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

An actuary at an Indian life insurer must present the results of a lapse-experience investigation to the board, whose members are mainly non-actuaries. Which approach best serves clear communication?

The best approach is to lead with key findings and their business implications, then place technical detail in an appendix. This suits a non-actuarial board, keeps the message clear and still lets interested readers check the supporting work.

  1. AOpen with the key findings and their business implications, then give technical detail in an appendix for those who want itCorrect
  2. BPresent the full derivation of the statistical model first so the board can verify every step before hearing conclusions
  3. CUse technical actuarial terminology throughout to show rigour and avoid any risk of oversimplification
  4. DGive only the final numbers without assumptions, since caveats may confuse the board
  5. Send a lengthy technical report the evening before the meeting and present no summary

Explanation

Non-expert audiences need the main conclusions and implications first, with supporting detail available separately. Starting with derivations or jargon hides the message, and omitting assumptions undermines the user's ability to rely on the advice.

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