Actuarial Code of Professional Conduct

Core Principles

The Actuarial Code of Professional Conduct establishes ethical standards for all credentialed actuaries. The code is built on principles including integrity, skill and care, compliance with standards, and dignity of the profession. Actuaries must act honestly, avoid conflicts of interest, and maintain confidentiality. They must only perform work for which they are qualified and must clearly communicate the limitations and uncertainties in their analyses. Violations can result in disciplinary action including public censure or loss of credentials.

Practical Applications

In practice, the code guides daily decisions. When your employer pressures you to understate reserves, the code requires you to maintain professional integrity. When you discover an error in prior work, the code obligates you to disclose it. When you lack expertise in a particular area, the code requires you to either obtain additional training or refer the work to a qualified actuary. Understanding the code is essential not just for professionalism courses but for navigating real ethical challenges throughout your career. The code protects both the public and the actuarial profession.