Every actuary I have ever worked with spends a lot of time in Excel.
Excel is amazing. It can serve as a data analysis tool, data visualization tool, data capture tool, a database tool, among many, many other things.
I’ve worked with companies that have their rating tools built into Excel and I’ve seen use cases where Excel was pushed to its absolute limit.
Increasingly, companies are spending money on other specialist pieces of software to make an actuary’s life easier.
There are five main types of these specialist software:
1. Database tools
Tools like SQL and SAS have been around a long time but with an increase in compute power in the last 10-20 years, these have become a core part of the actuarial stack. Learning how to extract, manipulate and control data allows you to get to the analysis part more quickly.
It’s often said that 80% of time in any analytical project is spent on getting the data set up. SQL and other database tools allow you to get this done much more quickly.
2. Statistical and Data Analysis Software
Statistical software like R and Python is becoming increasingly important for actuaries. These tools allow for robust data analysis and statistical modeling, which is fundamental to some of the more advanced actuarial work.
Typically, you may use one of these tools as R and Python are very similar and both can be used to complete typical tasks.
Whereas 10 years ago actuaries typically would not have much experience with these tools / languages, they are now being taught on the actuarial syllabi and hence many younger actuaries are familiar from the start of their careers.
3. Specialist Actuarial Software
There are specialized pieces of software that have been designed especially for actuarial tasks that some employers will license.
These include ResQ (used for reserving), Prophet (modelling), and Akur8 (pricing).
These software packages help in modeling, valuation, and risk management tasks, making them indispensable in the actuarial toolkit.
It is hard to learn these before using them on the job, and there isn’t a vast online community of people to help answer questions (you’re unlikely to get much luck if you search Stack Overflow for ResQ tips), however getting up to speed with these tools can (1) make you better at your job, and (2) be a great add to your resume
4. Data Visualization Tools
The ability to present data in a clear and insightful manner is so important and helps the best actuaries stand out. Many actuaries are great analysts but poor at communicating results.
Tools like Tableau and Power BI are very popular for their powerful data visualization capabilities, enabling actuaries to create interactive and informative dashboards. Part of the skill set is knowing when to use which tool (sometimes Excel is a better choice than Tableau!)
There’s also an increasing number of actuarial-adjacent roles where you benefit greatly from having strong data viz skills (e.g. underwriting analysis / MI roles).
5. Project Management Tools
Effective project management is vital in the actuarial profession, particularly when working with larger teams. Tools like JIRA, Trello, and Asana help actuaries manage projects efficiently, ensuring that deadlines are met, and tasks are completed in an organized manner. These types of software have become more common with an increase in the popularity of agile working.
These tools are not hard but mastering them as you come across them can enable you to spend more time doing value-add work and less project managing.
Summary
In practice, you are are unlikely to come across all of these tools in your actuarial career but getting competent at a handful of them will enable you to fast track your career growth.
