What should an actuarial firm and supervising actuary possess?

An actuarial firm and the supervising actuary should indeed possess credentials and experience to ensure they can provide sound and reliable actuarial services. Credentials, which can include professional designations or certifications such as the Fellow of the Society of Actuaries (FSA) or Fellow of the Casualty Actuarial Society (FCAS), demonstrate that the actuary has met rigorous educational and professional standards. Experience is vital as it allows the actuary to apply their knowledge effectively in real-world scenarios, whether in valuing pension liabilities, assessing risk, or pricing insurance products.

Possessing the right credentials and experience builds credibility with clients and stakeholders, ensuring that the actuarial analyses and recommendations are based on proven methods and a deep understanding of the relevant mathematical and statistical principles. This is crucial in building trust and ensuring compliance with regulatory standards in various industries.

While having a high-profile client list, extensive marketing materials, or a large office staff might contribute to a firm’s success, they do not necessarily guarantee that the firm or the actuary can deliver the technical expertise and reliability required in actuarial work. It is the qualifications and experience that underpin the firm's ability to navigate the complexities of the field effectively.