IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies
Meera, a Fellow Actuary at an Indian life insurer, is asked by her CFO to sign an actuarial report with a conclusion she believes is not supported by the data. The CFO says the board expects a favourable result. Under the Actuaries' Code, what should Meera primarily do?
Meera should refuse to sign a conclusion she does not believe the data supports, explain her reasoning, and escalate if needed. The Actuaries' Code requires integrity and non-misleading advice, so employer pressure or a private note of disagreement cannot justify signing.
- ASign the report, since the employer is her client and its wishes take priority
- BSign the report but add a private note to the CFO recording her disagreement
- CDecline to give an opinion she does not believe is supported and explain her reasoning, escalating if necessaryCorrect
- DResign immediately without informing anyone of the reasons
- Sign the report and ask a junior colleague to review it afterwards
Explanation
The Code requires integrity and that advice be honest and not misleading. An actuary must not give an opinion she does not believe is supported, regardless of pressure. The option to sign with a private note still puts a misleading report into circulation.
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