Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • Sections
  • News

Automation to transform actuarial work over next five years

Open-access content Wednesday 14th July 2021
Automation to transform actuarial work over next five years

Life and property and casualty (P&C) insurers are set to accelerate their use of automation over the next five years as they look to improve the efficiency and auditability of their actuarial processes.

That is according to findings from Willis Towers Watson's (WTW) Actuarial Reporting Automation survey of 52 life, and 66 P&C insurers across the world, including some of the largest multinational and domestic companies.

Most life insurers said that they currently use “no automation” or merely “some automation”, with assumption processes their least automated core areas of a valuation process.

P&C insurers echoed the same sentiments, with most having used little automation to date, and said that engagement with senior management was their least automated core area of the current reserving process.

However, the survey found that both life and P&C insurers intend to deploy “some” or “strong” automation over the next five years, with the former focusing mainly on assumptions, audit trail and results production, and the latter prioritising senior management engagement, assumptions and audit trail. Data processes are currently the most automated function for both.

“Insurers are looking to transform actuarial processes to achieve greater efficiency and efficacy, enabling more granular analysis and more frequent and timelier insights from their data,” said Max Drannikov, WTW's global product leader for business process excellence.

“We have seen life insurers gain value from automation around model point grouping, allocation of IFRS 17 cohorts, and economic capital processes. Many challenges P&C insurers face stem from reliance on multiple data sources and coordinating external/internal teams — they can combat this by automating data processes.”

The impact of COVID-19 has also accelerated the drive for automation, which has rapidly moved up on the c-suite agenda over the last year, according to the survey findings. However, limited time, staff and poor data quality are all barriers to adoption.

Drannikov said that insurers should consider all possibilities when looking at which processes to automate and the level of re-engineering required. 

“Identifying quick wins to free up time that can be reinvested towards a large-scale transformation is often a key enabler of clients’ automation ambitions,” he continued. “The whole team must be engaged throughout deployment to ensure they embrace the solution.”

 

Image credit: iStock

Author: Chris Seekings

Filed in
News
Topics
Technology
Professional

You might also like...

Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Pensions Actuarial Analyst

London, Midlands, Scotland
£Market Competitive
Reference
143788

Senior Manager/Director level roles - Life insurance

Stirling
Generous salary with excellent bonus and benefits
Reference
143787

Reinsurance Pricing Actuary

London (Central)
£60-90K depending on experience
Reference
143786
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ