IAI Actuarial Core Principles · Business Management · Skills and knowledge for working as an actuary in financial services
A newly qualified actuary at a Mumbai life insurer is asked to explain why the company's expected claims for a new term product differ from the pricing assumption. Which combination of technical skills is MOST directly needed to carry out and communicate this analysis?
The actuary needs to analyse experience data against assumptions, apply statistical and modelling techniques, and explain the findings clearly to non-technical colleagues. Audit signing, marketing or company-law drafting are not the technical skills used to investigate why claims differ from the pricing basis.
- AAnalysing experience data against assumptions, using statistical models, and explaining the results clearly to non-technical colleaguesCorrect
- BPreparing statutory audit working papers and signing the company's financial statements as auditor
- CNegotiating reinsurance treaties without reference to any data or models
- DDesigning the advertising campaign for the product and selecting media channels
- Drafting the company's articles of association and filing them with the registrar
Explanation
An experience analysis requires technical skill in data analysis and modelling, plus the ability to communicate findings to non-specialists. The other options describe audit, unrelated negotiation, marketing or company-law tasks that are not the core of this analysis.
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