Skills and transition in Financial Services

[One of the transition in financial services] concerns the talent base and the kind of skills and capabilities needed. Historically, insurers have focused on backward-looking data, on actuarial science, on estimating future risk from past performance. If motor vehicles undergo massive change so that they don’t drive the same way and accidents are automatically prevented, then historical data will not be predictive of what’s going on. We see this already with government data: the latest available US government statistics do not feature Uber and Lift, so cannot be predictive of what’s happening right now in some leading cities where these new models have high usage rates. Therefore the actuarial science will be replaced by data science using forward-looking, predictive analytics based on real-time data. That requires different types of skills.

Chosen excerpts by Job Market Monitor. Read the whole story at A generational change is upon us | McKinsey & Company