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Actuarial Science, Expert Testimony and the Canadian Legal System

Actuaries are the “Gold Standard” for expert evidence on the financial value of uncertain future events. Actuaries possess the skills, training, experience, focus on the public interest and the support of a recognized, self-regulating profession. The concern of the courts in determining the fairest result is best served by using actuaries. Why?

1. Expertise–Actuaries have a strong academic foundation along with an intensive and extensive accreditation process. The profession has a rigorous Standards of Practice (including Practice-Specific Standards for Actuarial Evidence), Guiding Principles, Rules of Professional Conduct and Disciplinary Process that have been put in place to enforce these professional requirements. All of these require an actuary to act in the public interest and to provide independent, objective advice and opinions.

2. Recognition of Actuaries in the Law–Some legislation, such as the Pension Benefits Regulations for Alberta, directly state that “a review of a plan must be made by a FCIA.” The term “actuary” has been defined in much provincial and federal legislation as a Fellow of the Canadian Institute of Actuaries or FCIA. Since 1991, the Insurance Companies Act (Canada) has enshrined the role of the “appointed actuary” in federal legislation. Actuaries have a reserved role under the Criminal Code of Canada, in the section dealing with Criminal Rate of Interest, 347 – Proof of effective annual rate.

3. Recognition of actuarial science and actuaries by the Courts–Since the late 1970s, the courts including the Supreme Court of Canada have recognized that actuarial expertise is a key factor in assisting the courts in determining appropriate values of pecuniary damages.