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💻 '''Actuarial software''' refers to the specialized technology platforms and tools that [[Definition:Actuary | actuaries]] within the [[Definition:Insurance carrier | insurance industry]] use to model [[Definition:Risk | risks]], calculate [[Definition:Reserve | reserves]], price [[Definition:Insurance product | products]], project [[Definition:Cash flow | cash flows]], and ensure regulatory compliance. Unlike generic analytics or spreadsheet applications, these systems are purpose-built to handle the statistical, financial, and regulatory complexities unique to insurance — including stochastic modeling, [[Definition:Monte Carlo simulation | Monte Carlo simulations]], [[Definition:Loss development | loss development]] projections, and multi-scenario [[Definition:Capital modeling | capital modeling]]. Widely adopted platforms include Willis Towers Watson's Emblem and Igloo, Moody's RMS for [[Definition:Catastrophe modeling | catastrophe risk]], Milliman's MG-ALFA for [[Definition:Life insurance | life]] and [[Definition:Annuity | annuity]] projections, and Arius and ResQ for [[Definition:Property and casualty insurance | property and casualty]] reserving.

🔗 These tools operate across the actuarial workflow. On the [[Definition:Pricing | pricing]] side, platforms incorporating [[Definition:Generalized linear model (GLM) | GLMs]] and increasingly [[Definition:Machine learning | machine learning]] capabilities allow actuaries to segment [[Definition:Risk class | risk classes]] with granularity that was impractical a generation ago. For [[Definition:Reserving | reserving]], software automates [[Definition:Chain-ladder method | chain-ladder]], [[Definition:Bornhuetter-Ferguson method | Bornhuetter-Ferguson]], and other triangulation methods while embedding audit trails to satisfy [[Definition:External auditor | external auditors]] and [[Definition:Regulator | regulators]]. On the [[Definition:Enterprise risk management (ERM) | enterprise risk management]] front, [[Definition:Economic capital | economic capital]] and [[Definition:Solvency II | Solvency II]] internal model platforms — such as those from Moody's Analytics and FIS — run thousands of stochastic scenarios to quantify tail risks under frameworks ranging from the [[Definition:Risk-based capital (RBC) | RBC]] regime in the United States to [[Definition:C-ROSS | C-ROSS]] in China. The shift to [[Definition:IFRS 17 | IFRS 17]] across much of the world has driven a major wave of software investment, as insurers in the EU, Singapore, Hong Kong, Japan, and beyond needed systems capable of calculating the [[Definition:Contractual service margin (CSM) | contractual service margin]] and [[Definition:Risk adjustment | risk adjustment]] required by the new standard.

🚀 The strategic importance of actuarial software has grown sharply as the industry's data volumes and regulatory demands have expanded. Manual spreadsheet-based processes — once the norm even at large insurers — introduce [[Definition:Model risk | model risk]], version-control problems, and scalability constraints that modern platforms are designed to eliminate. [[Definition:Insurtech | Insurtech]] firms and technology vendors are now challenging incumbents with cloud-native, API-driven solutions that integrate actuarial modeling directly into [[Definition:Policy administration system | policy administration]] and [[Definition:Underwriting | underwriting]] platforms, shortening the cycle from analysis to decision. For [[Definition:Chief actuary | chief actuaries]] and [[Definition:Chief risk officer (CRO) | CROs]], selecting the right software stack is no longer just an efficiency question — it directly affects the accuracy of [[Definition:Technical provisions | technical provisions]], the credibility of [[Definition:Rate filing | rate filings]], and the organization's capacity to respond quickly to emerging risks like [[Definition:Cyber insurance | cyber]] and [[Definition:Climate risk | climate]].

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Catastrophe modeling]]
* [[Definition:Generalized linear model (GLM)]]
* [[Definition:IFRS 17]]
* [[Definition:Capital modeling]]
* [[Definition:Reserving]]
* [[Definition:Insurtech]]
{{Div col end}}

Definition:Actuarial software - Revision history

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