One morning in late June, while I was going through my daily routine of having my morning cup of coffee and scanning the news, something caught my eye. I came across a news article from the Wall Street Journal with the headline, “Ernst & Young Fined $100 Million in Ethics Exam-Cheating Probe.” My curiosity was piqued. After reading the article, my first … Read More
Our Resilience
This is the final Up to Code article that I will compose. Because this is my last such essay, I am going to take the liberty of beginning on what, for me, at least, is an uncharacteristically personal note and write about a friend from my youth who died recently and was among the most impressive persons I have ever known. Dr. … Read More
Conflicts of Interest and Codes of Conduct
Conflicts of interest are one of the challenges that professionals face quite often, and they are difficult to address. They are very rarely black and white, but rather shades of gray. Sales are fraught with conflicts of interest. We are all familiar with the situation where someone who will receive a substantial commission if a sale is made represents themselves … Read More
Mythology and Actuarial Professionalism
No, this article does not describe how Actuarial Standards of Practice are handed down from Mount Olympus, nor how the Actuarial Board of Counseling and Discipline (ABCD) adjudicated the famous Sisyphus complaint! Instead, based upon issues that the ABCD have regularly encountered, I have chosen to highlight three “myths” that are commonly (and erroneously!) associated with actuarial professionalism. Myth #1: “I … Read More
Risk to the Actuary
Actuaries love to measure risk. Risk is directly involved in our calculations: Mortality/longevity risk. Morbidity risk. Turnover risk. Investment return risk. Asset/liability mismatch risk. Risk of underprovision for expenses. Risk of bad data. Risk that our models are incorrect. These are the technical areas that actuaries are trained to analyze. We love this stuff! Sometimes these can be quantified in … Read More
A Million Little Things
There is a show that I try to watch called A Million Little Things. It takes place in Boston and follows a group of close friends who are dealing with many current societal issues. I enjoy how it presents issues in a creative way that is both thoughtful and entertaining. The show also provides different perspectives on important issues. One of … Read More
Where Do You Practice?
I work for a U.S.-based office of an international consulting firm. I joined the firm more than 20 years ago when many of our clients were based in the areas local to my office. But consolidation in the insurance industry has reduced the number of local insurers and increased the international presence of many of the remaining companies. The evolution … Read More
Who Knows 14?
If you ask anyone you meet about the significance of the number 14, the reply will probably relate to Valentine’s Day which is on the 14th of February. For the historian, 14 may represent the storming of the Bastille on July 14, 1789, the inclusion of Vermont as the 14th state of the United States in 1791, or Flag Day, celebrated on … Read More
The Code of Professional Conduct and Ethics
Ever since a minimum continuing education requirement in ethics became part of the requirements for Enrolled Actuaries, I have been interested in the interplay between the Code of Professional Conduct (“the Code”) and ethics. Ethical Practice For me, the most simplistic answer of what constitutes the practice of ethical behavior is in the determination of what is right and wrong. … Read More
Follow the ASOPs, Inside and Out
Internal or external users of actuarial services—should there be a difference in the work? Not much; actuarial work should be done in a similar fashion, and the substance of communication to internal and external “customers” should be very similar. I recently was asked to participate in a career symposium for high school students who currently attend my high school (held … Read More