Actuarial Practice and Stakeholders

The group of people responsible for overseeing the overall management and direction of an insurance company.

The individuals and entities who own shares in an insurance company and seek a good return on their investment.

Parties who have lent money to an insurance company and expect to be repaid on time.

Individuals or groups responsible for managing and safeguarding the assets and liabilities of a benefit scheme, like pensions.

Organizations or individuals who create and sponsor benefit schemes, like employee pension plans.

Actuaries help governments design laws that affect financial products and long-term benefits.

Actuaries make sure governments follow the laws they create for financial products and long-term benefits.

Actuaries calculate how much money the government needs to pay for its long-term benefits.

Actuaries keep track of how much money the government has set aside for long-term benefits.

Actuaries help regulators make sure people are following the rules for financial products and benefits.

The actuary needs to consider all the stakeholders, not just the ones paying for advice, to reach a balanced and informed decision.

The actuary must carefully assess the relative importance of each stakeholder's interests when they clash.

The actuary should consider all stakeholders to avoid distorting the context, even if they don't directly contribute to the actuary's fees.

Stakeholder interests can vary widely, and the actuary must be aware of these differences when making decisions.

The actuary needs to understand the potential effects of their advice on various stakeholders, not just the immediate client.

Actuaries can advise organizations that offer financial services, like insurance companies and pension funds. This advice helps these companies manage their finances effectively.

In the private sector, actuaries can be employees of the company or independent consultants. They provide advice and expertise to companies on managing financial risks.

Policyholders are the individuals who purchase insurance policies. They rely on actuaries to make sure the insurance company can pay their claims when needed.

Prospective policyholders are the individuals who are considering buying an insurance policy. Actuaries can advise them on what type of policy best suits their needs.

Employers are the businesses that offer benefits like pensions. Actuaries act as advisors, ensuring the pension scheme can pay benefits to retired employees.

Individuals or groups affected by an actuary's advice, including the client and other parties like regulators, policyholders, beneficiaries, or investors.

Actuaries advise businesses across various roles, including insurance companies, pension funds, banks, and government agencies. Their advice covers areas like pricing, reserving, solvency, investment, and risk management.

Actuaries gather specific client information like financial statements, historical data, risk profiles, and regulatory requirements to provide accurate and tailored advice.

Understanding client and stakeholder attitudes towards risk is essential. Some prefer conservative approaches, while others might be more risk-tolerant. Actuaries need to consider these perspectives when recommending strategies.

Actuarial advice must adhere to professional standards set by organizations like the Society of Actuaries (SOA) and the Casualty Actuarial Society (CAS). These guidelines ensure ethics, competence, and quality in actuarial practice.

A high-level opinion provided without extensive research.

Actuarial advice based on thorough research and analysis.

Actuarial advice that involves in-depth research, modeling, and consideration of various solutions.

The process of ensuring that actuarial advice is relevant to the specific circumstances of the client.

The communication of actuarial advice in a clear and understandable manner, including explanations of assumptions, rationale, and alternative solutions.

Professionals who review and analyze insurance company data to assess their financial health and compliance with regulations.

The government agency responsible for overseeing and ensuring the financial stability and consumer protection within the insurance industry.

Parties who provide financial resources to insurance companies, such as banks or investment firms.

The group of individuals elected to represent shareholders and oversee the company's overall strategy and performance.

Companies that offer similar insurance products and compete for the same customer base.

Actuaries help policyholders understand different insurance products and how they can protect themselves against various risks, such as death, illness, property damage, investment losses, retirement needs, long-term care, and liability claims.

Actuaries provide advice to benefit scheme members and their dependents on benefits like death, retirement, illness, and withdrawal. They ensure these benefits are financially sustainable and meet the scheme's objectives.

Actuaries help employers manage risks related to employee death or illness, protect assets, and attract and retain employees by providing work-related benefits. They also assist in meeting legislative requirements, managing costs, investing surplus capital, and quantifying surplus capital.

Actuaries advise policyholders, benefit scheme members, and employers by considering their specific needs and interests. This ensures that their recommendations are balanced and promote the long-term well-being of all parties involved.

Actuaries need to consider all stakeholders when providing advice, even if they don't directly pay for the advice. This ensures a comprehensive and balanced approach for better decision making.

Stakeholders who are directly involved in the pension scheme, such as the employer, providers of capital, scheme members, and their dependants.

Individuals or groups who are indirectly affected by the pension scheme's investment policy, such as fund managers, employees not in the scheme, and creditors of the sponsoring employer.

The actuary must consider the weight or importance of each stakeholder's interest when making decisions.

The actuary's advice on pension investment policies can also impact various other entities, such as the sponsoring company's tax liability, other insurance companies in the market, and even reinsurance companies.

The actuary's work can affect not just the immediate client (e.g., sponsoring employer), but also a wide range of related parties, both directly and indirectly.

Actuaries assess the risks involved in capital projects, including potential risk mitigation strategies. They help understand the potential future cash flows and manage financial uncertainties associated with investments.

Actuaries provide expert advice to banks on various services, including designing and managing investment and savings products, advising on monetary strategy for the central bank, and ensuring transparency for account holders regarding financial products.

Insurance company auditors may need actuarial expertise to assess provisions, such as reserves set aside for potential claims. Actuaries help them understand the financial health of the company.

Actuaries help members of investment schemes understand different investment strategies and options to achieve their financial goals, particularly for retirement savings.

Benefit scheme auditors may require actuarial advice to evaluate future liabilities for benefits, ensuring sufficient funds are available to cover pension payments and other benefits.