In My Opinion: Actuarial Altruism

by Walter C. Wright

A preliminary report regarding"The Actuarial Profession and the Academic Community: The Case for a Partnership" is posted on the CAS Web Site. This is an interesting document, well worth reading. One idea was particularly intriguing.

The paper includes a quote from a 1989 speech by Willard Z. Estey, retired justice of the Supreme Court of Canada, on the subject of professionalism. After providing a general definition of "profession" he identified three characteristics that surround a professional body: "(First) a program of intensive training…Second…an association in the public mind of specialized skills within the daily life and work of the professional. Third, and most importantly…a commitment by each and every member of that community towards community interest, humanitarian, and other altruistic goals overriding the immediate economic necessities of life of the professional in his daily work."

The first characteristic clearly fits the CAS. Just ask any recent Fellow if we have a program of intensive training! The number and content of our examinations ensure not only that each member of our society is knowledgeable about actuarial matters, but also that he or she has several years of practical experience.

The second characteristic also seems evident for our profession. The "public mind" may not know just what our specialized skills are, but it recognizes that we have them. A major challenge for our profession in the years ahead is to demonstrate to the public that actuarial skills, while highly specialized, have far greater application than is commonly perceived.

But the third characteristic presents a problem. Do our members share a commitment towards "community interest, humanitarian, and other altruistic goals overriding the immediate economic necessities of life"? The "community interest" test is met by our members' high level of voluntary service to the CAS, as well as to the American Academy of Actuaries (AAA) and the Canadian Institute of Actuaries (CIA). But what are our humanitarian and other altruistic goals? Do we embrace any common set of such objectives? If the answer is "no" then, according to Estey, we do not have all of the characteristics of a profession.

I asked a number of CAS members whether they think the actuarial profession has "humanitarian and other altruistic goals" and received a variety of responses. There was no consensus that this is characteristic of a profession and certainly no consensus that the members of our profession share any such characteristic. Maybe Estey is wrong. Maybe the sharing of humanitarian and altruistic goals is not a characteristic of a profession. Maybe the bit about "overriding the immediate economic necessities of life" is exaggerated.

But I think Estey is right (except for "overriding the immediate economic necessities of life"). Consideration of other well-established professions-legal, medical, religious-suggests that he is right, and consideration of the actuarial profession itself suggests that he is right.

Virtually all CAS members are also members of either the AAA or the CIA. The AAA has, as a primary goal, the contribution of independent and objective information and analysis to public policy debate. The CIA maintains, as one of its Guiding Principles: "the Institute holds the duty of the profession to the public above the needs of the profession and its members." In fact the CAS itself, through Guiding Principle 5.1 of the Strategic Plan, recognizes a responsibility "to educate the public at large on actuarial issues."

Our profession is, and should be, well known to government agencies, courts, regulators, and legislators. Our fundamental altruistic goal is to contribute our skills and knowledge to public decision-makers. We do this well at the federal and state and provincial levels, largely because of the willingness of members to contribute their time and energy to prepare objective analyses. We can increase the profession's visibility at the local level by providing information on issues of either national or local importance. And, of course, there are many other charitable efforts_such as scholarship and tutoring programs—run by the major actuarial societies, regional affiliates, and other actuarial groups.

So if you want to be of service, there is plenty to volunteer for. Contact the AAA or the CIA, or other actuarial organizations, to find out where they have a need or to see if they have resources to support volunteer efforts that you want to make. Your public service will strengthen the profession, help society, and reward you with the significant personal benefits of public service.