If I were a young actuary or underwriter, I’d be worried – because the Insurer of the Future won’t have much need for my skills.
If I were a young actuary or underwriter, I’d be worried — because the Insurer of the Future
won’t have much need for my skills.
What do these professionals do for a living? They rely on their personal experience and various data sources to understand and price a risk more accurately. Sometimes they carry out complex statistical calculations in support.
See also: How Underwriting Is Being Transformed
But the Insurer of the Future
will have its experience data captured on its internal systems. It will also tap into vast amounts of additional data available from external sources, some structured, some unstructured. And it will channel all of this data — far more than a human actuary or underwriter could ever handle — to its artificial intelligence (AI) engines.
These AI engines will examine the data for patterns, apply multiple statistical models and add their own experience from previous analyses to come up with a much more accurate price, massively quicker than a human ever could.
And for the Insurer of the Future,
the AI engines will be wired directly into the sales and underwriting processes, which will operate “straight through,” with no involvement from humans.
There will be room for some human oversight roles to ensure that the AI engines don’t “go rogue” and generate crazy pricing — but the vast majority of actuaries and underwriters will no longer be required.
See also: Strategist’s Guide to Artificial Intelligence
Please see “Part 3 – Claims Handling”
for further predictions.