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  Answer Me This

  Answer Me This

  • Synopsis: 

    Bianca, an actuary, is finalising some pricing work and decides to call her colleague to discuss as she has some concerns that the results are not right for the consumers. Her colleague Tim reminded Bianca that the client is only paying for technical actuarial input, but Bianca is concerned that if they don’t call out the risks and alternatives that it will look like an endorsement. Can Bianca consider the limited scope without considering a wider duty of care?

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  • Discussion points: 

    • Can the actuary consider the limited scope (without considering a wider duty of care)? 
    • How can the actuary get stakeholders on board? 
    • What should the actuary do next?

• Answer Me This: Discussion Points and Feedback

  Answer Me This: Discussion Points and Feedback

  • Discussion points and feedback: 

    Can the actuary consider the limited scope (without considering a wider duty of care)? 

    • Actuaries have a duty of care to the wider public, under the Actuaries Code… 
    • … there may also be local regulatory requirements the actuary needs to consider, such as the UK’s Consumer Duty. 
    • Actuaries are expected to clearly call out the limitations of their work, in line with Communication principle of the Code. 
    • The Actuary may feel obliged to escalate the matter to comply with the Speaking up principle. 

    
    

    • How can the actuary get stakeholders on board? 

    • Discussion on the value of professional standards and why fees may be higher than for those not subject to the same standards.
    • Explaining the obligations the actuary is under to consider the wider picture and communicate clearly. 
    • Ensuring the scope of their review, including any limitations or reliances that can/ cannot apply, are clearly set out and agreed before starting work. 

    
    

    • What should the actuary do next? 

    • The actuary should ensure that they have communicated their concerns at the appropriate level… 
    • … this could be escalating to their manager or the client. 
    • They may wish to discuss the matter with a colleague or trusted third-party … 
    • … this could be through the IFoA’s Professional Support Service… 
    • … being careful not to divulge any confidential information (unless under circumstances where the actuary has another competing obligation to do so).

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