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5 thoughts on “In the world of Machine Learning, is Actuary Redundant ?

  1. Very informative article and bit scary as well for our actuarial community. Sophisticated technology has already entered in other domains and now knocking actuaries doors as well. So better to embrace it with grace.
    Machine algorithms are developed and outputs are generated by just looking at past behavior of data with estimation of parameters with certain degree of confidence level. However there are many behavioral, cultural, social, future market and economic conditions which may change in future and can not be estimated by these techniques . Hence Actuary can play very vital role.
    It is well said that actuaries should be proactively involved for designing the business strategies of key stakeholders including policyholders through effective communication skills.

  2. Really a nice article sir but one thought which is constantly bogging my mind is what about actuarial students? In an actuarial department, what majorly comprise are actuarial students who are yet to qualify. As the level of awareness about this profession is exponentially increasing so as are the number of students, will actuarial students be limited to learning these soft wares, with the advent of machine learning, and doing coding/validation instead of traditional work of pricing, reserving, capital modeling and assumptions setting? If everything gets automated then what additional skills a future Actuary will have over a data scientist? I also think that a Marketing department in an insurance company also plays a vital role on advising on strategic matters, how will an actuary have an edge over a data scientist and marketing/sales department?

  3. You really made very valid points Rajat. Actuarial students will continue to play a critical role in pricing, reserving etc. Just that they will use more sophisticated tools. They will be able to improve the accuracy of assumptions, minimize cross subsidies between different segments of policyholders etc. Based on trends and requirements, they will be able to suggest specific products to various customer segments / distribution channels. As I mentioned in the article, instead of being just number crunchers, they will play a bigger role.

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