Ethical Problems Faced by Actuaries in Business & Some Possible Solutions to These Conflicts

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Cover Sheet

Executive Summary

Our group, “The Super Six” focussed our research on the problem of ethics and actuarial science. As Sholom Feldblum states “The actuary has a dual role: an objective professional providing guidance on insurance issues and a business manager promoting the goals of an insurance company” (Sholom Feldblum, pg.1). The purpose of our research was to determine the most common ethical problems an actuary faces, and the most appropriate methods to solve these problems. Solutions were necessary so that our stakeholders, current and prospective actuaries, will have more guidance when faced with these dilemmas. In the valuation sector, we found that the two main conflicts faced by the actuary were to use discounted
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Through this report, we will explore these subtopics in great detail, and offer several solutions to these three most common ethical situations an actuary encounters, as well as recommendations on how to avoid these ethical problems from ever arising.

Methods

Our primary means of research was the internet. We found most of our sources by exploring the many professional actuarial groups, and looking through their collections of articles and periodicals. We found that our best sources were from professional organizations such as the Society of Actuaries, and the Casualty Actuarial Society, both publish periodicals with reliable articles from accredited actuaries. This method of searching through articles put out by professional organizations was most effective for us because all of the articles were written by fully qualified actuaries who have first hand experience working through the ethical conflicts that we describe in our report. All our articles are first reviewed by the professional organization that publishes them, to ensure that they contain accurate, and relevant information, which allowed us to keep all our conclusions professional and our arguments strong. We also used several court documents containing actuarial testimonies about policy rates, and proper returns on investments. These documents were very useful, as all the information was very accurate given the legal process required and the extensive background checks and research that went into

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