The International Actuarial Association (IAA) approved its first International Standard of Actuarial Practice, ISAP 1, on General Actuarial Practice, at its Council meeting in November 2012. An ISAP is a model standard which the IAA encourages actuarial standard-setting bodies to consider.
ISAP 1 is a general standard intended to apply to all actuarial services performed by an actuary except for those elements of guidance that are explicitly superseded by another standard such as a practice-specific standard or by law.
The purpose of ISAP 1 is to provide guidance to actuaries so that the intended users of actuarial services will have confidence that:
- Actuarial services are carried out professionally and with due care;
- The results are relevant to their needs, are presented clearly and understandably, and are complete; and
- The assumptions and methodology employed (including, but not limited to, models and modelling techniques) are disclosed appropriately.
The IAA has encouraged actuarial standard-setting bodies to study this model standard and to consider taking one of the following courses of action, if they determine that the ISAP is relevant for actuaries in their jurisdiction and that existing standards are not already substantially consistent with it:
- Adopting the ISAP as a standard with appropriate modification;
- Endorsing the ISAP as a standard as an alternative to existing standards;
- Modifying existing standards to obtain substantial consistency with the ISAP.
The Society of Actuaries in Ireland will consider the ISAP and will consult with members during 2013 if any of the above actions are considered appropriate.
If you have any questions about ISAP 1 or wish to learn more about it, please contact the Director of Technical Activities at the IAA Secretariat.