Questions regarding InsurTech and actuarial work

McShane, Michael

Pinto, C. Ariel

English

Tahami, Hesamoddin

Fakhravar, Hengameh

Old Dominion University

Old Dominion University ODU Digital Commons Developing Technology Foresight: Case Study of AI in InsurTech Open Course Materials 2022 InsurTech and Actuarial Michael McShane Old Dominion University C. Ariel Pinto Old Dominion University Follow this and additional works at: https://digitalcommons.odu.edu/oer_developingtechnologyforesight  Part of the Artificial Intelligence and Robotics Commons, and the Insurance Commons Repository Citation McShane, Michael and Pinto, C. Ariel, "InsurTech and Actuarial" (2022). Developing Technology Foresight: Case Study of AI in InsurTech. 7. https://digitalcommons.odu.edu/oer_developingtechnologyforesight/7 This Special Topics is brought to you for free and open access by the Open Course Materials at ODU Digital Commons. It has been accepted for inclusion in Developing Technology Foresight: Case Study of AI in InsurTech by an authorized administrator of ODU Digital Commons. For more information, please contact digitalcommons@odu.edu. AcknowledgementsThis material was made possible through a grant fromthe Spencer Educational Foundation. Studentsinterested in pursuing a career in Risk Managementand Insurance may be eligible to apply for a SpencerScholarship. To learn more,visit: www.spencered.org.2Does Insurtech Threaten the Actuarial Career?What are three reasons to be optimistic that the career will not become obsolete?Actuaries understand the underlying risk process better than anyone.Data scientists need actuarial guidance and leadershipActuaries are perfectly positioned to serve as advisors to insurtech and innovation efforts.Will AI replace Actuaries? 4:00https://www.youtube.com/watch?v=JVHbetNYyhcYou need to watch this video and answer these questions, which can be on exam.1. Which will artificial intelligence (AI) replace first: actuaries or data scientists? Why?2. What will actuaries use AI for initially but what area is AI not going to get into until much later? 3. What is on the brink of occurring for actuaries using AI?3Will AI take over actuarial work? Will computers replace actuaries? 9:36https://www.youtube.com/watch?v=NX1CefzQfRYYou need to watch this video and answer these questions, which can be on exam.1.What community is the speaker the leader of? 2.What is the Investopedia definition of AI that appears as a caption in the video?3.What have actuaries been working on that are a form of AI? 4.Because actuarial work is not something that is repetitive, what are actuaries constantly thinking, applying, and relying on? 5.Because with actuarial work there’s not always a right or wrong answer and its kind of subjective, what does it require? 6.What are the parts of the actuarial career involved with that will be more difficult to automate with AI? 7.What might it be feasible in coming years for AI to help in actuarial work? 45InsurTech and Actuarial FunctionInsurTech is a major disruptive issue facing the insurance  industry.Refer to the “InsurTech: A Guide for the Actuarial Community” document (https://www.soa.org/globalassets/assets/files/resources/research-report/2021/insurtech-guide-community.pdf) to answer questions on the following slidesNote that questions related to this document can appear on exams, so make sure you read the document and answer the questions.6InsurTech and Actuarial Function (continued)Answers to these questions are in Section 1.1.What exactly is InsurTech (one sentence)? 2.For insurance, what three areas does InsurTech target the evolution/disruption of? 3.What are the four different areas along the insurance value chain where InsurTech can play a role? 4.Among the actuarial community, what are the most widely known technologies in the InsurTech space?  7InsurTech and Actuarial Function (continued)Answers to these questions are in Section 2. 1.What are three core strengths that actuaries have that should position them as leaders and experts in the InsurTech space?2.What are three common challenges that actuaries need to address to take advantage of opportunities in the InsurTech space?8InsurTech and Actuarial Function (continued)Answers to these questions are in Section 3. 1.What does the increasing number of managing general agent (MGA) InsurTech startups demonstrate? 2.What does the InsurTech space view actuaries as? 3.What do actuaries understand the full breadth of? 4.What does training of actuaries give them expertise in? 5.What do actuaries have a firm understanding of? 6.Why may actuaries’ critical insurance expertise work against them for many in InsurTech?7.What may allow actuaries to serve effectively in technical and non-technical roles from IT to sales? 9InsurTech and Actuarial Function (continued)Answers to these questions are in Section 3. 1.In technical roles, what are four ways actuaries are seen as offering a different value proposition from data scientists or software engineers?2.What do actuaries have the best talent for figuring out?3.The data scientist is better at data engineering, but what is the actuary better at? 10InsurTech and Actuarial Function (continued)Answers to these questions are in Section 3. 1.In non-technical roles, where do actuaries excel? 2.Why are actuaries going to be much better suited to selling InsurTech products to insurance companies than anyone else? 3.What is another strength of actuaries in an environment that focuses on applying new concepts? 4. Describe data scientists and software developers compared to actuaries using the terms “profession” can “careers” and why they are different? 11Big Data and ActuariesActuaries are accustomed to analyzing large volumes of data; however, big data poses new challenges to even the actuarial field. In response, what topic is the Society of Actuaries (SOA) now incorporating into actuarial exams to better prepare actuaries. Why?

InsurTech and Actuarial

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