The Future of the Actuaries: The Exponential Actuary™

Pioneering the future of the actuary

AI. Automation. Machine learning. The rise of technology is rapidly creating a new future of work. And it’s gathering speed, redefining jobs, and transforming entire professions by enabling humans and machines to work side by side. In addition, evolving global and local regulatory requirements promise fundamental change. These collective forces are dramatically changing the future of actuaries in an exciting way—opening opportunities for actuaries to take on dynamic, new business roles.

Long recognized as key contributors of business insights around risk and data analysis, actuaries often find themselves overwhelmed with highly manual, machine-type work. Advances in technology are enabling actuaries to automate and augment their work, boosting them into higher-value, more strategic roles focused on insight generation and key decision-making. Deloitte’s Human Capital team helps clients optimize actuarial talent to meet growing strategic, regulatory, and data-driven needs and elevate the actuarial function to a whole new level. Our approach is not just technology-driven, but also encompasses work, workforce, and workplace to ensure permanent, consistent, and deeper value across the organization.

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Why evolve to actuaries of the future?

Insurance companies are facing disruption at an unprecedented pace due to increased demands placed on the actuarial workforce, such as the need to:

• Consolidate or improve data capabilities, processes, and actuarial and finance systems
• Respond to concerns regarding quality, such as input errors and lack of consistency
• Develop cost reduction and related strategies to improve efficiency
• Keep pace with rapidly evolving regulatory changes, such as IFRS 17 (International Financial Reporting Standard), Principle-Based Reserving (PBR), and US GAAP Targeted Improvements
• Respond to rating agency developments, such as an innovation score component by A.M. Best¹

To meet these growing demands while also acting as strategic advisers to the businesses they serve, leaders today expect more from their actuarial teams, and those that complement their actuarial function with automation and AI are better positioned to meet their objectives. In fact, 17% of global executives surveyed report that they are ready to manage a workforce with people, robots, and AI working side by side,² and our experience shows that this will likely increase quickly.

Moreover, Deloitte’s 2019 Human Capital Trends Report³ revealed that many employees experience unmet job aspirations, due in part to work that is not challenging. The report also found that organizations, in order to achieve success, usually need to become better connected, reflecting employees valuing a social environment. A smart, forward-thinking strategy leveraging technology can shift workers’ activities such that they are less repetitive and more motivating; and a well-communicated approach to merging human and machine productivity will not only decrease apprehension about inevitable evolution, but provide an enhanced sense of connectivity to coworkers and the firm.