The most difficult problem which faces the young actuary is undoubtedly that of explaining to his non-actuarial friends and relatives exactly how he earns his living. This problem is one small part of the more general problem of communication between the actuarial profession and the outside world. A further specific aspect of the problem arises, for example, when a valuation has been completed and its results have to be expressed in the form of a report to be read by a group of non-technical people.

The purpose of this paper is to discuss some of the principles which should be followed when writing such a report. There is more than one such possible set of principles and other actuaries may have rather different views on the preparation and presentation of reports. The basic approach which gives rise to the principles is, however, fundamental to report writing and this is the need for communication between the actuary and his client.