The article should have been titled "Why actuarial expertise is now low key for insurers". If you are an auto MGA or carrier in California and you had combined ratio that averaged under 96% the last 3 year then you get it. Others who don't have a combined ratio under 100 appear to grasping at needles in a haystack. Why? One reason is actuarial expertise appears to be grounded in flawed principles. Historically we've calculated premiums based on data assumptions. If a man has drivers license for 20 years he must be a better driver than man with license for 2 years. That could be correct. But it could also cause you to run in the red. Every company know that a "me too" filing doesn't guarantee "me too" profitability. Having a better understanding of the risk and pricing it appropriately can. Actuarial expertise incorporates a deep understanding of our industry. It should also be grounded in a deep understanding of consumer you are serving. The integration of data science will hopefully can take insurers from insurance dinosaurs. The article doesn't really explain how. They would like you to spend money with the article's sponsor to get any real insight. How can change your destiny from a future similar to dinosaurs of the past? Learn how to improve every touchpoint with AI. Learn how to increase employee engagement with AI. How do we start? Examine workflows. Examine high frequency communication with policy holders. Remember everything is a data point, but not all data provides insight. Actuarial expertise is framed in 20th century experience. The chart below was taken from a study done last year by Statista. We have way too much to process each day. Improve your team's ability to impact your organization you will improve your ratios. Improve your client experience you will improve your ratios. Despite some opinions, you can't control severity. You can however use AI to dynamically improve your modeling without the need to constant rate filings.
Don Hobdy Jr’s Post
More Relevant Posts
-
An interesting article from The Actuary's February 2024 issue, and a must-read for all insurance professionals! The article delves into the evolving landscape of actuarial roles and the skills needed for the future. 🤝 Beyond AI: The Human Touch In a world where buzzwords like Generative AI dominate insurance discussions, the article rightly emphasizes the crucial role of human skills. Actuaries, and indeed all insurance professionals, should look beyond automation vulnerabilities and focus on skills that go beyond the reach of AI. Agility, curiosity, empathy, creativity and strategic thinking are the timeless qualities that will set us apart in an ever-evolving industry. 🔧 Technology as a Tool not a Replacement Technology should not be a one-size-fits-all solution. As we embrace emerging technologies, it's crucial to adapt them to the specific challenges within the insurance value chain. Whether it's leveraging AI in distribution, claims management or utilizing it for predictive analysis, the human touch ensures that technology serves as a tool, not a replacement. #InsuranceInnovation #HumanSkills #Insurtech https://lnkd.in/gAf5HH6P
To view or add a comment, sign in
-
69% of underwriters & 67% of actuaries concerned about being replaced by AI After reading this article, I spoke with my actuarial friends and their feedback cannot be more different….. Are you embracing AI and making an early start or kicking the AI can further down the road until it's too late? Here are some thoughts: #Concerns A staggering 67% of actuaries worry about AI taking over their roles, reflecting a broader anxiety within the profession. However, this concern also presents an opportunity for growth and adaptation. #Burnout The burden of manual tasks and the need for more strategic focus are leading to high concerns about burnout among 68% of actuaries and 79% of underwriters. Highlights the need for automation and efficient use of AI to alleviate workload pressures. #Underwriting_Practices The shift from risk underwriting to portfolio underwriting is a significant concern, with 81% of underwriters worried about this change. This shift necessitates a more holistic approach to underwriting, leveraging AI for better risk assessment. #Value_Creation Despite the fears, AI can significantly enhance the work of actuaries and in certain areas replace them. AI excels in analyzing complex and high volume data, developing, testing, optimizing and maintaining models. #Human_Judgment The article underscores that human judgment and trust are essential components of an actuary's role. #Adaptation To remain relevant, actuaries must build resilience by adapting to new roles and responsibilities. This includes managing AI-related risks, enhancing regulatory teams' abilities to review complex algorithms, and contributing to diverse modeling and model review teams. #Upskilling The need for professionals to skill up on AI is more pressing than ever. As seen in the 2024 Work Trend Index, there is a significant increase in professionals adding AI skills to their profiles, and leaders are prioritizing AI skills in hiring. #Human_Collaboration The future of work will increasingly involve collaboration between humans and AI systems. This collaboration can drive better decision-making, enhance productivity, and create more efficient teams. How are you preparing for the integration of AI in your underwriting, risk & actuarial modeling and maintenance shop? #AI #FutureOfWork #Actuaries #DataScience #ProfessionalDevelopment https://lnkd.in/g-TRqf9U.
69% of underwriters & 67% of actuaries concerned about being replaced by AI: hyperexponential - Reinsurance News
http://www.reinsurancene.ws
To view or add a comment, sign in
-
The rise of Artificial Intelligence (AI) and other tools has assisted insurers and actuaries in the work they do and in their professional processes. In a recent interview with Risk and Insurance, Pinnacle Principal and Consulting Actuary Aaron Hillebrandt shares how new technology has been implemented into the insurance industry, its related benefits and other things to consider. He relates how AI and machine learning can improve the credibility of data and help contribute to actuarial work product accuracy. To read the interview in its entirety, visit Pinnacle’s website https://lnkd.in/g_QpRYYp
Technology Can Foster Collaboration Between Insurers and Actuaries. Here’s How
pinnacleactuaries.com
To view or add a comment, sign in
-
Unlocking Behavioral Mysteries: Big Data’s Promise Beyond Finance Big Data analytics is making waves in the financial sector, but its potential reach is boundless. As we dive deeper into understanding human behavior, the ripple effects could challenge our traditional financial systems. Our new article explores a realm where advertising giants could be footing part of your insurance bill, and where understanding human impulsivity could reshape credit assessments. Ready to unravel the intricate web of behavioral economics with a touch of tech magic? #BigData #BehavioralEconomics #FinancialInnovation #TechImpact #FutureReady #FinancialInclusion #InsurTech #CreditRisk #TechForGood #AI #ArtificialIngelligence #Insurance https://lnkd.in/eidpgpyy
When companies pay for your insurance and credit
marma-developer.medium.com
To view or add a comment, sign in
-
Unlocking Behavioral Mysteries: Big Data’s Promise Beyond Finance Big Data analytics is making waves in the financial sector, but its potential reach is boundless. As we dive deeper into understanding human behavior, the ripple effects could challenge our traditional financial systems. Our new article explores a realm where advertising giants could be footing part of your insurance bill, and where understanding human impulsivity could reshape credit assessments. Ready to unravel the intricate web of behavioral economics with a touch of tech magic? #BigData #BehavioralEconomics #FinancialInnovation #TechImpact #FutureReady #FinancialInclusion #InsurTech #CreditRisk #TechForGood #AI #ArtificialIngelligence #Insurance https://lnkd.in/eMq2-4UM
When companies pay for your insurance and credit
marma-developer.medium.com
To view or add a comment, sign in
-
Unlocking Behavioral Mysteries: Big Data’s Promise Beyond Finance Big Data analytics is making waves in the financial sector, but its potential reach is boundless. As we dive deeper into understanding human behavior, the ripple effects could challenge our traditional financial systems. Our new article explores a realm where advertising giants could be footing part of your insurance bill, and where understanding human impulsivity could reshape credit assessments. Ready to unravel the intricate web of behavioral economics with a touch of tech magic? #BigData #BehavioralEconomics #FinancialInnovation #TechImpact #FutureReady #FinancialInclusion #InsurTech #CreditRisk #TechForGood #AI #ArtificialIngelligence #Insurance https://lnkd.in/eidpgpyy
When companies pay for your insurance and credit
marma-developer.medium.com
To view or add a comment, sign in
-
Big Data’s Silver Lining: A Leap Towards Fairer Financial Systems? Are you ready for a revolution in the financial landscape? Big Data analytics is not just a buzzword, but a tool with the potential to reshape financial inclusivity. Imagine a world where your insurance or credit could be subsidized by private companies, thanks to the granular analysis of consumer profiles! Dive into our latest article to explore how this tech marvel could be a game-changer in assessing credit risk, tailoring financial products, and possibly leveling the playing field for all. #BigData #FinancialInclusion #InsurTech #CreditRisk #TechForGood #AI #ArtificialIngelligence #Insurance https://lnkd.in/eMq2-4UM
When companies pay for your insurance and credit
marma-developer.medium.com
To view or add a comment, sign in
-
Big Data’s Silver Lining: A Leap Towards Fairer Financial Systems? Are you ready for a revolution in the financial landscape? Big Data analytics is not just a buzzword, but a tool with the potential to reshape financial inclusivity. Imagine a world where your insurance or credit could be subsidized by private companies, thanks to the granular analysis of consumer profiles! Dive into our latest article to explore how this tech marvel could be a game-changer in assessing credit risk, tailoring financial products, and possibly leveling the playing field for all. #BigData #FinancialInclusion #InsurTech #CreditRisk #TechForGood #AI #ArtificialIngelligence #Insurance https://lnkd.in/eMq2-4UM
When companies pay for your insurance and credit
marma-developer.medium.com
To view or add a comment, sign in
-
Unlocking Behavioral Mysteries: Big Data’s Promise Beyond Finance Big Data analytics is making waves in the financial sector, but its potential reach is boundless. As we dive deeper into understanding human behavior, the ripple effects could challenge our traditional financial systems. Our new article explores a realm where advertising giants could be footing part of your insurance bill, and where understanding human impulsivity could reshape credit assessments. Ready to unravel the intricate web of behavioral economics with a touch of tech magic? #BigData #BehavioralEconomics #FinancialInnovation #TechImpact #FutureReady #FinancialInclusion #InsurTech #CreditRisk #TechForGood #AI #ArtificialIngelligence #Insurance https://lnkd.in/eidpgpyy
When companies pay for your insurance and credit
marma-developer.medium.com
To view or add a comment, sign in
-
Unlocking Behavioral Mysteries: Big Data’s Promise Beyond Finance Big Data analytics is making waves in the financial sector, but its potential reach is boundless. As we dive deeper into understanding human behavior, the ripple effects could challenge our traditional financial systems. Our new article explores a realm where advertising giants could be footing part of your insurance bill, and where understanding human impulsivity could reshape credit assessments. Ready to unravel the intricate web of behavioral economics with a touch of tech magic? #BigData #BehavioralEconomics #FinancialInnovation #TechImpact #FutureReady #FinancialInclusion #InsurTech #CreditRisk #TechForGood #AI #ArtificialIngelligence #Insurance https://lnkd.in/eMq2-4UM
When companies pay for your insurance and credit
marma-developer.medium.com
To view or add a comment, sign in