Actuarial Data Science: Transforming Actuarial Modeling

Actuarial data science is a thriving part of the insurance and financial services sector, combining data visualisation, pattern recognition and statistical analysis with software programming to create digital applications that process, analyse and model data. Experienced actuarial data scientists have a unique skill set that uses technology to interpret data in a way that adds very real value to actuarial modelling and decision making. The resulting systems can be transformational in the way they capture market insights, develop risk assessment profiles, support predictive modelling and more. 

A Unique Skill Set 

With growing understanding of the impact of this discipline, actuaries at all stages are becoming increasingly interested in this area. While there is undoubtedly a shared skill set between traditional actuaries and actuarial data scientists, it’s essential for people working in the industry to understand the specific skills that are crucial to succeed in the data science arena.   

At Emerald Group, our experience working with international clients in this field shows us that taking advantage of related career opportunities very much depends on an individual’s skill set and where they are in their career. 

As an individual develops their skills and experience, they combine actuarial knowledge with software programming abilities to create their own digital estimation tools. Applications range from different regulatory frameworks that require models to support specific standards, to proven life expectancy calculation models that support decision making in the life insurance industry. The ability to consider and build unique models around specific market and sector knowledge is in great demand with insurance companies and financial service providers. 

Education to Create a Digital Evolution 

For most individuals, it’s essential to develop the right skills at a very early stage in your career.  Technical skills are non-negotiable. You need to be able to create your own software programmes and it’s essential to have knowledge of at least one programming language, such as SQL, R, SAS or Python. 

A career in actuarial data science usually starts with formal education.  A range of specific degree-level qualifications are now available and this is often the starting point for a career in this field.  For many graduates, this means choosing this specialism before they embark on their career journey.  However, some individuals may choose to return to education to add the core skills that this role requires to existing mathematical, technology or actuarial qualifications. 

Building New Skills Mid-Career 

At Emerald Group, we often talk to practicing actuaries who are keen to add data science skills to their skill set. Realistically, however, this can be difficult to do. Our guidance is always honest and driven by individual circumstances, so we’ll work with you to understand your professional goals and advise you accordingly. 

If you are already on the actuarial career path, you may choose to restart your career with an actuarial data science qualification. We can talk to you about the implications of this for your career and the new opportunities that will eventually arise; when you have gained the right qualifications. 

As a qualified actuary at a more senior level, you may not have, or wish to gain, this digital skill set.  However, you will need sufficient knowledge of the practical applications of machine learning and data science to manage workstreams and individuals, while ensuring you are benefiting from the potential advantages of this digital approach. 

One way to gather theoretical expertise is with the DAV qualification to become a Certified Actuarial Data Scientist (CADS).  While this doesn’t give you practical IT programming skills, it will help you gain an understanding of the potential that actuarial data science can bring to what you do. 

As with many career opportunities, finding an expert to help answer your questions is the best place to start.  If you’d like some guidance on building qualifications or working in this field, please get in touch at sarah.schadek-keane@emerald-group.com. 

Emerald Group recruit the best candidates into the best roles in today’s insurance markets, both nationally and internationally.  We use our extensive market knowledge and recruitment skills to bring a quality service to everyone we work with.