How Automation Is Enabling Actuaries to Deliver Better Value
Technology is fundamentally changing the way that actuaries work and the results they can achieve for their companies.
This drive towards digital innovation has been accelerated by the COVID-19 crisis and is only going to continue on an upward trajectory.
The pandemic has prompted firms to change their business models and invest more heavily in digital technology, in the same way that regulation such as Solvency II has enabled organizations to modernize their processes and procedures.
“When the pandemic struck, everyone had to quickly figure out new and effective ways of remote working,” said Joe Milicia, global proposition leader, Business Process Excellence at WTW. “Those that made the early investment in innovation and automation were way ahead of the curve.”
COVID-19 has also created greater uncertainty among companies about everything from the return to the office and economic recovery to risks, premiums and claims.
Additionally, the pandemic poses a significant challenge to actuaries due to a lack of representative historical data upon which to base forecasts.
This means that having access to accurate and up-to-date data is key for better decision-making, navigating the uncertainty and adding value to the bottom line. It also requires actuaries to use non-traditional techniques, and different visualization tools and data to make their forecasts.
“There has been a greater desire to change the way we work, both out of necessity and being equipped with the right framework and tools to do so,” said Jamie Mackay, director at WTW. “The need for new techniques and the desire to leverage more granular claims data require different technologies outside of core loss reserving capabilities.”
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