In a recent update shared by Insurtech Akur8, Davide Burlon, the company’s Chief Product Officer, shared key insights on the evolving landscape of insurance pricing and reserving.
As an executive at Akur8, an insurtech platform enhancing actuarial processes through transparent AI and machine learning, Burlon’s perspective offers a glimpse into how technology is reshaping the non-life insurance industry.
With Akur8 serving over 300 insurers across 40+ countries, including global firms like AXA, Generali, and Munich Re, Burlon’s expertise highlights the transformative potential of data-driven solutions in addressing modern insurance challenges.
Burlon emphasized that the insurance industry is at a pivotal moment, driven by rapid advancements in data availability, machine learning, and regulatory demands.
He noted:
“The richness and complexity of data available to pricing teams is much broader than it was even a few years ago.”
This echoes sentiments from industry leaders like Leonardo Felician, CEO of BeRebel.
This data explosion, coupled with changes in economics, climate, and customer behavior, is pushing insurers to adopt more sophisticated tools.
Akur8’s platform, which integrates transparent AI to automate and optimize pricing and reserving, is at the forefront of this shift, enabling actuaries to focus on strategic decision-making rather than repetitive modeling tasks.
A core strength of Akur8’s platform is its ability to inject speed, accuracy, and transparency into pricing processes.
Burlon highlighted the company’s commitment to maintaining full auditability, a critical factor given the stringent regulatory requirements insurers face globally.
Akur8’s cloud-based solution, which includes features like the Grid Search and Dynamic Impact Analysis, allows actuaries to validate variable selections, optimize model performance, and analyze portfolio subsegments with ease.
These tools empower insurers to develop pricing models that align with commercial strategies while ensuring compliance, a balance Burlon sees as essential for the industry’s future.
The acquisition of Arius, now part of the Akur8 family, has further expanded the company’s capabilities into reserving.
Burlon discussed how Akur8’s reserving solutions, such as the Drivers of Change feature within Arius software, streamline complex reserve analyses.
This feature automates the process of quantifying changes in reserve estimates, distinguishing between shifts due to new data versus actuarial assumptions.
By replacing outdated spreadsheet-based methods with advanced stochastic modeling, Akur8 enhances efficiency and reliability, enabling actuaries to make data-driven decisions with confidence.
Burlon also addressed the growing importance of integrating pricing and reserving processes.
He said:
“Bridging the gap between these functions is key to smarter insurance decisions.”
By fostering collaboration between pricing and reserving teams, Akur8 helps insurers achieve better financial outcomes and adapt to emerging trends, such as the increasing frequency of extreme weather events and rising claims ratios observed in 2023.
Looking ahead, Burlon envisions actuaries evolving into hybrid roles that blend traditional expertise with data science skills.
Akur8’s partnership with CAS to develop the AI Fast Track program, a certification in Advanced AI for Actuarial Science, underscores this shift.
The program equips actuaries with knowledge of machine learning algorithms like GLMs and GBMs, preparing them for a future where predictive modeling is the norm.
Burlon believes that by automating tedious tasks, Akur8 frees actuaries to tackle complex, strategic challenges, ultimately enhancing their value within organizations.
Akur8’s global footprint, with offices in Paris, Tokyo, and São Paulo, and a diverse team of 157 employees representing 28 nationalities, reflects its commitment to inclusivity and innovation.
Burlon emphasized that this diversity fuels Akur8’s ability to deliver tailored solutions to insurers worldwide.
As the company continues to grow, with recent expansions in Brazil led by Dino Draghi and strategic partnerships with Guidewire and Deloitte Canada, Akur8 is aims to remain a key player in transforming insurance pricing and reserving.
In conclusion, Davide Burlon’s insights reveal a future where technology and actuarial expertise converge to create more agile, transparent, and efficient insurance processes.
Akur8’s innovative platform, backed by its focus on collaboration and AI, is empowering insurers to navigate an evolving landscape.