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Insurance and Actuarial Talent Trends in 2024

Posted on May 2024

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One clear trend has emerged in the insurance industry in recent years — Artificial Intelligence (AI) has well and truly arrived. You may have already seen evidence of this, such as algorithms in the actuarial back office to chatbots for claims resolution. AI disruption can be good for businesses in this sector, as those who embrace these tools can stand out among the sea of competitors.

Using AI to Increase Competitiveness

AI has typically been about using machine learning to automate, iterate, and optimize models. In other words, AI insurance models feed off previous real-world events. The assumption here is that as AI technology matches risk data points to claims data points, future events will emulate the past.

What this means is that success depends on talented actuaries providing data points and using AI to create pricing and instigate appropriate checks and balances. Those who embrace AI technology and use it to empower companies could evolve faster and capitalize on creating the best possible product.

Actuaries need to embrace AI to communicate effectively on how different risks can impact customers and price points. As more data and tools will become available, the industry will still rely on actuaries to process cases.

Humans Are Still Needed

Some people have concerns that AI technology will eliminate human jobs completely for certain professions, including putting actuaries out of work. While machine learning has taken away certain repetitive or monotonous tasks, current technology still requires people to step in to guide and govern. In other words, machines won’t completely eliminate actuarial teams in the foreseeable future.

As mentioned before, we’re seeing trends where actuaries need to embrace these solutions so that machine learning becomes a tool that helps to enhance the quality of their work and therefore the organization. Companies will look to these skills as AI continues to evolve.

Evolved Roles

Even though machine learning will get more sophisticated, it cannot replace human completely. Risk and claims data points are complex and there is no evidence so far that points to machine learning being able to come up with the types of judgment or innovation needed, including asking thought-provoking questions or thinking up worst-case scenarios.

Machine learning will require actuaries to tackle new problems or create new opportunities for their companies. Instead of analyzing data points as a skill, top talent could shortly be hired for their critical thinking and problem-solving skills such as market price reconstruction or innovative concepts to ensure customer retention.

That’s not to say tasks such as fraud detection and advanced claims handling will be taken over by AI anytime soon. Companies will still need actuaries who can use their current skill set. However, as more companies embrace machine learning, they’ll be looking towards talent who can keep up with trends and are willing to take on roles where it involves predicting and validating solutions for the future.

Why Choose Us?

During a time of innovative technology, the demand for insurance and protection has increased due to the exposure of new risks. To develop policies that reduce, manage, and analyze risk effectively, companies must seek to attract top insurance and actuarial talent. Around 2,400 insurance and actuarial job openings are projected each year as businesses in the US compete for the best risk managers and problem solvers.

Selby Jennings is a leading Insurance & Actuarial Science recruitment talent partner in financial sciences & services. Our global Insurance & Actuarial Science team provides permanent, contract, and multi-hire recruitment from our offices across three continents. For more than 20 years, clients and candidates have had peace of mind that the recruitment process is in safe hands.

Don’t miss out on hiring top insurance and actuarial management professionals or your next potential career move if you are an insurance professional considering opportunities.

Selby Jennings’ extensive portfolio, expertise, and specialist salary and benefits knowledge make us the best insurance and actuarial science talent partner.