Decision-making &

Communications –

Actuarial Competency

FrameworkJimmy Ye & Emily Taylor

July 28, 2018

Actuarial Competency Framework

Source:

https://www.soa.org/

professional-

development/competency-framework

Decision-Making Process

10 Step Decision-Making process

‘How Great Decisions Get Made’ by Don Maruska

Required reading for SOA DMAC module

Decision-Making Process

Enlist everyone

Discover shared hopes

Identify all options

Get everything on the table

Map solutions that support shared hopes

Stay charged up

Heuristics and Cognitive Biases

Availability bias

Confirmation bias

Framing bias

Anchoring and adjustment

Mental accounting

Availability Bias

Commercial air travel

safety

14 fatal air accidents

worldwide in 2017

Confirmation Bias

Source:

https://www.forbes.co

m/sites/peterlazaroff/2

016/09/28/confirmation-bias/#7bf022754b7d

Framing Bias

Mental Accounting

Money is fungible

Anchoring and Adjusting

Guess the number of candies in

the jar

1)50

2)53

3)52

4)49

5)48

6)51

TED Talk: "Talk Nerdy to Me"

Relevance: "Get to the Point!"

Avoid Jargon

Other Keys to Effective Communication

Know Your Audience

Is everyone an Actuary?

What is their experience level?

Is there a target member of the audience?

Watch for Non-Verbal Cues

Eye Contact

Facial Expressions

Body Language

Practice, Practice, Practice!

Q & A