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IAI Actuarial Core Principles · Business Management · Communicating strategy; culture and structure in decision making; strategy case studies

An actuary at Bharat General Insurance prepares a pricing strategy update for the board, whose members are not technical. Which presentation choice best meets the Actuaries' Code expectation of communicating clearly?

The actuary should give conclusions in plain language, set out principal assumptions and uncertainties, and make more detail available. This keeps communication clear, audience-appropriate and not misleading, unlike jargon-heavy, selective or assumption-free presentations.

  1. AUse detailed technical terminology to show rigour and avoid simplification
  2. BGive only the final recommended premium rates without assumptions or limitations
  3. CPresent the key conclusions in plain language, state the main assumptions and uncertainties, and offer further detail on requestCorrect
  4. DEmphasise only favourable results so that the board feels confident
  5. Leave out the uncertainties because the board might lose confidence in the advice

Explanation

Communication should be clear, suited to the audience, and not misleading, so the key results, assumptions and limitations should be expressed plainly. Hiding uncertainty or using jargon fails the audience, and selective presentation could mislead.

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