THE

ART OF

CALCULATING

RISK

Introducing the

European umbrella

organisation for

actuarial associations

1. Shifting scenery

The year was 1978. The European continent was experiencing its first wave of Europeanisation.

The European Parliament was becoming an established organisation, with its first direct elections coming up

in 1979. The still largely trade-oriented European Community was beginning to evolve into something more political. More and more matters, like legislation and regulations, were being dealt with at a European level. And risk management, too, came to be viewed in a broader, international perspective.

It was then that a group of leading actuaries in Europe decided it was time to establish an umbrella organisation bringing together the actuarial associations across the continent.

APPLE TREE IN BLUE, TEMPERA, MONDRIAN, 1908/9

An organisation that would ensure the voice of actuaries was heard in Brussels, where a new European legal framework was in the making. An organisation that would uphold professional standards and align training across the continent. This became the Groupe Consultatif Actuariel Européen.

Now, more than three decades later, the Groupe Consultatif is as relevant as ever. The latest changes to EU legislation and regulations offer some indication of how dynamic this highly specialised field is. At the same time, however, the profession itself has also become different. Broader.

2. From arithmetician to risk consultant

The origins of the actuary’s profession lie in the insurance industry. Calculating values and risk profiles for life, pensions and non-life insurance was and still is the province of actuaries. However, their job has become a lot more complex. The number of variables to be put into models is much greater today than it used to be. This is due in part to globalisation, but other issues - from climate change to reinsurance - must now be taken into account as well. Meanwhile, the risk profiles that actuaries model are no longer used by insurers alone. They are also of great value to governments and oil companies, for instance.

THE GREY TREE, MONDRIAN, 1911

Actuaries these days also work in consulting. With so much data available, demand for fundamental data analysis is increasing daily. The modern actuary is a major contributor to entrepreneurial advice based on risk modelling.

3. Training - a Groupe responsibility

One of the first issues that the Groupe Consultatif Actuariel Européen took on was to align training of actuaries across Europe. There was a time when a Master’s Degree in mathematics or econometrics was su˙cient to become an actuary, but now that is just the beginning. The associations in different countries put their heads together and drafted a Core Syllabus for Actuarial Training in Europe, which provides a detailed description of the requirements. And they are tough. These days, becoming an actuary takes at least three years of postgraduate training!

4. Independent, objective and professional

Quality is the raison d’être of the Groupe Consultatif Actuariel Européen. In our efforts to maintain the highest quality in actuarial practice, we focus on three core values: independence, objectivity and professionalism. It is hard to imagine another job where independence is of such vital importance as it is for people who calculate risks.

FLOWERING APPLE TREE, MONDRIAN, 1912

Equally vital is their objectivity, as the slightest bias can have vast effects on the final calculations and the advice based on them. The Groupe Consultatif takes its role very seriously. So it is only natural that it has its own Code of Professional Conduct, that a˙liated associations and their individual members must comply with. Here, again, the requirements are tough.

5. What can the Groupe Consultatif do for you?

See the Groupe Consultatif as an independent professional organisation which addresses the challenge of risk calculation in every possible field, in the belief that quantifying risks makes them easier to manage. This is what ultimately drives us.

If you would like to know more about the Groupe Consultatif and where we stand on specific issues, feel free to contact us using the details provided overleaf. We will make sure you get an - objective - answer!

© 2008 Mondrian/Holtzman Trust c/o HCR International, VA US. Collectie Gemeentemuseum Den Haag.

The Groupe Consultatif Actuariel Européen is the platform for the actuarial profession within Europe. In accordance with our statutes our aim is to:

• Consider existing and proposed European Union legislation where actuarial issues are involved and, where appropriate, make representations and submissions to the relevant EU Institutions,

• Give advice to the European Union Institutions on professional actuarial issues when invited to do so,

• Represent member associations in discussions with European Union Institutions, in particular with the European Commission,

• Provide a forum for discussion among actuarial associations throughout Europe,

• Promote high standards of professionalism among actuarial associations in Europe,

• Further the education and professional development of actuaries throughout Europe. By complying with the Mutual Recognition Agreement and the Code of Professional Conduct, all associations therefore accept each others’ members as fully qualified members.

Affiliated associations There are two categories of Members in the Groupe Consultatif: Full Member - associations situated in a Member State of the EU or another European country and meeting the professionalism criteria defined in the Statutes:
• Aktuarvereinigung Österreichs		Austria
• Association Royale des Actuaires Belges - Koninklijke Vereniging van Belgische Aktuarissen		Belgium
• Cyprus Association of Actuaries		Cyprus
• Česká Společnost Aktuárů		Czech Republic
• Den Danske Aktuarforening		Denmark
• Eesti Aktuaaride Liit		Estonia
• Suomen Aktuaariyhdistys		Finland
• Institut des Actuaires		France
• Deutsche Aktuarvereinigung		Germany
• Hellenic Actuarial Society		Greece
• Magyar Aktuárius Társaság		Hungary
• Felag Islenskra Tryggingast Aerdfraedinga		Iceland
• Society of Actuaries in Ireland		Ireland
• Consiglio Nazionale degli Attuari		Italy
• Istituto Italiano degli Attuari		Italy
• Latvijas Aktuäru Asociãcija		Latvia
• Lietuvos Aktuarijø Draugija		Lithuania
• Association Luxembourgeoise des Actuaires		Luxembourg
• Het Actuarieel Genootschap		Netherlands
• Den Norske Aktuarforening		Norway
• Polskie Stowarzyszenie Aktuariuszy		Poland
• Instituto dos Actuarios Portugueses		Portugal
• Slovenská Spoleçnost' Aktuárov		Slovakia
• Slovensko Aktuarsko društvo		Slovenia
• Instituto de Actuarios Españoles		Spain
• Col.legi d'Actuaris de Catalunya		Spain
• Svenska Aktuarieföreningen		Sweden
• Association Suisse des Actuaires		Switzerland
• Faculty of Actuaries		UK
• Institute of Actuaries		UK
Observer Member - associations situated in a Member State of the European Union, or in another European State, but not meeting all the criteria for full membership:
• Bulgarian Actuarial Society		Bulgaria
• Channel Islands Actuarial Society Channel		Islands
• Hrvatsko Aktuarsko Drustvo		Croatia
• Asociatia Romana de Actuariat		Romania
Contact details: Groupe Consultatif Actuariel Européen Michael Lucas, Secretary Napier House 4 Worcester Street OX1 2AW Oxford, United Kingdom Telephone: +44(0) 1865 268218 Fax: +44(0) 1865 268244 Email: info@actuaries.org Website: www.gcactuaries.org
	GROUPE CONSULTATIF AC TUA RIEL EUROPÉEN