Emerald Group recently attended the European Congress of Actuaries in Rome, joining more than 400 experts and executives from across Europe to explore how the actuarial world is changing. Here, we talk to Dominique Nicholas, Director and Fátima Piñeiro-Somoza, Senior Consultant – both from our International Actuarial team, about the hot topics driving the future of the sector.
The ability of Emerald Group consultants to understand and respond to emerging trends in the actuarial sector sets us apart when it comes to finding and placing the best candidates into actuarial roles across the globe. At the recent European Congress of Actuaries (ECA 2024), there were several dominant themes that are shaping hiring patterns. With cyber security, AI, sustainability and a changing political landscape major points of discussion, we explore the specific challenges raised at ECA 24 that face both clients and candidates.
Unstoppable Cyber
There’s no doubt that cyber security is evolving into a complex and in-demand part of the market. Fatima explains, “Cyber insurance is expected to be the largest in the P&C sector in German-speaking countries by 2036. The market as a whole is already adapting and evolving, with a greater focus on the ability to define and classify cyber risks. We’re starting to see the need for improved modelling and risk analysis as well as pricing. Companies are getting ahead now with skills development, setting their sights on growing capabilities for the future.”
Politics Driving Policies
Cyber security is a good example of how the changing political landscape is going to directly impact actuarial services, as new policies are put in place to tackle global issues, including cybercrime, sustainability and conflict. Dominique sees this as an opportunity for companies to help shape the policies of the future, “Policies are being set now that will impact the insurance market of the future. Companies have an opportunity to create stronger links with Governments and communicate openly about the impact of such policies across the EU and beyond.”
The AI Connection
AI is already impacting actuarial careers and ECA brought together the latest thinking on how candidates need skills that bridge the connection between data, IT and AI. Fatima confirms, “The rapid uptake of AI is creating a convergence of actuarial science and IT skills, and the candidates who will get ahead are already embracing data analytics, statistical and reporting programmes such as Python, R and Power Bi and machine learning such as Random Forest. This move beyond spreadsheets must now be embedded in qualifications at university level, recognising the power and potential of these approaches and equipping candidates to move forward. In turn, actuaries need to master these techniques, and build creative skills in their management of data and sourcing.”
Growing Governance
The insurance sector is leading the way in modelling around global risk, connecting the impact of global events to climate change, sustainability and operational governance. Dominique outlines what this means in practice for individual companies, “Emerald Group clients are having to incorporate ever-more governance policies into their operations, as they formally assess the impact and application of processes, policies and internal regulations. Adherence and internal auditing are becoming increasingly significant, and internal facing roles are emerging in greater numbers.”
The Future is Closer Than We Think
Clearly many of these developments have significant impact for today’s clients and candidates. Fatima offers this advice to those job hunting now or in the near future, “Think about the skills that will give you an advantage in the future. If you’ve already qualified, think about the new skills that actuaries qualifying now are gaining: consider how you might build your knowledge in these areas, even within your current company.”
And finally, Dominique shares her perspective on what this means for clients, “ECA 24 was a great catalyst for changing the impression that clients have of these topics. At Emerald Group we often see hesitation from clients about how evolving trends might impact roles and responsibilities. We encourage our clients to think now about how they can incorporate the skills of the future into today’s functions. Clients need to have an open mind about how to build their teams, and whether knowledge or skills development come first. Planning ahead at this point can only be beneficial.”