In recent times, there has been a rapid evolution of the actuarial field amidst surging data volumes and technological advancements. Actuaries now grapple with extracting insights from diverse data sources, necessitating the integration of AI and machine learning. Despite increased demand, a talent shortage has prompted insurers to explore alternative pathways such as data science. Akur8 delves into all of this, and more, in their recent report.
The report explains that amidst the rapid evolution of digital technology and data collection methods, actuaries find themselves navigating an unprecedented surge in data volume and diversity. This influx demands the integration of cutting-edge technologies like artificial intelligence, machine learning, and data analytics tools to derive insights from unconventional data sources.
Moreover, the evolving risk landscape, encompassing challenges like cyber threats, climate change, and pandemics, compels actuaries to innovate models and strategies for assessing and managing these intricate issues.
There recent developments in the space have acted as a paradigm shift, as the field undergoes its own transformation. This is meaning that professionals are struggling to adapt amid the turbulent environment, as they “are finding themselves at the crossroads of traditional expertise and digital proficiency,” according to the report.
However, the is not the only struggle for those operating in the sector, as “the demand for actuaries is growing much faster than the supply”. As job prospects in similar fields also rise, through the success of areas such as data science, the actuary field is taking a hit.
“The actuarial market is in tension. Companies need even more actuaries than ever. The Institute tries to spread awareness and get more influence to make the profession known to make the number of actuaries grow again,” stressed Javier Olaechea.
Opportunities for insurers
However, while the rise of data science as a field is causing headaches for many, as they poach numerous budding actuary talents. It does also offer an intriguing proposition for insurers, who may want to take advantage of this rising sector.
In the past, insurance pricing roles were primarily occupied by actuaries. Yet, given the scarcity of actuaries across various markets, alternative academic pathways, such as those wishing to go into fields like data science, have surfaced, drawing individuals with comparable analytical and statistical proficiencies.
When pricing experts and actuarial science students from across the world were asked which other curricula they had considered besides actuarial science. Their answers ranged from banking and finance (19% of respondents), to data science and statistics (18%) and engineering (12%).
This trend towards alternative academic paths, is deeply prevalent across the APAC region, and could solve the issue of a shortage of actuaries, according to Fred Weber, Asia-Pacific Head of Pricing and Portfolio Management at Sompo International and Past President of Singapore Actuarial Society. He explained, “The number of actuarial science students has slightly dropped in Singapore in the last few years, as some math-oriented students now choose data science, a path which does not require them to pass actuarial certifications, gives access to comparable jobs, which can sometimes pay equally or better than actuarial profiles at entry level.”
As the demand for actuarial talent rises, the competition to retain staff does so too. Employers are recalibrating their approaches to attract and retain junior actuaries, spotlighting factors such as reputation, internal mobility, and specialised benefits within the field.
Continuous learning, especially in realms like data science, holds significant importance for both emerging and experienced actuaries. While technical expertise remains crucial, there’s an increasing emphasis on the value of soft skills. Actuarial careers retain their allure for graduates, offering intellectually stimulating roles that leave a lasting imprint across industries like insurance and finance.
If you wish to learn more, you can read the full report from Akur8 here.
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