Actuarial teams within large insurers are increasingly positioned at the centre of complex challenges and rising expectations. They face mounting pressures from regulatory compliance, evolving customer demands, intensifying market competition, and rapid technological change. Amid these dynamics, actuarial leaders are expected to deliver strategic insights with greater efficiency and cost-effectiveness than ever before.
About the Author
Nick Scott
Nick Scott is a Partner at Russell Bedford member firm HMW Group with over 20 years of experience in insurance, investment banking, and professional services. He leads the actuarial and analytics practice and advises both insurers and corporates.
He is recognised for building strong client relationships, delivering compliant and commercial outcomes, and leading teams across data, risk, and compliance. He is also passionate about the role of AI and innovation in driving productivity and improving Australia’s living standards.
nicks@russellbedfordrc.com.au
Innovative chief actuaries and actuarial managers are rising to the challenge by reimagining their operating models. Through a strategic blend of outsourcing and AI adoption, they are not only enhancing the efficiency of actuarial delivery but also enabling their teams to concentrate on higher-value activities: addressing industry issues such as underinsurance, affordability and customer trust.
| The growing demands on actuarial teams
Regulatory pressures and compliance burdens
Regulatory compliance has never been more critical—or more complex—for the insurance industry. From IFRS 17 to evolving regulatory requirements and sustainability reporting, the responsibility of maintaining compliance often falls heavily on actuarial teams. These requirements necessitate detailed modelling, reporting, and transparency that can overburden internal resources.
Complex data environments
Data is at the heart of actuarial excellence, but it’s also one of the biggest hurdles. Insurance companies are managing increasing volumes of data, sourced from various silos, formats, and legacy systems. For actuarial teams, organising, interpreting, and reconciling this information effectively while delivering new insights is no small feat.
Resource constraints
Experienced actuaries with the right mix of business and AI skills are in demand, yet finding and retaining top talent is increasingly challenging. Combined with unpredictable peaks in workloads, such as during year-end reporting or regulatory submissions, it’s no wonder that many actuarial teams struggle to prioritise new initiatives and upskilling.
| Rethinking the actuarial operating model
Transforming the actuarial function doesn’t mean overhauling your entire operation. Instead, it’s about identifying inefficiencies, leveraging external capabilities, and exploring AI and automation opportunities to create a more scalable and strategic function.
Leveraging external partners for routine tasks
Outsourcing repetitive or time-intensive tasks is becoming an effective strategy for optimising actuarial operations. Actuarial service providers bring expertise in handling standardised tasks like data cleaning, reconciliation, and regular reporting. By delegating these responsibilities, in-house actuaries can focus on value-adding activities such as new initiatives, strategic scenario planning, and decision support.
Building flexible capacity through strategic outsourcing
Many actuarial leaders are addressing workload peaks by partnering with external teams or centralised hubs that offer flexible capacity. Whether it’s handling a sudden surge in demand during reporting season or undertaking a major integration related to mergers or acquisitions, access to specialised outsourced support ensures your team isn’t stretched thin.
Automating processes for increased efficiency
Advanced automation technologies, including agentic AI are widely recognised as game-changers for actuarial workloads. Automation has the power to revolutionise key functions by:
• Shortening the manual effort required for complex data processes and calculations
• Integrating unstructured data (e.g. claims notes) for richer insights
• Delivering real-time data processing to respond to fast-changing business needs.
Integrating automation with outsourcing introduces a strategic ‘human-in-the-loop’ safeguard—ensuring oversight to mitigate data quality issues, algorithmic bias, and other potential risks associated with automated processes. In this environment, in-house actuaries play a critical governance and oversight role.
| Optimising actuarial value
Beyond simplifying operations, actuarial transformation drives strategic value for the business. Here’s how actuarial leaders can continue focusing on the bigger picture.
Advanced modelling and insights for decision-making
Outsourcing and automation free up resources to focus on new initiatives and decision support. Actuaries are uniquely positioned to deliver insights that drive executive decision-making. With the capacity to model future risks, evaluate the impact of new insurance products, and identify growth opportunities, actuaries increase their strategic influence across the organisation.
Enabling proactive risk management
With more time to dedicate to analysis and planning, actuaries can play a more proactive role in risk management. Whether it’s enhancing predictive modelling for underwriting or estimating the impact of emerging risks such as climate change and transition, a transformed actuarial function ensures businesses stay ahead of potential challenges.
Supporting innovation in insurance products
Product innovation is critical for staying competitive in today’s insurance landscape. By optimising operations through external partnerships and automation, actuaries have the time and capacity to contribute to designing and pricing innovative, market-leading products.
| Making the transformation work for your business
Actuarial transformation requires both strategic thinking and careful execution. Here are some best practices to ensure its success:
Assess current processes and pain points
Start by identifying inefficiencies, bottlenecks, or recurring challenges within your existing actuarial processes. This diagnostic step is crucial in determining where there’s an opportunity to leverage external or automated solutions.
Prioritise high-value activities
Not all tasks require a transformation. Focus on optimising or outsourcing low-complexity, high-volume processes first. This ensures your internal team focuses on more strategic, high-value projects that directly impact business goals.
Partner with the right providers
Selecting the right partners is critical when outsourcing actuarial tasks. Look for providers with proven expertise, robust security protocols, a lower cost base and scalable solutions tailored to the insurance sector.
Invest in technology and training
AI is a key enabler of actuarial transformation. Invest in the right tools that fit seamlessly into your operational model, and don’t overlook the importance of training your team to effectively use these technologies.
| Take the first step toward actuarial excellence
Actuarial transformation isn’t just about overcoming challenges; it’s about seizing opportunities to create more purposeful and high-impact teams – building a team that has executive and public policy cut-through. By outsourcing routine tasks, harnessing AI, and focusing on strategic initiatives, actuarial leaders can optimise their operations while driving long-term business and social impact.
