Actuaries: skills for the future
The life of an actuary is seen as relatively straightforward with the main career path for many in the insurance or finance industries. As the world changes and technology swiftly opens up new avenues, the future of actuarial science looks likely to become far broader than it ever has been previously.
In the future, dealing with the many risks and problems that will come with an ever more technologically advanced society, actuaries will find their skills in high demand in a wider variety of industries, such as cyber security and app development.
There are so many more places that a career in actuarial science can take you. To help we’ve investigated the future of actuarial science and the skills that will be needed.
Changing role of actuary
The rise in big data and advanced analytics continues to change our approach to actuarial work. In the future, trainee actuaries will find themselves working closely with machines and technology to develop new ways of working. Actuaries already use advanced software to develop new methods of calculating and analysing data, making it easier to create new policies and discover new approaches to the role.
New technology such as machine learning processes and robotic process automation make routine tasks like collecting data much easier. This gives actuaries a chance to allocate more time to important analysis work and decision-making.
Data science is becoming ever more intrinsic to actuarial science. It has changed actuaries’ approach and helped them move into emerging fields like ride-sharing apps, climate change, and agriculture. These are industries that are not used to handling large data sets and need actuaries to uncover the value in the data. This can help businesses reach new customers, expand into new areas, and develop their marketing strategy.
Beyond the traditional industries where actuaries are usually found, there will be exciting opportunities in emerging tech-focused markets. New emerging technologies, such as ride sharing apps, blockchain, and drones, all need the skills of an actuary to help them manage their businesses. In this line of work, actuaries will be used to analyse cyber security risks, data security, and risk management. Other emerging industries that are in need of the skills actuaries bring include animal agriculture, environmental risk analysis, and road safety departments. With so many new industries in need of help handling their data, you can be sure the role of an actuary will be not only necessary but, importantly, rarely boring.
Insurance and technology
As technology evolves so does the way we access and purchase the products we use in everyday life. This means the way we approach insurance will have to change as well. Actuaries will be able to work with leading companies to analyse their products and decide how to deliver insurance, what coverage would look like if you are buying a temporary service, such as using a rideshare app, and how to adapt models so the company can predict growth.
One of the biggest challenges of our time is tackling climate change, which will affect every industry in untold ways. Actuaries can play a role in creating a positive future for the planet by helping to predict the potential impact of climate change on industries, businesses, and individuals. They can also consider the investment needed to create a more equal society. Being able to predict what could happen will give industries a better sense of how to react and adapt.
Although new technology can make life easier, actuaries won’t be replaced by a machine. In fact, you’ll find they might be more useful than ever. Technology can be efficient but it cannot make the humane decisions and ethical considerations that an actuary can. As big data and automation become an ever more important part of the actuarial science profession, a human eye will be needed to make crucial decisions, apply a level of emotional intelligence a machine is incapable of, provide new insight, and present data in a user-friendly, easy to understand manner.
If you would like to find out more about becoming an actuary, visit our website at https://www.actuaries.org.uk/becoming-actuary