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IAI Actuarial Core Principles · Business Management · Using data, company functions, people skills, influence and clear communication

Nirmaan Finserv's customer service function reports that many policyholders call to ask about surrender values, while the actuarial function has detailed calculation tables that customers cannot understand. Which action best uses company functions to improve communication?

Actuarial and customer service teams should jointly create plain-language explanations and worked examples of surrender values and train staff to use them. This combines technical knowledge with front-line insight and gives clear communication, unlike sending raw tables, withholding information or leaving wording to IT alone.

  1. ASend customers the raw actuarial tables so they can calculate their own surrender values
  2. BStop answering surrender queries to reduce call volume
  3. CWork with customer service to produce plain-language explanations and examples of surrender values, and train staff to use themCorrect
  4. DAsk the finance function to remove surrender values from policy documents
  5. Let the IT function decide the wording of customer explanations alone

Explanation

Actuaries hold the technical knowledge while customer service knows customers' questions. Joint development of plain-language material and training combines the two and supports clear communication. Sending raw tables or withholding information does not help customers.

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