How data management plays a crucial role in the modeling process

Actuarial data management and governance tools are quickly evolving, creating strategic opportunities for those who embrace new technology.

In brief

• The insurance company of the future that harnesses the new and innovative technologies for data management capabilities will have a strategic advantage.
• A strong data management architecture is the foundation of end-to-end actuarial modeling, including data sourcing and integration, model processing, and reporting.
• For transformational change, data must not only be managed well, but governed through a standardized, controlled, and consistent process.

Technology innovation is advancing at an exponential rate, creating more powerful solutions for data management and greater diversity of choices for those solutions. In this article, we build on the theme of technology-driven innovation, focusing on data management and reporting.

As the insurance industry moves deeper into implementation of regulatory and accounting changes, the need to establish efficient and seamless technology solutions for analysis and reporting is highlighted. With the evolution to principles-based reserves (PBR) and accounting change, the mandate is clear: insurance companies must manage, process and report on large data sets for valuation, projections and risk management.

While reporting is the eventual outcome of an actuarial modeling process, the end-to-end process requires data sourcing and integration, model processing and reporting. In addition, companies must perform experience studies and analytics to drive business decisions. To support these, and reporting in particular, it is vital for the insurance company of the future to have a robust data management system.

Learn how actuaries can leverage emerging technology to elevate their data management and reporting capabilities and provide the flexibility to handle changing business needs.