Joy Agwunobi 

Experts in the actuaries sector are calling for the adoption of centralised data hubs to eliminate inefficiencies and modernise the loss reserving process, which remains burdened by legacy systems, fragmented data sources, and manual workflows that hinder accuracy and speed.

The call, drawn from a new analysis by Akur8, an insurance technology company, and authored by Michael Henk, one of its actuaries, highlights how outdated infrastructures continue to limit data accessibility and slow actuarial analysis at a time when regulators and rating agencies are demanding faster, more transparent, and data-driven reserve estimates.

According to the report, actuaries often experience significant delays in accessing the detailed information needed to produce accurate reserve estimates. Much of this challenge stems from the reliance on legacy systems that are ill-suited to the data-intensive requirements of modern reserving. These systems, the analysis notes, have created bottlenecks that force actuarial teams to prioritise completion over comprehensive analysis particularly during quarterly reviews where time constraints dominate.

“Data defines the pace and quality of the loss reserving process, but gaining access to it is often problematic for many actuaries,” Henk stated in the analysis, while also noting  “Legacy systems are typically ill-suited to the data-intensive requirements of a modern reserving process. This bottleneck is a prime constraint leading to the rushed and sometimes fitful pace of quarterly reserve reviews.”

Industry observers note that growing regulatory oversight has increased the pressure on actuarial departments to deliver more sophisticated reserve estimates under shorter timeframes. However, conventional data access methods still reliant on multiple departmental approvals and spreadsheet-based reconciliation continue to slow progress.

The analysis describes a process often “riddled with delays and interruptions” beginning with data requests to IT or claims departments, followed by extensive verification and reconciliation stages. Each of these stages introduces inefficiencies that not only extend the reporting cycle but also divert actuarial expertise away from more strategic analysis.

“Today’s reserving process is often riddled by delays and interruptions that begin with a request for the data, typically to IT or the claims departments. This is usually followed by the need to verify that data and adjustments flow through a maze of spreadsheets, reconcile to the original source, and are consistent with prior analyses. Time-consuming and labor-intensive, these adjusting and reconciling tasks cause delays in the reserving process and  misallocate actuarial resources that could be better utilised with a reengineered system,” the report explained.

To resolve these challenges, Akur8 proposes the establishment of a central reserving data repository, a unified and purpose-built data platform designed to meet the specific analytical needs of actuaries.

Unlike conventional claims or accounting systems, a dedicated actuarial repository would provide actuaries with direct, independent access to curated datasets at the level of granularity required for detailed analysis. This model would eliminate dependency on IT teams or claims departments for data extraction, while ensuring actuaries maintain ownership and control over their analytical inputs.

“Actuaries should be able to directly query for specific datasets from a database they control,” Henk noted, adding  “Having ownership of the data allows them to re-segment analyses without delays, drill down into loss triangles, and reconcile results quickly to the original data source.”

Such autonomy, the report argues, would allow actuarial teams to move beyond the traditional “request-and-wait” model that characterises much of today’s reserving process. By enabling actuaries to directly access and manipulate data, insurers could significantly improve the speed, precision, and transparency of their reserve estimates—qualities increasingly demanded by both regulators and boards.

Akur8’s analysis further warns that expecting traditional workflows to remain adequate amid tightening regulatory standards and growing data demands is “shortsighted.” The reliance on IT departments to shift priorities each reporting cycle to accommodate actuarial requests, it adds, will become increasingly infeasible in a world that prioritises real-time insights and data-driven decision-making.

Industry analysts say that a modernised, centralised data hub would not only improve efficiency but also elevate the strategic value of actuarial functions. By reducing manual data wrangling, actuaries could dedicate more time to interpreting results, identifying emerging trends, and providing forward-looking insights that strengthen insurers’ financial resilience.

Moreover, a central data repository would improve coordination between actuarial, finance, and risk management teams creating a shared, trusted data foundation that supports compliance, capital allocation, and pricing accuracy.

As insurance markets continue to evolve under the pressures of regulatory scrutiny, digital transformation, and emerging risks, experts stressed  that actuaries cannot remain tethered to outdated infrastructures. The future of loss reserving, they contend, depends on empowering actuaries with the tools and autonomy to manage their own data, enabling a shift from reactive reporting to proactive insight.

“Giving actuaries control of their data is the first step to expanding the scope and power of the loss reserving process and preparing for the expectations of internal and external stakeholders,” Henk added.

While global actuarial communities are making steady progress in modernising their processes, Nigeria’s actuarial landscape presents a different challenge altogether—one defined not by data fragmentation, but by a severe shortage of talent and technical capacity.

Experts warn that Nigeria’s limited actuarial workforce is slowing the industry’s ability to adapt to emerging regulatory demands and data-driven innovation. Rabiu Olowo, executive secretary/CEO of the Financial Reporting Council of Nigeria (FRC), recently drew attention to this at the 2025 Annual Industry Conference of the Nigerian Actuarial Society (NAS), themed “Creating Value and Building Resilience in an Evolving Industry.”

He noted that despite being Africa’s largest economy, Nigeria has fewer than 30 qualified actuaries compared to South Africa’s estimated 2,000, a gap that threatens risk management, pension fund valuation, and insurance product pricing.

“We recognise that for Nigeria to build a resilient and competitive economy, we need a robust pipeline of actuarial experts,” Olowo said. “This is a capacity gap that directly affects our ability to manage pension funds, price risk, value liabilities, and attract investment.”

Jolaolu Fakoya, president of the Nigerian Actuarial Society, stressed that actuaries must go beyond technical analysis to assume leadership roles that drive innovation and resilience.

Similarly, Pius Apere, chairman/CEO of Achor Actuarial Services Limited, emphasised the impact of the actuarial gap on risk assessment, policy pricing, and regulatory compliance. He explained that actuaries play a crucial role in evaluating and quantifying risks associated with insurance policies, this involves analysing various factors such as the nature of the risk, market trends, and historical data to determine appropriate premium rates.

Apere warned that the shortage of actuaries has led to the pricing and design of insurance products without the use of profit-testing techniques, a crucial actuarial method for assessing financial viability before a policy is sold. “This actuarial technique involves projecting future financial outcomes by analysing cash flows associated with different scenarios. The absence of this technique results in selling loss-making insurance products in the market,” he explained.

Beyond pricing challenges, Apere highlighted how the absence of actuaries limits the diversity of insurance products in the country, ultimately affecting market penetration. “Product development is controlled by actuaries, and without them, the industry struggles to introduce innovative offerings that meet the needs of a broader consumer base,” he noted.

Adding to this concerns, Gus Wiggle, principal consultant at Carefirst Consult, also emphasised the severe impact of the actuarial shortage on the financial sector. “Presently, Nigeria has fewer than 100 qualified actuaries, and insurance companies are struggling to secure even a small fraction of this number to support critical services such as risk assessment, policy pricing, and regulatory compliance,” he said.

According to Wiggle, the lack of actuarial expertise weakens the ability of insurance firms to accurately evaluate risks, leading to potential financial losses and inaccurate pricing. “Insufficient actuarial support affects competitiveness and profitability, while also exposing firms to regulatory penalties and reputational risks,” he added.

The integration of modern data solutions, such as centralised actuarial data hubs advocated by Akur8, could therefore serve as a critical step for Nigeria’s financial ecosystem. Analysts believe such systems, if adopted locally, could help compensate for manpower shortages by automating data management, improving transparency, and freeing actuaries to focus on high-value tasks such as modelling, forecasting, and strategic risk evaluation.

By adopting central data hubs, insurers globally and in Nigeria stand to transform actuarial work from a back-office compliance function into a core driver of strategic intelligence, capable of navigating the increasing complexity of modern insurance risks with speed, accuracy, and confidence.