1. Actuarial Advice Flashcards
Give 4 examples of clients advised by Actuaries
- Policyholders
- Benefit Scheme members
- Employers
- Employees
Give 4 examples of the clients that Actuaries advise within an insurance firm
- Board of Directors
- Shareholders
- Auditors
- Creditors
Give 3 examples of the clients that Actuaries advise within the public sector
- Regulators
- Government
- Central Bank
Name 6 parties who will be impacted by the expansion of an Insurance firm & how they’ll be impacted
- Policyholders - premiums
- Reinsurers - more NB written
- Shareholders - dividend rate
- Government - tax contributions
- Employees - benefits
- Regulator - level of work
Name 4 parties who will be impacted by advice to a Pension Scheme on their investment policy
- Fund managers
- Scheme members & their dependants
- Employer who sponsors the scheme
- Providers of capital to the sponsor
What is the main desire of a creditor?
That funds owed will be paid
What is the main desire of a prospective policyholder?
Protection against the insured event - death, property damage…
What is the main desire of a benefit scheme member?
Provision of future benefits contingent on a future event
What is the main function of the central bank?
Advise on monetary policy
Name the 3 functions of benefit scheme Trustees
- Managing assets
- Payment of benefits
- Maintaining solvency
Name 4 functions of an Insurance firm
- Setting premium rates
- Asset management
- Legislative compliance
- Determining the necessary level of provisions to meet future liabilities
When would it not be suitable for an actuary to provide advice?
If they are not aware of a client’s background, culture or ethics
Whose interests should an actuary’s “best solution” take account of?
The interests of all stakeholders
What is the main consideration relating to client attitude when giving actuarial advice?
Risk apetitie
Name the 2 types of actuarial advice
Indicative
Factual
What is indicative advice?
An opinion given without full investigation
Name the 4 key components of giving advice
- Explain reasoning
- Explain implications
- Provide alternatives
- Disclose any assumptions made
Name the 3 key components of making a judgement within a firm (think about what you do when finishing a piece of work)
- have a peer review
- provide robust evidence
- document rationale
Name the 6 components of the Actuary’s Code
- Intergrity
- Competence & Care
- Impartiality
- Compliance
- Speaking up
- Communication
What is the aim of the TASs
Ensure users of actuarial information can place reliance on information being transparent & complete
What does FRC stand for?
Financial Reporting Council
What is the aim of the FRC Quality Framework?
Provide communication between an actuary and the stakeholder
What is TAS100?
Principles for Actuarial work
What is TAS200?
Insurance
What is TAS300?
Pensions
What is TAS400?
Funeral Plan Trusts
