Four key skills for actuaries working in general insurance

What skills do actuaries need in order to succeed in the general insurance industry? We conducted a survey of over 200 actuarial professionals working in general insurance to understand what’s important to them in the workplace, including their upskilling priorities. Let’s look at each of them in turn, assessing why they’re important to the role of an actuary.

1. Python helping to evolve the profession

There are a lot of things you can’t do with spreadsheets. As general insurers look to automate complex tasks, handle massive datasets effectively and use advanced analytics to make better business decisions, Python has allowed them to push beyond traditional tools like Excel and VBA. In the process, it has become essential to the role of an actuary.

Our survey tells us that Python is now the biggest upskilling priority for actuaries working in the general insurance industry, selected as number one by 38% of respondents. Using simple syntax featuring elements from natural English language, it has the added benefit of being a relatively easy programming language to learn.

2. Pricing ensuring solvency and stability

In a challenging financial climate, ensuring solvency, managing risk and remaining competitive are more important than ever for insurers. We’re finding from our conversations with clients that pricing is a key focus for the majority of UK firms. This is especially the case for new entrants to the insurance market operating within the syndicate space, who principally target the FIA qualified market for actuarial talent.

According to the results of our survey, actuarial professionals feel that pricing will be a key skill for them in the years ahead. Indeed, the most common transformation respondents have been involved with in their career is pricing transformation, selected by 48%. As insurers continue to switch from Excel to pricing and modelling software such as Python, Emblem, Radar, and hx Renew, pricing is set to remain key to the actuarial profession.

3. Coding facilitating tech – and career – advancement

When we asked our respondents for their opinion on coding within the actuarial profession, their responses varied – from those who view it as the most important skill for a productive actuary to those who feel it’s a nice to have. Ultimately, it depends a lot on the nature of the role. More senior actuaries, for example, might be more focused on skills such as stakeholder management, while many of the more junior actuaries who completed our survey feel that coding skills help to widen their options when moving roles.

What we can’t deny is that coding has become an important part of current tech-focused actuarial processes, particularly when it comes to automating tasks, handling large and complex datasets, modelling, pricing and enabling the use of advanced analytical techniques like machine learning.

4. People skills to underpin the tech

It’s not all about the technology, as reflected by the 30% of respondents who selected ‘none of the above’ when describing their upskilling priorities. Actuaries also need to demonstrate a more strategic value to the business. In general, more experienced actuaries feel well equipped from a technical point of view. What they’re really focused on developing are their people skills, which become increasingly important with seniority. Respondents referred to softer skills such as managing teams, delivering presentations, engaging a varied group of stakeholders, influencing and communicating complex technological concepts to a non-technical audience as being key upskilling priorities.

It’s important not to underestimate the importance of people skills for more junior actuaries too. Being able to engage their colleagues across the business is key to expanding their knowledge and growing their networks, which will also set them up for success in their future career.

Conclusion: a tech and non-tech toolkit

The growing importance of automation, data and advanced analytics mean that the likes of Python and coding have become essential for actuaries working in general insurance. Pricing is also a key skill as insurers look to maintain their solvency and stability, with pricing transformation a significant priority for many organisations. In addition to this technological toolkit, actuaries will need the right people skills to manage their various stakeholders and communicate complex concepts, helping to bridge the gap between business needs and technical capabilities.

If you’d like to talk to us about the skills you need as an actuary in the general insurance industry, are an actuary looking for your next role in general insurance or a hiring manager looking to bring in actuarial talent, contact our general insurance actuarial team to find out how we can help.

These insights are derived from our Actuarial UK Skills and Workplace Attitudes Survey. If you’d like to see the full results, you can request a copy of our report here.