2018年-普华永道全球_Actuarial_modernization_survey_2018_PwC_43页_3mb

Actuarial Modernization Survey 2018 Summary

Core Content

The Actuarial Modernization Survey 2018 conducted by PwC provides an overview of the current state and future direction of actuarial modernization in both Property & Casualty (P&C) and Life insurance sectors. The survey gathered responses from 37 Life and 19 P&C companies, highlighting the drivers, challenges, and opportunities for modernization.

Main Findings

Modernization Drivers and Plans

• Multiple drivers are accelerating modernization, with 95% of companies citing 2 or more change drivers.
• Regulatory changes, such as IFRS 17 and US GAAP improvements, are key catalysts for modernization.
• Most companies expect modernization to take over 3 years to complete, with Life companies generally further along than P&C companies.
• The expected industry spend on modernization is +$1 billion, with most companies allocating $1m to $5m annually.

Automation

• Manual processes are still prevalent, with actuaries spending over 50% of their time on data manipulation.
• Full automation is rare, with only one company achieving full automation in the valuation process.
• Automation opportunities exist in model production, experience analysis, and controls.
• P&C companies tend to have a lower degree of automation compared to Life companies.

Data Management

• Data management is a critical focus area, with timely, accurate, and granular data being a top priority.
• Less than half of the companies have a data strategy, data dictionary, or robust data management.
• Inconsistent data storage leads to inefficiencies.
• Companies are recognizing the need to rationalize platforms and commonize data.

Key Person Risk

• Key person risk is common due to process specialization and lack of trained backups.
• No company has proficient backups for all roles.
• Documentation gaps exacerbate key person risk.

Actuarial Staff Skills

• Actuarial staff are highly skilled in technical areas like modeling, pricing, and reserving.
• They are hands-on with improvement work.
• Only 20% of companies maintain a structured training program, indicating a need for more formalized development.

Operating Models

• The most common operating model is local model production and development by line of business.
• Centralized shared service centers are also common, with about half centralizing model development.
• No company relies on offshore service delivery centers.

Key Themes

The Elusive Goal of Full Automation

• Actuaries are often engaged in low-value manual tasks.
• Process automation has not been fully embraced by the actuarial function.
• Opportunities exist for automation in modeling, experience studies, and controls.

The Challenge of Data Management

• While progress has been made in data cleanup, effective data management frameworks are still lacking.
• Legacy systems and "actuaries as data processors" contribute to higher operating expenses and reduced flexibility.
• Self-service data is not yet widely adopted, but could unlock hidden value if implemented.

The Actuary Today and Tomorrow

• The role of actuaries is evolving, requiring new skills and tools.
• There is a need for structured training and development to prepare for future challenges.
• Actuaries should focus on higher-value tasks rather than being bogged down by manual processes.

So What's Next?

New Frontiers

• Emergent technologies such as BI tools, cloud computing, big data, and AI are expected to be adopted in the coming years.
• Cloud computing is gaining interest, with about 25% of companies currently using it for modeling.
• Advanced analytics is driven by the need for deeper insights and identifying new sources of value, especially in P&C.
• Impediments to advanced analytics include project prioritization, lack of methodology knowledge, and programming skills.

Aggregation and Reporting

• Basic tools remain most common for visualization and reporting.
• A smaller percentage of companies use user-defined or automated reporting tools.
• There is growing interest in BI tools and robust reporting processes.

Cloud and Grid Computing

• About 25% of companies have the ability to model in the cloud.
• Grid computing is common, but cloud-only and distributed with cloud models are less prevalent.

Conclusion

The survey emphasizes the need for comprehensive modernization plans, enhanced automation, improved data management, and investment in training and development. These steps are crucial for actuaries to transition from data processors to value creators and to adapt to the evolving digital landscape in the insurance industry.

Key Takeaways

• Multiple drivers are accelerating modernization, with regulatory changes being a key factor.
• Automation opportunities exist across various actuarial functions, but full automation is rare.
• Data management remains a critical challenge, with most companies lacking robust frameworks.
• Key person risk is prevalent, driven by process specialization and inadequate training.
• Actuarial staff are highly skilled, but there is a need for structured training and development programs.
• Emerging technologies like BI, cloud computing, and AI are expected to play a significant role in the future of actuarial work.

Respondent Overview

• Respondent type: 40% are US national and regional insurers, 60% are international.
• Actuarial team size:
  • 18 companies with <50 FTE ("Small")
  • 18 companies with 50–100 FTE ("Medium")
  • 20 companies with >100 FTE ("Large")

Contacts

• David Honour, Principal: (646) 471-1696 | david.honour@pwc.com
• Jeffrey Schlinsog, Principal: (414) 212-1715 | jeffrey.s.schlinsog@pwc.com
• Richard de Haan, Principal: (646) 471-6491 | richard.dehaan@pwc.com
• Steve Bochanski, Director: (267) 330-8445 | steve.bochanski@pwc.com
• Daniel Broennimann, Director: (646) 471-1845 | daniel.broennimann@pwc.com
• Hunt Blatz, Director: (646) 471-2981 | hunt.m.blatz@pwc.com
• Jorge Noronha, Director: (678) 419-2605 | jorge.m.noronha@pwc.com
• Dorothy Woodrum, Director: (678) 419-2041 | dorothy.a.woodrum@pwc.com
• Jack Zhang, Manager: (646) 471-8799 | yiqing.zhang@pwc.com