changing landscape of the actuarial profession

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Changing Landscape of the Actuarial Profession Mahidhara Davangere V MBA, MFC, MSc (Maths), Associate Actuary (UK) Managing Director, Pramartha

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Page 1: Changing Landscape of the Actuarial Profession

Changing Landscape of the Actuarial Profession

Mahidhara Davangere VMBA, MFC, MSc (Maths), Associate Actuary (UK)

Managing Director, Pramartha

Page 2: Changing Landscape of the Actuarial Profession

The World around us is changing

Page 3: Changing Landscape of the Actuarial Profession

Businesses undergoingsignificant change

TECHNOLOGY AND LARGE VOLUMES OFDATA

TRANSFORMING BUSINESS

Changing Customer ExpectationsThe Explosion of Data

Changing Risks Transition in theWorkforce

Page 4: Changing Landscape of the Actuarial Profession

Drivers of Change –Data Science and Analytics

Page 5: Changing Landscape of the Actuarial Profession

Data Science and Analytics –a necessity

Page 6: Changing Landscape of the Actuarial Profession

What is Data Science?

A Multi disciplinary subject -Simplified

Technology

ResearchMethodology

Statistics

Page 7: Changing Landscape of the Actuarial Profession

Data Science – Behind the Scene

Page 8: Changing Landscape of the Actuarial Profession

Data Science – Behind the Scene

Page 9: Changing Landscape of the Actuarial Profession

Actuaries produce the NABOnline Retail Sales Index

Page 10: Changing Landscape of the Actuarial Profession

More examples Data Science at Work

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NetworkOptimization

CancerResearch

PriceOptimisation

RaceOptimisation

PerformancePredication

CustomerInteraction

TrafficAnalysis

ConnectedVehicle

Page 11: Changing Landscape of the Actuarial Profession

Insurance Industry Disruptions

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“By 2020, Internet of Things spendingwill rise to $3 trillion and nearly

30 billion devices”

Insurance data will grow

94%,

84% of which isunstructured

Page 12: Changing Landscape of the Actuarial Profession

Organisations looking to movefrom Descriptive to Cognitive Solutions

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CognitiveHow can we learndynamically?

PrescriptiveHow can we achieve thebest outcome?

PredictiveWhat could happen?

DescriptiveWhat has happen?

.

Learning ModelsExperience Memory

OptimizationModelsRecommendations

Predictive ModelsScores

ReportsDashboardsVisualization

Page 13: Changing Landscape of the Actuarial Profession

Businesses needs - Insights

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Page 14: Changing Landscape of the Actuarial Profession

14 14

Actuaries as Data Scientists –or perhaps “Business Scientists”

Programming & data

manipulation Understanding algorithms

andvalidationframeworkBusiness knowledge

+ company data

Codingskills

Maths&Stats

BusinessKnowledge

Page 15: Changing Landscape of the Actuarial Profession

Actuaries – the required skillset

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Let Machinesdo the coding

Off theshelfalgorithmsfrom opensourceWorkingknowledgeis sufficient

Actuariescollaborating withother professionals

Codingskills

Maths&Stats

BusinessKnowledge

Programming & data

manipulation

Understanding algorithms

andvalidationframework

Businessknowledge +

company data

Page 16: Changing Landscape of the Actuarial Profession

ECONOMICSMODELLING &PROGRAMMING

A Multidisciplinary SubjectActuarial Science

MATHEMATICS

ACCOUNTSSTATISTICS

Page 17: Changing Landscape of the Actuarial Profession

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Evolving Actuarial Profession• 2019 Curriculum change bringing it closer to Broader Data

Science skillset• CT Series transformed to Core Business, Core

Statistics and Core Modeling• R programming integral part of syllabus across all

the Actuarial Associations

• Introduction of various roles for Actuaries besidesFellowship• Chartered Actuary (for Associates as Generalists)• Chartered Enterprise Risk Actuary (CERA- risk related

roles)• Certified Actuarial Analysts (CAA – at entry level)

Page 18: Changing Landscape of the Actuarial Profession

www.actuariesindia.org

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Initiatives of ActuarialInstitutes around the world

• Actuarial Society of South Africa – Business IntelligenceForum

• The Actuaries Institute - Australia – Data Analytics WorkingGroup

• Canadian Institute of Actuaries – Predictive ModellingCommittee

• Casualty Actuarial Society – New Qualification CSPA• Institute of Actuaries of France – Big Data Committee• Institute and Faculty of Actuaries – MAID Working Party

Page 19: Changing Landscape of the Actuarial Profession

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Working Group onWider Actuarial Applications –Next Steps1. Research2. New approaches to current actuarial work3. Possible ideas and solutions in new

opportunities from actuarial work4. Implications for professional affairs5. Collaborations with

Page 20: Changing Landscape of the Actuarial Profession

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The Road Ahead

• Data Science, Artificial Intelligence, MachineLearning, Internet of Things and the everchanging innovations represents a majoropportunity for the actuarial profession

• Co-operation between different actuarialassociations will enable the profession to makethe most of the opportunity otherwise we maybecome marginalized

Page 21: Changing Landscape of the Actuarial Profession

MAHIDHARA DAVANGERE VEmail: [email protected]

Australia |India | Kenya | Malaysia | South Africa | UAE | US |Zimbabwewww.pramartha.com