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Leader claims actuaries shoulder directors&#39 responsibilities

The new president of the Institute of Actuaries Jeremy Goford claims that appointed actuaries have done too good a job and allowed directors to offload their responsibilities on to them.

In his inaugural address at Staples Inn in London this week, Goford also maintained that policyholders would rather have actuaries taking decisions than directors accountable to shareholders.

His comments came after the FSA&#39s with-profits review recently recommended that directors of life companies should be held accountable and that the role of appointed actuaries should be severely curtailed.

Goford said: “Appointed actuaries have been doing too good a job, to the point that directors have allowed too much of their own responsibilities to be taken on by their appointed actuaries. One might have expected some specific proposals from the FSA regarding the responsibilities of directors.

“I support the move to make company boards fully accountable for the decisions they make. We have seen in recent days in other spheres what happens when they are not.

“I am sure that policyholders would prefer the assets set aside for them to be determined by an expert subject to independent actuarial audit and governed by professional standards rather than by directors responsible to shareholders.”

Goford, who became a fellow of the Institute of Actuaries in 1971, will hold the presidency for two years.

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