As an actuarial professional at the heart of risk modelling, pricing, and strategic decision-making, I’m not alone in pondering the future of my profession—and the insurance industry itself—as AI, generative AI, and LLMs reshape our world.
The Insurtech Imperative
Nearly 90% of insurers view AI as a strategic priority for 2025—but only one in five currently have production-grade AI in operation. AI offers enhanced underwriting, faster claims, better risk assessment, and efficiencies—but legacy systems, fragmented data, and culture gaps make implementation difficult.
A key obstacle is insurers’ entrenchment in outdated systems that don’t integrate well or adapt easily. Adding new functionality often results in brittle, temporary fixes layered on rigid frameworks. The outcome? A new generation of legacy tech that’s just as limiting.
Compounding this, most available tech platforms are built for generic business needs. They lack the actuarial depth required to produce the complex financial analytics central to life, health, and non-life insurance. Actuaries often must build these tools themselves, only to find them outdated when new tech emerges—creating another cycle of obsolescence.
That’s why partnering with specialist providers—those who understand the regulatory and actuarial terrain—is often more strategic. More on that later.
From Number-Cruncher to Insight Architect
This is a seismic shift for actuaries. We’re moving from running projections to becoming insight architects—designing AI workflows, working with tech experts, and interpreting outputs that marry actuarial logic with AI-generated insight.
AI can automate routine work, streamline claims, flag fraud, and generate dashboards for decision-makers. Done right, it improves speed and relevance. But oversight is essential, especially where AI can hallucinate or introduce bias.
Actuaries shouldn’t carry the tech burden alone. Collaborating with in-house or outsourced tech experts using platforms tailored for insurance enables us to focus on delivering strategic insights.
Rising Challenges: Culture, Data, Governance
Several deep-rooted challenges remain. Integrating AI into legacy systems is highly complex. Most platforms weren’t built for real-time analytics or massive data flows. Cleaning and structuring historical data is a slow, expensive process, and even then, results rarely meet AI model needs.
There’s also a trust deficit. Insurers are justifiably cautious about letting AI steer high-stakes decisions. When outputs lack transparency, or when bias creeps in, confidence drops—especially in areas like pricing or claims. Regulatory demands for explainability add another layer of difficulty.
Culture, too, is a major barrier. Insurance firms tend to be conservative. Staff may lack training or confidence in AI tools. Priorities still often reward short-term delivery over long-term transformation. And with a shortage of tech talent, even well-intentioned projects can stall.
Managing Change
Technological change must be matched by cultural change. My experience with BRATLAB tells me that big shifts like this require deliberate focus to create and sustain.
Actuaries working with internal or outsourced tech teams should help design practical solutions. A structured behaviour change framework is required to ensure that these changes become part of daily operations, driving performance and shaping team dynamics.
The Short-Term Dilemma: BAU vs. Innovation
In the short term, insurers face the tension between business-as-usual and innovation. Actuarial teams are already stretched across pricing, reserving, and reporting, while also being asked to trial emerging tech. Without clear leadership and prioritisation, the result can be fatigue and inertia.
That’s why outsourcing presents a compelling strategic opportunity.
Looking Ahead: The Value of Specialist Solutions
Instead of building everything internally, insurers should consider partnering with fintechs that specialise in the insurance space. Solutions like Capitawise are built from the ground up specifically for insurance finance teams—offering advanced reporting, forecasting, and scenario modelling tools that meet actuarial and regulatory requirements.
By collaborating with platforms like Capitawise, insurers can innovate faster, adapt to evolving technology, and focus on what matters most—without reinventing the wheel. In a market where speed, insight, and agility are competitive advantages, this could prove to be a pivotal strategic decision.
The future of insurance is not just digital. It’s intelligent, agile, and deeply collaborative. The sooner we align with that future, the better prepared we’ll be to lead it.
Author: Colin Bullen (Founder/Director at BRATLAB LIMITED)
Senior Actuarial Adviser at Capitawise