This topic will provide an overview of ethics in the actuarial profession, including the importance of ethical behavior, key principles of actuarial ethics, and the role of professionalism in actuarial work.
Introduction to Actuarial Ethics
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Definition
- Actuarial ethics is the set of moral principles guiding actuaries in their professional work, particularly around fairness, honesty, and public trust.
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Why Ethics Matter in Actuarial Work
- Actuaries make decisions affecting insurance premiums, pension funding, and financial solvency - errors or misconduct can harm millions of policyholders.
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Core Ethical Principles
- Integrity, objectivity, competence, confidentiality, and acting in the public interest.
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Sources of Ethical Guidance
- Professional bodies (e.g., Institute and Faculty of Actuaries, Actuarial Society of Kenya) publish codes of conduct that members must follow.
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Consequences of Unethical Practice
- Loss of professional license, legal liability, reputational damage to the profession, and financial harm to clients or the public.