IAI Actuarial Core Principles · Business Management · Mission, business strategy, teamwork and time management
Kaveri Assurance's mission emphasises 'putting policyholders first'. Priya, a Fellow actuary employed there, is asked by the CEO to present a profit-sharing proposal that would favour shareholders by understating the bonus capacity of the with-profits fund. Priya recognises the proposal would mislead policyholders. Which course of action best reflects her professional obligations alongside the company's stated mission?
Priya should decline to present figures she knows are misleading, explain her concern and escalate if needed. The Actuaries' Code requires integrity and honest communication that overrides instructions from an employer, and the proposal also contradicts the company's own mission of putting policyholders first.
- AFollow the CEO, since an employee's duty to the employer overrides all other duties
- BPresent the proposal but add a note only if policyholders later complain
- CDecline to present figures she knows to be misleading, explain the concern, and escalate if necessary, consistent with the Actuaries' Code and the stated missionCorrect
- DResign immediately without raising the concern with anyone
- Delegate the work to a junior colleague so that she is not personally involved
Explanation
The Actuaries' Code requires integrity and not misleading users of her work, and this duty is not overridden by employer instructions. She should explain the concern and escalate through proper channels. The proposal also contradicts the company's own mission. Delegating or silent resignation avoids the duty rather than meeting it.
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