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Tong says this is a challenge for data science teams across every sector of the Australian economy.

Ada Tong, Product Director at Domain Insight.Actuaries Institute

Data sources are vast and complex and, in some cases, havent been used before. Were at the cusp of an explosion in machine-generated data egged on by widespread adoption of connected apps and devices, so its an incredibly exciting time, but that means nothing unless the right data is directed to solve the most important problems.

As actuaries working in data science, our job is to turn data into something an organisation can interpret rapidly and confidently make decisions that deliver better experiences for the people it serves, she says.

Tongs team harnesses a massive volume of data, including buyer behaviour on their app and portal illuminating leading indicators of property market dynamics at a micro market level. Thats critical information for all parties involved on both the buying and financing sides of the equation.

It may just be the perfect use-case for an actuary to aid disparate parties engage with more confidence in Australias largest, most scrutinised and, most emotionally charged asset classes.

Understanding the whole ecosystem and being able to navigate its complexities has been crucial to serving up the most valuable insights possible from our data. The actuarial training teaches us to start with a clear understanding of the market, the customer and the business problem and then work back to a focused solution she says.

More broadly, she says Domain Insights data provides a unique perspective on how people approach refinancing, renovation or borrowing decisions, and how lenders value the funding of those decisions.

As well as planning, local and state governments use the data to scope future infrastructure needs and ensure property-based levies are collected on a fair and accurate basis.

Its incredibly empowering to help so many different parties make better decisions in a complex and dynamic property market, says Tong.

They say information is power and I tend to agree with that we cant eliminate uncertainty altogether but the right insights can certainly reduce it, and Im proud of the role we play in democratising access to high quality property data.

Tongs Domain Insight experience is just one example of actuaries helping businesses right across the economy break new ground with data in sectors ranging from health to retail, financial services to agriculture, and, perhaps most pertinently, solutions to climate change.

Elayne Grace, CEO of the Actuaries Institute of Australia, says almost every business process can be improved through the intelligent deployment of data.

Elayne Grace, CEO of the Actuaries Institute.Actuaries Institute

Actuaries are at the forefront of innovation in Australias most exciting start-ups, disruptors, and established businesses, says Grace.

They help businesses understand their customers as individuals, leveraging data to personalise products, pricing, and experiences.

They also help supply chain managers move things from farm, mine, factory, or warehouse to sale as quickly and efficiently as possible.

Actuaries are also modelling climate risk, determining where to invest, base agriculture and build communities over coming decades, she says.

One of the areas where data science is having a huge impact is public health, both in terms of improving services and enhancing efficiency.

Actuaries were prominent advisors to government during the pandemic, projecting infection rates and modelling the potential impact of the available policy settings, she says.

In insurance, meanwhile, they use techniques including natural language processing to get claims to the right assessor as quickly as possible and scrutinise remediation quotes from repairers to make sure theyre fair.

Grace says that when businesses hire an actuary, they hire someone who is rigorously trained in the technical, commercial, and innovation skills needed to succeed in data science.

Humans, and increasingly machines, are producing more data than ever before. But more data only means more in the right hands, she says.

Great data scientists can come from a wide range of backgrounds, but when you hire an actuary know they are rigorously trained in the technical, commercial and innovation skills needed to succeed in data science.

We are trained to start with the commercial problem and work back, and thats absolutely key. Theres no point creating a theoretically perfect solution if it doesnt work in the real world.

Many leading businesses across every sector of the Australian economy have actuaries making a significant contribution, says Grace.

Actuaries are making a difference in respected tech businesses like Canva and Domain, leading data science consultancies like Quantium, Deloitte, and Taylor Fry.

CBA, Telstra, and Woolworths are forming long-term partnerships with consultancies because they want to access data science talent that would be hard to hire direct, says Grace.

She says the key to actuarial advice is not recommending a solution that a business doesnt have the capacity to execute.

Thats why commerciality is so important, she says.

You can distract a business and destroy a lot of value by creating a solution a company doesnt have the technology, people or culture to deliver. The role of the actuary is to define a solution that delivers the commercial outcome in the real world.

And the rewards? Real-world data science solutions to your most urgent commercial challenges, always delivered with the highest ethical standards.

Grace says our actuaries are only at the tip of the iceberg in terms of the problems data science and AI can solve.

In addition to helping established businesses, our members are starting and scaling new businesses from the ground up, applying their skills to brand new problems, says Grace.

Its only going to accelerate from here.

With the revolution in IoT and sensors, were at the early stages of an explosion of machine generated data that promises to transform supply chains across the economy making them highly responsive to the needs of consumers and with enormous environmental and social dividends.

Its an incredibly exciting time.

To learn more, visit http://www.dodatabetter.com.au.

Read the original post:

Focus where the value is with data science - The Australian Financial Review