Actuarial Talent AnalysisApril 2019
2
Agenda
Actuarial Talent Hotpots03
Executive Summary01
Actuarial Job Taxonomy02
Location Deep Dive04
Agenda
Job Progression of Actuarial Roles05
Digital Transformation of Actuarial Talent06
Start-up Ecosystem Analysis07
33
Executive Summary
DRAUP launched a systematic assessment to analyze Actuarial Talent Pool across various U.S Locations.
• Actuarial Job Taxonomy : Actuarial Talent was categorized into 11 high demand job roles on the basis of skills and workloads for analysis (See slide 3 and 4 for the definition of analyzed job roles)
• Talent Hotspot Analysis: ~78,000 Actuarial Talent across 60 U.S Metropolitan Statistical Areas was analyzed.
• Location Deep Dive: 5 locations with high Actuarial talent were analysed further, these are Greater New York City Area, Greater Los Angeles Area, Dallas/Fort Worth TX Area, Greater Boston Area and Greater Chicago Area. Talent cost, Key Employers, Top Universities and the Location Accessibility of these locations were studied in detail.
• Job Progression for Actuarial Roles: Actuaries usually progress within their own Job family, while some branch out as Data Analyst/data Scientist. Many actuaries are building skills in programming languages. Around 3,600 actuaries have upskilled themselves in Machine Learning.
• Digital Transformation of Actuarial Talent: New Age Digital Technologies such as Machine Learning, Robotic Process Automation, Data Visualization and Cloud Computing are changing the skill requirements and workloads of Actuarial Job Roles.
• Start-up Ecosystem Analysis: Actuarial Automation Platforms, Actuarial Modelling , Predictive Analytics and Actuarial Consultancy Services are some of the key Actuarial themes across which InsurTech start-ups are working.
DRAUP
4
Actuarial Job Taxonomy: Analysed Job Roles (1/2)
Job Roles Sample WorkloadsSample Skills/Certifications
Lead a team of 3 or more actuarial analysts. Responsible for mentoring and coaching of analysts. Support pricing and financial planning by performing actuarial studies; advise leaders on pricing and financial strategies and policies.
Actuarial ManagerAssociate or Fellowship qualification. Exp in Actuarial Modelling. Expertise in Financial Analysis, Risk Mgmt.
Utilize available statistical data to establish reliable and accurate pricing, using generally accepted actuarial techniques; assess the pricing process on an ongoing basis; suggest/implement improvements to ensure actuarially sound pricing.
Pricing ActuaryACAS or FCAS, Large Account Pricing, Actuarial Modelling Software, MS Excel
Develop pricing financial metrics and present reports to Management. Provide actuarial support to internal partners on all pricing issues. Make recommendations on refining current processes to enhance the quality of work and improve efficiency.
Actuarial ConsultantFinancial Reporting, Actuarial and Quantitative Analysis, Modelling, SAS, MS Excel, VBA.
Initiate and lead the development of studies, analyses, and presentation materials needed to appropriately inform decision makers. Make appropriate recommendations to management across teams within the actuarial department.
Associate ActuaryFSA, Exp. in Actuarial Modelling Software, MS Excel ( including VBA)
Apply appropriate analytical tools to the data and perform actuarial analysis. Analyse, report and develop recommendations based on data analysis. Maintain and create standard and ad hoc reports
Actuarial AnalystBachelor Degree in Actuarial Science, Mathematics or Statistics. MS Office.
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Develop actuarial assumptions to use in pricing, reserving or actuarial modelling, including experience studies in support of assumptions. Coordinate, prepare, and perform actuarial analyses to develop pricing strategies, valuation approach or risk management strategies.
Actuary /Assistant Actuary
ASA or Near-FSA. Financial and Risk Modelling, MS Excel, Actuarial Software (GGY-AXIS, ALFA, MoSes)
5
Actuarial Job Taxonomy: Analysed Job Roles (2/2)
Job Roles Sample WorkloadsSample Skills/Certifications
Perform coding of the model to implement capital modelling approaches including detailed analysis to aid calibration by following technical actuarial processes both standard and advanced. Diagnose model defects and check coding for errors.
Modelling AnalystDegree in Mathematics, Statistics or Actuarial Science, Statistical/DFA Modelling tools,
Develop statistical models designed to enhance business decisions. Areas of focus will include: Claims, Pricing, Underwriting and more. Apply predictive modelling principles, practices, and procedures as well as identifies and implements process improvements.
Actuarial Data ScientistPredictive Modelling, Statistics, Machine Learning, R, Python
Implementing and maintaining actuarial algorithms. Enhancing, maintaining and supporting existing actuarial applications. Interacting with an analytical oriented user group for requirements gathering
Actuarial DeveloperActuarial Tool Development, Programming Skills (VBA, VB.NET, C++,JavaScript), MS Excel
Liaise with Actuaries to provide technical solutions to business requirements, problems and troubleshooting opportunities. Manage the application infrastructure services in collaboration with onsite team members.
IT Actuarial Systems Analyst
Bachelor degree in Computer Science & Engineering, Scripting Languages, SFTP Tools, Insurance Domain Knowledge Certification from LOMA
Develops and maintains strategic roadmap to support actuarial business needs with technical solutions. Architects and designs medium to large solutions to meet Actuarial needs focused on collecting, conforming and reporting data with modelling and reporting consumers in mind.
Actuarial IT Manager
Bachelor’s Degree in Computer Science, Math or Actuarial Science. Data Modelling, Python, OOP, Actuarial Knowledge
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6
Actuarial Talent Hotspot: Major locations across U.S were analysed to establish Actuary Talent Footprint. Greater New York City is the top location for Actuary Talent.
~78,000Actuarial Talent pool for 60 analysed locations in USA
26 Top Analysed Locations with Actuarial Talent Pool > 1,000
Locations (MSA) Total
Greater New York City Area
13,000
Greater Chicago Area 5,900
Greater Boston Area 4,300
Greater Philadelphia Area
4,100
San Francisco Bay Area 3,400
Greater Minneapolis - St. Paul Area
3,000
Greater Los Angeles Area 2,700
Greater Atlanta Area 2,600
Hartford Connecticut Area
2,600
Dallas / Fort Worth Area 2,300
Washington D.C. Area 2,300
Greater Seattle Area 2,000
Greater Detroit Area 1,500
Locations (MSA) Total
Houston, Texas Area 1,300
Columbus, Ohio Area 1,300
Greater Denver Area 1,200
Des Moines, Iowa Area 1,200
Charlotte, NC Area 1,100
Greater St. Louis Area 1,100
Greater Milwaukee Area 1,100
Baltimore, Maryland Area
1,000
Austin, TX Area 1,000
Greater Pittsburgh Area 1,000
Indianapolis, IN Area 1,000
Madison-WI Area 1,000
Phoenix Arizona Area 1,000
Seattle
ChicagoDetroit
Atlanta
Philadelphia
New York City
Boston
Dallas
San Francisco
Los Angeles
Washington DC
Baltimore
St. Louis
Milwaukee
Phoenix, AZ
Denver
AustinHouston
Des Moines
Madison
Indianapolis
ColumbusPittsburgh
Charlotte,
Minneapolis
Hartford CT
Note : DRAUP’s proprietary talent module was used to analyse jobs by locations and skill typeMetropolitan Statistical Areas (MSAs) defined by Bureau of Labors Standards are considered for the Talent Pool Analysis
7
Actuarial Talent Hotspot: Cleveland/Akron, Ohio Area and Miami, Florida Area are some of the mid-scaled locations for Actuarial Talent
~78,000Actuarial Talent pool for 60 analysed locations in USA
32 Analysed Locations with Actuarial Talent Pool < 1,000
Locations (MSA) Total
Cleveland/Akron, Ohio Area
900
Miami Florida Area 800
Tampa/St. Petersburg, FL Area
800
Cincinnati, Ohio Area 800
Kansas City, Missouri Area
800
Portland, OR Area 700
Raleigh-Durham, NC Area 700
Louisville, Kentucky Area 700
Greater San Diego Area 600
Greater Nashville Area, TN
600
Richmond VA Area 600
Orlando, FL Area 400
San Antonio, Texas Area 400
Sacramento, CA Area 400
Providence Rhode Island Area
400
Jacksonville, FL Area 400
Locations (MSA) Total
Rochester & Ithaca, NY Area
400
Greater Salt Lake City Area
350
Greensboro Area 350
Stamford-Bridgeport & Norwalk Area, CT
300
Greater Grand Rapids, MI Area
250
Fort Wayne, Indiana Area 250
Provo, Utah Area 200
Green Bay, Wisconsin Area
200
Las Vegas, Nevada Area 200
Oklahoma City Area 200
Boise & Greater Idaho Area
150
Norfolk, VA Area 150
Greater New Orleans Area
150
Greater Memphis Area 150
Hampton-Manchester-Concord, New Hampshire Area
150
Greater Dakota Area 150
Note : DRAUP’s proprietary talent module was used to analyse jobs by locations and skill typeMetropolitan Statistical Areas (MSAs) as defined by Bureau of Labors Standards are considered for the Talent Pool Analysis
Salt Lake City, UT
Sacramento, CA Richmond
Greensboro
Cleveland, OH
Tampa, FL
Louisville, KY
New Hampshire
Providence RI Area
Dakota
Norwalk
Norfolk, VA
88
Location Assessment: Greater New York City Area
8
Location Accessibility
AirportsTotal Flights (per day)1
Major HubsNo. of Flights
(per day) 2
John F. Kennedy
International Airport
~1240
Atlanta, GA ~150
Los Angeles, CA
~100
Chicago, IL ~70
Newark Liberty
International Airport
~1200
Chicago, IL ~130
Los Angeles, CA
~120
Talent Analysis3
Talent availability
Total Actuarial Talent Pool in Greater NYC Area (MSA)(Employed at a firm)
~13,000
(0-5 Years Experience) ~4,000
(6-10 Years Experience) ~3,500
(10+ Years Experience) ~5,500
Total Demand
Annual Actuary Talent Job openings (Mar 2018 – Mar 2019)
~1,100
CostMedian salary of Actuarial Talent $85,000
Overall Assessment: Greater New York Area
Talent Availability
Cost
Insurance Ecosystem
Location Accessibility
EDT time zone
(GMT-4)
Key Employers
Company Name Talent5
Prudential Financial 380 – 400
Willis Towers Watson 230 – 250
MetLife 230 – 250
New York Life Insurance Company 190 – 220
EY 150 – 170
Mercer 160 – 180
AXA US 90 – 100
High
High
High
High
Top UniversitiesEnrollment per year for
Mathematics / Statistics / Actuarial Science4
Cornell University 80 - 100
Columbia University 150 - 200
New York University 150 - 200
Hamilton College 60 - 80
Stony Brook University 200 - 250
Binghamton University 200 - 250
University Analysis
Mathematics / Statistics / Actuarial Science Graduates (2017): ~1,500
1All departing flights from commercial airports. 2Dallas, Los Angeles, San Francisco, Houston, Chicago, Atlanta, Boston, Philadelphia, New York have been considered as major hubs for this analysis. Direct Flights, as well as flights with 1 stop have been considered (Source: Travel Portals, Airline Website 3Draup’s Proprietary module. 4Source: College/University Websites, National Center for Education Statistics IPEDS. 5 Talent size in respective companies for analysed Actuarial roles
99
Mathematics / Statistics / Actuarial Science Graduates (2017): ~1,500
Location Assessment: Greater Los Angeles Area
9
Talent Analysis3
Talent availability
Total Actuarial Talent Pool in Los Angeles Area (MSA) ~2,600
(0-5 Years Experience) ~890
(6-10 Years Experience) ~630
(10+ Years Experience) ~1,100
Talent Demand
Annual Actuary Talent Job openings (2018) ~150
CostMedian Salary of Actuarial talent $90,000
Overall Assessment: Los Angeles Area
Talent Availability
Cost
Insurance Ecosystem
Location Accessibility
PDT time zone
(GMT-7)
Key Employers
Company Name Talent5
Farmers Insurance 100-120
Anthem, Inc. 50-70
United Health Group 40-50
Health Net 30-50
Blue Shield of California 30-50
Mercer 30-50
Transamerica 20-30
High
Medium
High
University Analysis
Location Accessibility
AirportsTotal Flights
(per day)1 Major HubsNo. of Flights
(per day) 2
Los Angeles International
Airport(LAX)
~1400
Dallas/ Fortworth
~180
Atlanta, GA ~180
Philadelphia, PA
~140
Chicago, IL ~140
Boston, MA ~140
Top Universities
Enrollment per year for Mathematics / Statistics /
Actuarial Science4
California State University-Long Beach 100 - 120
University of California-Los Angeles 250 - 300
Santa Monica College 100 - 150
California State University-Los Angeles 100 - 120
Rio Hondo College 80 - 100
University of Southern California 50 - 80
1All departing flights from commercial airports. 2Dallas, Los Angeles, San Francisco, Houston, Chicago, Atlanta, Boston, Philadelphia, New York have been considered as major hubs for this analysis. Direct Flights, as well as flights with 1 stop have been considered (Source: Travel Portals, Airline Website 3Draup’s Proprietary module. 4Source: College/University Websites, National Center for Education Statistics IPEDS. 5 Talent size in respective companies for analysed Actuarial roles
Medium
1010
Top UniversitiesEnrollment per year for
Mathematics / Statistics / Actuarial Science4
University of North Texas 200 - 220
Texas Christian University 100 - 120
University of Texas, Dallas 100 - 120
Southern Methodist University 40 - 60
Texas State University 200 - 220
Dallas Baptist University 150 - 180
Location Assessment: Dallas/Fort Worth Area
10
Location Accessibility
AirportsTotal Flights
(per day)1 Major HubsNo. of Flights
(per day) 2
Dallas/Forthworth
International Airport
~900
Atlanta ~150
Philadelphia, PA
~140
Boston, MA ~125
Dallas Love Field
~530
Chicago, IL ~40
Los Angeles, CA
~40
Talent Analysis3
Talent availability
Total Actuarial Talent Pool in Dallas/Fortworth Area (MSA)(Employed at a firm)
~2,300
(0-5 Years Experience) ~600
(6-10 Years Experience) ~550
(10+ Years Experience) ~1,100
Total Demand
Annual Actuary Talent Job openings (2018) ~140
CostMedian salary of Actuarial Talent $80,000
Overall Assessment: Dallas/Fort Worth
Talent Availability
Cost
Insurance Ecosystem
Location Accessibility
CST time zone
(GMT-6)
Key Employers
Company Name Talent5
Willis Tower Watson 100 – 120
Blue Cross & Blue Shield 70 – 100
Transamerica 50 – 60
Milliman 30 – 50
Aon 30 – 50
Lewis & Ellis 30 – 50
Fidelity Investments 20 – 30
Medium
High
High
High
University Analysis
Mathematics / Statistics / Actuarial Science Graduates (2017): ~ 450
1All departing flights from commercial airports. 2Dallas, Los Angeles, San Francisco, Houston, Chicago, Atlanta, Boston, Philadelphia, New York have been considered as major hubs for this analysis. Direct Flights, as well as flights with 1 stop have been considered (Source: Travel Portals, Airline Website 3Draup’s Proprietary module. 4Source: College/University Websites, National Center for Education Statistics IPEDS. 5 Talent size in respective companies for analysed Actuarial roles
1111
Location Assessment: Greater Chicago Area
11
Location Accessibility
AirportsTotal Flights
(per day)1 Major HubsNo. of Flights
(per day) 2
DuPage Airport
~300
New York ~260
San Francisco ~210
Philadelphia ~150
Boston ~150
Talent Analysis3
Talent availability
Total Actuarial Talent Pool in Greater Chicago Area (MSA)(Employed at a firm)
~5,800
(0-5 Years Experience) ~1,500
(6-10 Years Experience) ~1,480
(10+ Years Experience) ~2,820
Total Demand
Annual Actuary Talent Job openings (2018) 450
CostMedian Salary of Actuarial Talent $82,000
Overall Assessment: Greater Chicago Area
Talent Availability
Cost
Insurance Ecosystem
Location Accessibility
CDT time zone
(GMT-5)
Key Employers
Company Name Talent5
Allstate 230 – 250
Milliman 130 – 150
AON 120 – 140
CNA Insurance 100 – 120
Blue Cross & Blue Shield 100 – 120
Zurich 100 – 120
Willis Towers Watson 50 – 70
High
High
High
High
Top UniversitiesEnrollment per year for Mathematics / Statistics4
Northwestern University 120 - 150
The University of Chicago 100 - 120
Wheaton College 150 - 180
DePaul University 200 - 220
University of Illinois at Chicago 250 - 280
Valparaiso University 80 - 100
University Analysis
Mathematics / Statistics / Actuarial Science Graduates (2017): ~ 500
1All departing flights from commercial airports. 2Dallas, Los Angeles, San Francisco, Houston, Chicago, Atlanta, Boston, Philadelphia, New York have been considered as major hubs for this analysis. Direct Flights, as well as flights with 1 stop have been considered (Source: Travel Portals, Airline Website 3Draup’s Proprietary module. 4Source: College/University Websites, National Center for Education Statistics IPEDS. 5 Talent size in respective companies for analysed Actuarial roles
1212
Location Assessment: Greater Boston Area
12
Location Accessibility
AirportsTotal Flights
(per day)1 Major HubsNo. of Flights
(per day) 2
Boston Logan International
Airport~1,200
Los Angeles ~200
San Francisco ~180
New York ~160
Philadelphia ~100
Talent Analysis3
Talent availability
Total Actuarial Talent Pool in Greater Boston Area (MSA)(Employed at a firm)
~4,200
(0-5 Years Experience) ~1,200
(6-10 Years Experience) ~1,100
(10+ Years Experience) ~1,900
Total Demand
Annual Actuary Talent Job openings (2018) ~420
Cost Median Salary of Actuarial Talent $87,000
Overall Assessment: Greater Boston Area
Talent Availability
Cost
Insurance Ecosystem
Location Accessibility
EDT time zone
(GMT-4)
Key Employers
Company Name Talent5
Liberty Mutual Insurance 330 – 350
John Hancock 150 – 170
The Hanover Insurance Group 60 – 80
Fidelity Investments 60 – 80
Sun Life Financial 50 – 70
Willis Tower Watson 50 – 70
Blue Cross & Blue Shield 40 – 60
Medium
High
High
High
Top UniversitiesEnrollment per year for Mathematics /
Statistics4
Harvard University 120 - 140
Boston University 240 - 270
Tufts University 100 - 120
Brandeis University 200 - 220
Northeastern University 200 - 220
University Analysis
Mathematics / Statistics / Actuarial Science Graduates (2017): ~ 700
1All departing flights from commercial airports. 2Dallas, Los Angeles, San Francisco, Houston, Chicago, Atlanta, Boston, Philadelphia, New York have been considered as major hubs for this analysis. Direct Flights, as well as flights with 1 stop have been considered (Source: Travel Portals, Airline Website 3Draup’s Proprietary module. 4Source: College/University Websites, National Center for Education Statistics IPEDS. 5 Talent size in respective companies for analysed Actuarial roles
1313
Actuarial Analyst
Actuary
Actuary Analyst
Actuary Chief
Professor
SeniorData
Analyst
Actuarial Consultant
Actuary Principal
Data Scientist
Job Progression for Actuarial Roles – Actuaries usually progress within their own Job family
Note : This is an indicative structure based on relevant Job Descriptions & Workloads as mentioned in Job Postings and Draup’s Proprietary Talent Database.
Case in point : Actuary
Evolution of job role of an actuary
Analysts Statisticians
3.6K actuaries have already upskilled themselves in ML technologies
ML Developer
Kaggle
Hacker Earth
Enterprise Training programs
Reskilling in programming languages
Many Actuaries are getting skilled in Machine Learning
Actuary
Highly skilled in Mathematics and statistical models
1414
Digital Transformation
Data Visualization
Cloud Computing
• Bachelor Degree in Actuarial Science, Mathematics or Statistics
• Actuarial Modelling Tools• MS Excel/VBA/ResQ• Experience in Financial Services
Industry
From Core Actuarial/Statistics Skills
AI/ML
RPA
To Added Skills in New Age Technology
• R/Python• Data Visualization Tools such as
Tableau, Power BI• SQL, Hadoop• Predictive Modelling• Machine Learning Techniques
Job Role Transformation
Workflow Transformation
Digital Transformation of Actuarial Talent– New age technologies are changing the skill requirements and workloads of Actuarial Job Roles
Note : Analysis is based on the DRAUP’s proprietary engineering database and talent module as well as skill analysis from job portals
Trad
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Act
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ork
flo
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Review Data and update
forecasts using machine learning based predictive models
Run Complex
Models on Cloudfor faster
processing
RPA helps create templatized reports.
Data Visualization Tools are used to communicate complex analyses
Understand any new/ updated requirements
Tingyu Liu
Associate Actuary, Prudential Financial
Master’s , Financial Mathematics, University of Chicago
Greater NYC Area
Workloads• Individual Variable Annuity Modelling- Lead VA STAT Reform valuation and forecast model build• Fixed Indexed Annuity Modelling- Lead FIA valuation model build
SkillsActuarial Modelling, Machine Learning, C++,MATLAB, Python, R, SQL, Hadoop (MapReduce), VBA, Tableau, D3.js
Hyunsu Kim
Associate Actuary, Milliman
Bachelor’s Degree, Actuarial Science, University of Illinois at Urbana-Champaign
Chicago, Illinois
Workloads• Built and implemented an outlier detection algorithm
as a first step for AI implementation in fund management practice
• Currently leading the AI initiative for financial reporting system working with a Microsoft data science team
SkillsMachine Learning Algorithm Development (PCA, Cluster, RF, GBM, ANN, etc), C, R, MATLAB, Python, SQL
Note : Analysis is based on the DRAUP’s proprietary database and talent module as well as skill analysis from job portals
Review Latest Data and Updated Forecasts
Run, modify or setup new models
Create a Report for Senior Executives
Understand any new/ updated requirements
1515
Start-up Ecosystem Analysis: Actuarial Automation Platforms, Actuarial Modelling, Predictive Analytics are some of the key actuarial themes on which start-ups are working.
Rest of the
World Actuarial analytics to predict expected risk involved in
investment
Provider of actuarial & advanced analytics services
Fintech/ Actuarial Consultancy
Predictive Analytics
Provides Machine Learning and AI tools for Actuaries to improve
predictions
Transform data into actionable insights to get more targeted
risk analysis
Insurance SaaS Platform
Provide strategic IT consulting for Insurance software components
Actuarial modeling, predictive analytics software on actuarial
methodology
Actuarial Automation Platform Actuarial Modelling Insurance Systems
Automated In-house Actuarial analysis to estimate the potential financial risk
implications
Actuarial Modelling & Pricing Transformation for Life Insurers
ML Modeling and financial innovation for
Insurance sector
Provider of Actuarial tools, models and outsourcing
services
Actuarial services/ Analytics tools
Actuarial Modelling
Product development ,pricing, inventory and provisioning, actuarial
and multi-standard financial modelling
API-enabled Underwriting and Actuarial platform for Commercial Insurance
Actuarial Consultancy
USA
Europe
Note: Rest of The World features Start-ups from Israel, India and South Africa