The success of modernisation projects in insurance companies crucially depends on seamless database integration into actuarial processes. Power Query has emerged as a tool capable of making a substantial impact in a short timeframe — accelerating data flows and enhancing the management and processing of actuarial data across multiple databases.
Database Integration – Critical Factors for Success
Over the years, I have witnessed the evolution of various databases within the industry, with many failures being attributed to outcomes not being as expected. The primary reason behind these shortcomings was often down to the ad-hoc development of databases without considering the broader processes and technology landscape.
To gauge the success of integrating databases into actuarial processes, two outcome-based factors play a pivotal role. Firstly, the extent to which data flows can be automated within processes, and secondly, the ability for actuaries to access data through self-service. Ensuring effective self-service access involves empowering actuaries to be able to analyse and review data independently, eliminating dependence on third parties and the need to regularly check data quality and accuracy.
Actuarial Performance Management Assessment Insights
In our Actuarial Performance Management (APM™) Report involving over 400 actuaries completing our APM Assessment, 65% of the respondents believe that the data flow within their organisations is still manually processed and significantly lacks automation. We also asked the respondents about their experience of self-service.
The results showed that less than 50% of respondents have self-service access to the data and of the people that do have self-access to data, almost 75% of them still needed to copy the data into their processes using Excel before they could continue working on the data.
When we asked the question why that was the case, 65% of them said that it was due to system limitations and the ability of the tools to access the data in the databases directly.
Empowering Actuaries through Power Query
One efficient and cost-effective way to break through these barriers is by introducing Power Query to enhance Excel actuarial processes. Power Query, when integrated with databases, provides a potent combination for actuaries. It is inexpensive and part of the Excel suite of functionality. It enables you to quickly automate processes and facilitate self-service data access.
In a recent webinar, we examined the close relationship between Power Query and databases. Beyond mere connectivity, Power Query enhances user-friendliness and accessibility, ensuring a robust user experience. Actuarial processes frequently require the use of databases due to large data pools, and Power Query presents a solution to manage and analyse large datasets efficiently.
Benefits of Using Power Query for Excel Processes
Database Connectivity
Power Query’s ability to connect to a variety of databases, whether on-premise or cloud-based, streamlines data extraction. It optimises data processing by utilising server-side capabilities, significantly enhancing performance compared to traditional methods involving large datasets in Excel.
User-Friendly Data Filtering
Power Query makes databases more user-friendly by enabling intuitive data filtering without the need for complex SQL scripts. Actuaries can leverage Excel’s familiar interface to filter data based on specified criteria, providing a user-friendly alternative to database management tools.
Enhanced Transparency and Traceability
Power Query enhances transparency by displaying all applied steps during data transformations. Actuaries can visualise the SQL Server code generated by Power Query, eliminating the need for manual SQL coding. Additionally, the tool provides a graphical representation of query logic and dependencies, making data transformations more accessible.
The integration of Power Query with databases empowers actuaries to accelerate data processing, improve data management and enhance overall efficiency. By leveraging this powerful combination, insurance companies can streamline their actuarial processes, ensuring faster, more accurate results. However, it is crucial to approach this integration correctly to avoid potential pitfalls. Properly implemented, Power Query and databases offer a robust solution to the challenges faced by actuaries in today’s data-driven insurance landscape.
For personalised guidance on how to use Power Query for Excel to optimise your databases and actuarial processes, our team is here to support you.
- Unlock Efficiency: 5 Impactful Power Query Strategies for Actuarial Database Optimisation - 20 March 2024
- Leverage Power Query for Seamless Actuarial Database Integration - 13 February 2024
- Webinar for Actuaries: Databases and Power Query – the Perfect Match - 24 November 2023
