By Virginia Hulme
Why self-regulation matters—and how actuaries at every career stage play a vital role in maintaining the integrity and trust of the profession.
Editor’s Note: This is the first in a two-part series exploring professionalism in the actuarial profession. Be sure to read the second part, which will examine the challenges to professionalism, in the January/February 2026 issue of Contingencies.
As a self-regulated profession, the actuarial profession relies on its members to uphold high standards of conduct, qualifications, and practice—and to help enforce those standards when they are not met. Over the last few decades, the actuarial profession has developed a strong framework to help actuaries maintain a high level of professionalism: the Code of Professional Conduct, U.S. Qualification Standards (USQS), actuarial standards of practice (ASOPs), and a counseling and discipline process. Impressively, all of these have been created by—and are being maintained by—devoted volunteers. But beyond those dedicated volunteers who spend many hours each year ensuring the standards keep up with changes and help actuaries meet them, every actuary has an important part to play in upholding professionalism and thus self-regulation.
Professionalism: Key to Public Trust and Self-Regulation
The actuarial profession has remained largely self-regulated because the public can trust it to do the right thing. “Professionalism is foundational to the actuarial profession—it’s what builds trust, ensures accountability, and upholds the integrity of our work,” says Laura Hanson, vice chair of the Actuarial Standards Board (ASB). “As actuaries, we’re often relied upon to provide objective, data-driven insights that influence major financial decisions. Without a strong commitment to professionalism, trust can quickly erode.”
One of the main benefits of self-regulation is that it allows the profession to respond to change rapidly and effectively. “The work that we do as actuaries is very technical, such that the standards that guide our work need to be intimately understood by those writing those standards,” says Michelle Iarkowski, vice chair of Committee on Property and Liability Financial Reporting (COPLFR) and ASB Casualty Committee member. “By creating our own standards for entry to the profession, execution of actuarial services, and enforcement of those standards, we enable knowledgeable individuals to swiftly react to changes in the industries and environments in which we operate. For example, it is easier and faster for the actuarial profession to revise an ASOP than it would be to change a law set by an outside party.”
The expertise that makes actuaries best placed to write standards for the profession is also the reason actuaries are best placed to enforce them. “The Actuarial Board for Counseling and Discipline (ABCD) is another great example of why self-regulation is valuable, in that fully qualified, experienced actuaries are the ones assessing whether an actuary has met the profession’s standards in performing actuarial services,” Iarkowski adds.
The benefits of self-regulation depend on actuaries upholding professionalism. “Self-regulation is a privilege that reflects the trust that society places in actuaries, and we must hold ourselves and each other accountable so we can keep that trust and preserve the privilege,” Hanson says.
On the flip side, actuaries have seen what happens to a profession when self-regulation is lost. “If we don’t regulate ourselves as a profession, someone else will,” says Yukki Yeung, member of the Committee on Professional Responsibility (COPR). “We’ve seen this in other industries, where a lack of internal oversight led to external intervention by federal or governmental bodies. That often brings more rigidity and less nuance, especially when the regulators aren’t part of the profession and may not fully understand its complexities.”
Tim Geddes and Darrell Knapp have both seen this occur during their careers. Geddes, an ABCD member and former vice president, Professionalism, says that he witnessed “both secondhand (through my employer) and more closely (through the creep of pension regulation) the impact that diminished self-regulation can have on the effectiveness, success, and overall experience of professionals.”
Academy President and former ASB Chairperson Darrell Knapp, who worked for a large public accounting firm when that profession went from largely self-regulated to largely regulated, echoes that view. While abuses had occurred and needed to be addressed, he says, regulation often resulted in inefficient use of resources solely to comply with regulation and in suboptimal decisions that were safer in the regulatory environment. He stresses that abuses within a profession can lead to losing self-regulation—and that is why reporting possible violations of the Code to the ABCD is so important.
He urges fellow actuaries to “recognize that being an actuary is a wonderful profession and a privilege that requires constant vigilance. Remember the old adage that ‘one oops offsets one hundred attaboys.’”
Actuaries, Professionalism, and the Nation’s Financial Security
Many actuaries initially joined the profession because they were good at math and enjoyed using their math skills to solve business problems. But as they progressed in their careers, including serving as Academy volunteers, some actuaries became more aware of and have gained a deeper understanding of the importance of actuarial work to not just their employers and clients, but to society as a whole and the U.S. financial system in particular.
“The more work I have done with the Academy, the more I have understood the critical role that actuaries play in supporting the public,” says Tricia Matson, Academy president-elect and a former ASB chairperson. “We are the backbone of financial security systems, including an array of private insurance products as well as public financial security programs. The public needs us to ensure that those programs are sound, so that people receive their benefits when they truly need them. In light of this critical role, having a strong Code of Professional Conduct and actuarial standards of practice is critical.”
It is not a stretch, then, to say that actuarial professionalism is vital to the stability of the U.S. economy, companies, and individuals. The work of actuaries helps provide a financial safety net for individuals, businesses, and other organizations. When she meets someone who doesn’t understand what she does, Iarkowski explains that her “job as a P&C reserving actuary is to make sure that on someone’s worst day, when their house burns down or when their loved one is in a car accident, that the one thing they don’t have to worry about is if their insurance company can pay their claim.”
Actuaries—and how they uphold professionalism—play an important role in ensuring that the organizations that provide financial security to all Americans remain solvent. “The standards that enable actuaries to maintain professionalism also help us to uphold our commitment to the public,” Iarkowski says. “These concepts have become more important to me as I’ve progressed in my career, and feel the weight of the responsibility I bear every time I sign my name to my actuarial judgments, conclusions, and disclosures.”
A Deeper Understanding of Professionalism Comes with Experience
All credentialed actuaries in the United States who are members of any of the five U.S.-based actuarial organizations—the American Academy of Actuaries, American Society of Enrolled Actuaries, Casualty Actuarial Society, Conference of Consulting Actuaries, and Society of Actuaries—are bound by the Code of Professional Conduct. Through the Code, these actuaries who practice in the U. S. are also bound by the Qualification Standards for Actuaries Issuing Standards of Actuarial Practice in the United States (U.S. Qualification Standards or USQS) issued by the Academy, the ASOPs issued by the ASB, and the ABCD’s counseling and discipline processes.
Why Volunteer for Professionalism?
Tim Geddes, an ABCD member and former vice president, Professionalism: Initially, I volunteered for, and eventually served as vice president of, what is now the Retirement Practice Council. I appreciated the Academy’s active involvement with decision makers in the regulatory and legislative communities. Meanwhile, I also observed that our credibility with those stakeholders relied on the profession and the Academy’s reputation. That realization kindled a desire to work more actively to advance the professionalism part of the Academy’s mission.
Laura Hanson, vice chair of the Actuarial Standards Board (ASB): I was drawn to join the ASB because I value self-regulation in the actuarial profession. Serving on the ASB allows me to contribute to the standards that guide our work and ensure that we remain trusted advisors. It also provides an opportunity to collaborate with peers from all practice areas who are equally committed to upholding appropriate standards.
Joyce Hwu, a member of the task force revising ASOP No. 30: I had been volunteering with the Casualty Actuarial Society for a few years as an exam grader when a fellow volunteer presented an opportunity to join a task force under the ASB Casualty Committee. I always appreciate when experienced professionals are willing to lift up the next generation and was also curious to learn more about the Academy’s work.
Michelle Iarkowski, vice chair of Committee on Property and Liability Financial Reporting (COPLFR) and ASB Casualty Committee member: I began volunteering for the Academy through COPLFR in 2019, right around the time the National Association of Insurance Commissioners (NAIC) was finalizing the new qualification requirements for P&C Appointed Actuaries. After working with COPLFR on these new requirements, a friend recommended that I join the task force that had been formed to revise ASOP No. 36, Statements of Actuarial Opinion Regarding Property/Casualty Loss, Loss Adjustment Expense, or Other Reserves. From there I went on to join the ASB Casualty Committee, and I continue to work with COPLFR as vice chairperson. I really enjoy the opportunity to work with colleagues across the profession and shaping the standards that help to govern our service to the public.
Darrell Knapp, Academy president and former ASB chairperson: I have loved being an actuary—we are a volunteer-driven profession from accreditation to qualification to standard setting to discipline, and I feel the need to give back to a profession that has given so much to me. I am also called to volunteer as part of my Christian faith. As to why the ASB, I initially worked on a rewrite of an actuarial standards of practice (ASOP) I used regularly in my work, ASOP No. 28, Statements of Actuarial Opinion Regarding Health Insurance Assets and Liabilities. In my role at a big accounting firm, I recognized the importance of strong actuarial standards and how they often gave me the backbone to do the right thing, even when I was asked to take another approach. As such, I was happy to accept when asked to become a member of the ASB. Being on the ASB has been my favorite volunteer role in the actuarial profession.
Judy Liu, COPR member: I am currently a member of the Academy’s Committee on Professional Responsibility (COPR), and it feels like a natural fit. I like the actuarial profession, and professionalism is a crucial aspect of our daily practice at work. I have learned so much from other COPR members.
Tricia Matson, Academy president-elect and a former ASB chairperson: I feel obligated to give a shout out to a great steward of our profession and professionalism, Godfrey Perrott. I had interacted with Godfrey on a consulting engagement, and based on that interaction, he recommended me for the ASB. While I was an Academy volunteer, I had not done a lot of professionalism work before that. It was career changing for me!
Yukki Yeung, COPR member: I’ve always been interested in the evolving landscape of actuarial professionalism, especially in relation to emerging areas like artificial intelligence and data privacy. Joining COPR felt like the right opportunity to deepen my understanding and contribute to shaping guidance in these important areas.
While basic education provided by the credentialing organizations includes some professionalism education, a deeper understanding tends to grow with experience. “Over time, my understanding of professionalism has grown and evolved,” says Judy Liu, COPR member. “Initially, I followed in the footsteps of senior actuaries I worked with. As I gained experience, I became more independent and developed a deeper understanding of ASOPs. Eventually, I took on the responsibility of guiding others. My volunteer work with the Academy has further enriched my understanding of professionalism.”
“Professionalism is a skill, which means it must first be learned and then continue to be improved through practice,” says Joyce Hwu, a member of the task force revising ASOP No. 30, Treatment of Profit and Contingency Provisions and the Cost of Capital in Property/Casualty Insurance Ratemaking. “I used to think an ethical decision was something that could be logically deduced and the ‘right’ answer too obvious to ignore. With time (and less naïveté!), I began to understand that context matters.”
“Early in my career, I thought of professionalism mainly as following the rules and meeting technical standards,” remembers Yeung. “But over time, I’ve come to see it’s much more nuanced than that. Many situations aren’t black-and-white—they’re full of ambiguity, competing priorities, and ethical gray areas. Professionalism, in those cases, means having the courage to pause, reflect, and sometimes speak up—even when it’s uncomfortable. My work in internal audit has deepened that perspective. I’ve seen how critical it is to maintain independence, ask difficult questions, and be guided by principles rather than convenience.”
Advancing Your Professionalism
So, then, how do individual actuaries uphold professionalism? First and foremost, actuaries meet their continuing education requirements. “The professional landscape is ever-changing; to advance one’s own professionalism, one must be open to changing approaches, learning new things, and acknowledging that what you just changed may need to change again as we continue to advance,” says Geddes.
Keeping up with changes in the ASOPs is important, as the ASB has revised quite a few ASOPs in recent years. Consulting the Code often is another common habit. “I keep a pocket-sized copy of the Code, which I call the ‘little blue book,’ by my work laptop,” says Liu. “This habit has been with me for many years and was first inspired by a senior actuary I worked with when I was a new analyst. From time to time, we would refer to the little blue book for guidance and inspiration when faced with challenges.”
Professionalism can also involve seeking the wisdom and expertise of others. For example, Hanson seeks feedback from peers and mentors, especially when navigating complex or ambiguous situations, while Liu engages in open discussions with other actuaries about professionalism to gain more perspectives and avoid blind spots.
Professionalism is not something to check off once a year, but an ongoing practice. Yeung tries to stay current with the Academy’s discussion papers, especially on emerging topics like artificial intelligence (AI) and algorithmic fairness. “Serving on the COPR has been a great reminder that professionalism isn’t static—it evolves with new technologies, risks, and societal expectations,” she says. She also seeks “conversations—with peers, students, or mentors—that challenge my assumptions. Whether in an internal audit review or in the classroom, I’ve learned that professionalism shows up in the questions we ask, the judgment we apply, and how we handle disagreement.”
Senior actuaries play an important role in encouraging the actuaries they supervise to uphold professionalism, often by modeling the behavior they’d like to see. “I try to lead by example—not by having all the answers, but by being willing to ask thoughtful questions and admit when something isn’t clear,” says Yeung. “I often invite colleagues to pause and consider the ‘why’ behind a process or assumption. I also try to normalize the idea that it’s wise to revisit the Code or consult a standard when something feels off.”
Being open to questions and discussion is vital. “Most important for experienced actuaries is to be open to discussions with less experienced actuaries, to truly listen to any concerns they might be experiencing, and to respond transparently, empathetically, and clearly,” says Geddes.
Hwu echoes that sentiment, saying “Communication is key, specifically by taking an interest in others’ work and building trust so everyone knows there is always a safe place to ask difficult questions.”
When weaving professionalism considerations into her conversations with younger actuaries, Iarkowski likes to focus on the documentation requirements of ASOP No. 41, Actuarial Communications. “I really see this as the cornerstone of producing documentation—can another similarly qualified actuary clearly follow what you did from start to finish? In my experience, if this is the starting point for your documentation, many of the other documentation and disclosure requirements are naturally covered by this approach,” she says.
Gray Areas—Where Real Professional Judgment Lives
Gray areas and other difficult situations are where professionalism is most important.
When finding yourself in a professionalism gray area, actuaries advise first revisiting the Code, relevant ASOPs, and the USQS to see what guidance exists. Even after consulting professionalism resources, answers are not always clear, so it’s important to be willing to ask questions. “If something feels off, don’t ignore it. Ask questions,” advises Yeung.
Talking to colleagues and mentors is helpful, as is the ABCD’s request for guidance process. “Don’t be afraid to make a request for guidance!” Matson says. “The ABCD is a great resource for gray areas. Any actuary can reach out for a confidential consultation with an actuary knowledgeable in the subject matter.”
When working in gray areas, Hanson recommends that actuaries “thoroughly document your approach, properly disclose your findings, and utilize peer review.” Hwu also suggests seeking diversity of thought, noting, “Studies have shown that diversity of thought leads to better decision-making and outcomes. That includes even the people you haven’t seen eye-to-eye with in the past. You never know: it may turn out to be a learning moment for everyone.”
“Don’t be afraid of gray areas—where real professional judgment lives,” Yeung advises. “You won’t always find a clear answer in a textbook or standard, and that’s okay. What matters is how you think through the situation, what questions you ask, and who you turn to for perspective. This isn’t like studying for actuarial exams—there’s no perfect answer in the back of the book. Sometimes, it’s about making the most responsible decision with the information you have and being ready to explain your reasoning.”
What’s Your Favorite Professionalism Resource?
Tim Geddes, a member of the Actuarial Board for Counseling and Discipline (ABCD) and former vice president, Professionalism: Picking a most useful resource is somewhat like picking a favorite tool in tool cabinet. A hammer is great for pounding in nails, but it is considerably less useful when approaching a screw. I believe the full body of resources is essential to truly guide our professionalism. I tend to view the Code of Professional Conduct (Code) as akin to the constitution—helpful with the biggest and broadest questions. I think of the ASOPs like laws that explain how to practice. The U.S. Qualification Standards (USQS) provide a better understanding of which “licenses” we have earned (you wouldn’t want someone licensed only in barbering to file your taxes). Practice notes, professionalism discussion papers, and the USQS FAQs are akin to regulatory guidance when you haven’t found the precise answer in the standards. The ABCD provides an opportunity for one-on-one support through the request for guidance, but it also stands ready to fulfil a quasi-judicial function when needed. The entire structure is necessary to advance professionalism to the level we have achieved.
Laura Hanson, vice chair of the Actuarial Standards Board (ASB): The actuarial standards of practice (ASOPs), because they provide multiple benefits. First, ASOPs make us better actuaries, because they provide a basis for assuring that our actuarial services will conform to appropriate standards. Second, ASOPs bolster the reputation of the actuarial profession, because they assure the public that we are acting in the public’s interest and are held professionally accountable. Third, ASOPs can help protect actuaries in contentious situations, because they offer evidence of appropriate professional performance in the event of a dispute.
Joyce Hwu, a member of the task force revising ASOP
No. 30: Contingencies magazine, particularly the “Up to Code” articles. These regular reminders covering Code precepts and how to use the Academy’s professionalism resources within real-life scenarios are a way to stay up to date.
Michelle larkowski, vice chair of Committee on Property and Liability Financial Reporting (COPLFR) and ASB Casualty Committee member: The USQS FAQs! There are so many practical questions on that list, especially related to continuing education, that really help to clarify the requirements laid out in the USQS.
Darrell Knapp, Academy president and former ASB chairperson: All of them, because they don’t stand separately but fit together cohesively. I probably spend more time in the ASOPs than the Code or practice notes. The Applicability Guidelines is a great place to start when you don’t know what ASOPs apply.
Tricia Matson, Academy president-elect and a former ASB chairperson: I have the ASB shortcut on my phone so that I can look up the Code and ASOPs from anywhere, anytime. The Applicability Guidelines, which help actuaries determine which standards apply to which types of work, are very helpful.
Yukki Yeung, member of the Committee on Professional Responsibility (COPR): When I was newer to professionalism topics, the “Professionalism Counts” newsletter and discussion papers helped make abstract concepts more relatable. The real-world examples brought the Precepts to life and made them easier to apply. As I took on more senior roles, I found myself turning to ASOPs more frequently. Finally, the ABCD resources—especially the request for guidance—knowing there is a confidential and safe space to talk through complex or sensitive situations is reassuring.
Other Difficult Situations
Sometimes you may find yourself in a situation where you know the right answer, but you are asked to do something else. During such times, the Code, ASOPs, and USQS can provide a bulwark of support. Geddes notes that he came to rely more heavily on the Code as he progressed in his career and the questions with which he wrestled became “less black-and-white and ‘bigger’ in nature.” Knapp recalls providing actuarial support to audit clients who sometimes developed a liability balance he thought was inappropriate. At such times, he could refer to provisions in ASOPs to explain why. “I recognized the importance of strong actuarial standards and how they often gave me the backbone to do the right thing, even when I may have been asked to take another approach,” he says.
If Matson sees work that may not comply with the standards, she refers to the Code and ASOPs. “Every actuary has a responsibility to ensure actuarial work meets the Code and standards—if I see a material, apparent, and unresolved violation of the Code or standards I have to report it to the ABCD” she says. “Fortunately, I only had one example in which the issue could not be resolved and therefore required reporting.”
Everyday Professionalism
Several actuaries mention referring to the Code and ASOPs frequently. “I do this most days!” says Matson. “The Code and the ASOPs are not there for ‘problem’ situations. They guide my daily work. Every time I prepare a work product, I review the standards that apply to that work product.”
While she hasn’t had a single dramatic moment where she had to rely on the Code to navigate a crisis, Yeung has faced moments of uncertainty, especially when working on cross-functional teams where actuarial judgment intersects with business strategy, internal audit, or data science. “In those situations, I’ve often revisited the Code and relevant actuarial standards as a reference—not because I was in trouble, but because I wanted to make sure I was very familiar with it,” she says. “For example, when reviewing actuarial models in an internal audit setting, I’ve leaned on Precept 1 (integrity), Precept 3 (standards of practice), and Precept 8 (control of work product) to guide how I frame my findings and ensure my critiques are fair, accurate, and professionally sound. Even when the standards don’t give a black-and-white answer, they offer a grounding framework.”
Doing the Right Thing
Ultimately, professionalism is about doing the right thing, especially when no one is watching, says Yeung. “Professionalism isn’t about knowing everything—it’s about being willing to pause, reflect, and choose the responsible path, even when it’s not the easiest one. Being an actuary carries a public trust, and I take that seriously. Every decision we make, every judgment we apply, can have a real impact on people’s financial lives.”
Hanson echoes this sentiment, saying, “Acting honestly, with integrity and competence, means doing the right thing—even when it’s not the easiest path—but you have the support of the actuarial profession behind you.”
Virginia Hulme is the Academy’s assistant director of professionalism.