This report details the use of cloud computing and machine learning in the actuarial profession. With advances in cloud storage and cloud computing, actuaries are in a position to leverage their current skills to new areas within and outside of traditional roles at insurance companies. However, there is also the potential to misuse data and advanced analytical techniques. Actuaries must be aware and proficient in their understanding of the appropriate analytic techniques, data, and applications. This paper first presents an introduction to the cloud service models and their impact on the actuarial profession. It then discusses the use of the cloud in terms of financial modeling and actuarial processes, and in terms of the increased ability to collect more data to perform advanced analytics. The paper then provides an outlook for the potential ways expanded use of cloud technology, combined with machine learning and artificial intelligence, could impact the actuarial profession as the technology evolves.

This article was originally published by the Society of Actuaries.