Akur8 Global Report on “Pricing Teams in a Changing World”

The full report can be downloaded free of charge here.

Chapter 1: The Evolving Actuarial Field

The actuarial field is experiencing rapid evolution, driven by various dynamic trends. One significant trend is the exponential increase in data volume and diversity, fueled by advances in digital technology and data collection methods. Actuaries are now tasked with extracting insights from a wide range of sources, including non-traditional data streams. This influx of data necessitates the adoption of cutting-edge technologies such as artificial intelligence, machine learning, and data analytics tools. Additionally, emerging challenges such as cyber threats, climate change, and pandemics are reshaping the risk landscape, compelling actuaries to develop innovative models and strategies to assess and manage these complex issues. As a result of these trends, professionals in the actuarial field find themselves at the intersection of traditional expertise and digital proficiency.

Key Findings:

• Actuarial field experiencing rapid evolution due to exponential growth in data volume and diversity.
• Adoption of advanced technologies like AI and machine learning is necessary for handling vast amounts of data.
• Emerging challenges such as cyber threats and climate change are reshaping the risk landscape.
• Actuaries are increasingly required to develop innovative models and strategies to manage complex issues.

Chapter 2: The Global Shortage of Actuarial Talent

There is a significant shortage of actuaries globally, with demand outpacing supply. Factors contributing to this shortage include the lengthy and demanding nature of actuarial studies, leading to a smaller pool of qualified professionals. Furthermore, the scarcity of actuarial degree programs in universities and the allure of alternative career paths, such as data science, are exacerbating the shortage. As a result, companies are facing challenges in filling actuarial roles, leading to increased competition for talent and a need for innovative strategies to attract and retain actuaries.

Key Findings:

• Demand for actuaries growing faster than supply.
• Lengthy and demanding nature of actuarial studies contributing to the shortage.
• Scarcity of actuarial programs in universities and attractiveness of alternative career paths further exacerbating  the shortage.
• Companies are facing challenges in filling actuarial roles, leading to increased competition for talent.

Chapter 3: Evolution of Actuarial Science Curriculums

Actuarial science curriculums are evolving to align with industry needs and technological advances. There is a growing emphasis on integrating machine learning and data science into academic programs to equip graduates with the relevant skills for the modern actuarial landscape. While progress has been made, there is still room for improvement, particularly in standardizing curriculum content and incorporating practical skills such as coding. Additionally, on-the-job learning is deemed essential to complement formal education and stay abreast of industry trends.

Key Findings:

• Actuarial science curriculums evolving to incorporate machine learning and data science.
• Emphasis on practical skills such as coding and on-the-job learning.
• Need for standardization and balance between theoretical knowledge and practical skills.
• Demand for continuous education and training to keep pace with industry advances.

Chapter 4: Expectations and Skills of Pricing Professionals

Pricing professionals in the insurance industry have high expectations for quality data and state-of-the-art tools to facilitate their daily tasks. Additionally, there is a strong emphasis on developing both hard and soft skills, including market knowledge, regulatory knowledge, coding skills, and interpersonal skills. Actuaries and data scientists are recognized as complementary roles, with industry knowledge being deemed essential alongside technical expertise. However, there are concerns and hopes regarding the impact of data science on actuarial roles, highlighting the need for continuous learning and adaptation.

Key Findings:

• Pricing professionals have high expectations for quality data and advanced tools.
• Emphasis on developing both hard and soft skills, including market and regulatory knowledge, coding, and interpersonal skills.
• Recognition of the complementary nature of actuarial and data science roles.
• Concerns and hopes regarding the impact of data science on actuarial roles.

Chapter 5: Strategies for Attracting and Retaining Pricing Professionals

Retention of pricing professionals has become a key focus for employers amidst a dynamic job market and evolving industry landscape. Strategies for retention include offering learning opportunities, internal rotation opportunities, competitive benefits, and fostering a supportive work environment. Soft skills development is also emphasized, alongside technical proficiency, to enhance employees' overall effectiveness and job satisfaction. Collaboration and a sense of purpose are identified as important elements in an ideal employer, highlighting the importance of creating a positive organizational culture.

Key Findings:

• Retention of pricing professionals is crucial amidst a dynamic job market.
• Strategies for retention include offering learning opportunities, competitive benefits, and fostering a supportive work environment.
• Soft skills development and collaboration are emphasized alongside technical proficiency.
• Employers need to adapt to employees' evolving expectations and career aspirations to attract and retain talent effectively.

About Akur8
Akur8 is a multinational company with offices in Paris, New York, London, Milan, Cologne and Tokyo. It specializes in solutions supporting pricing experts at every step of the pricing process, generating significant efficiency. From data processing and visualization to exporting final models, Akur8 provides a comprehensive modular approach to pricing built around the three main modules risk, demand and rate.