WHAT DOES AN ACTUARIAL MANAGER DO?

Published: Nov 8, 2024 – The Actuarial Manager develops and improves rate indications across all products using statistical models and actuarial techniques, ensuring accurate premium, loss, and expense adjustments. This role leads pricing initiatives and rate filings, collaborates with cross-functional teams to support dynamic risk and market conditions, and maintains compliance with industry regulations. The manager also innovates continuously to enhance actuarial models, monitors competitive analysis, and builds a high-performing team for strategic success.

A Review of Professional Skills and Functions for Actuarial Manager

1. Actuarial Manager Accountabilities

  • Rate Filing Management: Manages Commercial quarterly and annual rate filings, including submissions to the state insurance department.
  • Subject Matter Expertise: Provides subject matter expertise to the commercial pricing process.
  • Economic Monitoring: Monitors company and industry experience and the economic environment, recommends, documents, and implements pricing updates and modeling improvements.
  • Collaboration: Collaborates with outside consultants, business management, and other functional areas throughout the company to complete rate filings, analyses, and projections.
  • Revenue and Claims Development: Contributes to the development of revenue and claim estimates including risk scores and adjustments, trends, drug rebates, and reinsurance recoveries.
  • Pricing Metrics Management: Manages the generation and review of pricing metrics for Large Group, ACA (Small Group and Individual) pricing and profitability management, benchmark analytics, and modeling.
  • Analytical Leadership: Leads the team in the development of studies, analyses, and presentation materials needed to appropriately inform decision-makers.
  • Recommendation Making: Independently makes appropriate recommendations to senior leadership.
  • Consistency Driving: Collaborates with other actuarial leaders to drive consistency across product lines where appropriate.
  • Resource Management: Manages team resources across many projects, focusing on quality, time, scope, usefulness, and appropriateness of work.
  • Analytic Implementation: Implements analytic techniques and predictive models to support medical cost reduction and health cost initiatives.

2. Actuarial Manager Functions

  • Leadership: Lead and mentor a team of junior analysts in analyzing pricing, rate monitoring, and retention data.
  • Coordination: Coordinate the team's work schedule and make adjustments to ensure that timelines are met.
  • Reporting: Prepare actuarial reports to help the business effectively manage existing portfolios.
  • Communication: Accurately interpret and effectively communicate results to the pricing management.
  • Review: Review the work of team members for accuracy, completeness, and reasonability.
  • Documentation: Ensure all work is appropriately documented.
  • Collaboration: Effectively interact and assist pricing actuaries around the globe.
  • Strategic Development: Assist with the development and implementation of strategies for risk segmentation, technical pricing, and underwriting for profitable growth.
  • Issue Resolution: Communicate with underwriting to research and resolve issues quickly and escalate issues appropriately.
  • Best Practices: Contribute to and support the team's best practices framework.

3. Actuarial Manager Job Description

  • Pricing Preparation: Prepares new product/campaign pricing to meet the financial requirements of the company.
  • Risk Review: Review the product/campaign features from a product risk perspective.
  • Profitability Analysis: Conducts profitability analysis of existing products.
  • Design Review: Reviews and proposes amendments to product design and actuarial basis to be applied in new product pricing and profitability analysis.
  • Implementation Support: Supports actuarial-related areas in the product/campaign implementation cycle to ensure accuracy and timeliness of system delivery.
  • Timeline Management: Responsible for meeting the timeline and schedule for the product's internal and regulatory approval process, and reviewing/preparing product reinsurance forms.
  • Experience Reporting: Review/Perform experience studies/reports and propose best estimate assumptions timely.
  • Trend Reporting: Reports of any adverse trend and abnormality are observed.
  • Interest Rate Preparation: Prepares Universal Life crediting interest rate and provides support to High-Net-Worth Business.
  • Campaign Support: Support ILAS products on special quotes/campaigns.
  • Project Representation: Represents Actuarial and provides required actuarial support to special projects including system enhancement and the implementation of new regulatory regimes.

4. Actuarial Manager Overview

  • Actuarial Management: Actuarial responsibility for the Personal lines of business, including regular collaboration with the underwriting and claims managers.
  • Process Improvement: Setting the bar for simplification of existing processes and developing the department’s technical capabilities.
  • Reserve Management: Production, monitoring, and communication of quarterly reserves on an IFRS and Solvency II basis for the Personal lines of business.
  • Portfolio Management: Portfolio segmentation and business steerage.
  • Business Planning: Actuarial input into the annual business planning process.
  • Risk Parameterization: Input into the insurance risk parameterization process.
  • Team Coordination: Supports manager in coordination of task assignments and resources for the team.
  • Training and Development: Develops and trains subordinates to gain product knowledge and product pricing techniques.
  • Performance Review: Regularly reviews and discusses the progress of subordinates and identifies improvement/development areas.
  • Quotation Development: Develops and reviews special quotations.
  • Additional Responsibilities: Performs other responsibilities and duties periodically assigned by the manager to meet business or other requirements.

5. Actuarial Manager General Responsibilities

  • Rate Development: Own rate indication development and improvement, including trending and adjusting premiums, losses, and expenses, using an appropriate statistical model and actuarial techniques across all products.
  • Product Launch Leadership: Lead actuarial effort in product launch and manage rate filings with the State Department of Insurance.
  • Model Innovation: Continuously innovate and drive model enhancement to serve dynamic risk exposure and market conditions.
  • Risk Facilitation: Facilitate the risk review process to support the risk and business strategy.
  • Pricing Strategy: Identify, advise, and execute pricing initiatives to achieve functional strategies (often segment-specific) on matters of significance.
  • Benchmark Delivery: Deliver industry benchmarks including trend, rate changes, and loss development.
  • Market Analysis: Stay on top of competitive and market analysis.
  • Cross-Functional Collaboration: Collaborate with Insurance and Tech Product, Underwriting, Claims, and Research and Development teams to deliver pricing initiatives.
  • Regulatory Compliance: Collaborate with decision analytics to implement rule changes correctly and in compliance with regulations.
  • Process Improvement: Identify and implement process improvements to existing procedures.
  • Team Management: Recruit, inspire, and retain a high-performance team.
Relevant Information
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