Month: April 2023

Supply chain management: Where are the actuaries of the future?

post posted on by AAE Secretariat

Inga Helmane
AAE Board member – Chairperson Communications Panel

 

Astronaut, nurse, firefighter… actuary? It may not be high on the list of childhood dreams, but for young people with talent in mathematics, a career as an actuary has a great deal to offer. However, it’s becoming increasingly clear that we need to work harder to get that message out.

 

For several years now, the Actuarial Association of Europe (AAE) has been gathering data to identify and monitor risks, and the issue of there being an adequate “supply” of new actuaries to meet changing professional demand is always in mind. Even though our membership is constantly on the increase, given that we expect actuaries to gain significance in more and more fields, continued growth is important. This naturally leads to related matters, namely: The risk of the actuarial profession becoming less appealing to career starters, experiencing shortages of necessary competencies, and losing relevance.

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Let actuaries be involved in the use of AI and Big Data to avoid more mistakes

post posted on by Monique Schuilenburg

Column by Esko Kivisaari

ESKO KIVISAARI, Chair of Artificial Intelligence and Data Science working group for the AAE
 

ARTIFICIAL INTELLIGENCE
Characteristic to my early actuarial career were simple models based on age and gender, often together with the assumption of a fixed interest rate. We knew these models could be improved with better data. Data was however expensive even when it was available and its manipulation was slow, and also expensive. Furthermore it was impossible to be certain of the validity of the data. As we knew the models were lacking we needed to have safety margins here and there together with restrictive underwriting criteria in order not to sacrifice the solvency of our employer.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

How to provide new cover for risks that were previously uninsurable

post posted on by Monique Schuilenburg

Insurability and artificial intelligence

By Bogdan Tautan

BOGDAN TAUTAN is Reinsurance Analyst and Non-Life Actuary at Achmea Reinsurance, The Netherlands.
 

INSURABILITY AND RISK
Actuaries and risk professionals aim at understanding the risk affecting the policyholders and estimating accurately the premiums charged. In order to deal with insurability, actuaries use advanced actuarial risk models, data collection, and statistical methods while relying on regulations and market conditions continuously. The aim of this paper is to frame the concept of insurability when challenged by artificial intelligence (AI) tools, as discussed by the recently published paper ‘AI and the opportunity and challenges it presents to insurability’.

Read the full article here.

 

Disclaimer:

This article was published in The European Actuary No. 33 – March 2023

A plea for a combination of Dutch Solidarity and British Freedom in pensions

post posted on by Monique Schuilenburg

Retirement on a DC pension – similarities, differences and improvements in NL and UK

By Gijs Cremers and Hannah English

HANNAH ENGLISH is Senior Consultant at Hymans Robertson in London.   GIJS CREMERS is partner at Sprenkels, Amsterdam.  

Both in The Netherlands and the UK, workplace pensions have been transitioning from Defined Benefit (DB) schemes, towards Defined Contribution (DC) schemes. As a result, members of a scheme will directly bear the risk regarding their income after retirement. The way the transition from DB to DCis handled in both countries varies. The Dutch pension system attempts to mitigate some of the risk to members, using a collective ‘solidarity’ system, whereas the British pension system allows members to make more flexible individual choices.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

IFRS 17 challenges actuaries both quantitatively and qualitatively

post posted on by Monique Schuilenburg

The IFRS 17 identity

By Servaas Houben

DRS. S. HOUBEN AAG FIA CFA FRM works as Manager Actuarial at Ergo Insurance,
Brussels, Belgium.
 

Do not judge a book by its cover: although many actuaries might consider IFRS 17 yet ‘another IFRS accounting standard’, and hence a feast for accountants, this new insurance standard still provides lots of opportunities for actuaries. Servaas Houben provides in this article some examples of IFRS 17 challenges for which actuaries with their numerical skills can be effective, and where the creative skills actuaries possess can let this principle-based standard come alive.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023