SOA Strategic Plan Development Part II: Necessary Changes February 2015

Introduction  The SOA Board uses a strategic plan to guide its work. The strategic plan describes what the organization wants to achieve over a specific period of time. The current plan covers 2013 through  The first step was gathering information to learn key challenges facing the profession  The next step is to determine necessary changes to respond to those challenges Gather information EXPOSE DRAFT PLAN Scheduled to be released to members for comments in July DEVELOP CHANGE AGENDA What are the critical changes needed to meet vision and mission? FINALIZE PLAN Scheduled to be approved by the Board at its October 2016 meeting Expose draft plan for comments Develop change agenda Finalize plan & initiatives

Phase I: Gather Information The Strategic Planning Task Force had conversations with members, employers, industry leaders and volunteer leaders. In those conversations, they identified four key insights that should be considered in designing the next strategic plan. Big Data/Predictive Analytics Regulatory Environment Actuarial Skill Set Strategic Thinking Evolving regulatory environment drives new reporting and analysis;. Some questioned whether actuaries have the skills they need. Also identified need for profession to provide information on relevant societal issues to policymakers and regulators. Actuarial technical expertise not keeping up with new methods. Actuaries seen as offering options based on technical results, rather than using those results as basis for recommendations and solutions. Actuaries are focused on communicating process and data, rather than driving to strategic insights. Some thought the profession should work to attract more entrepreneurial spirits into the profession. Rise of big data/predictive analytics identified by members as #1 trend affecting the profession. Challenge to actuaries to incorporate new methods into their work.

Phase II: Develop Necessary Changes From the information gathered, the Strategic Planning Task Force identified four key themes for the necessary changes the plan must achieve. Global Resources Actuarial Skill Set Influence of Actuaries and the Profession Organizational Capabilities

Global Resources  Strategic Plan introduced objectives for the SOA to be a “Global Professional Organization”  SOA’s membership outside of the US and Canada is growing, particularly in Asia 42% growth in membership in Asia 2011  2015 Membership (in Asia) 2,072 2,  2015 Membership (Total) 22, ,515 17% growth in total membership

Global Resources  Strategic Planning Task Force considered what should be the next step in the SOA’s global evolution Rapid growth in insurance markets, particularly in Asia U.S., Canada, France, Germany, Italy, Netherlands, U.K. China, Japan & South Korea All other markets $ Total premiums (in USD trillion) $1.17 $0.71 $ Total premiums (in USD trillion) $1.24 $ % growth in premiums in 3 largest Asian markets

Global Resources Goal #1: Bringing the SOA to members around the globe  Provide to members, candidates and other stakeholders around the globe  Tailored to the needs of stakeholders in their home country/region  Recognizing services already providing by national actuarial associations and other industry groups Canada Taiwan Hong Kong China U.S. Latin America

Global Resources Goal #2: Bringing the globe to SOA members  Leveraging our global diversity to benefit all members  Ensure SOA members have access to international perspectives so they can bring insights to discussions on global business, market trends and regulation  Recognizing that not all members have the same need for a global perspective North America International Standards Asia / Australia Europe Africa Latin America International Perspectives

Actuarial Skill Set  Education and research are key components of the SOA  Key component of SOA mission is to ensure actuaries are leaders in measuring and managing risk  Responsibility to both individuals and the profession Who What is needed to maintain and expand influence Skills to solve complex business and societal problems Individual Actuaries Profession Intellectual capital: cutting-edge tools and knowledge

Actuarial Skill Set  Use SOA research and education to achieve these goals  Goal #3: Actuaries demonstrate creative and flexible thinking  Incorporating business acumen  Staying at the forefront of new and evolving techniques  Putting forward solutions, not just options  Goal #4: Research that focuses on emerging issues important to traditional industries  Keeping actuaries at the forefront of evolving techniques Who What is needed to maintain and expand influence What can the SOA do? Skills to solve complex business and societal problems Individual Actuaries Adapt education to adapt to actuaries’ changing needs Profession Intellectual capital: cutting-edge tools and knowledge Develop proactive research on emerging industry issues

Influence of Actuaries & the Profession  Profession’s reputation is based on the work of its members and its members are able to gain work based on the reputation of the profession  Profession is more than just the collective work of individuals – the profession is also recognized through its organizations – the SOA – that can provide insight on important societal issues (e.g. retirement, health care, longevity, climate change)  SOA has expanded its work over the past decade to find opportunities for actuaries, and to find ways to showcase the profession’s knowledge Life Annuiti es Pension s Health Care ERM P&C

Influence of Actuaries & the Profession  Goal #5: Position SOA members to succeed  In current roles, expanded roles, and new roles  In light of new and evolving techniques  In the short term, this will likely include a focus on predictive analytics  Positioning includes both promoting (to the outside world) and ensuring members have the skills to succeed Life Annuiti es Pension s Health Care ERM P&C Pred. Analytics Expande d Roles New Roles

Influence of Actuaries & the Profession  Goal #6: Position the profession as knowledgeable on important societal issues  SOA research provides data and model driven actuarial insight  On selected important societal issues (e.g. health care, longevity, retirement, climate change) SOA Health Care Research SOA Longevity Research SOA Climate Change Research

Organizational Capabilities  Goal #7: Better process for scanning environment and evaluating new trends and techniques  Spot the next predictive analytics as it emerges  Deploy SOA resources to respond: e.g., education (credentialing and continuing), research, marketing, and professional communities  Goal #8: Work with other organizations to accomplish mutually beneficial objectives  Actuarial and non-actuarial organizations, in North America and around the world

Organizational Capabilities  Strategic planning process looks at the organization (the SOA) and determines what’s needed if the organization will be able to deliver on the promises made.  These are foundational strengths, capabilities necessary to provide global resources, continue to sharpen the actuarial skill set, and broaden the influence of actuaries and the profession Organizational Capabilities Mission & Vision Execute its Strategy Enable the SOA to And fulfill its

Next Steps  Exposure draft will be released in July 2016 Gather information EXPOSE DRAFT PLAN Scheduled to be released to members for comments in July DEVELOP CHANGE AGENDA What are the critical changes needed to meet vision and mission? FINALIZE PLAN Scheduled to be approved by the Board at its October 2016 meeting Expose draft plan for comments Develop change agenda Finalize plan & initiatives