Communications
Communications
This domain tests whether candidates can explain actuarial work clearly to non-actuaries, choose appropriate evidence and communicate uncertainty professionally. It rewards structure, audience awareness and data integrity.
Core rules and concepts
- Define audience, purpose and required action before drafting.
- Lead with the key message, then support it with evidence, drivers and limitations.
- Use plain language, define technical terms, and match charts to the message.
- Distinguish facts, assumptions and judgements. Quantify uncertainty with ranges or scenarios rather than false precision.
- Professional communication is accurate, balanced, timely and confidential where required.
Worked example
A board asks why the solvency ratio fell from 180% to 155%. A weak answer starts with market commentary. A strong answer states the headline, identifies drivers, quantifies each, and gives actions. For example: ratio fell 25 points; equity falls contributed 15 points, credit spread widening 8 points, and model changes 2 points; management actions and hedging reduce the gap; the ratio remains above the 150% control level but with limited buffer.
Traps
Burying the conclusion, using unexplained jargon, presenting a single-point forecast as certain, and choosing a misleading axis or scale. Also omitting the action required from the audience.