Our team members Cecilia Grisolia and Jennifer Retford had the best time at this year’s Casualty Loss Reserve Seminar in San Francisco! The opportunity to connect with industry colleagues, share insights, and learn from experts made for an incredibly rewarding experience. We’re grateful to everyone who took the time to meet with us and engage in thoughtful discussions about the future of our industry.
Key Themes & Industry Developments
This year’s conference was dominated by two major themes that are reshaping our industry: the growing integration of AI in actuarial work and the continued impact of Nuclear Jury Verdicts and Third Party Litigation Funding (TPLF). Throughout various sessions, speakers emphasized the potential of AI to automate routine tasks, allowing actuaries to focus on core reserving activities and innovation. While TPLF remains somewhat mysterious, new reforms implemented this year show promise, with more potentially on the horizon.
In the realm of technology and reserving, one clear message emerged: your ability to innovate is intrinsically linked to your data infrastructure. While Excel continues to dominate our industry, the strategic application of automation and AI can streamline spreadsheet work significantly. We saw creative applications emerging, such as using GPT to develop training materials and creating AI-powered chatbots for new hire onboarding. A particularly memorable analogy compared over-reliance on AI to “cooking with a microwave” – highlighting that practitioners need strong foundational skills to validate their work. The consensus was clear: while AI is a powerful tool, human oversight remains critical for success.
The Evolution of Economic Challenges
The conference provided valuable perspectives on current inflation dynamics. While overall inflation is trending downward, levels remain notably elevated compared to 2019/2020. Speakers drew important distinctions between flexible inflation (frequently changing costs like gas and groceries) and sticky inflation (infrequent but high-impact changes). TPLF continues to be the primary driver of social (sticky) inflation, creating significant challenges as claims magnitude increases and puts pressure on reserve adequacy.
Embracing Automation Thoughtfully
A compelling session focused on the human aspects of automation adoption, addressing common concerns about accuracy, process understanding, and problem-solving priorities. The discussion highlighted how automation can free up valuable time for strategic thinking and innovation while emphasizing the importance of building in appropriate safeguards. Successful automation implementations typically include robust warning systems, clear escalation protocols, and continued actuarial oversight of results.
Beyond the Conference: Exploring San Francisco
While the conference was intellectually stimulating, we also took advantage of our time in the Bay Area to experience some of San Francisco’s iconic attractions. A highlight was finally checking off a bucket list item: visiting Alcatraz Island. The former military fort and federal prison’s rich history, including its famous escape attempts, provided fascinating insights into America’s past.
Our exploration extended to Pier 39, where we had the rare treat (especially for Chicagoans!) of observing sea lions in their natural habitat. The trip culminated in San Francisco’s vibrant Chinatown, where we savored exceptional local cuisine. With daily step counts exceeding 20,000, we truly embraced both the professional development opportunities and cultural experiences the city had to offer.
Connect With Us
The conference reinforced that while technology continues to reshape actuarial work, human expertise and judgment remain essential. The successful actuary of the future will blend traditional skills with technological proficiency, maintaining a balanced approach to innovation while ensuring accuracy and reliability in their work.
Whether you’re exploring new career opportunities or looking to add talent to your team, we’d love to connect. Reach out to discuss the evolving actuarial landscape or explore potential opportunities. We’re here to help navigate the exciting changes in our industry together!