IAI Actuarial Core Principles · Business Management · Skills and knowledge for working as an actuary in financial services
A Chennai-based actuary is asked by a pension fund trustee to advise on funding a defined benefit scheme. The trustee has no actuarial background. Which approach to the communication of technical results is MOST appropriate?
The actuary should give a clear plain-language summary of results, key assumptions and uncertainties, with the technical detail available in supporting documents. A bare figure, unexplained jargon, or hidden assumptions would not let a non-actuarial trustee understand and rely on the advice properly.
- AProvide only the final contribution figure to avoid confusing the trustee
- BPresent full mathematical derivations and technical jargon so that nothing is simplified
- CDelegate the explanation to a junior colleague who did not work on the valuation
- DGive a clear summary of results, key assumptions and uncertainties in plain language, with technical detail available in supporting materialCorrect
- Withhold the assumptions on grounds that they are commercially sensitive to the actuary
Explanation
Technical skill includes communicating to the audience's level while remaining complete: results, assumptions, uncertainty and supporting detail. A bare figure or pure jargon fails the audience, and withholding assumptions undermines trust.
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