ACTUARIES SEEK AUTOMATION
In the actuarial world, process inefficiencies, increased business complexity, regulatory demands and data volume are leaving little time for crucial analysis, driving a growing trend toward automation, according to a roundtable hosted by The Insurance and Actuarial Advisory Services practice of Ernst & Young LLP, (E&Y) New York.
E&Y’s fourth annual Actuarial Transformation Roundtable focused on business intelligence (BI) strategies for actuaries coping with new challenges surrounding financial reporting, planning, forecasting and risk management.
Unlike last year’s event, which focused on business and IT alignment, at this year’s event, senior actuaries and IT executives from leading insurance organizations shared attitudes and progress with respect to enhancing current methodologies through technology.
A survey conducted at the event revealed that three-quarters (75%) of actuarial participants spend 20% or less of their time on validation, reporting, analysis and explanation of results.
There was broad agreement among participants at the roundtable that management expects more transparency and accuracy in a post-Sarbanes-Oxley world.
Acknowledging that the goals are clear, they also agreed that current processes and systems do not offer the necessary support to achieve these objectives. Pointing to the sheer volume of data and accelerated close times, there was broad consensus that little time is left for analysis. As a result, the actuarial team is frequently left unable to answer crucial management questions in a timely manner.
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