The Cyprus Association of Actuaries (CAA) was organized in 1991 and formally established in 1993 by a group of young actuaries, educated in the UK and the US. Until then, the actuarial profession did not exist in Cyprus, the third largest island in the Mediterranean Sea at 9,251 sq.km. None of the local insurance companies had an internal actuary, and insurance companies and pension funds mainly contracted any actuarial related work to UK-based consulting firms.
Once preparations began, the association received vital support from several sources. The Government Actuary’s Department of the UK, and particularly the Government Actuary, generously offered their valuable time and advice in all aspects of formation. In addition, Cypriot professionals with extensive insurance and/or actuarial qualifications were eager to assist and join the new association. Moreover, external professional actuaries, mostly from the UK who were familiar with the market of Cyprus, were delighted to help further the actuarial profession.
On 25 October 1991, the Chartering Meeting was held to celebrate the formation of the CAA, and for each of the founding members to sign the First Charter document. In due course, the association became one of the founders of the International Forum of Actuarial Associations (IFAA) in 1995, which was renamed to International Actuarial Association (IAA), of which CAA became a full member in 1998, and an associate member of the Actuarial Association of Europe (AAE), formerly known as the Groupe Consultatif Actuariel Europeén (GC) in 1999. Finally, with Cyprus formally becoming an EU member state in May 2004, the association was made a full member of this body.
The involvement of the CAA in the international scene was further enhanced by its role as the host for the IAA Executive Council meeting held in January 1998, which welcomed 35 actuaries from 30 countries, including Japan, Australia, and the USA. This international engagement was amplified by the CAA’s selection to host the AAE Annual General Meeting in 2005.
The implementation process of the Cyprus new insurance law on 1 January 2003, which incorporates the related European Union directives, triggered a more formal involvement of the CAA. The association reviewed and made recommendations concerning special issues within the new law upon request of the Republic of Cyprus. Special committees within the CAA were established to examine various regulations regarding solvency margins, annual returns, valuation reports, information to policyholders, approved assets and admissibility rules, and definition of the Appointed and Internal Actuary.
In recent years, developments have been made to standardise regulatory and accounting practices among insurance companies in the EU and internationally. The CAA has played a key role in implementing the Solvency II Directive, which took effect on 1 January 2016, establishing a common regulatory framework for all insurance companies in the European Union. Furthermore, the CAA has actively contributed to the implementation of IFRS 17, the new international standard for the accounting of all insurance contracts, which has been in effect since 1 January 2023.
Currently, the association is consulted by the government and/or regulatory bodies and other organizations on a formal and regular basis. Moreover, the CAA continues to work with the government in defining the association’s statutory role in both insurance supervision and occupational pension schemes.
The CAA and its members are united by the mission to advance the actuarial profession in Cyprus for the benefit of the Cypriot society. The CAA is committed to its role of being the key body advising governmental bodies and regulators on actuarial themes and supporting actuaries in Cyprus by promoting and setting professional/education standards through member associations.