IAI Actuarial Core Principles · Business Management · Professionalism and ethics case studies
Vikram, an appointed actuary of an Indian insurer, believes that the board's chosen bonus policy will, in his judgment, endanger policyholders' reasonable expectations. He has set out his concerns to the board in writing and they have decided not to act. Which course is most consistent with professionalism and the public interest?
Vikram should use the proper statutory and professional escalation routes, including reporting to the regulator where required, and disclose only what is necessary. Public-interest duties can override confidentiality to the employer, but leaking to the press, staying silent or delegating the signature would not meet professional standards.
- AAccept the board's decision, because the board holds final authority on all matters
- BResign quietly and give no reason, so as not to embarrass the company
- CLeak his concerns to the press to pressure the board
- DFollow the statutory and professional routes for escalation, including reporting to the regulator where required, keeping the disclosure confined to what is neededCorrect
- Ask a junior colleague to sign the report instead so that he is not associated with it
Explanation
Where an actuary has a statutory or professional duty to the regulator or the public interest, confidentiality to the employer does not prevent proper escalation. The disclosure should go through the proper channels and be limited to what is necessary. Public leaks, silent resignation, passivity or delegating signature do not discharge the duty.
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