This English translation of “2013 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「2013 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。
2013 Annual Report
From April 1, 2013 to March 31, 2014

1. Matters concerning Annual General Meeting of Members
The General Meeting of Members was held on June 11, 2013 at the main conference room of the Instituteof Actuaries of Japan, and“Report on a summary of business activities in 2012”
was presented, and the following two proposals were put before the meeting and approved as proposed:
Item 1: 2012 Approval of a Balance Sheet and Net Assets Variation Statement as well as Inventoryof Properties; andItem 2: Election of the Directors and Auditors.
2. Movement of members
Movements of members during the current year were as follows: for corporate members, 1 member was
newly admitted; for individual members, 383 members were newly admitted and 145 members withdrew
from the IAJ. The number of members as of the end of March 2014 is as shown in the table below.
New corporate members:
MSCI Inc.
1 new corporate member
Fellows
Associates
Students
Semi-total
Corporate members
Total

1,435
1,274
1,987
4,696
114
4,810

persons
persons
persons
persons
corporations
persons/corporations

3. Business report[Related to examination](1) Implementation of 2013 qualification examination
A 3-day qualification examination was held from December 16 to 18, 2013 in Tokyo (at TOC
Gotanda) and Osaka (at Tenma Training Center) and the successful examinees were announced on
February 14, 2014. The total number of examination subjects for the primary examination was 3,194
subjects and the total number of subjects passed was 958 subjects. The total number of examination
subjects for the secondary examination was 1,214 subjects and the total number of subjects passed was
186 subjects. There were 73 examinees who passed all the subjects.
(2) Implementation of 2013 CERA examination

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The CERA examination was held on October 1, 2013 in Tokyo (at TKP Otemachi Conference Center)and the successful examinees were announced on January 20, 2014. There were 54 examinees and 9
examinees passed the examination.
(3) Revision of text books
The sixth volume of the text books for “Pension” (tax practice related to retirement benefit system andcorporate pension system) was abolished and its contents that need to be kept were incorporated into
the first volume. As a result, the text books now contain five volumes.
[Related to education, training and research presentation](1) Implementation of 2013 actuary courses
The basic courses covering 12 subjects and intermediate courses covering 8 subjects were offered fora period from May 7, 2013 to October 3, 2013. 110 people took the basic course and 46 people took
the intermediate courses.
(2) Implementation of 2013 Kansai Committee actuary courses
Kansai Committee actuary courses covering three subjects, namely life insurance mathematics,
pension mathematics and non-life insurance mathematics, were offered for a period from August to
October 2013. 3 people took the life insurance mathematics course, 6 people took the pension
mathematics course, and 7 people took the non-life insurance mathematics course.
(3) Implementation of 2013 additional actuary exercise courses
The courses covering 4 subjects, namely life insurance mathematics exercise, non-life insurance
mathematics exercise, pension mathematics exercise and modeling exercise, were offered for a period
from October 1, 2013 to December 6, 2013. 41 people took the life insurance mathematics exercise
course, 69 people took the non-life insurance mathematics exercise course, 41 people took the pension
mathematics exercise course, and 17 people took the modeling exercise course.
(4) Holding of 2013 Annual Meeting and IT Annual Meeting
A 2-day Annual Meeting was held on November 7 and 8, 2013 at Keidanren Kaikan and Tokyo
Station Conference. A 2-day IT Annual Meeting was held on November 21 and 22, 2013 at MitsuiLife Insurance Head Office (Otemachi Nomura Building).
(5) Holding of regular meetings① June 7, 2013
“The Use of Annual Mileage as a Rating Variable”
By Mr. Jean Lemaire (Pennsylvania University , USA)
② July 17, 2013
“ERM: Examination of Japan’s risk management system and comparison with US statistics”
By Mr. David Betcher (RGA)③ September 11, 2013
“Understanding the actual medical situation through real world data”
By Mr. Shinya Kimura (Japan Medical Data Center)2

④ October 4, 2013
“IFRS Insurance Contracts 2013 Exposure Draft – Overview and Earnings Impact”
By Mr. R. Thomas Herget and Mr. Michael Lokerman (PwC)⑤

February 17, 2014
“Designing and Implementing an Internal Model” and “Surviving the next crisis, A risk
management perspective”
By Mr. Michel Dacorogna (SCOR)⑥

March 5, 2014
“Advances in Implementing Operational Risk, Stress Testing and Risk Appetite for ORSA”
By Mr. Joshua Corrigan (Milliman)(6) Holding of Kansai Committee regular meetings①

August 26, 2013“How New Insurance Products and Services and their Solicitation Rules Should Be”
By Mr. Hiroshi Suzaki (Kyoto University)②

November 15, 2013
“Recent Topics concerning ERM and the Status of CERA”
By Mr. Yoshihiko Tsuji (Daido Life Insurance)③

March 28, 2014“2013 Report on Activities of Kansai Committee’s Sub-committees”
By each sub-committee(7) Holding of moonlight seminars
Moon light seminars under the following themes were held between November 2013 to March 2014.
①

Creation of Linear Model and Generalized Linear Model by R Programming
Mr. Kazuaki Naito (Waseda University)②

Research on the Contents of EV Disclosure Overseas – With a Focus on Case Study
Mr. Kazuyuki Doi (Towers Watson)③

Best Estimation of Life Insurance Assumption and Measuring Risk Quantity
Mr. Kentaro Sekiguchi (Axa Life Insurance)④

Practice and Challenges of Enterprise Risk Management by Non-life Insurance Companies
Seminar Division Members⑤

Current Situation of Global Financial Regulations – Beyond Solvency II
Mr. Hideyuki Ishioka (PricewaterhouseCooper Arata)
Mr. Jun Muranaga (PricewaterhouseCooper Arata)
Mr. Ryu Nishihara (PricewaterhouseCooper Arata)(8) Holding of Kansai Committee seminars①

January 14, 2014
“Property Share of Insurance Policyholders and Relevant Issues”
Mr. Keisuke Wagatsuma (Kyoto University)②

February 14, 2014
“A Study on Benefits-in-kind-type Insurance”
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“Analysis and Study on Revision of Japan’s Automobile Insurance Class System”“Estimation of Transitional Probability of Nursing Care Insurance Using Pseudo Values”“Establishment of Forex Option Assessment Method”“Assessment of VaR in Consideration of Subsidiarity”
Kyoto University, Insurance Mathematics Seminar students(9) Implementation of professionalism training
On February 24, 2014, professionalism training covering the following training was offered to fellows(including associates who have passed all subjects at this year’s qualification examination) andassociates (including persons who have passed all basic subjects at this year’s qualification
examination). 148 participants completed the training.
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. Ryoichi Nakamura (Nippon Life Insurance)
Professionalism in Non-life Insurance
Mr. Kazuhiro Kimura (NipponKoa Insurance)
Professionalism in Pension
Mr. Ikuo Katayose(Resona Bank)Mr. Yasuyuki Fujii (EY Japan)(10) Implementation of CERA training
On November 1 and 2, 2013, a 2-day group workshop was held for examinees for CERA examination.
The workshop contained lectures on risk management, ALM, etc. and case studies. 18 participants
completed the training.
(11) Implementation of actuary overseas training
The Forth Actuary Overseas Training was implemented. The participants were divided into 3 groups:
life insurance; pension; and non-life insurance. The life insurance group and pension group
participated in training in San Diego and New York from October 19 to 31, 2013. The main training
took place by participating in the annual meeting of Society of Actuaries (SOA) of USA. The non-life
insurance group participated in training in Minneapolis and New York from November 2 to 13, 2013.
The main training took place by participating in the annual meeting of Casualty Actuarial Society(CAS) of USA. There were 15 participants in the life insurance group, 5 participants in the pension
group and 6 participants in the non-life insurance group.
(12) Open discussion forum
On December 6, 2013, an open discussion forum was held at the main conference room of the IAJ, atwhich members had discussions in English with foreign actuaries.
[Related to investigation and research activities](1) Holding of Standard Mortality Advisory Committee meeting
At the 19th Standard Mortality Advisory Committee meeting held on October 24, 2013, it wasapproved to continue to use in the year 2014 the “Life Insurance Standard Life Table 2007 (fordeath)”, “Life Insurance Standard Life Table 2007 (for annuity)” and “Third Sector Standard Life
Table 2007”.
(2) Response to international accounting standards and international insurance regulation
4

The International Accounting Standards Board (IASB) and the International Association of Insurance
Supervisors (IAIS) have been energetically reviewing international accounting standards andinternational insurance regulation. The International Actuarial Association (IAA) who is an
institutional member of both organizations is carrying out contracted research and other activities as
an actuarial professional group. The IAJ is actively participating in the activities of IAA committees
and is making efforts to review economic value-based solvency regime and other issues through its
International Standards Committee, etc.
(3) Improvement of practice standards①

With the announcement by IASB of revision of IAS19 (Defined Benefit Plans: Employee
Contributions) in November 2013, necessary revisions were made to the “Guidance for Actuarial
Practice Concerning Retirement Benefits Accounting” in January 2014.

②

With the transition of the IAJ to a public-interest incorporated association, necessary revisions
were made to the “Standard of Practice for Appointed Actuaries of Life Insurance Companies”,“Standard of Practice for Appointed Actuaries of Non-life Insurance Companies”, “Standard of
Practice for Appointed Actuaries of National Mutual Insurance Federation of Fisheries
Cooperatives” and “Standard of Practice for Appointed Actuaries of National Mutual Insurance
Federation of Agriculture Cooperatives” in March 2014.

(4) 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](1) Voting at IAA Council (including electronic voting)①

In May 2013, voted for 2014 membership fee, etc.

②

In August 2013, voted for the strategic action plan, etc. of International Standards of Actuarial
Practice.

③

In October 2013, voted for the appointment of officers, etc.

④

In November 2013, voted for the location of future IAA meetings, etc.

⑤

In February 2014, voted for the revision of investment policy, guidelines, and restrictions etc.

⑥

In March 2014, voted for member qualifications, etc.

⑦

In March 2014, voted for the approval of audited financial statements (proposal).

(2) In July 2013, the IAJ, jointly with the Japanese Society of Certified Pension Actuaries, submitted
opinions on the Exposure Draft on Defined Benefit Plans entitled “Defined Benefit Plans: Employee
Contributions (Proposed amendments to IAS19)” to the International Accounting Standards Board(IASB).

5

(3) In August 2013, the IAJ, jointly with the Japanese Society of Certified Pension Actuaries, submitted
opinions on the Exposure Draft of PITF No. 39 entitled “the Exposure Draft of Practical Solution on
Transactions of Delivering the Company’s Own Stock to Employees etc. through Trusts” to the
Accounting Standards Board of Japan (ASBJ).
(4) In October 2013, the IAJ submitted its opinions on the Exposure Draft on Insurance Contracts to theInternational Accounting Standards Board (IASB).
(5) In February 2014, the IAJ submitted its opinions on the draft statement of intent for the International
Standards of Actuarial Practice concerning insurance contracts (ISAP4) to IAA.
(6) In March 2014, the IAJ, jointly with the Japanese Society of Certified Pension Actuaries, submitted
opinions on the Exposure Draft entitled “ISAP 3 Actuarial Practice under IAS 19 Employee Benefits”
to IAA.
(7) IAA Fast Track Procedure
The IAJ did not express its opposition against the application of IAA Fast Track Procedure:①

July 2013, IASB, Exposure Draft on Employee Contributions (Proposed amendments to IAS 19)②

September 2013, FSB, Consultative Document on Principles for an Effective Risk Appetite
Framework③

September 2013, IOPS, Draft Good Practice for Governance of Pensions Supervisory Authorities④

October 2013, IASB, Revised Exposure Draft on Proposals for the Accounting for Insurance
Contracts⑤

October 2013, FSB, Consultative Document on the Application of the Key Attributes of Effective
Resolution Regimes for Financial Institutions⑥

December 2013, IAIS, Draft of Common Framework for the Supervision of Internationally
Active Insurance Groups⑦

January 2014, IASB, Discussion Paper on a Review of the Conceptual Framework for Financial
Reporting⑧

January 2014, FSB, Consultative Document on Guidance on Supervisory Interaction withFinancial Institutions on Risk Culture⑨

January 2014, IAIS, Consultative Document on Basic Capital Requirements for Global
Systemically Important Insurers (G-SIIs)[Related to International Activities](1) IAA activities
The IAJ actively participated in the activities of IAA committees as well as in transmitting opinionsfrom IAA to IASB, IAIS, etc.
(2) Implementation of 41st Actuarial Seminar of East Asia (ASEA)
From September 24 to 27, 2013, the IAJ held a 4-day seminar on the status of Japan’s various systems
to which actuaries are related, with 15 participants from 6 different areas mainly in East Asia.

6(3) Dispatch of members to international conferences, etc.
The IAJ sent its members to the following international conferences, etc.
① From May 21 to 24, 2013
Mr. Yuji Morimoto

ASTIN Colloquium(In Hague, Holland)(In Hague, Holland)② From May 22 to 26, 2013 IAA Conference
Mr. Tsutomu Igarashi, Mr. Junichi Noro, Mr. Junichi Sakamoto, Mr. Tomio Murata, Mr.
Masaaki Ono, Mr. Masaaki Yoshimura, Mr. Toshihiro Kawano, Mr. Shinsuke Hashizume, Mr.
Yoshio Nakamura, Mr. Ryoichi Nakamura, Mr. Eiji Hashimoto, Mr. Yoshihiko Tsuji, Mr.
Taisuke Nishimura, Mr. Yosuke Nakano③ From June 24 to 26, 2013 AFIR/ERM PBSS Colloquium
Mr. Junichi Sakamoto, Mr. Noriaki Yokoo(In Lyon, France)④ From August 1 to 2, 2013

IAA Insurance Accounting Committee
extraordinary meeting(In London, UK)

Annual Meeting of China Associationof Actuaries(In Changsha, China)

Mr. Yoshio Nakamura⑤ From September 10 to 11,
2013
Mr. Yoshiaki Maebayashi

IAA Conference(In Singapore)⑥ From October 9 to 13,
2013
Mr. Kikuo Asano, Mr. Tomio Murata, Mr. Junichi Sakamoto, Mr. Masaaki Ono, Mr. Toshihiro
Kawano, Mr. Masaaki Shigehara, Mr. Ryoichi Nakamura, Mr. Yoshio Nakamura, Mr. Eiji
Hashimoto, Mr. Masaaki Yoshimura, Mr. Yoshihiko Tsuji, Mr. Hideyuki Yoshida, Mr. Hiroshi
Yamazaki, Mr. Yoshiaki Maebayashi
EAAC Conference⑦ From October 15 to 18, 2013
Mr. Tomio Murata, Mr. Yoshiaki Maebayashi(In Singapore)

IAA Conference(In Washington DC, USA)
⑧ From March 26 to 30, 2014
Mr. Kikuo Asano, Mr. Tomio Murata, Mr. Junichi Sakamoto, Mr. Masaaki Ono, Mr. Toshihiro
Kawano, Mr. Masaaki Shigehara, Mr. Yoshio Nakamura, Mr. Masaaki Yoshimura, Mr.
Yoshihiko Tsuji, Mr. Hiroshi Yamazaki, Mr. Yoshiaki Maebayashi
ICA Conference(In Washington DC, USA)
⑨ From March 30 to April 4,
2014
Mr. Kikuo Asano, Mr. Tomio Murata, Mr. Yoshiaki Maebayashi
AFIR/ERM, ASTIN, PBSS
(In Washington DC, USA)
⑩ From March 30 to April 4,
2014
Colloquium
Mr. Miwaka Yamashita, Mr. Yuji Morimoto, Mr. Masaaki Ono, Mr. Junichi Sakamoto, Mr. Ikuo
Katayose(4) SOA ERM Webcast 2014
The IAJ participated with SOA and others in Webinar concerning ERM held from February 27 toMarch 6, 2014.
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(5) Related to international exchange
The president of 18th EAAC Conference (Chinese Taipei) Organizing Committee participated in the2013 Annual Meeting.
[Advisory Committee](1) 2013 Advisory Committee meeting was held on March 4, 2014, where summary of business activities
in 2013 (draft), 2014 business plan (draft) and improvement of actuary brand through continuing
professional development system 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. Kazuhiro Sugimoto (Daido Life
Insurance), Mr. Ikuo Katayose (Resona Bank), Mr. Takeshi Toyodome (Nippon Life Insurance), Mr.
Motoo Nakayama (Nippon Life Insurance) and Mr. Yoshihiro Minami (Nippon Life Insurance) weresent to the University.
(2) Upon request of Osaka University to send lecturers for insurance mathematics lectures, Mr. Jun Asano(Sumitomo Life Insurance), Mr. Toshihiro Horii (Daido Life Insurance) and Mr. Kyosuke Mori
(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 (Nippon Life Insurance) was sent to the University.
(5) From May 31 to June 5, 2013, lecture series by Professor Jean Lemaire (Pennsylvania University
Wharton School) were offered by Kyoto University in cooperation with the IAJ.
(6) The IAJ has decided to become a supporting member of the Japanese Society of Insurance Science towork together with the Japanese Society of Insurance Science for the purpose of carrying out researchand other activities related to insurance.
[Related to Presentation of Awards](1) Awards presented to a person with outstanding results in the 2012 qualification examination①

Presentation of President Special Award and President AwardOn June 11, 2013, the IAJ presented the President Award to Mr. Yuki Mizota (Tokyo Marine
Nichido).

②

Presentation of award for outstanding results for each subject
On the same day, the IAJ presented an award to those who achieved outstanding results asfollows: Mathematics 14 persons; Life insurance mathematics 13 persons; Non-life insurance

8mathematics 1 person; Pension mathematics 17 persons; and Accounting, economics andinvestment theory 7 persons.
(2) Presentation of awards for outstanding research paper①

On November 7, 2013, an award was presented for the following paper at the Annual Meeting:“Study on Projection Method of Future Mortality Rate”
Mr. Yuji Kondo (Meiji Yasuda Life Insurance)②

On November 21, 2013, an award was presented for the following 2 outstanding IT-related
papers at the IT Annual Meeting:“Research on New Way of Working to Support Business Continuity Plan for Financial
Institutions (Insurance Companies)”(IT Study Group II)“The Image of the Future of Pension Service Toward Aging Society”(IT Study Group V)(3) Presentation of award for a slogan
With the IAJ’s transition to a public-interest incorporated association, the IAJ invited its members to
submit a slogan that will appeal the IAJ’s purpose and activities to the society, and as a result, theslogan “Think the Future, Manage the Risk” was selected. 2 members were awarded the Best Slogan
Award and 1 member was awarded the Good Slogan Award.
[PR and Publication Activities](1) PR activities“22nd Actuary Seminar” primarily for students was held on November 30, 2013 in Osaka and on
January 25, 2014 in Tokyo. There were a total of 83 participants, of which 23 participated in Osakaand 60 participated in Tokyo.
(2) Enhancement of information provision function
To deepen understanding of actuaries by actuary candidates and general public, the IAJ has decided tocreate “Actuary Glossary” to be posted on the IAJ’s website.
(3) Review of publications
With the IAJ’s transition to a public-interest incorporated association, the IAJ reviewed its
publications, and reduced the prices of text books and computerized (free access) previous examquestion collections, actuary journals, bulletins and supplementary volumes of bulletins to make themmore user friendly.
(4) Publication of bulletins, etc.
The following bulletins and other publications were published.
①

Bulletin②

Supplementary volumes of bulletinVol. 263“International Actuarial Association, Actuarial Viewpoints on and Roles in
Systemic Risk Regulation in Insurance Markets”
Vol. 264“Stress Testing and Scenario Analysis”

Vol.669

Vol. 265
Vol. 266
Vol. 267
Vol. 268
Vol. 269
Vol. 270“Third Actuary Overseas Training Report”“Forth Actuary Overseas Training Report”“MCEV Practice II (with EV Calculation Sheet)”“Intra-Group Reinsurance Transactions”“LTGA Technical Specifications and Findings in EU Solvency II”“53rd IT Annual Meeting Report”③

Actuary Journal
Vol. 84, Vol. 85, Vol. 86 and Special Volume “Risks and Insurance”④

2012 Qualification Examination Question Collection2013 Qualification Examination Question Collection⑤

2013 Annual Meeting Report Collection⑥

Report “Technical Study on Economic Value-based Solvency Regime: Trends in Foreign
Regulations”⑦

Other books “Non-life Insurance Pricing with Generalized Linear Model”

10