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How to do a professional job (various stages in doing an actuarial task…
How to do a professional job
Jobs that actuaries do
assess, quantify, manage and monitor risk
advise on reinsurance and other risk transfer mechanisms
build and test models that project and discount cashflows. Handle data, use economic and demographic analyses to estimate assumptions and decide on margins
manage future liabilities. They advise on cont rates, premium rates and investment strategy
Monitor experience. Compare A vs E experience, analyse variation and manage it
Statutory roles- usually required to certify that...
valuation of liabs- proper records kept and proper provision for liabs made
liabs valued in context of assets and both valued in accordance with legislation
correct statement of surplus produced
premiums or conts adequate, given reasonable assumptions and the level of free assets, to meet future liabilities
professional guidance has been complied with
framework of the UK actuarial profession
Institute and Faculty of Actuaries (IFoA)
IFoA standards- developed since the intro of current professionalism framework in 2006.
Actuaries' Code
Financial Reporting Council (FRC)
TASs
Aim to ensure users of actuarial information can have confidence in its relevance, transparency of assumptions, completeness and comprehensibility
Apply to work done in relation to UK operations of entities and any non-UK operations that report in the UK.
Generic TASs
TAS R (Reporting)
TAS D (Data)
TAS M (Modelling)
Specific TASs
TAS I (Insurance)
TAS P (pensions)
TAS T (Business transformations)
Independent of IFoA
characteristics of a professional
Taking responsibility for decisions
Acting with integrity and detachment from personal circumstances
developing a direct and trusting relationship with client
recognising views of others
achieving, demonstrating, maintaining and improving competence in necessary skills to provide advice
Being reliable (detail, quality and timeliness)
Communicating well
Knowing your client
Obtaining sufficient background info to put task into context
Knowing for whom in firm work is being performed
Any conflicts within firm?
Complaints procedures
how to manage conflicts of interest
decline assignment
disclose conflict to concerned parties
Chinese walls to separate staff and electronic data
Keep detailed records
Relevant legislation
An actuary with statutory responsibilities may have to notify regulator of conflicts
various stages in doing an actuarial task
Who client is. Any conflicts?
What problem is and how broken down
Agreeing scope (qs to be answered, timescales, resources)
understanding and competence of actuary.
data, assumptions and methodology used
checking results and peer review
how to report and communicate results
implications of results
implementation of results
professionalism