This blog explores the partnership between Bayes Business School and the Government Actuary’s Department (GAD), showing how academic expertise helps solve government challenges in managing financial risks. The collaboration helps train future experts who combine traditional skills with modern data analysis to serve the public sector.
Introduction
I am Ioannis Kyriacou, Professor of Actuarial Finance at Bayes Business School, City St George’s, University of London. It is my privilege to share with you my reflections about our collaborative relationship with the Government Actuary’s Department (GAD), especially as the Faculty of Actuarial Science and Insurance at Bayes is marking 50 years of actuarial education and research.
This enduring partnership between academia and government has created valuable opportunities for applying actuarial expertise to public sector challenges, bridging theoretical knowledge with practical application.
Evolution of actuarial practice
Actuarial science is focused on assessing risk. Actuaries are financial experts who analyse risk and uncertainty. Think of them as financial forecasters who help organisations plan for the future.
Traditionally rooted in mathematics, statistics, and finance, it has expanded significantly with the integration of non-traditional pathways.
These include:
- business analytics
- environmental finance (managing financial risks from climate change)
- risk management (identifying and managing various threats to organisations)
In today’s data-driven world, actuaries need to go beyond historical data and traditional models, leveraging data science tools to gain insights on a larger scale.
Public sector challenges
Actuaries in GAD, for example, work with complex data systems and advanced analytical tools to address emerging public sector challenges. These include:
- climate change risk assessment
- cybersecurity threats
- geopolitical instability analysis: an evolving landscape which presents both challenges and opportunities
The profession increasingly requires expertise in programming languages and advanced analytical methodologies to serve these expanding public sector needs.
Actuaries continue to need skills in programming languages like Python and R, which are sought after in today’s job market where actuaries also need to be aware of:
- actuarial analytics
- enterprise risk management
- banking
- financial crime
- global emerging risks
Public sector innovation through partnership
Our collaboration with GAD has been instrumental in developing practical applications of actuarial science in government. Through various joint projects, students and other participants have gained direct experience in applying advanced modelling techniques to real public sector challenges.
Working alongside GAD’s professional actuaries, participants develop expertise in:
- efficient data processing methods
- advanced analytical techniques
- strategic decision-making support
- public policy implementation
A notable example includes the analysis of pension commutation decisions, where sophisticated data science methods such as Generalised Additive Models, Random Forest, and Gradient Boosting have been applied to improve public sector pension administration.
Building public service capability
Our partnership with GAD helps develop professionals who can address complex public sector challenges through both traditional actuarial approaches and innovative data-driven solutions. This collaboration ensures that future actuaries understand the broader implications of their work for policy and public services.
The projects, guided by GAD’s professional actuaries, help students refine their technical skills, while understanding the broader implications of their work for policy and public services.
Evolve and adapt
Through continued co-operation between academic institutions and government departments, the actuarial profession continues to evolve and adapt to meet society’s changing needs. This partnership approach remains vital in developing professionals who can effectively support the public sector in addressing complex societal challenges.
The ongoing collaboration between academia and GAD demonstrates the value of combining theoretical knowledge with practical public sector experience, ensuring that actuarial expertise continues to serve the public interest effectively.
We continue to work with GAD and other public sector partners. Bayes is proud to contribute to the development of actuaries who can excel in both traditional actuarial roles and new, data-driven fields. This ensures they are well-equipped to support the public sector in tackling some of society’s most complex issues.
Disclaimer
The views expressed are the author’s own and the opinions in this blog post are not intended to provide specific advice. For our full disclaimer, please see the About this blog page.