2018 Actuarial modernization survey findings

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About the survey

PwC queried US-based life and P&C chief actuaries about their actuarial modernization initiatives to determine where the insurance industry stands in its efforts to modernize. We found that insurers will facilitate their actuaries’ ability to provide greater insights and become better business partners by:

  • Making the necessary investments in data, technology, automation, training and development.
  • Articulating these initiatives through a comprehensive modernization strategy and plan.
actuarial modernization survey

Survey highlights

We received 56 responses, allowing us to compile a comprehensive view. We see a number of changes since our last survey.

  • Multiple catalysts are driving companies to modernize. Generally, actuarial organizations are seeking to improve data management to provide better insights to the business, and to do so more efficiently. For life companies, regulatory changes like US GAAP targeted changes and IFRS 17 (for US subsidiaries of multinational parents) are also a high priority. Successful execution of these initiatives depends on having comprehensive plans, which according to our survey, are lacking in most cases.
  • Actuaries are spending too much time managing data - in excess of 50% in many cases. Significant opportunity exists to expand the use of automation, increasing “productive time” and reducing process specialization.
  • Getting timely, accurate, and well-governed data is a top priority for the respondents, and many companies have achieved that. However, insurers indicate their other data management goals have yet to be realized, including the need to improve the efficiency of current data management processes.
  • The paradigm that will emerge as modernization efforts mature will impact how and what actuaries do, and actuaries will need to adapt. This will increase the need for structured training and development programs so that companies can ensure their staff are well-prepared to thrive in new operating conditions.

Contact us

David Honour

Actuarial Modernization Leader, PwC US

Tel: +1 (646) 471 1696

Richard de Haan

Actuarial Leader, PwC US

Tel: +1 (646) 471 6491

Timothy J. Landick

Actuarial Partner, PwC US

Tel: +1 (267) 330 6608

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