Actuarial Employment Trends and Emerging Roles in the Insurance Analytics Field

1. State of the Union – Actuarial Employment and Trends Chicago Actuarial Association, 2019 Spring Workshops Sally Ezra EZRA PENLAND ACTUARIAL RECRUITMENT March 25, 2019

2. Current and Emerging Trends in the Actuarial Job Market OVERVIEW | NEW ROLES |EMERGING TRENDS | SKILLS SOUGHT

3. About Ezra Penland Sally Ezra and Claude Penland founded Ezra Penland with the goal of serving the Actuarial and related modeling fields with the highest level of professionalism and with individual and dedicated attention. Ezra Penland works on all levels of Actuarial positions, from the analyst and actuarial assistant levels, up through Associateship, Fellowship, Chief Actuaries, consulting partners and executive management. Ezra Penland has deep experience within the related predictive modeling and catastrophe risk modeling fields, as well, and the firm is excited to be at the forefront of the insurance analytics field. These roles are in Property & Casualty, Life, Health, Pensions and Non-Traditional disciplines. Clients include insurers, reinsurers, brokers, consulting firms and other employers of actuaries and modelers.

4. OVERVIEW

5. Overview of hiring and demand over the past 6 months • More demand for supplemental health / ancillary market experience • New LTC roles coming in weekly • Life – steady hiring • Health – new jobs come in daily, but each one has its own specific need so none are easily filled • Pension – mostly remains flat although there is some hiring to replace openings due to retirements • P&C – steady hiring with some spikes within some specializations • Data Analytics & Modeling – Actuarial candidates who have substantial data analytics and data management experience across the Life, Health, and P&C markets are in very high demand • Start-Ups – Health, P&C, and some Life

6. Our Prediction - hiring and demand over the next year • Supplemental Health / Ancillary / LTC will settle down • Life – steady hiring will continue • Health – new jobs come in daily, but each one has its own specific need so none are easily filled – we expect this will continue • Pension – some replacement of retirees will continue • P&C – steady hiring with some spikes within some specializations – we expect this will continue • Data Analytics & Modeling – Actuarial candidates who have substantial data analytics and data management experience across the Life, Health, and P&C markets are in very high demand - we expect this will continue • Start-Ups –Health, P&C and some Life - we expect this will continue

7. NEW ROLES

8. Things that were rare or didn’t exist 5 years ago • Cyberinsurance: Less than 10% of US businesses have cyberinsurance specific policies, but it is now up to almost 3 million policies • Wearable technology: Expected to double in the next few years.Concerns WC, Liability, Life, Health • Implanted technology: Concerns P&C, Liability, Product Defect, Med Mal, Life, Health • Auto insurance by the mile • Gig economy: Health, Benefits and WC insurance packages targeted to gig workers • Insurance-on-demand: We want it NOW! • Self-driving cars: who is responsible when things go wrong?

9. Things that were rare or didn’t exist 5 years ago, AND I’m still trying to understand them • Blockchain: Applications include fraud detection, risk prevention, claims settlement, reinsurance, and medical records • Internet-of-Things: Over 100 new devices are connected to the Internet every second. Insurers have taken note! • Quantum computing: As it evolves over the next decade, artificial intelligence, actuarial modeling, core systems, data transfer and data security are becoming integral • Insurance using bots and AI

10. EMERGING TRENDS

11. Catastrophes – They are an issue insurers are facing (aka, Cats, Cats, and more Cats!) • Climate Change – Insurers are taking a hard look at climate change risks - Lots of Nat Cats Predicted • Man Made Cats – terrorism, cyber, environmental, forest fires, • Health Related Cats - Epidemics – Pandemics • Cats impact P&C, and also Life and Health

12. Startup players - • Cybercube, Cyence, CyberPolicy • Stride Health; Yrisk – Products tailored to Gig Economy • Waymo, Uber, Lyft – Rideshare and Self-driving • On Demand companies are popping up daily (exaggeration, sort of), examples includeTrov (personal possessions), Verifly (drone insurance!), Slice Labs (focus on AirBnB’s) • There is a long list of pay per mile auto insurers • Lemonade – in the Guinness Book of World Records for the fastest claim ever processed (3 seconds!) • HealthIQ • Oscar Health • New products created for the needs of the new generations - security deposit insurance; insurance can be turned on and off as needed;

13. Fun Facts!Source: http://contingencies.org/by-the-numbers/ • Increase in U.S. actuarial job postings that mention Python over the past 12 months: +40% • Percentage of London citizens surveyed who would consider having a chip implanted to help them manage their lives, including tracking health: 40% • Value of connected health market by 2024: $36 billion • Percentage of U.S. insurtech deals involving an insurer/reinsurer as an investor: 83% • What concerns Insurance CEO’s: 1. Overregulation, 2. Cyber threats, 3. Speed of technological change, 4. Populism, 5. Geopolitical uncertainty

14. SKILLS SOUGHT

15. The skills actuaries need • Can talk to people who don’t understand what they do for a living (be a businessperson) • Have a handle on new technology and learn new things – Knowledge of IT and Insurance • Data Analytics for marketing – Getting to targeted populations • Critical thinking skills - figure out better ways of doing things, rather than the way they’ve always been • World moves in Internet time - actuaries need to be flexible and change when the business changes or the plans change • Working with diverse co-workers, having an openness and appreciation for each other’s differences

16. Skills, Continued • Staying on top of how politics, laws and digital trends affect the insurance business (international accounting trends, risk based capital, principle-based reserving, ACA changes affecting health) • More collaborative work than in the past • Consultants are building and growing specific practices more than ever before  • Be able to anticipate how things that aren't in the pricing data will affect the price and experience over the short-term and long-term • Bring in predictive analytics, game theory, reputation theory, behavioral economics • Product Management

17. INTERESTING READING – Just a few links to stuff I liked! • https://theactuarymagazine.org/breaking-new-ground/ • http://contingencies.org/by-the-numbers/ • http://contingencies.org/robots-join-team/ • https://www.accenture.com/us-en/insights/insurance/rise-insurtech • https://www.carriermanagement.com/features/2018/02/13/175508.htm • https://www.newyorker.com/culture/cultural-comment/why-the-life-insurance-industry-wants-to-creep-on-your-instagram • https://www.compelo.com/insurance/news/insurance-and-imaging-technology?sfns=mo

18. Sally Ezra EZRA PENLAND ACTUARIAL RECRUITMENT www.EzraPenland.com 800-580-3972 or 773-598-4756 (direct) actuaries@ezrapenland.com / sally@ezrapenland.com