To be the best in class, actuarial departments need to not only deliver quality actuarial work products—they also need to effectively communicate useful information and insights to business leaders that will enable better business decisions. The key to success lies in communicating in a way that ensures leaders not only receive the information but truly comprehend its implications and can confidently act upon it.

This article originally appeared in CAS E-Forum. Read the full article here.

Key questions department leaders can ask

What is the appropriate size and structure of an actuarial reserving department? There’s no simplistic, one-size-fits-all approach to determining the size or structure of a reserving department; it’s important to consider the needs of each individual company.

Are the department and its processes operating efficiently and reliably? It’s essential to ensure sufficient governance and internal control around the various reserving processes (data, analysis, reporting, etc.), an outcome that can often be achieved through automation.

Are actuaries communicating clearly and concisely, both with business leaders and each other? Best practices in communication cannot be measured simply by the amount of interaction; they must also be based on the quality of that interaction.

How can a reserving department adapt to ever-changing market conditions and evolving needs? Given the lasting impacts of the COVID-19 pandemic on the insurance market, working conditions, and beyond, actuaries will need to adjust in order to provide the same high-quality service to clients as in the past.