Markets are transforming and becoming increasingly complex as digital transformation accelerates and alters the ways in which we live and conduct our business. We are seeing new technologies emerge that are transforming the insurance industry and changing expectations of consumers and insurers. The rise of the digital economy has led to greater market transparency and – in the insurance industry – has coincided with the rise of new online insurance aggregators. Market participants note that this shift has led to a permanent state of price comparison in the insurance market.
Traditionally, actuaries place the greatest amount of their focus on process-driven, computational and repetitive tasks. Insurance companies in general are still lagging behind the pace of technological advancement. Actuarial functions are at full capacity, but reasonable concerns – such as what the actual cost-to-benefits would be – are still delaying a greater embrace of digital analytics platforms. This delay persists, despite the potential offered by comprehensive analytics in making more informed decisions and saving the time required for digging through mountains of data. The biggest challenge of advancing these actuaries’ analytics is managing their analytic silos.
This report reveals the perceptions that actuaries have towards actuarial transformation and its potential to offer fundamental change to operating models.