Former Academy president Steve Lehmann succeeded the late Dan McCarthy as the Academy's international secretary in 2008. The Update caught up with Lehmann following his recent globetrotting to ask about his experiences in the last year and a half representing the Academy and the U.S. actuarial profession on the international stage. Lehmann attended the International Actuarial Association (IAA) meeting in Cape Town, South Africa, March 3–6 and the International Congress of Actuaries from March 7–12.
Update: You were the Academy's alternate delegate to the IAA when the international secretary position was created. How much has your international work changed from your prior involvement to now being the international secretary who represents to all the U.S. organizations?
Lehmann: The international secretary position was created in 2007 to coordinate the Academy's involvement with IAA committees and to increase the effectiveness of the Academy and other U.S. actuarial organizations at the IAA-ultimately to represent all U.S. actuaries at the IAA.
As an alternate delegate, I was there to help the decision-making process and to follow activities at the IAA Council. As international secretary, I'm now responsible for coordinating all Academy activity at the IAA and other international venues. It's a dramatic change of duties, and an interesting time in my career.
You were president when the position was created by the board and you appointed the late Dan McCarthy, former Academy president, to the post. Now being in the position yourself, how has the position evolved?
Dan was a wonderful representative of the Academy and the U.S. profession. He had a depth of understanding and network of connections, making him very effective as our international secretary. Dan's passing left some big shoes to fill.
This position was created with the knowledge that it was becoming more and more important for the Academy and the U.S. profession to coordinate our activities at the IAA. Since then, international developments have continued to increase at an exponential rate. In terms of international accounting standards, international actuarial standards, and the need to closely monitor solvency regulation developments, now more than ever, U.S. actuaries need to be represented at the table. As part of the elected executive committee of the IAA, I am able to become more involved and as a result, more effective in my role.
What does that position entail? How is the executive committee constituted?
The executive committee has recently undergone dramatic change. Previously, the executive committee consisted of the chairpersons of all the IAA committees. It was a very large group, much too large-and met too infrequently-to be able to effectively fill an operational management function. We and others had strongly urged the IAA to develop a strategic plan, giving a good, hard look at its overall governance structure. The IAA did that and as part of the strategic review, the committee was reduced in terms of numbers and given a much stronger operational role. Currently there are four officers and eight general members of the executive committee. The eight general members represent all the committees, sections, and member organizations. The guidelines for the eight general members require that there are at least two members from North America, at least two from Europe, and at least two global members from outside those regions. All were elected by the IAA delegates by electronic vote within the last year, just before the Cape Town meeting. We held our first in-person meeting in Cape Town this Spring.Any major updates from the Cape Town meeting?
International actuarial standards of practice were discussed vigorously in Cape Town. There's a new international actuarial standard of practice that is being worked on by the IAA, dealing with actuarial standards of practice under international financial reporting standards. This received a lot of discussion.Also, last fall at the IAA meeting in Hyderabad, India, there was an agreement among actuarial organizations in 12 countries throughout the world to establish the first international designation for enterprise risk management (ERM), based on the Society of Actuaries' chartered enterprise risk analyst (CERA) designation. There were meetings in Cape Town to discuss developments of this ERM qualification, as the CERA designation will now be used in connection with international practice. It isn't formally within the IAA structure, but the treaty was signed as part of IAA meetings.
How do your international experiences enable you to view issues differently?
I think what has really come home to me as I've worked at the IAA is the growing global economy and the importance for U.S. actuaries to be involved in that global activity. Along with that is the need to be active in following the development of new international standards of practice, financial reporting, and regulation.Over time, I've had an opportunity to see what methods are being used by actuaries worldwide as new actuarial techniques are developed and applied. Many of these new methods may ultimately be used by U.S. actuaries to improve their practice. For instance, the U.K. can now make changes in rates instantaneously without any filings. Perhaps U.S. actuaries may one day incorporate these techniques for operating in environments without rate regulation.
Could you talk a little bit about the International Congress of Actuaries?
Every four years, the congress provides a forum for actuaries to attend educational sessions and to discuss actuarial developments throughout the world. This year the congress focused on a variety of topics with four concurrent tracks: life, health, property/casualty, and pension. The 2014 Congress will meet in Washington, D.C., and I encourage U.S. actuaries to become involved at the international level. Connecting with colleagues from around the world has certainly been a rewarding experience for me. The 2014 Congress in Washington will be an excellent opportunity to expand your horizons.