Actuary
Finance & Accounting
50%
Medium Risk
Task-Based Role
AI Impact Overview
Significant parts of this role may be automated or augmented by AI in the coming years. Developing complementary skills and staying adaptable will be important.
Past 3 Years
- 2022: Insurtech companies deployed ML models that priced auto insurance risk more accurately than traditional actuarial tables
- 2023: AI mortality and morbidity models from firms like Lapetus began outperforming traditional life insurance pricing methods
- 2024: Milliman and Willis Towers Watson integrated AI into reserving calculations, reducing actuarial analysis time by 50%
2-5 Year Outlook
- By 2026, AI will perform 70% of routine actuarial calculations, with actuaries focusing on model validation and emerging risk assessment
- 2027: Real-time AI pricing will become standard in P&C insurance, requiring actuaries to shift toward strategic risk consulting
- By 2028, entry-level actuarial positions will decline by 40%, while demand for actuaries who can interpret and govern AI models will increase
Adaptation Strategies
- 1Learn machine learning and Python - actuaries who can build, validate, and explain AI pricing models command premium salaries
- 2Develop expertise in emerging risks: climate change modeling, cyber insurance, pandemic risk, and autonomous vehicle liability
- 3Focus on regulatory and compliance aspects of AI in insurance - someone must ensure AI pricing doesn't violate discrimination laws
- 4Build consulting skills to advise executives on strategic risk decisions that require judgment beyond what AI can provide
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