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

When an actuary presents a pricing recommendation orally to a sales team that is sceptical of the proposed premium increase, which behaviour best combines clear communication with influence?

The best behaviour is to explain the reasoning in terms of the team's own concerns, such as competitiveness and persistency, and to check understanding with questions. This builds understanding and buy-in, unlike repetition, relying on seniority or handing over dense papers.

  1. AExplain the reasoning in terms of the team's own concerns, such as competitiveness and persistency, and check understanding with questionsCorrect
  2. BRepeat the technical conclusion more firmly until the team agrees
  3. CAvoid discussing the reasons to prevent debate
  4. DRely on the actuary's seniority and professional title to close the discussion
  5. Hand out a dense technical paper and leave questions to be sent by email

Explanation

Influence comes from framing advice around the audience's interests and checking comprehension. Repetition, authority or withholding reasons do not build understanding or buy-in, and a dense paper without discussion does not address scepticism.

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