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IAI Actuarial Core Principles · Business Management · Using data, company functions, people skills, influence and clear communication

A pricing actuary at a general insurer maps stakeholders for a proposed motor premium increase. The regulator has high power but low day-to-day interest, while the claims team has low power but high interest. Using a power-interest grid, how should the actuary treat these two groups?

High-power, low-interest stakeholders such as the regulator should be kept satisfied, while low-power, high-interest stakeholders such as the claims team should be kept informed. The grid lets the actuary allocate engagement effort sensibly rather than treating everyone identically or neglecting anyone.

  1. AKeep the regulator satisfied with appropriate engagement and keep the claims team informedCorrect
  2. BManage both closely with identical intensive engagement
  3. CMonitor the regulator minimally and keep the claims team satisfied
  4. DIgnore the claims team because of its low power, and inform the regulator only after implementation
  5. Keep the regulator informed only and give the claims team the key decision rights

Explanation

On a power-interest grid, high power with low interest means keep satisfied; low power with high interest means keep informed. Option 2 ignores prioritisation, and options 3 to 5 reverse or neglect the categories.

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