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IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code

A fresher at an Indian insurer asks why the Institute of Actuaries of India requires members to complete continuing professional development (CPD) after qualifying. Which explanation best reflects the characteristics of a profession?

CPD is required so members keep their skills and knowledge up to date, which maintains the quality of their work and public confidence in the profession. It supports competence; it does not replace a code of conduct or restrict membership numbers.

  1. ACPD generates fee income that funds the Institute's social events
  2. BCPD ensures that members' skills and knowledge remain current, supporting public confidence in the professionCorrect
  3. CCPD replaces the need for a code of conduct
  4. DCPD is needed only so that members can switch employers more easily
  5. CPD is intended to limit the number of members who can practise

Explanation

Professions maintain competence through ongoing learning, which protects users of the service and sustains trust. CPD supplements rather than replaces a code, and its purpose is competence, not restricting numbers or raising revenue.

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