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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

An IAI member working as appointed actuary of a Pune general insurer finds that the board wants a reserving report softened to avoid regulatory attention. The member believes the original estimate is sound. Which course of action is most consistent with the Actuaries' Code and the public-interest role of the profession?

The actuary should maintain the sound professional opinion, explain the basis to the board and refuse to sign a report that misrepresents it. Integrity and the duty not to mislead override employer pressure, while press disclosure or delegation would be improper.

  1. AAmend the report as the board requests, since the employer is the client and has the final say
  2. BResign silently and take no further steps, leaving the report unchanged
  3. CKeep the professional opinion, explain the basis to the board, and refuse to sign a report that misrepresents the actuary's viewCorrect
  4. DSend the original report to the press to put public pressure on the board
  5. Delegate the report to a junior colleague so that responsibility moves away from the member

Explanation

The Code expects integrity and that work not mislead users. The actuary should explain the reasoning and decline to put their name to a misleading report. Yielding breaches integrity, going to the press breaches confidentiality without proper process, and delegating does not remove responsibility.

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