Professional Objectivity at the Academy

The American Academy of Actuaries’ mission is to serve the public and the U.S. actuarial profession. So doing requires a steadfast commitment to the highest level of professional objectivity. To produce independent, objective, and effective actuarial information and analysis, the Academy employs rigorous processes and controls to govern its work. In addition to the outreach to all volunteers and interested parties to satisfy the conflict of interest and continuing education requirements outlined below, each year the Academy hosts an orientation session for committee chairpersons and other volunteers that includes familiarizing them with these and other processes and controls.

Conflict of Interest Acknowledgment and Continuing Education Attestation

Academy members and other individuals who serve as members or interested parties of any of its boards, councils, committees, subcommittees, task forces, and work groups, etc. (collectively “Committee”) are required to annually acknowledge the Academy’s Conflict of Interest (“COI”) Policy, which requires them to carefully consider and address any situation that may arise with respect to the members’ activity, or the activity of any member working with them, which may call into question their professional objectivity. In this acknowledgment process, all Committee members and interested parties are directed to familiarize themselves with the paper Conflicts of Interest When Doing Volunteer Work, most recently updated by the Academy in 2022. It suggests possible actions the member might consider taking if the member identifies a possible conflict of interest.

An additional requirement applies to all Academy members who are members of any Academy Committee—they must annually comply with, and attest to compliance with, the continuing education requirements of the U.S. Qualification Standards.

Background information on the COI acknowledgment and CE attestation is available here. Any question or concern about the possibility of a conflict of interest with respect to any work a member or interested party may perform on behalf of the Academy should be addressed to the member supervising the activity or to the Academy’s general counsel.

Other Processes and Resources Regarding Professional Objectivity

The Academy has other processes and controls in place supporting professional objectivity that apply to specific volunteer activities and work product. These include:

• the Academy’s “Guidelines for Making Public Statements,” which describe the Academy policy and processes that apply to any written or oral statement made on behalf of any Academy entity (i.e., board, committee, task force, or work group);
• the Academy’s “Guidelines for Developing Practice Notes,” which promote consistency of quality and style and to ensure that the practices identified in practice notes are not substitutes for conforming to the actuarial standards of practice and existing legal and regulatory requirements;
• the “Use of Academy Titles and Designations,” which provides the Academy’s policy on when a member can use the MAAA designation to identify affiliation with the Academy;
• and volunteers are to comply with the Code of Professional Conduct and adhere to the Academy’s Antitrust Policy whenever they provide services to the Academy.

The Academy provides ongoing, additional discussion and resources regarding professional objectivity and the processes and controls governing its work, including commentary and articles by Academy leadership in Academy publications.

Article by Art Panighetti, Vice President, Council on Professionalism—January 2019 Actuarial Update

Article by D. Joeff Williams, Vice President, Council on Professionalism—January 2017 Actuarial Update

Article by Kenneth A. Kent, Vice President, Council on Professionalism—January 2015 Actuarial Update

Article by Tom Terry, Immediate Past President—March 2014 Actuarial Update

Article by Cecil Bykerk, Past President—March/April 2014 Contingencies
 

Questions

Questions about professional objectivity at the Academy can be directed to objectivity@actuary.org.