Evolutions of Actuarial Systems in the Insurance Industry and Challenges in the Existing System

The field of actuarial science and the fresh issues it encounters today are greatly affected by numerous technological advancements, the increasing importance of data science, rules and legislation, changes in the climate, global issues like COVID-19 along with their capacity to compile, organize, and interpret enormous volumes of data. Actuaries are specialized professionals who apply their knowledge statistics and mathematics concepts to figure out the monetary impact of risk on organizations. By nature, actuaries are problem solvers, continuously creating innovative or refining existing approaches to meet extending commercial and governmental needs. At the same time, actuarial system designs are typically constructed to meet specific demands with limited multidisciplinary implications. The primary objective of this chapter is to describe the field of actuarial science having an emphasis on the financial aspects of company operations, particularly the insurance industry. It helps us to better understand the way modern technology, analytical capabilities, and insights affect actuaries and the companies for whom they work, in order to discover the possibilities as well as challenges that these elements bring. This chapter studies the historical and development inclinations associated with the insurance actuarial industry. Our research focuses on the problems associated with the present system.