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IAI Actuarial Core Principles · Business Management · Activities of the Institute of Actuaries of India

Meera Iyer, a newly qualified Associate actuary at a Mumbai life insurer, asks her mentor why professional bodies such as the Institute of Actuaries of India require members to complete Continuing Professional Development (CPD). Which statement best captures the main purpose of CPD?

The main purpose of CPD is to keep an actuary's knowledge and skills up to date so that they stay competent in their work and protect the public interest. It is not a way to limit entry, replace exams or raise revenue.

  1. ATo keep members' knowledge and skills current so that they remain competent to carry out their workCorrect
  2. BTo restrict the number of members who can practise in a given year
  3. CTo replace the need for members to pass the Core Principles examinations
  4. DTo generate fee income for the Institute from training providers
  5. To allow members to claim seniority over non-members

Explanation

CPD exists so that a professional's competence does not decay after qualification. Knowledge, regulation and techniques change, so members must update them. It is not a revenue device, a quota mechanism or a substitute for examinations.

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