Actuarial Modelling Processes and Cost Analysis

This technical report presents a comprehensive examination of actuarial modelling, focusing on the latest trends, systems, and processes aimed at enhancing the performance and efficiency of actuarial tasks. It discusses the impact of technological advancements, particularly in artificial intelligence and cloud computing, on actuarial modelling practices. The report outlines the hidden costs associated with actuarial modelling systems, emphasizing the importance of understanding the total cost of ownership, which includes not only software licenses but also operational, regulatory, and human costs. Insights from industry experts highlight the complexities of assessing these costs and the implications for insurers in a competitive market. Additionally, the report addresses the evolving role of actuaries in light of technological changes and the potential societal impacts, suggesting that while technology may reduce repetitive tasks, it could also complicate the learning process for junior staff. Overall, the report underscores the necessity for actuaries to adapt to these changes while managing the associated costs effectively.