Why Actuarial Performance Needs More Than Technology
Actuarial functions are investing heavily in new systems, data platforms, automation and modelling capabilities. But for many organisations, the expected improvement in performance is still not fully materialising.
Why?
In this edition of 5 Minutes With, we speak to Andries Beukes, Partner, Actuarial Solutions at MBE Consulting, about why actuarial performance improvement requires more than better technology. He shares his perspective on the common misconceptions surrounding transformation, the operating model challenges that limit progress and what separates high-performing actuarial teams from the rest.
The Silver Bullet Myth
From your experience, what is the most common misconception organisations have about improving actuarial performance?
The most common misconception is that there is a single “silver bullet” that will transform actuarial performance, often a new system, a faster model or a better data platform.
An actuarial function is a complex ecosystem where people, processes, systems, data, models and methodology all influence one another. Sustainable improvement comes from taking a holistic approach.
You can invest in better technology, but if the data is poor, the process is inefficient or the team does not have the right capabilities, the value will be limited.
It is a bit like a game of chess. You do not win by moving one piece. You win by understanding the board and moving the right pieces in the right sequence.
Why Technology Alone Doesn’t Improve Performance
Many organisations invest heavily in systems, data and models, yet still struggle to improve performance. Why is that?
The main reason is that technology is often implemented without changing the operating model around it.
Many organisations treat a new system, data platform or model as the transformation itself. But performance only improves when the underlying ways of working also change.
A better actuarial system placed into a weak operating model often just makes the inefficiencies more expensive.
The second issue is capability. Organisations may acquire the right solutions, but fail to equip people to use them effectively, embed them into workflows or translate outputs into better business decisions.
Technology can be a powerful enabler, but it does not create value in isolation. It needs to be supported by the right processes, ownership, skills and decision-making environment.
When Capacity Is Consumed By Production
What patterns do you consistently see across actuarial teams that limit performance?
A common pattern is that actuarial teams are working extremely hard, but not always on the activities that create the most value.
Too much capacity is often absorbed by production activity: running models, moving data, checking outputs, reconciling numbers and preparing reports.
These activities are important. They keep the function operating and they support critical reporting, governance and decision-making. But when they dominate the agenda, there is less time for insight, challenge and supporting better business decisions.
I also see fragmented processes, unclear ownership and tools or models that are technically sound but difficult to operate in practice. Over time, teams build workarounds to keep things moving, especially around data and reporting, and those workarounds become part of the operating model.
The result is a function that is reactive: one that delivers what is required, but with too little capacity left to improve, innovate or influence the wider business.
Start With Purpose, Not Technology
If you had to challenge one common approach to actuarial transformation, what would it be?
I would challenge the tendency to start with the solution before clearly defining the strategic direction of the actuarial function.
Too often, transformation begins with a system implementation, model rebuild or automation initiative. These may be necessary, but they should not be the starting point.
The first step should be to define what the actuarial function needs to become, what value it should create for the business and how it should support decision-making.
Without that direction, modernisation can become a set of disconnected initiatives. You may end up with a faster model or a modern system, but still have poor data, inefficient hand-offs, limited adoption or outputs that do not improve business decisions.
Successful actuarial modernisation starts with purpose. The tools and operating model should follow from that.
Establish The Baseline
Where should organisations focus first if they want to see meaningful improvement?
Organisations should start by baselining the current performance of the actuarial function.
Before setting an ambitious future direction, they need a clear and honest view of where they are today. Without understanding the current state, it is very difficult to define the right destination, prioritise the right interventions or measure whether progress is being made.
That baseline should look across the key enablers of actuarial performance. It should identify where the biggest constraints are, where effort is being absorbed and where the function is not yet creating the value it could.
Once the current state is clear, organisations can define a more realistic target state and break improvement into practical steps.
Meaningful actuarial change starts with knowing where you are, where you want to go and how you will track progress along the way.
Why Structure Matters
How does a more structured view of actuarial performance change the way organisations approach improvement?
A structured view changes the conversation from “we need to improve” to “we know where we need to improve, why it matters and how we will measure progress.”
Without structure, improvement can become subjective. It becomes harder to prioritise action, focus investment or prove that change has delivered value.
By understanding what drives the performance of the actuarial team, organisations can define meaningful KPIs, assess current performance, identify root causes and track whether interventions are working.
That visibility helps actuarial leaders focus investment where it has the greatest impact. It also creates a more evidence-based approach to building a higher-performing actuarial function.
From Production to Strategic Partnership
How do you see the role of actuarial teams evolving over the next few years?
Actuarial teams will continue to shift from being producers of outputs to strategic partners to the business. This shift will be accelerated by automation, better data platforms, more integrated systems and the rise of AI-enabled solutions.
Historically, a lot of actuarial capacity has been absorbed by production activity: running models, preparing reports, reconciling data and explaining movements. Those activities will not disappear, but the manual effort involved should reduce over time.
The opportunity is for actuarial teams to spend more time advising management and helping the business make better decisions around pricing, capital, risk, profitability and growth.
That also means the skill set must continue to evolve. Technical actuarial expertise remains essential, but teams will increasingly need to collaborate with data scientists, engineers, technology teams and AI specialists.
The best actuarial teams will design themselves around value creation, not just faster production.
Final Thoughts
In one sentence, what separates high-performing actuarial teams from the rest?
High-performing teams turn actuarial expertise into timely, trusted and commercial insight that helps business leaders create value.
What is one lesson you have learned from 20 years in this space?
One lesson is that most actuarial teams are not short of technical ability. They are usually full of capable people working extremely hard.
The challenge is often that their effort is absorbed by activity that keeps the function running, rather than activity that helps the business make better decisions. Running models, moving data, checking outputs and producing reports all matter, but they can leave very little room for insight, challenge and improvement.
That is why performance improvement is not just about better tools or faster processes. It is also about creating the space for actuaries to apply their judgement, ask better questions and influence the wider business.
When that happens, the actuarial function starts to move from being a producer of outputs to a more strategic partner to the organisation.
MBE Consulting helps insurance organisations assess and improve actuarial performance across people, processes, systems, data, models and methodology.
To discuss how your actuarial function is performing today, or where the biggest opportunities for improvement may be, get in touch with the MBE Consulting team.
5 Minutes With is a new MBE Consulting content series sharing practical perspectives from our people on the issues shaping insurance, actuarial, finance and transformation teams.
