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IAI Actuarial Core Principles · Business Management · Actuaries Act, 2006 and IAI governance

Kavita, an actuary, is asked by her employer, a mid-sized Indian insurer, to certify reserves at a level she believes is inadequate. She refuses, and the employer says that as a salaried employee she must follow instructions. Which analysis is most consistent with the Actuaries' Code and professional ethics?

Her professional obligations continue despite employer pressure. She should explain her concerns, refuse to certify results she believes misleading, and escalate or seek guidance. Complying, delegating the task or publicly leaking confidential data would each breach professional duties.

  1. AHer duty to the employer overrides professional standards, so she should comply
  2. BShe should comply but record a private note, as that fully discharges her duty
  3. CHer professional obligations remain, so she should explain her concerns, decline to certify misleading results, and escalate or seek advice if neededCorrect
  4. DShe should resign immediately and publicly disclose the employer's confidential data
  5. She should delegate the certification to a junior colleague

Explanation

An actuary's professional duties, including integrity and not misleading users, apply regardless of employment instructions. The proper course is to raise concerns, refuse to certify inadequate figures, and escalate or take advice. Complying, delegating or breaching confidentiality by disclosing data publicly are all unsuitable.

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