Python: Revolutionizing actuaries and insurers in the insurance industry.

January 31, 2024
2 mins read

TLDR:

The insurance sector is increasingly adopting programming languages like Python to refine workflows and improve decision-making capabilities. Python is particularly popular among actuaries and is the top programming language for insurance according to TIOBE. The talent pool in the insurance sector is evolving, with institutions like the London School of Economics incorporating Python into their actuarial science curriculums. Python is well-suited for the insurance sector due to its readability, adaptability, and versatility. It can transform pricing workflows, automate tasks, and integrate with existing systems. Python also prepares actuaries and insurers for future challenges and supports the use of machine learning technologies.

Key Points:

  • The insurance sector is adopting programming languages like Python to refine workflows and enhance decision-making capabilities.
  • Python is particularly popular among actuaries and is the top programming language for insurance according to TIOBE.
  • The talent pool in the insurance sector is evolving, with institutions like the London School of Economics incorporating Python into their actuarial science curriculums.
  • Python is well-suited for the insurance sector because of its readability, adaptability, and versatility.
  • Python can transform pricing workflows, automate tasks, and integrate with existing systems.
  • Python prepares actuaries and insurers for future challenges and supports the use of machine learning technologies.

The insurance sector, traditionally slow in embracing modernisation, is progressively adopting programming languages to refine workflows and bolster decision-making capabilities. Among these, Python has risen to prominence, establishing itself as a frontrunner for forward-thinking insurers and actuaries. hyperexponential (hx), which offers a pricing decision intelligence for insurers, has delved into why Python is the right programming language for insurance.

When it comes to programming languages in the insurance realm, Python reigns supreme. According to TIOBE, which assesses the popularity of programming languages by analysing over 1 billion lines of code daily, Python has topped the charts since late 2021. It’s particularly popular among actuaries, coming in second only to Visual Basic, which leads due to its extensive use with Excel.

The insurance sector’s talent pool is rapidly evolving. Since 2014, England has mandated coding lessons for children, introducing them to languages like JavaScript and Python. This trend continues into higher education, with institutions like the London School of Economics incorporating programming, particularly Python, into their actuarial science curriculums. Developing programming skills offers tangible benefits for actuaries. It empowers them to manage their workflows more effectively and play a pivotal role in their organizations. These skills are not just a ‘nice to have’ but a necessity for remaining competitive in the job market. They offer transferability across different sectors, opening up new opportunities. Learning programming can be a rewarding experience, particularly for actuaries, who are often natural problem-solvers. Many find themselves engaged in coding not just for work but also as a personal interest.

Python is particularly well-suited for the intricate demands of the insurance sector. It is known for its readability and ease of learning, making it an ideal choice for beginners. It’s highly adaptable, enabling insurers to meet unique challenges with tailored solutions. Python’s versatility allows it to transform every aspect of the pricing workflow, from building and maintaining dynamic pricing models to automating time-consuming tasks, thereby enhancing productivity and reducing the risk of human errors. Integration is another area where Python excels, seamlessly connecting with existing and new systems. This simplifies workflow management and data-driven decision-making. With a vast array of libraries and a supportive community, development and training in Python are widely accessible, making it a favorable choice for actuaries and insurers alike.

Furthermore, Python prepares actuaries and insurers for future challenges. It supports the creation and maintenance of compliant, up-to-date models, and its popularity ensures a rich talent pool. The language is also pivotal in leveraging machine learning technologies, promising transformative changes in insurance workflows and model accuracy.

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