Actuaries

Analyze statistical data, such as mortality, accident, sickness, disability, and retirement rates and construct probability tables to forecast risk and liability for payment of future benefits. May ascertain insurance rates required and cash reserves necessary to ensure payment of future benefits.

The occupation "Actuaries" has an automation risk of 47.6%, close to its base risk of 48.3%. This moderate risk is largely due to the nature of actuaries' work, which relies heavily on quantitative analysis, statistical modeling, and the use of data-driven algorithms—tasks that are increasingly within the reach of advanced AI systems and automated software. For example, ascertaining premium rates, determining cash reserves and liabilities, and estimating various risk rates such as mortality or disability can often be standardized and performed by specialized software. These automatable tasks involve clear, rule-based processes and large datasets, making them susceptible to automation as computational and analytical technologies continue to evolve. However, there are significant elements of the actuary profession that are more resistant to automation, keeping the risk below total replacement. Tasks such as managing credit and pricing corporate security offerings depend heavily on strategic judgment, nuanced financial insight, and adaptability to complex, fluctuating market conditions, making them less amenable to automation. Additionally, explaining changes in contract provisions to customers and providing testimony as an expert witness require interpersonal communication, empathy, and the ability to convey complicated legal or financial concepts to non-experts—core human capabilities that AI still struggles to replicate effectively. These responsibilities ensure that actuaries retain a vital advisory and managerial role that technology cannot easily supplant. Bottleneck skills further temper the automation risk for actuaries. Notably, the skill of originality, scored at 2.9% and 3.5% in different contexts for this occupation, highlights the need for creative problem-solving and innovative thinking—qualities that remain challenging for algorithms to emulate. Whether devising new financial products, responding to unprecedented risk scenarios, or integrating evolving regulatory frameworks, the demand for originality underscores the unique value of human actuaries. As automation handles routine and computational tasks, actuaries' roles are likely to evolve toward those requiring high-level judgment and creativity, ensuring their ongoing relevance in the workforce despite significant advancements in automation technology.