Actuarial Research Activities
2 minute read
From time to time the FRC publishes research on UK actuarial work and/or UK actuaries to assist us in discharging our responsibilities. Our most recent publications are available below.
The use of Artificial Intelligence (AI) and Machine Learning (ML) in UK actuarial work
The FRC commissioned the Government Actuary’s Department (GAD) to carry out research into the use of AI and ML in UK actuarial work. The research was based on interviews with 37 individuals working in the sector and a survey completed by over 100 respondents.
The FRC / GAD publication presents the findings from the survey and interviews.
In line with expectations that AI and ML have considerable potential to transform the way actuarial work is carried out, the research also found widespread plans among actuaries to increase its use in future, particularly as a result of rapid developments in large language models such as ChatGPT. Furthermore, the research found General Insurance Pricing to be the actuarial field currently making greatest use of AI and ML. This includes for determining claims risks, forecasting the price-sensitivity of policyholder groups, and informing customer-facing processes
| Name | Research on the use of Artificial Intelligence (AI) and Machine Learning (ML) in UK actuarial work |
|---|---|
| Publication date | 28 October 2023 |
| Type | Report |
| Format | PDF, 872.2 KB |
Gender imbalance among UK senior actuaries
The FRC commissioned Thinks Insight & Strategy to carry out research to assess the extent and reasons for gender imbalance among qualified actuaries in the UK, particularly at the most senior levels. The research was based on interviews and a survey and engaged with 70 junior, senior, and ex-actuaries, including 40 in-depth individual interviews.
The FRC / Thinks Insight & Strategy publication presents the findings from the survey and interviews. The report was also submitted as evidence to the Treasury Committee's inquiry on 'Sexism in the City'.
The research found that while some progress has been made recently, there are still significant obstacles for women entering and advancing in the actuarial field. Key issues highlighted include a lack of female role models at senior levels, and a culture, including among clients, that has served to constrain equal participation of women in discussions and decision-making.
There was also found to be a lack of transparency around progression opportunities, as well as difficulties balancing career breaks and caring responsibilities with actuarial exams and demanding careers. This contributes to a drop-off of women actuaries in their 30s and 40s and low representation of women in top positions.
However, the research also put forward numerous examples of best practice and suggestions from actuaries themselves on improving gender balance going forward. Recommendations include line managers taking an active role in developing female actuaries' careers, better support around maternity leave and flexible working.
| Name | Gender imbalance among UK senior actuaries 2023 |
|---|---|
| Publication date | 18 October 2023 |
| Type | Report |
| Format | PDF, 2.9 MB |