Data Science and Actuarial: Managing Potential Conflict

Report Summary

Data Science and Actuarial: Managing Potential Conflict

Mitch Wein
Head of Financial Services CIO/CTO Advisory

March 2016 - The rise of data science has posed a challenge to actuaries as modelers-in-chief and as the guardians of data in the insurance industry. The ownership and handling of data is now also claimed by the emerging discipline of data science.

Data scientists generally come from different backgrounds than do actuaries. They use different programs and different methodologies. With both groups deriving their organizational power from the ability to turn data into money, there is a high potential for conflict. This brief looks at the organizational convergence of actuarial sciences and analytics: what works, what doesn’t, and what to watch out for.

Table of Contents

  • Introduction........................................................................2
  • Differences and Synergies........................................3
  • Three Models for Data Science.............................4
  • Warning Signs of Conflict: Lack of Clarity.......5
  • Concluding Thoughts..................................................6
  • Next Steps and Related Research......................6
  • About Novarica................................................................7

 

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