This English translation of “2016 Annual Report” of the Institute of Actuaries of Japan is
an unofficial translation. Only its original Japanese texts have effect, and the translation is
to be used solely as reference material to aid in the understanding of the original one.
この「2016 年度事業報告」の翻訳は公定訳ではありません。効力を有するのは日本語の資料であり、翻訳はあくまでその理解を助けるための参考資料です。

2016 Annual Report
From April 1, 2016 to March 31, 2017

1. Matters concerning Annual General Meeting of Members
The General Meeting of Members was held on June 22, 2016 at the main conference room of theInstitute of Actuaries of Japan, and“Report on a summary of business activities in 2015”
was presented, and the following one proposal was put before the meeting and approved as proposed:
Item 1: 2015 Approval of a Balance Sheet and Net Assets Variation Statement as well as
Inventory of Properties
2. Movement of members
Movements of members during the current year were as follows: for corporate members, 2 members
were newly admitted and 3 members withdrew from the IAJ; for individual members, 367 members
were newly admitted and 218 members withdrew from the IAJ. The number of members as of the endof March 2017 is as shown in the table below.
Fellows
Associates
Students
Semi-total
Corporate members
Total

1,654
1,298
2,057
5,009
109
5,118

persons
persons
persons
persons
corporations
persons/corporations

3. Business report[Related to examination](1) Implementation of 2016 qualification examination
A 3-day qualification examination was held from December 12 to 14, 2016 in Tokyo (at TOC
Gotanda) and Osaka (at Temma Training Center) and the successful examinees were announced on
February 14, 2017.
The total number of examination subjects for the primary examination was 3,509 subjects and thetotal number of subjects passed was 552 subjects. There were 77 examinees who passed all basic
subjects.
Accounting ,Economics andInvestment
TheoryMathematics

Life Insurance
Mathematics

Non-life
Insurance
Mathematics

PensionMathematics

Number of examinees

1,020

753

621

512

603

Number of successful examinees

201

80

82

85

104

Primary examination（Basic subjects）

1

Passing Rates

19.7％

10.6％

13.2％

16.6％

17.2％

The total number of examination subjects for the secondary examination was 1,332 subjects andthe total number of subjects passed was 170 subjects. There were 85 examinees who passed all
the subjects.
Secondary examination（Advanced subject）

Life Insurance
１

Life Insurance２

Number of examinees

370

364

170

142

126

160

Number of successful
examinees

44

53

17

18

17

21

11.9％

14.6％

10.0％

12.7％

13.5％

13.1％

Passing Rates

Non-life
Insurance１

Non-life
Insurance２

Pension１

Pension２(2) Implementation of 2016 CERA examination
The CERA examination was held on September 28, 2016 in Tokyo (at TKP Otemachi ConferenceCenter) and the successful examinees were announced on January 16, 2017. There were 42
examinees and 22 examinees passed the examination (Passing Rates 52.4%).

[Related to education, training and research presentation](1) Implementation of 2016 actuary courses
The actuary courses were offered for a period from May 10, 2016 to October 4, 2016. Details are
as follows.
Subject
Number of
students
Basic courses
・Probability
・Statistics
・Modeling
138 people（12 Subjects）
・Probability Exercise ・Statistics Exercise
・Life Insurance Mathematics
・Non-life Insurance Mathematics
・Pension Mathematics
・Accounting
・Economics
・Investment Theory
・Life table
Intermediate courses
・Risk Selection Theory
・Social Insurance Theory
34 people（7 Subjects）
・Population Theory
・Insurance Supervision Law
・Pension Practice Regulations
・Finance Mathematics
・Risk Management Theory
The additional actuary exercise courses were offered for a period from September 29, 2016 to
December 1, 2016. Details are as follows.
Subject (Number of students)
Additional actuary

・Life Insurance Mathematics Exercise（41 people）

exercise courses

・Non-life Insurance Mathematics Exercise（41 people）
・Pension Mathematics Exercise（44 people）
・Modeling Exercise（15 people）

Kansai Committee actuary courses were offered for a period from August to October 2016. 2
people took the life insurance mathematics course and 4 people took the pension mathematics
course.
2(2) Holding of 2016 Annual Meeting
A 2-day Annual Meeting was held on November 10 and 11, 2016 at Keidanren Kaikan and Tokyo
Station Conference. The following special lectures were held in this meeting.
・「Issues and prospects of the Central Bank」
By Mr. Takehiro Sato (Member of the Policy Board, Bank of Japan)
・「Globally competent people are good communicators」
By Mr. Stephen Outlaw-Spruell (Representative, Hawaii Culture & Language Academy)
・「The data based countermeasure for cancer in the near future」
By Mr.Fumihiko Wakao (Director, Center for Cancer Control and Information Services,
National Cancer Center)
Also, 12 papers were presented, 9 presentations and 5 panel discussions were held.
(3) Holding of 2016 IT Annual Meeting
A 2-day IT Annual Meeting was held on January 19 and 20, 2017 at Mitsui Life Insurance Co.,
Ltd. (Otemachi Nomura Building). The following special lecture was held in this meeting.
・「How does FinTech change the finance and the economy?」
By Professor Noriyuki Yanagawa (Graduate School of Economics,
University of Tokyo)
And IT Study Groups (1st to 6th) conducted activity reports.
(4) Holding of regular meetings
We held a total of 9 regular meetings in FY2016. Details are as follows.
1stJul. 20, 2016
2nd
Aug. 24, 2016
3rd
Sep. 1, 2016
4th
Sep. 14, 2016
5th
Oct. 17, 2016
6th
Oct. 19, 2016
7th
Oct. 25, 2016
8th
Nov. 1, 2016
9th
Mar. 10, 2017

Behavioral factors of mortality risk – should we
use the behavioral & psychological factor forthe evaluation of the mortality risk?
Economic Scenario Generator－Application tobusiness, problem and solution
Changes to the SOA actuarial qualification
process
Risk Management : Then, Now and Tomorrow

Mr. Peter Banthorpe（RGA）

Mr. Colin Holmes（Moody’s Analytics）
Mr. Stephen A. Eadie（SOA）
Mr. Ken Guthrie（SOA）
Mr. Paul Embrechts（ETH）※Joint seminar with Professionalism Training(Continuing Professional Development) (Reference to (10) ①)
To Develop a Method of Assessing Basis Risk
Mr. Jackie Li
for Longevity Transactions(Macquarie University)
Predictive Analytics and Modeling of
Mr. David Wang（Milliman）
Policyholder Behavior
Ms. Eileen Burns（Milliman）
The latest reform of long-term care (LTC)
Ms. Karin Neelsen (DAV)
insurance in the German social security system
Present and Future of Insurance Supervision
Mr. Takuji Yano (Director, FSA
Administration
Insurance Monitoring Office)(5) Holding of Kansai Committee regular meetings
We held a total of 4 Kansai Committee regular meetings in FY2016. Details are as follows.
1stJul. 8, 2016
2nd
Nov. 4, 2016
3rd

Structure, forecast, review of public pension
finance
Current situation of FinTech and its impact onfinancial business
Trends in the US economy, future outlook
3

Mr. Kunio Nakajima(NLI research)
Mr. Naoki Shimada (Financial
Business and Technology)
Mr. Hiroshi Kubotani

Jan. 13, 2017
4th
Mar. 7, 2017

based on the economy policy of President-electDonald Trump
2016 Report on Activities of KansaiCommittee’s Sub-committees(NLI research)each sub-committee(6) Holding of moonlight seminars
Moon light seminars under the following 5 themes were held from December 2016 to March2017.
Read The Minimum Bias Procedure – A
Practitioner’s Guide (January 2002)
Trends in Global capital regulation and impact
on Japanese insurance companies
Introduction and Practice of Neural Network
Introduction and implementation of risk
measurement model construction
Practice of Statistical analysis in non-life
insurance ～Data analysis using “R”

Mr. Kazuaki Naito (Waseda University)
Mr. Kazuyuki Doi (Willis Towers Watson)
Mr. Tomonori Asada (Towers Watson)
Mr. Yujiro Otsuka (Milliman)
Mr. Fumitoo Hamamura (Japan Assurance Aarata)
Mr. Naohiro Iwamoto (Japan Assurance Aarata)
ASTIN-related Seminar Group
Seminar Division Members(7) Holding of Kansai Committee seminars
We held a Kansai Committee regular meetings on February 16, 2016 with following themes.
“Term structure model of interest rate ~ Development from spot
rate model to affine model ~”“Consideration on standard interest rate”“Characterization of insurance premium calculation principle”“Future mortality rate estimation based on medical viewpoint”

Graduate School of Science,
Kyoto University,
Insurance Mathematics
Seminar students(8) Enhancement of e-learning
E-learning contents under the following were released.
①

Standard of Practice for Appointed Actuary of Life Insurance Companies②

Standard of Actuarial Practice & Guidance Concerning Retirement Benefits Accounting③

Solvency II Technical Specifications & Findings report on the Long-Term Guarantee
Assessment (1)④Solvency II Technical Specifications & Findings report on the Long-Term Guarantee
Assessment (2)⑤Solvency II Technical Specifications & Findings report on the Long-Term Guarantee
Assessment (3)⑥Solvency II Technical Specifications & Findings report on the Long-Term Guarantee
Assessment (4)⑦「Predictive Modeling Applications in Actuarial Science」～Report of 2015 Annual
Meeting⑧「Practice of Market Consistent Embedded Value (MCEV)」Chapter 1-4, Terms andAbbreviations～Supplementary volumes of bulletin Vol.257⑨

The underlying assumptions in the standard formula for the Solvency Capital Requirement
calculation (EU Solvency II) 1. The overall structure of the standard formula 3. Life
underwriting risk～Supplementary volumes of bulletin Vol.273

4

⑩

The underlying assumptions in the standard formula for the Solvency Capital Requirement
calculation (EU Solvency II) 1. The overall structure of the standard formula 4. Non-Life
underwriting risk～Supplementary volumes of bulletin Vol.273⑪

Risk governance learning by CERA ～Report of 2015 Annual Meeting⑫

Trends and Examples of Health Promotion～Report of 2015 Annual Meeting⑬

Devices, kiosks, and even apps.- Insurance industry risks and opportunities⑭

Let’s learn more about CERA! ～Looking back on the activities of the ERM(CERA)
Qualification Committee⑮

2014 Open Discussion Forum⑯

Professionalism Training (Continuing Professional Development) 2016⑰

International accounting standards to learn from the beginning 2016⑱

Economic value-based solvency regime starting from today 2016 ～ Mainly the situation offoreign countries ～(9) Implementation of actuary overseas training
During the period from November 2 to 14, 2016, the 6 th Actuary Overseas Training was
implemented, and the participants were divided into 3 groups with life insurance, pension and nonlife insurance. The training was held in Singapore and India, and they participated in the AsiaActuary Conference (AAC) in India and made a presentation. There were 15 participants in life
insurance group, 2 participants in non-life insurance group and 4 participants in pension group.
(10) Implementation of professionalism training① On October 17, 2016, professionalism training (Continuing Professional Development)
covering the following training was offered.
About Professionalism
Mr. Ikuo Katayose (Resona Bank)
Case Study
Mr. Yosuke Fujisawa (RGA)
Independence and autonomy of professionals Mr. Shunsuke Sugimoto(Osaka University of Economics)② On February 24, 2017, professionalism training covering the following training was offered.
The completion of this training is required to be approved as a Fellow. 94 participants
completed the training.
About Professionalism
Mr. Ikuo Katayose (Resona Bank)
IAA Syllabus and Professionalism
Mr. Tomio Murata (Mitsui Life Insurance)
Actuaries and Code of Conduct
Mr. Shinichi Nara (Meiji Yasuda Life Insurance)
Professionalism in Life Insurance
Mr. Hitoshi Watanabe (Nippon Life Insurance)
Professionalism in Non-life Insurance
Mr. Hiromi Kaneko (Sompo Japan Nipponkoa Insurance)
Professionalism in Pension
Mr. Ikuo Katayose (Resona Bank)(11) Implementation of CERA training①

CERA training under the following theme was held on September 2, 2016.
“Lecture about CERA”
Mr. Stephen A.Eadie (SoA)
Mr.Ken Gurthrie (SOA)②

On December 2 and 3, 2016, a 2-day group workshop was held for examinees for CERA
examination. The workshop contained lectures on risk management, ALM, etc. and casestudies. 22 participants completed the training.

(12) Open discussion forum5

On December 6, 2016, an open discussion forum was held at the main conference room of theIAJ, at which members had discussions in English with foreign actuaries.

[Related to investigation and research activities](1) Holding of Standard Mortality Advisory Committee meeting①

At the 22nd Standard Mortality Advisory Committee meeting held on December 15, 2016, it
was approved to continue to use in the year 2017 the “Life Insurance Standard Life Table
2007 (for death)”, “Life Insurance Standard Life Table 2007 (for annuity)” and “Third
Sector Standard Life Table 2007”.

②

At the 23rd Standard Mortality Advisory Committee meeting held on March 16, 2017, it wasapproved to revise the “Life Insurance Standard Life Table 2007 (for death)” and “Third
Sector Standard Life Table 2007”, to continue to use “Life Insurance Standard Life Table
2007 (for annuity)” in the year of 2018.

(2) Response to international accounting standards and international insurance regulation
The International Accounting Standards Board (IASB) and the International Association of
Insurance Supervisors (IAIS) have been energetically reviewing international accounting
standards and international insurance regulation. The International Actuarial Association (IAA) is
carrying out contracted research and other activities as an actuarial professional group. The IAJ is
actively participating in the activities of IAA committees.
(3) Improvement of practice standards①

Necessary revisions were made to the“Standards for Actuary of National Mutual Insurance
Federation of Agricultural Cooperatives”in March 2017.

②

Necessary revisions were made to the“Standards of Practice for Appointed Actuaries ofNon-life Insurance Companies”, in March 2017.

③

Necessary revisions were made to the “Standards for Actuarial Practice Concerning
Retirement Benefits Accounting” and “Guidance for Actuarial Practice Concerning
Retirement Benefits Accounting” in March 2017.

(4) Review of actuarial science for Life Insurance Product
Life Insurance Product Special Review WG reviewed actuarial science for life insurance productand submitted a report 「The standard way of thinking (case) of actuarial science for insurance
product at present」to FSA in June 2016. In March 2007, the WG members cooperated with the
Financial Services Agency to hold an exchange of opinions twice.
(5) Activities of Committees
Each committee, division, study group, working group and project team carried out investigations,research and other activities based on the purpose and mission set at the beginning of the fiscal
year. The status of their activities was posted on IAJ web sites. The activities that were put
together into investigation and research results were published on the IAJ’s member-only web
page and/or in supplementary volumes of bulletins, etc.

[Expression of Opinions]6(1) Voting at IAA Council (including electronic voting)①

In May 2016, voted for the approval of Terms of Reference of Nominations Committee.

②

In September 2016, voted for the approval of strategic action plan of ISAP.

③

In November 2016, voted for the appointment of Chair/Vice Chair of Committee andWorking Group.

(2) In May 2016, the IAJ submitted its opinions on the draft statement of 「Judgement system reform
2018 for Grants-in-aid for Scientific Research」to Ministry of Education.
(3) In July 2016, the IAJ, jointly with JINSE (Japanese Inter-organizational Network for Statistics
Education), submitted its request for the contents of new subject, "Exploration of Mathematical
Science" (tentative name), which will be built up to strengthen the power of scientific explorationof the people in the high computerization and data science society, to Ministry of Education,
Culture, Sports, Science and Technology.
(4) In August 2016, the IAJ, jointly with the Japanese Society of Certified Pension Actuaries,
submitted opinions on the Exposure Draft of PITF No. 47 entitled “The Exposure Draft ofPractical Solution on Account Processing etc., of Risk–Sharing Type Corporate Pension” to the
Accounting Standards Board of Japan (ASBJ).
(5) In March 2017, the IAJ, jointly with the Japanese Society of Certified Pension Actuaries,
submitted opinions on the Exposure Draft of PITF No.51 entitled “The Exposure Draft ofimmediate treatment of discount rate in the calculation of retirement benefit obligation etc. in casebond yields become negative” to the Accounting Standards Board of Japan (ASBJ).

[Related to International Activities](1) IAA activities
The IAJ actively participated in the activities of IAA committees as well as in transmitting
opinions from IAA to IASB, IAIS, etc. And the topics are as follows:①

Invitation of ICA2026
At the IAA conference, we had held activities such as presentations to invite ICA2026 andat the IAA meeting in November, 2016, Tokyo was formally decided as the venue.

②

IAA Conference
After the decision that IAA Conference will be held in Tokyo in autumn 2019, we notified it
to the member of the IAJ and the public (via HP, at Committee kick-off meeting, and by
posting on Actuary Journal and so on).

(2) Implementation of 44th Actuarial Seminar of East Asia (ASEA)
From September 13 to 16, 2016, the IAJ held a 4-day seminar on the status of Japan’s various
systems to which actuaries are related, with 39 participants from 11 different areas mainly in EastAsia.
(3) Dispatch of members to international conferences, etc.
The IAJ sent its members to the following international conferences, etc.
① From May 25 to 29, 2016
IAA Conference(In St. Petersburg, Russia)
Mr. Kikuo Asano, Mr. Masaaki Yoshimura, Ms. Junko Koie, Mr. Yoshiaki Maebayashi,
Mr. Tomio Murata, Mr. Yoshio Nakamura, Mr. Yoshihiko Tsuji, Mr. Toshihiro Kawano ,7

Mr. Masaaki Shigehara, Mr. Tatsuhito Kondo, Mr. Shinji Ikeda, Mr. Hiroshi Yamazaki,
Mr.Ryutaro Yamada, Mr. Nobuhiro Shimizu, Mr. Kenji Sekine, Mr. Hideyuki Sumi,
Mr. Ikuo Kudoh② From May 31 to June 2, 2016
AFIR/ERM colloquium(In Edinburgh, UK)
Mr. Miwaka Yamashita③ From May 31 to June 3, 2016
ASTIN colloquium(In Lisbon, Portugal)
Mr. Kenji Shirai④ From June 26 to 29, 2016
IACA/IAAHS/PBSS/IPEBLA colloquium(In St.John’s, Canada)
Mr. Kousuke Iwasaki, Mr. Nobuhiro Shimizu⑤ From September 23 to 24, 2016
Annual Meeting of China Institute of Actuaries(In Shanghai, China)
Mr. Ikuo Kudoh⑥ From September 27 to 28, 2016
40th Anniversary of Singapore Actuarial Society(In Singapore)
Mr. Ikuo Kudoh⑦ From October 23 to 26, 2016
SOA Annual Meeting(In Las Vegas, USA)
Mr. Nobutoshi Giga
⑧ From November 9 to 12, 2016
AAC Conference(In Gurgaon, India)
Mr. Ikuo Kudoh⑨ From November 18 to 21, 2016
IAA Conference(In Cape Town, South Africa)
Mr. Kikuo Asano, Mr. Hideyuki Sumi, Mr. Tomio Murata, Mr. Masaaki Yoshimura,Mr. Toshihiro Kawano , Mr. Masaaki Shigehara, Mr. Yoshio Nakamura, Mr. Shinji Ikeda,
Mr. Yoshihiko Tsuji, Mr. Hiroshi Yamazaki, Mr. Ryutaro Yamada, Mr. Nobuhiro Shimizu,
Mr. Kenji Sekine, Mr. Ikuo Kudoh[Advisory Committee](1) 2016 Advisory Committee meeting was held on February 14, 2017, where summary of businessactivities in 2016,2017 business plan (draft) and approaches to “Big Data” were discussed.

[Joint Industry-Academic Project](1) Upon request of Kyoto University to send lecturers for insurance mathematics and pension
mathematics lectures, Mr. Jun Asano (Sumitomo Life Insurance), Mr. Hisashi Uehara (Sumitomo
Life Insurance), Mr. Kozo Oshima (Sumitomo Life Insurance), Mr. Ikuo Katayose (Resona Bank),
Mr. Toshinori Sanai (Daido Life Insurance), Mr. Takeshi Toyodome (Nippon Life Insurance), Mr.
Motoo Nakayama (Nippon Life Insurance) and Mr. Yoshihiro Minami (Nippon Life Insurance)
were sent to the University.
(2) Upon request of Osaka University to send lecturers for insurance mathematics lectures, Mr. Jun
Asano (Sumitomo Life Insurance), Mr. Masaki Takemura (Daido Life Insurance) and Mr.
Hiroyuki Tsunekawa (Nippon Life Insurance) were sent to the University.
(3) Upon request of Kobe University to send lecturers for insurance mathematics lectures, Mr. Jun
Asano (Sumitomo Life Insurance) was sent to the University.
(4) Upon request of Tokyo University to send lecturers for social mathematics special lectures, Mr.
Ryoichi Nakamura (NLI Research Institute) was sent to the University.
8(5) Upon request of Japan Society for the Promotion of Science (JSPS) 180th Committee on RiskBased Asset Management to send lecturers for actuaries and risk evaluation lecture, Mr. Ikuo
Kudoh (Sumitomo Life Insurance) was sent to the JSPS.

[Related to Presentation of Awards](1) Awards presented to a person with outstanding results in the 2016 qualification examination①

Presentation of President AwardOn June 22, 2016, the IAJ presented the President Award to Mr. Jyunki Ura (Daiichi Life
Insurance) and Mr. Shinji Nakamura (Individual member).

②

Presentation of award for outstanding results for each subject
On the same day, the IAJ presented an award to 1 person for Mathematics, 1 person for Life
insurance mathematics, 2 people for Non- life insurance mathematics, 1 person for Pension
mathematics, 1 person for Accounting, economics and investment theory, 1 person for Life
insurance1.

(2) Presentation of awards for outstanding research paper①

There were 10 papers (Except IT-related paper) submitted, but there were no excellent
papers in this fiscal year.

②

On January 19, 2017, an award was presented for the following outstanding IT-related
paper at the IT Annual Meeting:“Utilization of Open Data in Insurance Business ”(IT Study Group II)“New Insurance Business with IoT ～Trump Card for change～” (IT Study Group V)[PR and Publication Activities](1) PR activities①“25th Actuary Seminar” primarily for students was held on January 21, 2017 in Osaka andin Tokyo. There were 45 participated in Tokyo and 26 participated in Osaka.

②

Flyers for women were produced in order to attract their interests to the profession of
actuaries.

(2) Enhancement of information provision function①

One of the contents in our HP, “Attractiveness of the work of actuaries”, was renewed.

(3) Publication of bulletins, etc.
The following bulletins and other publications were published.
①

Bulletin Vol.69②

Supplementary volumes of bulletinVol. 277 “6th Actuary Overseas Training Report”
Vol. 278 “MCEV Principles 2016”
Vol. 279 “Overview of Mortality Survey at IAA / Longevity trends in domestic andoverseas, their comparison and prediction method /Graduation: The Revision of Estimate”
Vol. 280 “56th IT Annual Meeting Report”
9

③

Actuary Journal
Vol. 95, Vol. 96, Vol. 97, Vol. 98 and Special Volume No.13“Risks and Insurance”(2017)④2015 Qualification Examination Question Collection⑤

2016 Annual Meeting Report Collection

10