16 June 2016
The IFoA’s Modelling, Analytics and Insights from Data (MAID) working party hosted its inaugural seminar on 11 May 2016. Discussing the topic of the ‘Data Science Universe’ it encompassed the themes of big data, machine learning, and predictive analytics. The emerging trend and rapid development of the Data Science Universe, its methodologies and their practice, makes it a pressing subject. The profession needs to fully understand any implications so that strategies can be developed and aligned across the profession.
In essence when we talk about the Data Science Universe, we are talking about the vast proliferation of data that we as individuals and as a society are now continuously creating and advances in analysis techniques. The Data Science Universe is concerned with the manipulation of this data, the extrapolation of patterns and models and what predictive analysis can be found.
The seminar was very well received and featured thought-leading speakers and academics from different sectors of industry and academia. Included were senior data strategist Mark Lee from Insight Risk Consulting; Professor Elena Kulinskaya, of the University of East Anglia, and Stephen Mills and Graham Jackson from IBM. All shared their expertise and insights on the current use of data analytics across many areas including; academic research, life insurance, and the retail sector, and gave an introduction to the various work streams already underway in their respective fields. An enthusiastic audience of over 60 also joined a discussion, facilitated by the selected panellists. Louise Pryor, IFoA Council member and Deputy Chair of the Resource and Environment Board; Michael Tripp, the Chair of the GI Board and the MAID working party, and the day’s speakers from Insight Risk Consulting, IBM, University of East Anglia, all contributed to an engaging debate around the topic of the Data Science Universe.
Leading from the front
The seminar also sought to gather some anecdotal evidence and ascertain what the IFoA and its member’s stance is with regards the Data Science Universe and its implications and applications. All participants undertook a small survey that raised many interesting points, and key amongst them is how Data Science is viewed by our members. As it turns out, some members see it very much as a specialism, whereas as other members see it more as an increasing part of every practice area’s work. There was a definite feeling amongst all that there was a need for a Data Science exam, or that it should certainly be included somewhere within the IFoA’s syllabus. Some went as far as to suggest that this was very much something that we should be including already. The feeling was that as this is such an important area with far ranging implications, the IFoA should very much be leading from the front.
Threat or opportunity?
Overwhelmingly the audience, 4 out of 5, felt that the Data Science Universe was definitely to be seen as an opportunity as opposed to a threat. Not only this, but this was a view that was shared cross practice, with the split going across all Practice Areas.
Tomorrow is here
When people were questioned on whether they had seen Data Science techniques being employed, it was revealed that a third felt that some of the techniques were already being employed. Whilst we remain a way off from the famed concept of a singularity, whereby machines reach the point that they are in fact smarter and more intelligent than we, it is clear that the Data Science Universe, its application, implication and potential is very much here, and now.
An even spread
An analysis of the responses given to a question concerning which Practice Areas were being, or were most likely to be affected by the Data Science Universe and its implications also provided food for thought. It was revealed that there is an even distribution across all Practice Areas, and that all are affected. The fact that all areas appear to be evenly impacted is proof eloquent that the profession should be adapting to this fast growing field that has such wide ranging implications.
To conclude
What we can conclude from the seminar and the discussions had, though the attendees did not represent a large sample size, is that the Data Science Universe is definitely having a cross practice affect on the work of actuaries. It also appears that the implications of the Data Science Universe and its methodologies not only represent an opportunity for the IFoA that should be embraced wholeheartedly, but also represent an area in which the IFoA can lead from the front.
To quote Charles Darwin
It is not the strongest or the most intelligent who will survive but those who can best manage to change.
Listen to the full seminar here, and view the presentations that accompanied. Your thoughts and input on this subject are important to our community, so please do share them: practice.executive@actuaries.org.uk