“The next technological breakthrough will integrate with Python first.” What does it mean for the actuarial profession?
“The next technological breakthrough will integrate with Python first.” That was one of the key points I made at the SOA ValAct conference session on actuarial modernization. In that presentation, I argued that being just an actuary is no longer enough. The most successful professionals will combine actuarial expertise with one or more complementary disciplines. One such combination is being both an actuary and a software engineer. Here’s why.
1. Software engineering is a cornerstone of technology
The world is becoming increasingly complex with AI, blockchain, and cloud computing. Soon even newer technologies, such as quantum computing and large quantitative models, will take the center stage. Yet one thing has remained constant: all of these technologies are built and applied by software engineers. Software engineering is as fundamental to modern technology as mathematics is to actuarial science, and therefore it is here to stay.
2. Programming is a transferable skill
Coding skills apply to diverse problems well beyond actuarial work. They’re not tied to any one role, company, or industry.
For example:
- In a marketing role, coding can automate online data gathering so your team can focus on deeper analysis of what the data means and how best to use it.
- In a reinsurance pricing role, programming can automate workflows and data validation, helping you go home at 5 PM instead of 3 AM.
- In a PRT model development role, you can use proven tools and practices from the software community to accelerate work and foresee structural problems early.
- As an entrepreneur, software engineering helps you see where actuarial, regulatory, workforce, and technological trends are heading and how to position a company within that landscape. It allows clear communication with development and client IT teams and a better understanding of what is real value and what is hype.
3. Access to powerful tools
The software engineering community is massive and has spent decades building and refining tools for every imaginable purpose. If you need something, chances are it already exists and was already refined and polished by years of user feedback and often millions of dollars in development and support costs.
For instance:
- Python is an excellent model development language, with free libraries for everything from high-speed math to AI. Anything you need to learn or fix is a search or ChatGPT prompt away.
- Visual Studio is a professional-grade code editor refined over decades, offering unmatched features and usability. I’ve yet to see a model editor that comes close.
- Git and DevOps provide version control and automated collaboration that can merge model changes from multiple developers almost effortlessly.
4. Support at your fingertips
If you get stuck, you can find a quality answer in minutes, whether through Google, YouTube, or ChatGPT. The software community has built an entire ecosystem of accessible support in every format imaginable.
5. Programming adds value at every career stage
Programming isn’t just a technical skill you learn once. It evolves with your career and stays relevant as technology changes. The next major breakthroughs will continue to integrate with Python first, meaning actuaries who understand it will naturally be early adopters and leaders.
- Early career: Coding helps you automate repetitive tasks and understand the tools that drive modern actuarial work. Learning Git, DevOps, and Python fundamentals lets you contribute efficiently and build better models and process automation faster.
- Mid-career: As your responsibilities expand, coding enables you to design processes, handle large datasets, and select the right technologies for each problem. It becomes less about syntax and more about architecture and scalability.
- Leadership: Later in your career, coding literacy allows you to evaluate the cost, value, and feasibility of technical projects. You can distinguish between hype and true innovation, lead cross-functional teams effectively, and recognize where your business can create real competitive advantage.
In short, coding isn’t just a technical asset. It’s a business multiplier. It shortens turnaround times, reduces costs, and lets your team focus on analysis, strategy, and innovation.