Professionalism Counts, July 2026
Confidentiality is the lynchpin of trust. Without it, professional relationships can fall apart. With it, the trust that it engenders gives principals the confidence to share information actuaries need to do their work well.
Because actuarial work generally requires a significant amount of data and other information that is often not publicly available, actuaries often gain access to confidential information, which the Code of Professional Conduct defines as “Information not in the public domain of which an Actuary becomes aware as a result of providing Actuarial Services to a Principal. It includes information of proprietary nature and information that is legally restricted from circulation.” That might include items such as proprietary software, data, personal health and financial information, financial transactions, and experience studies.
By preserving confidentiality of the information they gain access to while providing actuarial services, actuaries strengthen the bonds of trust between themselves and their principals. But it is not only the principal who benefits from the actuary maintaining confidentiality.
Most immediately, individuals and businesses whose data the actuary has access to benefit if the actuary keeps their personal information confidential. But more broadly, members of the public benefit, too. This is because one of the benefits of the trust between an actuary and their principal is that the actuary generally gains access to more and better information than they would if that trust were absent. Better information, in turn, helps the actuary to provide more accurate results, which are often used to make important decisions that affect members of the public. Thus, by maintaining confidentiality, actuaries help stakeholders make better decisions—to the benefit of all.
But in some situations, breaking confidentiality may be appropriate. The Code recognizes this by providing for exceptions in two situations: where the principal authorizes the disclosure to another party; and where law requires such disclosure. In cases where the principal authorizes disclosure, the actuary would do well to document that authorization.
Examples of breaches
Actuaries, particularly consulting actuaries who provide services for many different companies, some of which may be competitors, may find themselves with access to information at one company that would be useful in their work for another company. Actuaries must resist such temptations—using proprietary information, data, methods, etc., from one principal to provide actuarial services to another principal is a clear violation of Precept 9.
Even inadvertent disclosures of confidential information are covered by Precept 9, such as confidential information being stolen due to lax cybersecurity measures or accidentally saying too much online or over lunch. Of the two instances where the Academy imposed discipline for a material violation of Precept 9, one was for “disclosing confidential information without authorization to do so on an electronic message board….” (The other was a clear breach of confidentiality in connection with an insider trading scheme.)
Where confidentiality is concerned, there can be gray areas, for example, data that was based on publicly available data or general knowledge gained during an assignment. In such cases, actuaries should exercise judgment with care, preferably erring on the side of discretion.
Upholding Precept 9 by maintaining confidentiality of the proprietary, sensitive, or simply non-public information you have access to through your work builds trust with principals and other stakeholders, thereby helping to uphold the reputation of the profession.