Professionalism Counts, December 2025
Jan. 1 will mark 25 years since the current Code of Professional Conduct took effect. The Code is fundamental to actuarial professionalism in the United States: Because all five actuarial organizations—the Academy, Casualty Actuarial Society (CAS), Conference of Consulting Actuaries, American Society of Enrolled Actuaries, and Society of Actuaries (SOA)—have adopted it, actuaries who are members of any one of those organizations are subject to the Code and thus to the Qualification Standards for Actuaries Issuing Statements of Actuarial Opinion in the United States (USQS); the actuarial standards of practice (ASOPs), adopted by the Actuarial Standards Board; and the counseling and discipline processes of the Actuarial Board for Counseling and Discipline (ABCD).
To kick off a year-long series looking at the Code, “Professionalism Counts” interviewed Academy Past President Ken Kent (2022–2023), who served on the committee that drafted the Code and is chairperson of the Joint Committee on the Code of Professional Conduct.
Why is it important to have one Code for the whole profession?
Before our single code was adopted, each of the five organizations had a code of conduct. However, even small differences in the description of our ethical obligations can result in different interpretations by each organization. In addition, it would be difficult for a group like the ABCD to consider different codes when trying to reach consensus on whether an actuary had strayed from their ethical obligations. Having multiple codes of ethical conduct could also be a source of confusion and concern among the public.
For all these reasons, fundamental ethical obligations should be the same for all actuaries.
What is the Code’s role in self-regulation?
Our Code clearly and concisely defines how each of us as actuaries must act to protect ourselves and our profession’s reputation. It only takes a few bad actors to impact all of us.
Right at the beginning of the Code, Precept 1 calls on all of us to act honestly and with integrity. By maintaining a high standard of honesty and integrity, we maintain trust among ourselves, those reliant on our opinions, and the public. Actuaries who embrace the Code strengthen the profession and contribute to our ability to be self-regulated.
How has the profession changed since 2001 and why is the Code still important today?
Changes over the last 25 years in insurance and technology have increased opportunities for actuaries, including in non-traditional areas. Despite these changes, including the advent of artificial intelligence, the Code remains relevant in defining how actuaries practice and their obligations to their employers and the public.
Have you ever faced a situation when you had to turn to the Code for support?
Many years ago, I had to report on three retirement systems that were partly funded by state reimbursement. The amount of the subsidies was based on the funded level of each fund, and I had inherited forms that had been used for many years to qualify for the state subsidy. I fell into the trap of signing off on forms that were done just as they had been for years. However, the financial status of the three funds had changed such that the regulations required a different way to report, which impacted the level of reimbursement.
The filings were wrong, and they were submitted under my signature.
Recognizing that you’ve made a mistake that will impact your relationship with a client and employer creates a deep distressing feeling, which anyone who has had a similar experience can relate to. It was clear to me that I had an obligation to disclose the mistake. When I did so, I discovered that sharing my findings was not just an unpleasant obligation, but the first step in resolving those feelings. In such a situation, meeting your Precept 1 obligation of honesty is your first call for help and the beginning of the path to a good night’s sleep. At the time, I had a mentor who advised me that “[Stuff] happens, and reconciling the issues is part of the work we perform.”
Actuaries work with complex analyses, and occasional mistakes and differences of opinion are inevitable. Complying with the Code in all situations allows us to maintain our responsibility to clients, employers, and the public—which is essential to maintaining our status as a self-regulating profession.