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IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code

Meera, a life actuary at an Indian insurer, is asked by her chief executive to sign off a pricing report after removing a paragraph that highlights a material adverse sensitivity. She believes the paragraph is relevant to the board's decision. Which course of action is most consistent with the Actuaries' Code?

She should keep the paragraph and communicate the material sensitivity clearly. The Code requires actuarial communications to be clear and not misleading, and employer instructions cannot override that duty, so deleting relevant material information would breach her professional obligations.

  1. ARemove the paragraph, since the employer is the client and its instructions override her judgement
  2. BKeep the paragraph and communicate the material sensitivity clearly, so that the report is not misleading to its intended usersCorrect
  3. CSign the report but mention the sensitivity orally to a colleague only
  4. DRefuse to produce any report and leave the firm immediately
  5. Remove the paragraph but note privately that she disagreed

Explanation

The Code requires members to communicate clearly and not mislead, so material information must remain in the report. Employer pressure does not override this duty. Removing the paragraph, even with a private note of disagreement, would leave users with a misleading picture.

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