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IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies

Priya, an actuary, is asked to speak to the press about an industry mortality study. She has only a partial understanding of one assumption in the study. Which approach best accords with the Actuaries' Code?

Priya should communicate clearly, explain the study's limitations and uncertainty, and avoid claiming knowledge beyond her competence. The Actuaries' Code requires competent, honest and non-misleading communication, so overconfidence, disclosing confidential data or an unbriefed spokesperson would be improper.

  1. AState the conclusions confidently to maintain the profession's reputation
  2. BCommunicate clearly, state the limits and uncertainty of the study, and avoid claiming expertise beyond her competenceCorrect
  3. CDecline to speak and tell the press the study is wrong
  4. DShare the client's confidential data to support her explanation
  5. Let a non-actuary speak on her behalf without any briefing

Explanation

The Code requires competence and clear, honest communication that does not mislead. Stating the limits of the work and of her own knowledge meets this. Overconfidence misleads, and disclosing confidential data breaches confidentiality.

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