IAI Actuarial Core Principles · Business Management · Characteristics of a profession and the Actuaries' Code
Rohan, a member of the Institute of Actuaries of India, is the appointed actuary of a Mumbai life insurer. The board pressures him to sign off a valuation using assumptions he considers imprudent. Which course of action is most consistent with the Actuaries' Code?
Rohan should refuse to sign a valuation he believes uses imprudent assumptions and escalate through proper legal and regulatory channels. The Actuaries' Code requires integrity and professional judgement, so board pressure is no excuse, and press disclosure of confidential data would itself breach duties.
- ASign the report but note his disagreement privately in a personal diary
- BDecline to sign the report on the imprudent basis and, if necessary, escalate within the legal and regulatory frameworkCorrect
- CSign the report because the board is ultimately responsible for the company
- DResign immediately and disclose the company's confidential data to the press
- Ask a junior colleague to sign in his place
Explanation
The Code requires integrity and compliance with law and standards, so an actuary must not put his name to work he believes is misleading. He should refuse and escalate through proper channels. Signing under pressure or leaking confidential data both breach the Code.
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