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IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance

A member of the IAI Council, Rohan, is also a director of an insurer that has applied for an actuarial services contract from the Institute's committee on which he sits. What is the most appropriate governance response?

Rohan should declare the conflict and step back from discussion and voting on the matter, with the disclosure recorded. Governance principles and the Actuaries' Code require transparent management of conflicts, so voting, staying silent or relying on a private understanding with the chair would all be inappropriate.

  1. ARohan should vote, because his expertise benefits the committee
  2. BRohan should disclose the conflict and withdraw from deliberation and voting on the matterCorrect
  3. CRohan should stay silent, as conflicts matter only when money is paid to him personally
  4. DRohan should resign from the insurer's board immediately and then vote
  5. Rohan should vote only if the chair agrees privately and nothing is recorded

Explanation

Good governance and the Actuaries' Code require that conflicts of interest be disclosed and managed, normally by recusal from the decision and recording the disclosure. Silence, private arrangements or voting despite the conflict undermine transparency. Resigning is not required to manage a single conflict.

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