Edition

Innovation Lifecycle and Capacity for More

Background and Purpose

Change has become constant among actuaries, and the pace of change continues to increase. Innovation and new technologies can improve our speed, accuracy, and products. In recent years (and looking ahead) we’ve seen: predictive models, cloud computing, AI, robotics, wearable tech, big data, DeFi, ChatGPT, low-code/no-code, large language models, and more. We no longer expect the next big change to be the last. Change is the new normal.

When innovative ideas lead to change, actuaries invest significant amounts of time building expertise, proving concepts, communicating, implementing, testing, and eventually monitoring. Since resources are not infinite, actuaries and our companies reach limits to how much change we can manage. We’re faced with decisions on whether to adopt new ideas, timing of the work, and whether to abandon old innovations that weren’t as successful as hoped.

Research Objective

The Actuarial Innovation & Technology Program Steering Committee (AITPSC) is seeking researchers to produce a report that discusses the life cycle of innovation and how to keep up with the increasing pace of change in our field. Research format should include interviews and case studies from across the actuarial profession.

The report should include examples of adopting change at a rapid pace. It should highlight areas not limited to:

  • Life cycle of innovation
  • Building capacity to adopt new technologies
  • Evaluating potential changes for a yes/no/later decision
  • Integration of new adoption
    • The value of initiatives that integrate well with existing technology vs ones that don’t
    • Favor ideas that build on each other, or ones that stand alone?
  • Innovation for the sake of innovation
  • Scope of new implementation:
    • Limited blocks of business or widespread?
    • Use a new technology’s basic features, or use it to its fullest?
  • When to leave behind yesterday’s innovation for today’s new ideas

Proposal Requirements

To facilitate the evaluation of proposals, the following information should be submitted:

  1. Resumes of the researcher(s), including any graduate student(s) expected to participate, indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
  2. An outline of the approach to be used (e.g. literature search, model, survey, interviews etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, reusability and possible limitations of the analysis.
  3. A description of the expected deliverables and any supporting data, tools or other resources. Consideration should be given to the preference for externalized data that can be included in the AITPSC’s data repository.
  4. Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
  5. A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The AITPSC is interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely delivery, such as fee adjustments, are encouraged.
  6. Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.

Selection Process

The AITPSC will oversee the selection of projects. The AITPSC will review each proposal and is responsible for recommending proposals to be funded. Input from other knowledgeable individuals also may be sought, but the AITPSC will make all final decisions, subject to SOA leadership approval. SOA will provide staff actuarial support to develop and publish the final material.

Questions

Any questions regarding this RFP should be directed to Research-AIT@soa.org.

Notification of Intent To Submit Proposal

If you intend to submit a proposal, please e-mail written notification by September 29, 2023 to Research-AIT@soa.org.

Submission of Proposal

Final proposals for the project should be sent via e-mail by November 15, 2023 to Research-AIT@soa.org.

Note: Proposals are considered confidential and proprietary.

Conditions

The selection of a proposal is conditioned upon and not considered final until a Letter of Agreement is executed by both the Society of Actuaries and the researcher.

The SOA and AITPSC reserve the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The SOA and AITPSC also reserve the right to redirect the project as is deemed advisable.

The SOA and AITPSC plan to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).

The SOA and AITPSC may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the SOA and AITPSC in publicizing or promoting the research and responding to media requests.

The SOA and AITPSC may also choose to market and promote the research to members, candidates and other interested parties. You agree to perform promotional communication requested by the SOA and AITPSC, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on the research for an SOA newsletter.

Conflict of Interest

You agree to disclose any of your material business, financial and organizational interests and affiliations which are or may be construed to be reasonably related to the interest, activities and programs of the AITPSC.

Appendix

The cost ranges below are intended as a guide for budgeting project costs for proposals in response to SOA Research Institute Request for Proposals (RFP). Please note these figures span the 33rd to 66th percentiles for all projects as well as projects that involve a specific approach (lit review, survey, etc.). They are based on historical costs over several recent years. Expected costs for some RFPs may fall outside these ranges depending on the nature of the work and resources required for completion.

All Contracted Projects

This category includes all contracted projects that the Institute has undertaken within the last several years.

The 33rd-66th percentile project costs range is $25,000 - $50,000.

Literature Reviews

This category includes projects that involved only a literature review or the cost for the portion of a larger project that included a literature review.

The 33rd-66th percentile project costs range is $15,000 - $20,000.

Surveys

This category includes all projects that had a survey as their primary component.

The 33rd-66th percentile project costs range is $28,000 - $55,000.