Actuarial Standards Board
ABOUT THE ACTUARIAL STANDARDS BOARD
The Actuarial Standards Board (ASB) was established by the U.S. actuarial organizations and housed within the structure of the American Academy of Actuaries to create and improve actuarial standards of practice (ASOPs). These ASOPs identify what the actuary should consider, document, and disclose when performing an actuarial assignment. The ASB’s goal is to set standards for appropriate practice for the U.S.
The ASB comprises nine persons representing a broad range of backgrounds and areas of actuarial practice.
- Each ASB member is appointed to a three-year term, with staggered terms. No board member is permitted to serve more than two full consecutive terms.
- The ASB directs all work undertaken by its committees, subcommittees, and task forces and sets standards for appropriate actuarial practice in the United States through the development and promulgation of ASOPs.
- These ASOPs describe the procedures an actuary should follow when performing actuarial services and identify what the actuary should disclose when communicating the results of those services.
- The ASB reviews and evaluates current and emerging practices, determines appropriate guidance, publishes an exposure draft to obtain input from actuaries and other interested parties, considers all comments received, and publishes a final standard or another exposure draft. The ASB meets at least quarterly.
- Additional meetings of the ASB may be called at the request of the chairperson or at least four members of the ASB.
CHARACTERISTICS OF EFFECTIVE MEMBERS
- Deliberative temperament / detail-oriented.
- Ability to consider and understand issues in areas that are outside the individual’s area of practice.
- A good listener.
- Open-minded to others’ ideas/other ways of looking at a problem or issue.
- A good listener / a team player / open-minded.
MEMBER SELECTION PROCESS
The members and the chairperson and vice chairpersons of the Actuarial Standards Board are selected each year by the Selection Committee as required by Section 2 of Article X of the Bylaws of the American Academy of Actuaries. The Selection Committee consists of the presidents and presidents-elect of the American Academy of Actuaries, the Casualty Actuarial Society, and the Society of Actuaries. The president of the Academy chairs the Selection Committee.
The process to be followed in selecting ASB members consists of the following steps.
- ASB provides information to the Selection Committee regarding new members.
- Names of members whose second term is expiring or who otherwise will be ending their terms at the end of the current year.
- Names of members whose first term is expiring and who should be considered for selection to a second term.
- Description of the skills, expertise, and backgrounds desired in the new member(s) in order to complement the remaining members, taking into consideration the ASOPs expected to come before the ASB in the next few years.
- List of the ASB’s recommended candidates to fill the vacancies for the coming year, in order of preference.
- Selection Committee selects new ASB member(s) based on the needs of the board and a number of considerations, including such factors as practice area, employer type, gender, ethnicity, and more.
The process for selecting the chairperson and vice chairpersons consists of the following steps.
- ASB chairperson provides recommendation to Selection Committee for coming year’s chairperson and vice chairpersons from among current ASB members.
- Selection Committee confirms chairperson’s recommendations or contacts chairperson for alternatives.
- No member will serve as ASB chairperson or vice chairperson for more than two consecutive years.
Potential candidates should possess include the following experience, skills, and attributes:
- Recognized actuarial expertise in the individual’s area of practice;
- Experience in drafting a ASOPs via service on an ASB task force or committee / familiarity with ASB procedures;
- Ability to discuss issues in areas that are outside the individual’s area of practice;
- Ability to participate and/or streamline discussions to get to the core of issues in a nonconfrontational way;
- Ability to build and manage discussions to consensus; and
- Bandwidth to carry out the responsibilities as a board member and wiliness to travel as needed for ASB meetings.