WHAT DOES AN ACTUARY DO?

Published: Nov 13, 2024 – The Actuary conducts in-depth research on statistical modeling methods and prototypes of innovative product features, collaborating closely with product development teams. This role supports client delivery with operational analytics and enhances risk solutions by identifying cost-effective, efficient approaches. The actuary also continuously contributes to risk solution innovation, ensuring technical and legislative knowledge remains current to deliver relevant and compliant client solutions.

A Review of Professional Skills and Functions for Actuary

1. Actuary Essential Functions

  • Analytical Skills: Undertake analysis of TAL’s experience quarterly, including interpretation and business messaging.
  • Process Improvement: Design and implement processes to improve the automation and monitoring of experience against expectations.
  • Improvement Suggestion: Suggest and implement improvements to the current experience investigation process.
  • Data Management: Develop and manage processes that ensure the integrity and accuracy of input data and analytical systems, and document these processes.
  • Business Support: Work with business managers to support the implementation of responsive business systems and metrics.
  • Claims Management: Favorably drive claim levels in line with business objectives.
  • Tool Development: Develop new tools and techniques to create and fulfill user demand for customer and scheme-level claim analytics.
  • Technical Oversight: Oversee and participate in the implementation and operation of tools (including R) to support the above activities.
  • Business Insight: Understand the underlying drivers of the business and provide insights to interpret TAL’s results.
  • Team Management: Manage staff members engaged in the collection and detailed analysis of claims and other relevant data.
  • Support and Mentorship: Assist the Senior Analytics Manager in making recommendations of assumptions and support the junior staff.

2. Actuary Role Purpose

  • Data Analysis: Analyse product-related data from various sources to assess completeness and accuracy.
  • Irregularity Identification: Identify potential product experience irregularities to ensure the accuracy of client and product insights and analysis.
  • Competitive Analysis: Analyse competitor products and pricing to provide insight for developing and maintaining competitive risk solutions.
  • Experience Review: Review experience investigations, modeling, and data analysis to develop new risk solutions and monitor experience on existing risk solutions.
  • Pricing Development: Develop and maintain pricing models and basis.
  • Reporting and Presentation: Prepare product health reports and present product profitability and insights derived from analyses to support decision-making and inform appropriate actions through various options and scenarios.
  • Technical Support: Provide technical actuarial support to the Risk team and claims areas to support various initiatives.
  • Relationship Building: Build and maintain collaborative working relationships with various internal and external stakeholders, such as solution peers, IT, distribution, legal, service, claims, and valuations.
  • Client Service Improvement: Make recommendations to improve client service and promote fair treatment of clients.
  • Culture Contribution: Participate and contribute to a culture that builds rewarding relationships, facilitates feedback, and provides exceptional client service.

3. Actuary General Responsibilities

  • Reporting Support: Support the reporting process and the production of Quantitative Reporting Templates.
  • Technical Provisions Support: Support the production of the Solvency II Technical Provisions.
  • Capital Requirement Calculation: Assist in the calculation of the Solvency Capital Requirement.
  • Report Production: Assist in the production of the Actuarial Function Report.
  • Risk Management Assistance: Assist the risk management function in the production of the ORSA Report.
  • Exhibit Preparation: Assist in the preparation of exhibits for quarterly Board and Risk Committee meetings.
  • Auditor Liaison: Liaise with internal and external auditors.
  • Cross-Function Liaison: Liaise with the other functions (finance, compliance, underwriting, and claims).
  • Pricing Analysis: Assist in pricing analysis of mortgage insurance business.
  • Documentation Maintenance: Maintain and enhance documentation of internal policies and reports.

4. Actuary Key Accountabilities

  • Subject Matter Expertise: Participating as a subject matter expert with prospective clients.
  • Collateral Creation: Creating collateral regarding analytical products to support Sales and Marketing teams.
  • Public Speaking: Speaking to external audiences at industry and Octo events to drive broader brand awareness.
  • Project Participation: Participating in new client projects, ensuring optimal implementation of analytics-based products.
  • Client Support: Continuously supporting the Account Managers (Customer Success Managers) in their interactions with clients when actuarial questions are asked.
  • Client Reporting: Delivering updates to clients on their scores and analytics, including managing the standard reporting process.
  • Filing Support: Assisting with the development of required filing support and responding to questions posed by regulators during the DOI approval process.
  • Research Proposals: Proposing, defining, and supporting research on new analytics ideas to increase and maximize the value-added of Octo’s services for clients.
  • Business Requirements Definition: Supporting the analysis and evaluation of new analytics ideas and defining business requirements.
  • Algorithm Development: Contributing to the evolutionary development of algorithms to assess motor insurance risk and deliver feedback to drivers and insurance companies.

5. Actuary Responsibilities and Key Tasks

  • Statistical Research: Research alternative statistical modeling methodologies.
  • Prototyping: Prototype new product features in conjunction with the product development team.
  • Operational Analytics: Provide operational analytics support to client delivery teams.
  • Relationship Building: Build relationships internally and collaborate effectively on cross-functional teams.
  • Analytics Collaboration: Work with the analytics team to define and research answers to internal and external questions and requests.
  • Research Conduct: Conduct relevant research to inform pricing and design assumptions, projections, and advice provided to the business, and to develop one’s expert opinion.
  • Cost-Effectiveness Solutions: Identify solutions to enhance cost-effectiveness and increase the operational efficiency of risk solutions.
  • Risk Identification Input: Provide input into the risk identification processes and communicate recommendations in the appropriate forum.
  • Innovation Contribution: Contribute to continuous innovation in risk solution design and processes through the development, sharing, and implementation of new ideas.
  • Technical Knowledge Maintenance: Ensure technical product and legislative knowledge are always current to propose the most relevant and innovative client solutions and comply with governance requirements.
Relevant Information
What Does An Actuarial Associate Do?
What Does An Actuarial Manager Do?