Data Science & Predictive Analytics for Actuaries: From Spreadsheets to Machine Learning Models(8 Actuarial Mastery Series: From Fundamentals to the Future of Risk Science)

In recent years, the actuarial profession has undergone a profound transformation. As data has become more abundant and computing power more accessible, the role of actuaries has expanded beyond traditional statistical techniques and into the dynamic realm of data science and predictive analytics. This book - the eighth volume in the Actuarial Mastery Series - was written to help actuaries, actuarial students, and analytics professionals bridge the gap between classical actuarial tools and modern predictive methodologies. Why this book? Today's business landscape demands not just mathematical precision, but actionable insight from vast and complex datasets. Whether pricing insurance products, assessing risk, or forecasting future liabilities, actuaries now find themselves working with high-dimensional data, unstructured information, and rapidly evolving technologies such as machine learning and artificial intelligence. This book is designed to equip readers with a practical, working knowledge of data science concepts and tools that are immediately relevant to actuarial work. From foundational regression and classification models to credibility theory and risk scoring, the chapters build progressively toward the application of machine learning techniques using widely used tools such as R, Python, and Excel. We focus on three key goals: Clarity and Accessibility - We break down complex concepts in a way that actuaries and students from a traditional statistics background can understand and apply. Practical Implementation - The book includes code snippets, examples, and exercises using real-world datasets, helping you apply concepts using industry-standard tools. Actuarial Relevance - Each topic is anchored in actuarial science, drawing on insurance, pension, health care, and financial risk management examples. This is not just a book about technology - it is a guide to the evolving toolkit of the modern actuary. Whether you're preparing for actuarial exams, expanding your skill set at work, or transitioning into a more data-driven role, this book offers a roadmap for integrating data science into your actuarial practice. Acknowledgments I'm grateful to the actuarial professionals, educators, and data scientists who have provided feedback, insight, and encouragement during the creation of this book. Special thanks go to the readers of previous volumes in the Actuarial Mastery Series, whose questions and suggestions helped shape the content and focus of this edition. May this book serve not only as a reference but as an inspiration to explore the cutting edge of actuarial science in a data-rich world. Oluchi Ike July 2025