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Flashcards in 1 - Actuarial Advice Deck (14)
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1
Q

List public sector stakeholders that an actuary can advise

A
  1. Central and local government departments
  2. Regulatory bodies
  3. Central banks
2
Q

List 12 stakeholders involved in a pension scheme

A
  1. Members
  2. Members’ dependents
  3. Trustees
  4. Shareholders of the sponsor
  5. Directors of the sponsor
  6. Employees of the sponsor (Who are not scheme members)
  7. Auditors / accountants
  8. Regulatory bodies
  9. Government
  10. Administrators
  11. Investment fund managers
  12. Creditors of the sponsor
3
Q

List 7 areas in which actuaries can provide advice to Employers

A
  1. Protection against financial loss arising from sickness or death.
  2. Protection of assets
  3. Provision of work related benefits that will attract and retain good quality staff
  4. Meeting legislative requirements
  5. Managing the costs of running the business
  6. Quantification of surplus capital
  7. Investment of surplus capital
4
Q

List 8 areas in which actuaries can provide advise to the board of directors of an insurance company

A
  1. Meeting legislative requirements
  2. Investment and management of assets
  3. Managing liabilities
  4. Determining provisions
  5. Premium rating
  6. Meeting policyholders’s reasonable expectations (PRE)
  7. Good corporate governance
  8. Reinsurance requirements
5
Q

List 4 areas in which actuaries can provide advice to the Sponsor of a Benefit scheme

A
  1. Providing protection benefits that meet the needs of the members and their dependants
  2. Providing retirement benefits that meet the needs of the members
  3. Managing the cost of providing the benefits
  4. Meeting legislative requirements
6
Q

List 4 areas in which actuaries can provide advise to the government

A
  1. Setting legislation that impacts on the provision of financial products
  2. Monitoring the adherence to the legislation
  3. Funding benefit provision by the state
  4. Monitoring the funding of benefit provision by the state
7
Q

List four sources an actuary can use to get information about a client

A
  1. Company accounts
  2. Other published information
  3. Client’s website
  4. Meetings and less formal discussions with the client, to help understand the client’s culture
8
Q

What are the 3 different types of advice an actuary can give?

A
  1. Factual - based on research of facts
  2. Indicative - giving an opinion without fully investigating the issue, such as in response to a direct question
  3. Recommendations - researched and modelled forecasts, alternative weighted, recommendations made consistent with requirements, work normally peer reviewed
9
Q

What are the aims of the TASs

A

To ensure that the users of actuarial information can have confidence in that information’s relevance, transparency of assumptions, completeness and comprehensibility, including the communication of any uncertainty inherent in the information.

10
Q

What is the definition of ‘materiality’ in the TASs

A

Something is material, if at the time the work is performed, the effect of a departure from the TAS requirement could influence the decision to be taken by the users of the resulting actuarial information.

This means that a principal can be ignored if it is felt that its inclusion would not have a material effect on the decision

11
Q

What are the 4 drivers of Actuarial Quality

A
  1. Reliability and usefulness of actuarial methods
  2. Communication of actuarial information and advise
  3. Technical skills of actuaries and ethics and professionalism of actuaries
  4. Working environment of actuaries and other factors outside their control
12
Q

List 5 principles of the Actuaries’ code

A
  • integrity
  • impartiality
  • competence and care
  • compliance`
  • communication
13
Q

Requirements to operate as a professional actuary

A
  • recognises VIEWS of others
  • detachment from own circumstances
  • acts with INTEGRITY
  • good COMMUNICATOR
  • gives sound ACTUARIAL ADVICE (due to competence and skills)
  • develops a direct, personal and trusting RELATIONSHIP with the client (to suitable solutions)
14
Q

Possible clients whom actuaries can advise (private sector

A

INSURANCE COMPANY:

  • prospective policyholders
  • policyholders
  • board of directors
  • shareholders
  • creditors
  • auditors

BENEFIT SCHEMES:

  • members and their dependents
  • employers
  • trustees
  • sponsors
  • auditors of the sponsors

OTHER:

  • employees
  • investment fund managers
  • members of investment schemes
  • sponsors of capital projects
  • banks