Chapter1-Actuarial Advice

Question 1

Framework

Answer 1

1 Public sector stakeholders
2 Stakeholders in a pension scheme
3 Areas of advice to employers
4 Areas of advice to board of directors of an insurance company
5 Areas of advice to sponsors of a benefit scheme
6 Areas of advice to Government
7 Sources of information on client
8 Types of actuarial advice 
9 Factors to consider when giving advice
10 Examples of advice vs decisions
11 Standards and professionalism framework
12 Aims and application of TASs
13 Four TASs
14 Materiality 
15 Actuarial Quality Framework

Question 2

Types of actuarial advice

Answer 2

Factual (based on research of facts, eg legislation)

Indicative (giving an opinion without fully investigating the issues, such as answering a direct oral question)

Recommendations (researched and modelled forecasts, alternatives weighted, consistent with requirements, peer-reviewed)

Question 3

Materiality

Answer 3

Something is material if, at the time the work is performed, the effect of a moving away from the TAS principals (or the combined effect if there is more than one area where the work moves away) could influence the decision to be taken by the users of the resulting actuarial information.

This means that a principle in a TAS can be ignored if it is felt that its inclusion would not have a material effect on a decision.