IAI Actuarial Core Principles · Business Management · Skills and knowledge for working as an actuary in financial services
A pension fund trustee in Chennai complains that an actuary's valuation report is accurate but unusable, being 80 pages with the conclusions on page 71. Which improvement most directly addresses the weakness in communication?
An executive summary at the start, stating key results, implications and recommended actions, best fixes the problem. The trouble is that conclusions are buried, not that the work is inaccurate; extra appendices, jargon or removing assumptions would not help the reader.
- AAdd further appendices of calculations for completeness
- BReplace tables with long paragraphs of text
- CRemove all assumptions so the report becomes shorter
- DAdd an executive summary at the start giving the key results, implications and recommended actionsCorrect
- Rewrite the report using more technical terminology
Explanation
The problem is structure: readers cannot find the conclusions. A front summary of results, implications and actions fixes this. Removing assumptions harms transparency, and more appendices or jargon worsen usability.
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