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

During a client meeting, an actuary notices that the client's finance manager appears confused but says nothing while the actuary explains a technique for valuing guarantees. What is the best communication response?

The actuary should pause, check understanding with an open question, and re-explain using a simpler analogy or example. Noticing non-verbal cues and confirming comprehension makes communication effective, whereas carrying on, patronising the client or giving only a result leaves the confusion unresolved.

  1. AContinue at the same pace, since the client would speak up if needed
  2. BPause, check understanding with an open question, and re-explain using a simpler analogy or exampleCorrect
  3. CHand over a detailed formula sheet and end the meeting
  4. DTell the client the topic is too technical to be understood by non-actuaries
  5. Skip the explanation and give only the final number

Explanation

Good communicators watch for non-verbal cues and check understanding. An open question and a simpler example invite the client to engage. Continuing, handing over formulae, patronising the client, or offering only a number all fail to secure understanding.

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