The Future of the Actuaries: The Exponential Actuary™ has been saved
The Future of the Actuaries: The Exponential Actuary™
The evolving role of the actuary and the future of work
The future of actuaries is rapidly evolving as technologies like artificial intelligence (AI), machine learning, and automation create a new future of work. Leveraging actuarial analytics, these technologies enable the role of the actuary to shift to a true business strategist, providing key insights and bridging the gap between technology and strategy.
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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Pioneering the future of work
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.
Taking your organization to its full potential
Automating a wider range of actuarial activities enables actuaries to shift from data steward to business strategist, harnessing data to generate business insights and serving as a bridge between technology and strategy. Free to leverage their sophisticated, enduring skills such as communication, critical thinking, and creativity, along with actuarial expertise, actuaries can operate at their full potential, ultimately helping organizations achieve a higher return from their actuarial professionals. This drives better workforce performance and helps maintain competitive advantage.)
Bringing the future of actuaries to life through holistic transformation
As organizations transition to the future of work, we find that work, workforce, and workplace are the three dimensions of holistic transformation. With our Workforce Transformation framework, Deloitte can help you explore each of these dimensions in depth for your actuarial function, as well as help you develop a strategy and implementation approach to reimagine and redesign work for the actuary of the future. Our “pixilation” approach decomposes jobs to a granular task level to identify targets for automation and augmentation using technology. Jobs are then recomposed, enabled by technology, so that actuaries can focus on higher-value work and more strategic outcomes.
We also help change the way organizations access, engage, and develop actuarial talent, including traditional employees, as well as the increasing range of contingent alternatives. Grounded in the desired changes in work and work outcomes, this approach to change empowers organizations to imagine the future talent they need, assess the skills and capabilities they have, and curate programs to close gaps by developing the necessary skills. By doing so, individuals, workforce segments, and the overall organization move toward achieving their full potential, creating a more fulfilling and meaningful work experience for your people.
Our approach brings this holistic transformation to life through the following components:
|Actuarial workforce options
Our workforce options help organizations implement innovative staffing concepts using on- and off-balance-sheet resources that cover the entire talent continuum. This includes experienced actuarial consultants, global and domestic “delivery center” employees, and crowdsourcing and gig-economy solutions leveraging Deloitte’s Pixel™ platform. These workforce solutions, including Deloitte’s own Delivery Center consultants, help you augment in-house actuarial and data science resources, free staff to address disruptions, and add resources in the event of attrition.
|Proprietary tools and solutions
We have developed tools and solutions, based on technologies such as robotic process automation (RPA) and machine learning, to support actuarial work and generate deeper insights to improve your organization’s performance. These tools can be scaled and customized to streamline and automate actuarial processes, perform first-level analyses, and provide trends and insights across applicable industries.
|Exponential Actuary Lab
Whether your organization is ready for large-scale transformation, has ideas for specific proofs of concept, or is just interested in learning more, the Exponential Actuary™ Lab helps guide organizations to their vision of the actuary of the future. The lab can be from one to three days in length and can be customized based on your needs to help drive outcomes.
Case studies depicting the future of actuaries
1 Banham, Russ. “Insurer Innovation Comes Under the Rating Agency Microscope.” Insurancejournal.com, July 2019.