Celebrating Outstanding Actuaries
In an era marked by climate change, the rapid influx of new technologies, escalating living costs, homelessness crises, and other global challenges, the role of actuaries has never been more critical.
These professionals, often working behind the scenes, are the unsung heroes helping businesses and communities navigate these tumultuous times.
Actuaries and Climate Change
Climate change is no longer a distant threat; it’s a present reality affecting businesses and communities worldwide. As the frequency and severity of natural disasters increase, so does the financial risk. Here, actuaries play a pivotal role. They use their expertise in statistics and financial theory to model and predict future climate-related events, helping businesses and insurance companies understand and manage their risk exposure.
Two of our members stand out for their impressive work in Climate Change, Rade Musulin and Sharanjit Paddam. Traditionally, the Actuary of the Year Award is awarded to an individual actuary. However, in recognition of the profound impact and collaborative effort in advancing climate change solutions, the Nominations Committee honoured both Rade and Sharanjit as dual winners of Actuary of the Year in 2023.
Rade Musilin has 40 years experience in General Insurance specialising particularly in property pricing, natural perils, reinsurance, mutuals and co-operatives, agriculture, catastrophe risk modelling, public policy development, and climate risk. Rade attended the 28th edition of the Conferences of the Parties (COP 28) in Dubai as the Head of the International Actuarial Association delegation, and shares his takeouts in this podcast, COP 28 “The Beginning of the End” of Fossil Fuel Era.
Commenting on receiving the 2023 Actuary of the Year Award, Rade said: “No individual profession is going to solve the climate challenge alone,but what actuaries add is an understanding of uncertainty and risk. We are trained in thinking about complex systems, and our unique skillset means we have a responsibility to help people understand how these challenges are going to impact their lives.”
Sharanjit Paddam has 30 years’ experience as a leading expert in Climate Risk. He was named Australian and New Zealand Institute of Insurance and Finance (ANZIIF) Insurance Leader of the Year (2022), Climate Alliance Risk Manager of the Year (2020) and represented the Actuaries Institute as an expert witness at the Royal Commission into National Arrangements for Natural Disasters.
He was a contributing author to the Intergovernmental Panel on Climate Change (IPCC) AR6 Working Group II Report, has advised the Insurance Council of Australia on evaluating adaptation and resilience measures (2022) and presented a TedX talk on climate change and banks and insurers (2022).
Sharanjit recently authored ‘Home Insurance Affordability Update’ that examines home insurance affordability in the context of all natural perils, and found that the proportion of “affordability stressed” households – those that spend more than one month’s worth of their gross annual income on home insurance – rose from 10 to 12% in the year to 31 March 2023.
Sharanjit shared on receiving the 2023 Actuary of the Year Award, “Climate change is a here and now problem, but it is going to manifest over time and affect people in different ways. As actuaries, we look at different groups of people and how they weather those stresses. Our job is to provide long-term thinking to make practical decisions that will build a more sustainable and resilient future for all.”
Ethics in AI and data
Actuaries are highly equipped to help society navigate other global challenges. Their skill set is versatile and adaptable. Whether it’s modeling the financial impact of a pandemic, advising on cybersecurity risks, or assessing the implications of technological advancements like artificial intelligence (AI) and automation, actuaries are at the forefront.
Actuaries seek to responsibly leverage the potential benefits of these digital megatrends for the consumer, society and business. To do so with confidence, however, requires authoritative guidance to make the application of AI clearer in order to comply with the law.
While AI, promises faster and smarter decision making, safeguards are needed to prevent potential discrimination. Chris Dolman, 2022 Actuaries Institute Actuary of the Year led the Institute’s contribution to Artificial intelligence and discrimination in insurance pricing and underwriting; General Resource developed by the Australian Human Rights Commission, in partnership with the Actuaries Institute, to provide guidance to professionals and businesses on complying with federal anti-discrimination legislation in relation to use of artificial intelligence (AI) in insurance pricing and underwriting decisions.
“Being an actuary has shaped my life,” Chris says. “I’ve had the chance to live and work around the world, have delved into all sorts of areas and found fascination wherever I’ve gone. My recent work in data and AI is just another marker of the freedom and opportunity being an actuary has given me.”
Hear more from Chris in this interview, on his his reflections about, being awarded Actuary of the Year, the three personas he sees in the thought leadership space; What he has enjoyed about becoming known as a thought leader, and his views and advice on career planning.
Addressing community challenges
The rising cost of living is another pressing issue. Inflation, housing affordability, and healthcare costs are just a few factors contributing to the cost of living crisis. Actuaries, with their deep understanding of financial systems, are uniquely positioned to advise on these matters and ways to support the social sector in their work.
Hugh Miller, Actuaries Institute 2021 Actuary of the Year has built a reputation as a reliable and thoughtful actuary working across a wide range of actuarial and analytics projects. He now focuses mainly on the social sector, using data to improve policy.
Hugh has authored several reports on critical social issues, including:
- A careful look at the sources of maltreatment against people with disability and their costs, for the Disability Royal Commission
- A powerful demonstration that a cross-sectorial lens is needed to understand the risks and implications of the pathways to homelessness
- A broad view of how different societal drivers are causing rifts in intergenerational equity.
In a world of rising challenges, actuaries are more important than ever. Their work is essential to businesses, governments, and communities as they strive to understand, prepare for, and mitigate risks. As we continue to face these global challenges, the actuarial profession will undoubtedly continue to play a crucial role in shaping our collective future.
Nominations for the 2024 Actuary of the Year Awards are now open!
We encourage you to nominate an exceptional individual whose work exemplifies the unique expertise and values actuaries possess to drive impactful change. Nominate here.
Actuary of the Year Award nominations close on Friday, 26 July at 5.00pm (AEST).
CPD: Actuaries Institute Members can claim two CPD points for every hour of reading articles on Actuaries Digital.
