Webinar for Feb 2019 - The Digital Actuary – preparing for the future … Now!

1. The Digital Actuary

2. The Panel

3. Discussion Agenda
• 75 minutes in total
• 4 Presentations
• 4 rapid fire polls and Q&A
throughout– wisdom of
the crowd
• 15+ minute panel
discussion with your Q&A

4. Questions & Answers
How to participate:
If you have a question please type into the Q&A area
If you have a comment please type into the chat area
Session format:
The moderator will use a combination of his own questions and those
from the audience
Each presentation will have a Q&A and poll

5. Chris Nyce,
KPMG

6. The Actuary of the
Future
How the actuarial profession must adapt and thrive, or risk irrelevance.
February 27, 2019

7. 7© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights
reserved.
The Pace of Change
The environment for actuaries is changing, and actuaries must adapt to seize the opportunities, or risk becoming
irrelevant
— Advanced analytics and big data is key, and exploding demand results in competition
Technology changes the needs of those actuaries serve…and can serve
— Actuaries driving the change is key and results in non-traditional roles becoming common
New ways of acquiring skills and learning
— Patience with 10,000 page syllabus and high stakes testing is waning, and technology is changing the way students need to
learn
Roles of actuaries are changing
— Working in more integrated ways
— Traditional roles are shrinking, and its critical to work in integrated ways with other disciplines
How does the profession respond?
— Lifelong continuous learning
— What can you do as a leader?

8. 8© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights
reserved.
Adapting to the Changing World
The environment for actuaries is changing because the world is changing
— Changes in the world around us impact actuaries profoundly
- Better tools means we need to adapt actuarial techniques
- Technology is changing business in the world around us
— Sharing economy
— Insuretech
— Automated transport
— Offshoring
— New ways of doing business only increase the need for strong risk management and risk quantification
— We have more competition, because quantitative skills are so valuable
— Adapt and seize the opportunities to drive change instead of reacting to it
— Leverage other professions and alternative skills instead of being threatened by them

9. 9© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights
reserved.
Moving Into Non-Traditional Roles
Actuarial roles are changing because the needs of those we serve are changing
— Stand alone actuarial departments are smaller; and confined in roles
— The skills actuaries have are being spun out and integrated into the businesses that leverage them
— Businesses that didn’t employ actuaries before are becoming employers
- Technology companies that need to manage new risks
- Financial and investment firms need to leverage new opportunities
- Start up Insuretech’s who need help with the risk environment they seek to transform
- Traditional insurers, who also must adapt

10. 10© 2017 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights
reserved.
How Does the Profession Respond?
Adapting to the new normal
— Employers must support lifelong learning by actuaries
- Invest in existing talent, in addition to adding new skills
- Integration of actuaries into the business operations can lead to success
— Professional societies need to change the educational system
- More integration with universities
- Changing the exams, and the exam based system itself
- Supporting continuing education, and supporting research
— Individuals own their personal success and can’t depend on the leaders of the profession to
make the changes
To “make” the actuary of the future requires new skills and educational appoaches
— Learning new technology doesn’t lend itself to current written exams, or even exams at all
— Training new graduates by doing routine tasks is becoming obsolete, due to actuarial centers
in low cost locations and robotic process automation
— Universities will train many of the new skills actuaries need; and we should embrace that
— The pace of change will continue and actuaries can no longer rest on traditional skillsets
— Towards a new model, as graduates will have rich skillsets based on new technologies and
more experienced actuaries have the knowledge to leverage them

11. Thank you

12. Poll 1
12
Question: When considering both the implications of advancing data capabilities and
growth opportunities in many new markets around the world, how do you think the total
number of actuaries across the industry is going to change?
1. Significant increase
2. Moderate increase
3. Moderate decrease
4. Significant decrease
5. Stay about the same
Participate in poll: Respond to the question when it appears on your screen

13. Valerie du Preez,
Dupro Advisory

14. valeriedupreez@dupro.co.uk
?

15. “ Today we believe actuaries are uniquely placed to help individuals,
businesses and societies look ahead, plan for the long term and
navigate the challenges of the 21st century, that’s why we believe it’s
time for the profession to step out of the shadows.”
Jules Constantinou, President of the IFoA

16. Actuaries and
Technology
Technological advances are
disrupting traditional practices
within the insurance world.
“Will a robot take over my job?”
“Should I become a data scientist?”
This creates exciting opportunities for
actuaries, insurers and new vendors.
Welcome to a world of actuaries and
new technology.

17. Actuaries, Technology and the Future

18. Actuaries
 Extract, transform and analyse data
 Make predictions
 Work with mathematics, probabilities & statistics
 Estimate expectation of mortality and persistency
 Calculate time value of money
 Assess risk
 Use computers
 Make sense of impact of statutory and regulatory requirements
 Provide services to Insurers on Insurance, annuities, pensions
 Calculate premiums, reserves, dividends
 Generally operate within Life, General insurance, Health, Investments and
other
 Communicate complex results
 Apply actuarial training and professional conduct
 Other?

19. • Virtual working
• On demand training
• Personalised Career Management
• Online Tools for collaborating and networking
• And more!
Current generation toolkit
Computer Science
• Data Sources
• Computing Power
• Cloud Computing
• Internet of Things
• Data Manipulation
• Software as a Service
Data Science
• Visualisations
• Statistical
Modelling
• Predictive
Analytics
• Other
Automation
• Robotics Process
Automation
• Low Code/No
Code Automation
• Cognitive
Automation
Off the shelf
or custom-
built
FinTech
InsurTech
RegTech
?
Technology

20. The Actuary’s Modern Day Toolkit
The Challenge and Opportunity
Tailored solutions Automated tasks Insights from data
One of the biggest challenges to employing more of this technology is the expertise required to
develop and implement it.
“ ActuarTech is the name given to a group of technology tools and techniques focused on the actuarial industry. Examples are
advanced cash flow and predictive modelling tools and software. To achieve the goals of reducing costs and unlocking insights in
the data, ActuarTech makes effective use of actuaries’ skills and expertise”. Dupro Advisory
It’s all about the problem statement

21. We Need Your Help...
Building a community of actuaries and domain professionals who are passionate about the future of the
actuarial profession.
Interviews, blog
posts, podcasts
and articles.
Covering a range
of technology
trends
Actuarial software
and
downloadable
educational
information and
materials
Online tool kit
Email info@actuartech.com to learn more

22. “Tech is just such a wonderful opening into the future. I think
everyone should just embrace it. It opens up so much for you…and
we don’t know what’s going to happen. But that’s part of the
exciting thing. We can actually be in there and be part of making it
happen.”
Dame Stephanie
Shirley
The Future ???

23. Poll 2:
23
Question: Which one of the following digital trends do you think is most likely to disrupt /
change the role of the actuary?
1. New data sources transform pricing into a real time discipline
2. Rapid rise of data science as a separate discipline
3. Move to provision of digital services that reduce risk and increased bundling of
insurance in ecosystems
4. Increased capability of technology to automate core actuarial reserving roles
Participate in poll: Respond to the question when it appears on your screen

24. Tan Suee Chieh,
Institute and Faculty
of Actuaries

25. Safe and SecureBox
Mathematics
& Statistics
Consulting &
Regulation
Investment
General
Insurance
Pensions
Life Insurance
Risk &
Stochastic
Processes
Compound
Interest &
Life
Contingencies
Safe & Secure Box
Investments
& Economics
© Tan Suee Chieh 2018

26. ExtensionofSafeandSecureBox
Mathematics
& Statistics
Consulting &
Regulation
Investment
General
Insurance
Pensions
Life Insurance
Risk &
Stochastic
Processes
Compound
Interest &
Life
Contingencies
Data Analytics
Machine
Learning
Neural
Networks
Natural
Language
Processing
Artificial
Intelligence
Banking
Climate Change
Health
Ecosystems
Ride Hailing
Apps
Loyalty Card
Companies
Safe & Secure Box
© Tan Suee Chieh 2018

27. NewEcosystemsoftheFuture
2028
2038
2048
2018
Safe &
Secure Box
Automation
Analytics
Machine Learning
ArtificialIntelligence
Platforms
Crowds
Platform economy
Digital Ecosystems
Social & Behavioural Data
Genetics & Genomics
Longevity
Sustainability
Underwriting demography
Health & Long-term careAutonomous Vehicles
Robotics
Devices
Wearables
Sensors Climate
Change &
Sustainability
Smart Contracts
Blockchain
Behavioral
Finance
Deconstruction of Life
Insurance. Savings &
Investments
Risk
Management Revolution in
Personal GI and
Healthcare
Internet of Things
© Tan Suee Chieh 2018

28. Springboardto theFuture
© TanSuee Chieh 2018

29. Dimensions of Time
One Year
3 Years
5 Years
10 Years
Manymore
30 Years
© Tan Suee Chieh 2018

30. Poll 3:
30
Question: What are the top 3 skills, competencies and mindsets that you think actuaries
will need to strengthen in the years ahead?
1. Ability to apply machine learning and AI
2. Ability to work with technology as partners in the wider sense – IoT, blockchain,
drones, robots
3. Ability to work beyond existing actuarial domains for e.g. genetics, behavioural
finance, climate change
4. Communication skills -especially in emerging social networks
5. Mindset – Adaptability, Curiosity and Growth Mindset
6. Commercial acumen - identification of actionable insights from data analysis
7. Visualisation skills and supporting technologies
8. Digital marketing
9. Applications of data science
10. Coding skills - such as Python
Participate in poll: Respond to the question when it appears on your screen

31. Siobhain O’Mahony,
Investec

32. DATA IS THE NEW OIL.
BUT IT’S ALSO THE NEW

33. PROFESSION THE MODERN DATA SCIENTIST
Source: edureka

34. PROFESSION ACTUARY VS DATA SCIENTIST
Actuary Data Scientist
Strengths
Weaknesses
Mentalities/
Constraints:
What influences
approaches?
Tools:
What are standard
skills?
• Specialist insurance domain knowledge
• Robust, methodical and proven approach to solving
common problems in a mature industry with
extensive data and experience
• Natural ability to “think outside the box” in
solving data problems
• Possess the ability to handle unstructured data
such as text, image, audio, video
• Restricted and relatively narrow competencies
(visualization, programming, extracting
information)
• Primarily focus on financial items – less
experience addressing wider issues (e.g.
marketing)
• Lack insurance-centric perspective; limited
understanding of how model results impacts
decisions
• Less systematic and rigorous approach
• Less institutionalized understanding of profession
by non-technical stakeholders
• Standardized, insurance-focused methodologies
• Tend to be users of pre-developed
systems/software
• Stochastic/probabilistic approach to problems,
• Influenced with a “tech mindset”; used to
working with less formal staffing structures
• Typically focused on profession (data science)
rather than a specific industry
• Tend to focus on getting the prediction right at
individual data point
• Problem solving approach driven by training
training/examination syllabuses
• Strong regulatory compliance tendencies
• Tend to have respect for hierarchical
structures
• Tend to focus on getting the average right
• Tend to be systems and data architects/
developers
• Constantly developing algorithms to
developed prediction-focused solutions
Source: PWC

35. PROFESSION THE MODERN DATA SCIENTIST
MATHS & STATISTICS
DOMAIN KNOWLEDGE
& SOFT SKILLS
PROGRAMMING & DATABASE
COMMUNICATION & VISUALISATION
• Machine Learning
• Statistical modeling
• Experiment design
• Bayesian inference
• Supervised learning: decision trees,
random forests, logistic regression
• Unsupervised learning: clustering,
dimensionality reduction
• Optimisation: gradient decent and variants
• Passionate about the business
• Curious about data
• Influence without authority
• Hacker mindset
• Problem solver
• Strategic, proactive, creative, innovative
and collaborative
• Computer science fundamentals
• Scripting language e.g. Python
• Statistical computing package e.g. R
• Databases SQL and NoSQL
• Relational algebra
• Parallel databases and parallel query processing
• MapReduce concepts
• Hadoop and Hive/Pig
• Custom reducers
• Experience with xaaS like AWS
• Able to engage with senior management
• Story telling skills
• Translate data-driven insights into decisions
and actions
• Visual art design
• R packages like ggplot or lattice
• Knowledge of any visualisation tools e.g. Flare,
D3.js, Tableau Source: Medium

36. I like to view myself as a Problem Solver, where
data is my language, data science is my toolkit,
and business results are my guiding force. Some
days I do ‘data science,’ performing exploratory
analyses or building machine learning models.
However, some days, I am more of a management
consultant and strategist, working with business
leaders to make data-driven decisions. Some days I
am even a data engineer, helping on-board new
data sources or architecting our big-data technology
stack. In fact, most days, I am a combination of all
of the above. Such is the life of a problem solver
responsible for all things data.
Source: Jacob Peters, Nine lessons learned
during my first year as a Data Scientist

37. A new breed of business person
proficient in technology, core critical
thinking, and analytics is needed, as
are people who can pull these skills
together with the right domain
expertise and knowledge of business
strategy. Technology will underpin
the transformation; it is a necessary
element, but not the differentiator.
Source: ATKearney

38. Poll 4:
38
Question: How well placed are actuaries to thrive in a digital world?
1. Extremely well placed
2. Well placed with minor skills retraining and refocus needed
3. At risk - there are major structural changes required significant skills retraining and a
move into new roles
4. Marginalised - actuaries are too far behind in adapting and will be marginalised
Participate in poll: Respond to the question when it appears on your screen

39. Panel Discussion & Q&A
39

40. Post webinar activities
Recording will be emailed to registered participants
Please give us your feedback
If you would like to follow up with any of the panelists
- Simon Phipps: simon.phipps@the-digital-insurer.com
- Elisha Deol: Elisha.Deol@KPMG.co.uk
- Chris Nyce: gnyce@kpmg.com
- Tan Suee Chieh: sueechiehbsn@gmail.com
- Siobhain O’Mahony: Siobhain.OMahony@investec.co.za
- Valerie du Preez: valeriedupreez@dupro.co.uk
Webinar Dates for the Diary
28th March: Blockchain & Insurance- The end, or just the beginning?
30th April: AI Powered Insurers

41. LIVEFEST 2019
What to do now – get
ready?
• Prepare for award entries from
March – InsurTech, Insurers,
Distributors and Established Tech
• Insurers – apply for the LIVEFEST
Knowledge programme (it’s free !)
• In studio global finals on 3rd
December – register interest on site
now (tickets limited) – see the
LIVEFEST ZONE on the main site
• LIVEFEST 2018 session recordings
and summary also available in the
LIVEFEST Zone

42. 42

43. INSURTECH INSIGHTS REPORT
https://www.the-digital-
insurer.com/kpmg-perspective-
insurtech-trends-executive-summary/

44. Thank You
The recording will be available in the next day