Challenges to the Casualty Actuarial Profession 2018

In previous years I’ve posted about some of the challenges facing the property and casualty actuarial profession. In 2018 we are facing a new, unique set of challenges, and I invite your thoughts on a few relevant topics:

Big Data

Recently, actuaries have been inundated with the availability of big data. We now have the ability to run analysis with much larger bodies of data at much higher speeds. This allows us to glean greater insight into things like noise versus trends or whether instances of correlation denote causation. What has been your experience with big data?  Is the quality of our data getting better or is there just more of it?

 

Auto Insurance

In the auto insurance world, new methods and technologies are being adopted by the industry. For example, V2X (Vehicle-to-Everything), V2V (Vehicle to Vehicle), and V2I (Vehicle to Infrastructure) are the latest being tested by various auto manufacturers and technology companies.  The technology allows for autonomous vehicles to preemptively communicate issues to each other and to improve traffic flow and safety at intersections. How do we, as actuaries, shift our old pricing knowledge from liability and physical damage to autonomous comprehensive? How do we assess liability from connected cars that will be targeted by cyber threats? How do we react to connected vehicles infecting other computers related to infrastructure safety?

 All those designations

There has been a litany of designations that have been developed in response to these changes. CERA, CSPA, AIS, ARM, CIC, AIDA and so on.  We finally obtain the ACAS or FCAS and then we have a vast array of additional designations to choose from, depending on our area of actuarial work. What are your thoughts on these designations?

Please share comments and reactions to these challenges below.

Leave a comment

“Crash Course” Seminar: A Smashing Success

I had the pleasure of attending the “Crash Course on Vehicle Technology and Driverless Cars” seminar this July, jointly organized by the CAS and IIHS/HLDI.* The event hosted about 80 people, most of whom were actuaries. While a highlight of the event was a real live crash test (see the video I took below), it also included … Read more »

AR Through The Years: An Editor’s Perspective

When the CAS hired me back in June 1997, I was prepared to take on Actuarial Review. I had years of experience working on a weekly publication as well as a decent stretch on a monthly tabloid with advertising. AR was a quarterly and, at the time, it seemed like a welcome respite. The Actuarial … Read more »

CAS Members and Banking – A New Career Path for Some

The CAS Innovation Council has been working with CAS leadership to explore opportunities for actuaries to work in banking. Background In November of 2016, South African actuaries published the article titled “SA formalize the role of actuaries in banking.”  In the article, the author shared that South Africa’s banking industry employs over 300 actuaries. Michael … Read more »