Communication and Stakeholder Management Flashcards
7 cards from real CAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Communication and Stakeholder Management flashcards as text
When presenting reserve estimates to a non-technical board of directors, an actuary should primarily focus on:
Answer: The range of reasonable estimates and key assumptions driving uncertainty
Non-technical audiences need context around uncertainty and key drivers, not mathematical detail.
An actuary discovers that a preliminary reserve estimate provided to management was materially understated due to a data error. The best course of action is to:
Answer: Immediately notify management and provide a corrected estimate with explanation
Prompt disclosure of material errors is required under actuarial standards of practice and professional ethics.
Which communication approach is most appropriate when an actuary's conclusion differs significantly from management's preferred outcome?
Answer: Present findings objectively and clearly explain the basis for the actuarial conclusion
Actuaries must maintain independence and present objective findings even when they conflict with management expectations.
A principal asks an actuary to present reserve results without disclosing the range of uncertainty. The actuary should:
Answer: Include the uncertainty range regardless, as omitting it would be misleading
Omitting material uncertainty information would render the communication misleading under ASOP standards.
When communicating with a regulator about reserve adequacy, an actuary should:
Answer: Be transparent about methodology, assumptions, and any significant limitations
Regulators require full transparency including methodology, assumptions, and limitations to fulfill their oversight role.
In a stakeholder meeting, a claims manager challenges the actuary's severity trend assumption, citing a different internal analysis. The actuary should:
Answer: Acknowledge the input, review the alternative analysis, and explain the basis for the selected assumption
Engaging professionally with stakeholder input while maintaining actuarial judgment reflects best practice.
An actuary preparing a Statement of Actuarial Opinion for a P&C insurer must ensure the opinion is:
Answer: Based solely on the actuary's independent professional judgment
A SAO must reflect the actuary's independent professional judgment free from undue influence.