Description: Description of the consulting segment of the actuarial profession as it now exists in Canada and the United States, the environment in which it has developed, and some of the unresolved problems and possible future developments. Followed by discussion papers submitted by 2 authors

Description: This study examines the relationship between the administrator of a pension plan [the principal] and the actuary [the agent]. The objective is to design a contract for both the plan administrator and the actuary so that the actuary provides the appropriate level of information to the plan administrator. The study uses a simple model- one principal [the pension fund administrator] and one agent [the actuary] in a one-period model. In standard principal-agent models, working harder means higher productive output. In this model, it means more accurate information. From Actuarial Research Clearing House 1999 Vol. 1.