The cost benefit analysis (CBA) method requires both a quantitative and qualitative analysis of the problem statement. It is an effective tool to enable public policy analysis, but it is not without criticism.

CBA is a practical guide to social decision-making Brent (2006). Posner and Adler (1999)  considered situations in which government agencies should use CBA. They concluded that CBA is a useful decision procedure and should be routinely used by government agencies. This methodology has the following advantages: enables agencies to account for relevant influences on overall well-being and to weigh the advantages and disadvantages of an intervention in a systematic way.

Posner and Alder acknowledged that CBA enables government to select an intervention that maximizes overall well-being, but this is not the only consideration that governments have. Not only is this tool useful in public policy analysis but it also employs actuarial techniques. It is thus important to examine how public policy analysis can be enhanced using actuarial techniques as in CBA. This presentation will explore how actuaries can use CBA to enhance public policy analysis.

Practical outcomes

• This is a potential new wider field and the presentation will demonstrate how this can be achieved
• The audience will get to understand how CBA works in public policy analysis.
• They will be able to see how actuarial techniques are applied
• To see how actuaries can add value to the field of public policy analysis.