2023 ImpACT Conference - Session 7F: Unlocking the Power of Driver-Based Forecasting for Actuaries 10.24.23 Recording

Driver-based forecasting is a powerful tool to predict and estimate future outcomes. In recent years, driver-based forecasting has gained significant attention as a technique for actuaries to forecast the financial performance of insurance companies. Often there can be frustration around the ability to use forecasts to manage the business. However the objective of a driver-based forecast is to break down historic and projected movement based on the key drivers which impact the results. The key is to understand what the key drivers are on forecasts and what is the relative level of impact and influence we have on the drivers. Listen in on a discussion on the core principles of driver-based forecasting, including how to identify key drivers, collect accurate data, and leverage the latest technology to generate forecasts that traditional models can't match. Explore with us the various driver-based models and how actuaries can leverage them to enhance their decision-making capabilities. Then join the conversation about the challenges actuaries face when implementing this technique and how to mitigate these problems. In this session, you can expect to: - Learn the core principles behind driver-based forecasting techniques - Discover the benefits of driver-based forecasting for actuarial projections - Gain actionable insights into how to apply driver-based forecasts in real-world scenarios - Become aware of challenges faced when implementing this technique TRACK: ERM/ Capital Risk/ Climate Change;Investments/ ALM