4 Perspectives (from Non-Actuaries) on the Role of Actuaries in a Data-Driven World
What do those outside the actuarial profession think of actuaries? In a world where data reigns supreme, we’ve gathered insights from four professionals, including co-founders and a Head of Marketing, to hear how they view the actuarial profession.
The question we asked them was “As a professional outside the actuarial field, how do you perceive the role and value of actuaries in today’s data-driven world? What is one of the misconceptions about the actuarial profession, and how can actuaries better communicate their work and its impact to those outside their field?”
From demystifying actuarial expertise to expanding actuarial services beyond finance, discover how these experts view actuaries and the ways in which these data-savvy professionals can better communicate their value.
Demystifying Actuarial Expertise
The actuarial field seems like witchcraft to many non-actuaries. It is a group of hidden individuals who use math to predict when people are going to die and how much they will cost insurance companies, among other things.
To the average outsider, this is a great mystery. In some ways, this is a caricature, but the general impression holds true. I think a lot of the misconceptions about actuaries exist because, due to the nature of their work, most actuaries are not public figures. I believe the general public would be surprised by all the things actuaries actually do if only we heard more about them.
Highlighting Actuaries’ Strategic Roles
I perceive actuaries as highly valuable professionals in today’s data-driven world. Actuaries possess unique skills and expertise in analyzing complex data sets, assessing risks, and making informed decisions. Their role is crucial in various industries, including insurance, finance, and healthcare, where data analysis and risk management are paramount.
One common misconception about actuaries is that their work is solely focused on number crunching and mathematical calculations. Actuaries should better communicate that their work goes beyond crunching numbers. They are skilled problem-solvers who use their analytical abilities to assess risks, make strategic recommendations, and drive business decisions. Actuaries play a vital role in designing insurance policies, determining pricing and reserves, and evaluating the financial impact of uncertain events.
To communicate their work more effectively to those outside their field, actuaries can emphasize the real-world impact of their analyses and decisions. They can highlight how their expertise helps organizations manage risks, protect financial stability, and make informed choices. Actuaries should also engage in outreach initiatives, such as writing articles, giving presentations, or participating in panel discussions, to educate the public about their profession and its importance in today’s data-driven world.
Storytelling to Convey Actuarial Insights
In today’s data-centric world, their role in interpreting complex data for practical decision-making is invaluable, particularly in risk management. They’re often pigeonholed into finance and insurance, but their skills are much broader.
A key to broadening understanding of their work is communication. Actuaries could greatly benefit from using simple, relatable stories to convey their complex findings. This approach would not only make their work more accessible but also showcase the broad applicability of their skills across various sectors.
Expanding Actuarial Services Beyond Finance
I perceive the main role of actuaries as quantifying risks, primarily for major banks and insurance companies. However, there are many other businesses that could benefit from data about potential financial risks, including retail stores and restaurant chains. Some of these businesses might not be aware that actuaries could help them quantify these risks.
