By Kim Ferrero, Ph.D., M.Sc.
Assistant Director, Research
As I step into the role of Assistant Director for Research at the Academy, I’m reminded of how vital research really is to this profession and to the public policy decisions that affect our lives. At its core, actuarial work is not simply about numbers; it’s about generating insights that inform decisions, contribute to benefit and financial security plans and programs, and serve the public interest. Through research, we bring actuarial perspectives to issues of public policy, while also supporting efforts that advance actuarial practice itself—such as when we work with our volunteer committees and task forces. In this post, I’d like to briefly share why research matters, how it informs policymaking, and how our members can help move this work forward.
First, why research? In their profession, actuaries routinely face uncertainty—changes in claim patterns, cost and mortality trends, regulation, technology, and climate-risk exposures, among others. Research allows us to embrace that uncertainty proactively—to ask better questions, test assumptions, refine methods, and produce trustworthy data and analysis. It enables actuaries to move from reactive reporting to forward-looking insight. In short, research assists not only actuaries, but policymakers, companies and the public make better decisions, and make them with greater confidence.
In the past year or so, the Academy’s practice councils have tackled many timely and important topics. For example, the Academy issued a public policy paper on the implications of gig-worker retirement and savings arrangements, offering options for policymakers to consider going forward. Another project addressed emerging issues around artificial intelligence, big data and algorithmic risk in insurance-pricing and underwriting. And our committees have continued to examine interconnected risks; for instance, the interplay between health insurance individual markets, Medicaid programs, and employer-sponsored plans. While not systematic primary research involving new data analysis, this research represents valuable contributions on profoundly important matters by the profession—drawing on experience and professional judgment to develop insights that inform both practice and policy. These are just a few examples, but they illustrate how the Academy’s research program spans practice areas and policy domains, keeping the profession relevant and plugged into current issues.
Working with the practice councils, the research team has also been addressing key topics with analysis and presentations on climate risks, decumulation in retirement, costs of homeownership, and principle-based reserving for life insurance. In addition, the Academy’s annual Award for Research nomination process earlier this year surfaced several academic works on detecting bias in insurance pricing. Surfacing such outside research complements the work of the practice councils, providing objective, data-based information and insights on topics which they are also addressing through their other work.
Second, research plays a central role in actuaries’ involvement in the public policymaking process that cannot be overstated. Policymakers, regulators, employers, and the public turn to actuaries when they need independent, technically grounded expertise. Whether it’s designing sustainable social insurance systems, setting appropriate reserves for insurers, assessing the fiscal effects of demographic shifts, or evaluating emerging risks, well-anchored research bolsters actuaries’ authority and influence.
It is through this research that we help ensure policies are actuarially informed—meaning informed by rigorous understanding of risk, cost, and long-term trends—not simply by anecdotes or short-term pressures. The actuarial voice matters precisely because it is grounded in empirical work, modeling discipline, and professional judgment. Without ongoing research to inform the profession, they—and the public—risk being reactive rather than proactive.
This is where research-focused volunteerism comes in. Research is not something that happens in a vacuum; it thrives when actuaries volunteer their time, bring their expertise, propose new topics, serve on committees, and move projects forward with us. The Academy relies on its volunteer members to translate results into actionable insight. If you have curiosity, analytical skills, and an interest in policy or emerging risk, there is a role for you.
Participating in research offers benefits to you as an actuary as well. You get the opportunity to grow as a subject matter expert in your field, collaborate with peers, influence the profession’s direction and contribute directly to meaningful work with profession-wide and societal impact. Your involvement strengthens the profession and strengthens the Academy’s ability to deliver value back to you, and to stakeholders.
In conclusion, I see research, both in what we do here at the Academy, as well as in the broader sense, as an engine that drives actuarial relevance. Research findings drive nearly every decision we make throughout our days not just in boardrooms or exam rooms, but in the halls of government, regulators, insurers, employers, and the public at large. The Academy invites our members to join us—by volunteering, staying curious, and advancing the frontiers of actuarial impact by developing new tools and perspectives on data. A robust, member-supported research program ensures that actuaries and their work remain capable of managing risk in an ever-changing world.