How Does AI Change the Technical Skill Requirements for Actuaries?
Background and Purpose
The actuarial profession is undergoing a significant transformation driven by the rapid advancement of artificial intelligence (AI) technologies. AI, encompassing both traditional predictive modeling and generative AI, is increasingly being integrated into actuarial practices, altering the technical skill sets required for actuaries. This shift presents both opportunities and challenges for the profession, necessitating a comprehensive exploration of the evolving technical competencies needed to effectively leverage AI in actuarial work.
The Actuarial Innovation and Technology Steering Committee (AITSC) seeks research proposals to investigate how AI is reshaping the technical skills required for actuaries. The research should provide a detailed analysis of the programming languages, toolkits, software, and cloud computing technologies that actuaries will need to master to stay relevant in an AI-driven environment. Additionally, the research should explore other emerging technical categories that may impact the actuarial profession.
Research Objective
The Society of Actuaries Research Institute is seeking researchers to conduct a thorough review and analysis of the evolving technical skills required for actuaries in the context of AI. The objective is to identify key technical competencies, tools, and technologies that actuaries need to acquire, as well as the potential challenges and opportunities associated with these changes.
Proposals that include practical case studies, surveys of industry practices, and illustrative examples of AI use cases, especially those demonstrating the impact on actuarial workflows, are strongly encouraged. The research should also critically assess the educational and training implications for actuaries, including recommendations for professional development programs.
Scope of Work
The proposal expects, but is not limited to, addressing the following considerations:
a. Programming Languages: Identification of programming languages that are essential for actuaries to program and implement AI technologies, such as Python, R, and Julia.
b. Toolkits and Software: Analysis of toolkits and software that actuaries will need to interact with, including machine learning frameworks (e.g., TensorFlow, PyTorch), data analysis tools (e.g., Pandas, NumPy), and AI-specific software. This area could also explore low/no-code solutions for interacting with AI technologies and the benefits and limitations that come with various options (e.g., a chat interface).
c. Cloud Computing Technologies: Exploration of cloud computing platforms like AWS, Azure, and Google Cloud, and their role in enabling scalable AI solutions for actuarial applications.
d. Data Management and Integration: Assessment of tools and techniques for data management, integration, and preprocessing, which are critical for effective AI implementation.
e. Model Training and Deployment: Investigation of the processes and tools required for training, validating, and deploying AI models in actuarial contexts.
f. Educational and Training Needs: Recommendations for educational programs, certifications, and continuous professional development to equip actuaries with the necessary technical skills.
g. Industry Trends and Future Outlook: Analysis of current industry trends and future projections for AI in actuarial science, including emerging technologies and their potential impact.
Proposal Requirements
To facilitate the evaluation of proposals, the following information should be submitted:
A. Resumes of the Researcher(s): Including any graduate student(s) expected to participate, indicating how their background, education, and experience qualify them to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
B. Outline of the Approach: An outline of the approach to be used (e.g., literature search, surveys, case studies, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and limitations of the analysis.
C. Description of Expected Deliverables: A description of the expected deliverables and any supporting data, tools, or other resources.
D. Cost Estimates: Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
Please note that as a policy, the SOA Research Institute generally does not provide funding to cover academic institution overhead expenses. As a guide for developing the project budget, please review the Historical Project Cost Guide (see Appendix).
E. Schedule for Completion: A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The AITSC is interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely delivery, such as fee adjustments, are encouraged.
F. Other Related Factors: Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.
Selection Process
The AITSC will appoint a Project Oversight Group (POG) to oversee the project. The POG is responsible for recommending the proposal to be funded. Input from other knowledgeable individuals may also be sought, but the AITSC will make the final recommendation, subject to Society of Actuaries Research Institute (SOA) leadership approval. An SOA staff research actuary will provide staff actuarial support.
Questions
Any questions regarding this RFP should be directed to Research-AIT@soa.org.
Notification of Intent to Submit Proposal
f you intend to submit a proposal, please email written notification by August 29, 2025 to Research-AIT@soa.org.
Submission of Proposal
Please email your proposal to Research-AIT@soa.org; proposals must be received no later than September 26, 2025. It is anticipated that all proposers will be informed of the status of their proposal by the end of October 2025.
Conditions
The selection of a proposal is conditioned upon and not considered final until a Letter of Agreement is executed by both the Society of Actuaries Research Institute and the researcher.
The AITSC reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The AITSC also reserves the right to redirect the project as is deemed advisable.
The AITSC plans to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).
The Society of Actuaries Research Institute and AITSC may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the Society of Actuaries in publicizing or promoting the research and responding to media requests.
The Society of Actuaries and AITSC may also choose to market and promote the research to members, candidates, and other interested parties. You agree to perform promotional communication requested by the Society of Actuaries Research Institute and AITSC, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.
Conflict of Interest
You agree to disclose any of your material business, financial, and organizational interests and affiliations which are or may be construed to be reasonably related to the interest, activities, and programs of the Society of Actuaries Research Institute and AITSC.
Appendix
The cost ranges below are intended as a guide for budgeting project costs for proposals in response to SOA Research Institute Request for Proposals (RFP). Please note these figures span the 33rd to 66th percentiles for all projects as well as projects that involve a specific approach (lit review, survey, etc.). They are based on historical costs over several recent years. Expected costs for some RFPs may fall outside these ranges depending on the nature of the work and resources required for completion.
All Contracted Projects
This category includes all contracted projects that the Institute has undertaken within the last several years. The 33rd-66th percentile project costs range is $25,000 - $50,000.
Literature Reviews
This category includes projects that involved only a literature review or the cost for the portion of a larger project that included a literature review. The 33rd-66th percentile project costs range is $15,000 - $20,000.
Surveys
This category includes all projects that had a survey as their primary component. The 33rd-66th percentile project costs range is $28,000 - $55,000.