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IAI Actuarial Core Principles · Business Management · Issues and challenges in each main practice area

Actuaries in India are increasingly working outside traditional life and general insurance, for example in enterprise risk management at banks and in analytics for start-ups. What is the main reason the profession encourages this wider practice?

The profession encourages wider practice because actuarial skills in modelling uncertainty and financial risk transfer well to areas such as banking, enterprise risk management and analytics. This keeps the profession relevant and expands opportunities, while professional standards still apply everywhere.

  1. AActuarial skills in modelling uncertainty and financial risk are valuable in many fields, widening the profession's relevance and career opportunitiesCorrect
  2. BActuaries are not allowed to work in insurance any more
  3. CBanks and start-ups do not face any uncertainty
  4. DWider practice removes the need to follow the Actuaries' Code
  5. It allows actuaries to avoid examinations

Explanation

Skills in modelling risk and uncertainty transfer to banking, ERM, analytics and other sectors, which helps the profession remain relevant. Professional obligations still apply wherever actuaries work. The other options are incorrect.

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