Actuariat is the study of mass and data, influenced by new technologies as machine Learning and automation whereas psychology is the study of individuals and cognitive processes.
But data are not always available (product innovation in insurance, stress tests definition and modelling, long-term projection). Even if data are available, w
Knowing psychological techniques such as cognitive bias or mental techniques is necessary to help actuaries to perform in their analysis :
- As a risk manager, why can I only think about scenario known in the past ? and cannot imagine a pandemic scenario before it happens ? How am I influenced by my personnality, my believes, my family history?
- As a pricing actuary, how can i contribute to innovation?
A lots of theories from psychology can help actuaries opening their mind and becoming much more efficient in their activities!