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IAI Actuarial Core Principles · Business Management · Skills and knowledge for working as an actuary in financial services

An actuary at a Mumbai life insurer must present the results of a lapse-experience investigation to the board, whose members are mostly non-actuaries. Which approach is most likely to communicate the findings effectively?

The best approach is to lead with the main conclusion and its business implications, then give only the necessary supporting detail in plain language. Communication must suit a non-technical audience; burying the message in methodology or jargon, or avoiding discussion, reduces understanding and usefulness.

  1. ALead with the key conclusion and its business implication, then give only the supporting detail the board needs, in plain languageCorrect
  2. BPresent the full statistical methodology first so the board can verify every step before hearing any conclusion
  3. CUse technical actuarial terminology throughout to show the work is rigorous
  4. DGive only a verbal summary and avoid written material to reduce the risk of misinterpretation
  5. Send a long technical report and not discuss the findings, so the board can read it at leisure

Explanation

Effective communication is tailored to the audience. A non-technical board needs the conclusion, its implications and the key assumptions in clear language, with detail available if wanted. Leading with methodology or jargon hides the message, and omitting written material or discussion fails to ensure understanding.

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