The beginning of a new year never fails to bring a multitude of resolutions, predictions, questions, and uncertainty. Even those hardwired with analytical minds and practical thinking can fall victim to the onslaught of ambiguity. But you don’t need a data set to be convinced it’s unlikely we’ll see every what-if scenario unfold because, as we’ve seen repeatedly in the past, it is nearly impossible to predict what the future has in store.
With that said, the start of a year is a great time to initiate conversations, be conscious of impending changes, and renew one’s willingness to embrace change.
Today, I’m speaking specifically about changing technology trends in the actuarial healthcare landscape. While it’s too early to say much with certainty, we can’t deny the changes we’re seeing or the fact that this industry will continue to evolve quickly. As practicing actuaries, we must be conscious of developments and willing to embrace change — all while sharpening our skills and maintaining confidence in those abilities that set us apart and provide value to the public.
The trials of 2020 caused the utilization of telemedicine to skyrocket. The increased efficiency of this practice has made strides toward achieving more equitable and accessible healthcare. It is a method that, despite being relatively new, has gained public trust by allowing access to professional healthcare safely and conveniently during a time when nothing felt safe or convenient. The public’s peace with and increased reliance on technology has been repeatedly made evident through fewer in-person appointments, check-ups, and — in the long run– fewer ER visits.
Another top-of-mind topic is artificial intelligence. There are open dialogues in nearly every industry concerning the rise of AI, and the actuarial field is no exception. Though this resource is still in its early stages, there is no doubt it has the potential to significantly impact the lives and functioning roles of actuaries. From what I have already witnessed, AI can help us make more accurate assessments and detect patterns with increased efficiency in large datasets. I also think its ability to automate tasks like policy pricing; and claims processing will do wonders to free up resources, including time.
The role of an actuary has never been to simply “crunch numbers.” It is to interpret the results and translate them into language that our clients can understand and act upon. We must communicate our work so; clients have clear decision-making opportunities.
I’ve often said (especially as a consulting actuary in healthcare) communication is one of the most valuable assets we can have in our toolbox. Even our most accurate assessments and sharpest analyses won’t do anyone any good if we aren’t able clearly to explain it.
My advice to actuaries in 2023 is to keep doing what we do best: learning, improving, and serving. We can roll with the changes as well as anybody, and we can do it while assessing risks, calculating prices, and doing our best work. Technology has not yet reached its full potential or capabilities, but neither have we. And while these resources can help us do our jobs, we operate in a field where the human connection will remain invaluable.
