conversation and are seen as respected thought leaders in the region and at the IAA.
Related to regional social security issues: You will no doubt recall the recent outcry in France when the government proposed to increase the retirement age from 62 to 64; so this can be a national discussion with political consequences. The leading actuarial expert on social security programs throughout the region is Derek Osborne, FSA, a CAA past president. The role of the actuary is to advise the government in its capacity as “plan sponsor.” The audience learned that these programs are all beset by problems related to changing demographics, limited financial resources, plan design anomalies, and the timeliness of remedial action by the respective governments.
IFRS 17 is the most actuarially complex accounting standard for life insurance in history, in my view. It is principle-based; in particular, it was not designed with Caribbean conditions in mind. While outside consultants have greatly assisted Caribbean actuaries in process implementation, IFRS 17 requires that assumptions be based on the company’s view. Caribbean actuaries have set their minds to tackling the implementation of its principles in their own context. Two sessions were dedicated to updates on where things stand today and similar challenges faced by actuaries in the small European country of Estonia. (Yes, Marika Guralnik came to Trinidad all the way from Estonia!)
Day 3
I had the privilege of serving as moderator for the Presidents Round Table. As the title suggests, we heard from presidents Simone Brathwaite (CAA), Steve Prince (CIA), Micheline Dionne (IAA), Tim Rozar (SOA), and Neil Tagoe (Actuarial Society of Ghana). This was both Tim’s and Neil’s first visit to the Caribbean. We discussed issues in the categories of climate change and the future of the actuarial profession.
The final session that I will highlight was one on the development of Smart Tables. Named for—and developed by—Stokeley Smart, FSA, and others, these tables are modelled after the Ogden Tables, which have been used to assist judges when they need to quantify loss of earnings in personal injury and fatal accident court cases. The Smart Tables will be applicable in the Caribbean.
Special Mention
I wish to thank Stokeley Smart, FSA, and Cy-Anne Ali, ASA, for all the hard work they put in leading the planning committee and executing the conference. Stokeley heads the actuarial science degree program at the University of the West Indies in Trinidad. At his invitation, prior to the conference, I gave a presentation to a group of university and high school students. The event was live-streamed around the world—I even got a question from an attendee in Nigeria. I greatly enjoyed the opportunity to share my story and perspectives as well as answer their questions about our great profession.
Congratulations to Judith Veira, FSA, who was elevated from president-elect to president, and Nicola Barrett FSA, MAAA, who was elected president-elect by the members.
Invitation
The 2024 CAA Annual Meeting will be held in the Bahamas. If you live any closer to the Caribbean than Estonia, please plan to attend.
Statements of fact and opinions expressed herein are those of the individual authors and are not necessarily those of the Society of Actuaries, the editors, or the respective authors’ employers.
John W. Robinson, FSA, FCA, MAAA, is past-president of the Society of Actuaries and retired from the Minnesota Department of Commerce, the state's regulator for insurance. He can be reached at Jwrob03@gmail.com.