Statement in Response to Comments on Strategic Approach to DE&I

Dear CAS members and community,

Our new Strategic Approach to Diversity, Equity, and Inclusion (DE&I), announced last October, builds upon our decades-long commitment to fostering a multi-dimensional property and casualty actuarial profession. Since our announcement, we have been encouraged by an outpouring of support and energy from CAS members for our DE&I guiding principles and action plans, as evidenced by the growth in our Diversity Impact Group and increased member engagement in DE&I activities and educational opportunities. However, we have also received some questions and concerns from members who may not agree with the Board’s decision to address DE&I issues.

We appreciate member feedback and perspectives on these important topics, and after reviewing letters of concern regarding the Strategic Approach to DE&I (with one example attached), we reaffirm our support for this approach, while acknowledging the need to address certain concerns and provide clarity on several points.

Members inquired about the potential for our efforts to be viewed as political or issues of public policy. Article IX in the CAS Constitution about Public Expressions of Professional Opinion states that “No opinion with respect to questions of public interest shall be publicly expressed by, or on behalf of, the Casualty Actuarial Society…” We do not view the CAS approach to DE&I as political in nature nor does it relate to public policy, which is the spirit behind the Article. Changes in the views of any political party on this issue would have no bearing on our commitment to DE&I or our approach to race and insurance. In addition, we note that the CAS efforts on DE&I activities are consistent with our Mission Statement and industry-wide efforts to include a range of backgrounds among insurance employees and participants. Finally, in our 2018 Quinquennial Membership Survey, over 70% of respondents agreed or strongly agreed that the CAS has a role to play in helping to build a more diverse profession.

Many members may be unfamiliar with the term “equity” and struggle to understand why it is part of the CAS approach. While people from different backgrounds have the same potential to excel in our profession, the principle of “equity” incorporates an understanding that there are external barriers impacting certain groups more than others. Those barriers limit the access, encouragement and resources needed to pursue the actuarial career at multiple points on the career path. Equity in no way implies that we will adjust the rigor or high standards of our basic education system to achieve increased representation of certain groups. Rather, it requires that we expend resources and effort to make access to our credentialling system more equal, through building awareness of the profession, addressing financial need, and celebrating the success of role models from underrepresented groups.

The CAS has committed to setting concrete goals and maintaining transparency and accountability on progress on our DE&I initiatives. To this end, we have built a set of detailed demographic metrics for CAS members and candidates, designed to help us understand the current state of diversity in the CAS, set goals, and track changes over time. The Spotlight on Diversity 2020 series of infographics is available on our website. These infographics detail the significant and persistent underrepresentation of people who identify as Women, Black, Latinx, and Native American among CAS members, even when compared with other STEM professions.

The CAS is working on additional data collection for dimensions of diversity such as disability, sexual orientation, veteran’s status and others. As we gain more information, we will use that to inform new goals and activities designed to attract, train and retain a diverse set of future actuaries.

In addition to addressing the diversity of the profession, actuaries also have a responsibility to scrutinize the processes, systems and models we build to understand if the inputs and outcomes truly reflect fair and equitable practices. The CAS is ensuring that our members play a leading role in the discourse on racial bias in insurance, through our Approach to Race and Insurance Pricing. The four areas of focus for this approach – basic and continuing education, research, leadership and influence, and collaboration – align with the CAS Strategic Plan and Mission Statement. Undertaking this work is important to maintaining public trust in the profession and to continually evolving our practices and growing the knowledge base of our members.

We welcome further feedback from members as we continue our Diversity, Equity, and Inclusion journey, and thank all our members for engaging in these discussions to move the CAS towards our vision for the profession.

Jessica Leong, FCAS CAS President	Victor Carter-Bey CAS CEO