Actuarial transformation

Actuarial transformation: Business challenge

Within insurance, the actuarial function has largely remained untouched by the technological advances for several decades. However, the recent shifts in the market dynamics, customer preferences, technology advancements, and regulatory landscape are forcing the insurers to explore all the possibilities to not only gain competitive edge but also, in some cases, stay relevant in the market.

We have observed that actuarial analysts perform several manual, repetitive tasks and frequently wait for the models to run that can result in hours of idle time. Ideally, the actuaries should spend majority of their time analyzing market trends, developing hypothesis and assumptions, examining the outputs, and developing insights. Instead, they spend a good chunk of their time gathering and preparing data and running models. In our experience, analysts typically spend only about 25% of their time on high impact activities such as reporting and data analysis. Moreover, the demand on their time can be unpredictable, due to variation in processes, and dependencies on other teams, systems, and upstream processes. Therefore, actuaries are under tremendous pressure to reconsider the current methods and approach towards leveraging technology for providing high quality and timely analysis to their business partners.