Interview with Dave Dillon - Actuary | Industry Leader | Keynote Speaker

Dave Dillon is Senior Vice President & Principal at Lewis & Ellis in Dallas, Texas. He also is an instructor at the School of Risk Science at Georgia State University and has served in a variety of volunteer roles with the Society of Actuaries and the American Academy of Actuaries. He is a highly regarded industry thought leader and one of the most knowledgeable health actuaries in today’s market.

During his 25-year career, Dave has dedicated his work to serving insurance companies, state insurance departments, and other health insurance stakeholders. His area of expertise spans healthcare policy and regulatory issues, including the Affordable Care Act, Voluntary Benefits, and financial solvency. He has developed products for many industry-leading insurers and assisted 23 states with health insurance issues. He currently serves 11 states as a healthcare and health insurance adviser.

• Defining Actuaries to Laymen: How would you explain your role as an actuary to someone unfamiliar with the profession?

While not many people know what an actuary is, almost everybody has health insurance so that is usually where I start. I let them know that I use math, statistics, and financial modeling to predict health-related risks, like how often people might get sick. Based on these predictions, I help insurance companies decide how much they should charge for health insurance, ensuring they have enough money to cover their members' medical bills without being overly expensive.

• Trends in Actuarial Science: What emerging trends do you see in actuarial science that professionals should be aware of?

The growth of artificial intelligence is perhaps the most pronounced trend in today’s actuarial world. It is changing the way we work by providing us a structured and consistent way to perform our work faster with increased accuracy and productivity. Actuaries have traditionally been swamped with repetitive tasks like data processing and preliminary analysis. Generative AI, for example, can automate many of these routine tasks by streamlining the process and predicting what an actuary might want to compute or analyze next.

The other important trend is that businesses increasingly are realizing the value we provide (in all sorts of business endeavors) and are seeking our input. This is why it will be important to continue attracting more young people into our profession. The Bureau of Labor Statistics projected a 23.2% employment growth for actuaries between 2022 and 2032. About 2,300 openings for actuaries are projected each year, on average, over the decade.

• Making Actuaries Marketable: What key advice would you offer actuaries to enhance their marketability in today's dynamic job market?

My advice is to continue to sharpen your communication skills as much as your technical skills. As actuaries, we need to be able to speak to and write for people who are not actuaries (as well as with those who are). In practical terms, this means the ability to communicate in understandable terms so that a non-technical audience comprehends what we are saying. Our analytical skillset can take us far, but when we can effectively explain and describe our work in understandable terms in order to enlighten and influence others, our marketability goes way up. So keep moving forward in your ability to communicate effectively!

• Exciting Non-Traditional Areas: Which non-traditional actuarial fields excite you the most, and why do they stand out to you?

Actuaries today are finding new opportunities to apply their expertise in ways that were unheard of just a few short years ago. For example, there are actuaries who work for Google, Uber and other Silicon Valley giants. A couple of years ago, Elon Musk stated that his companies, Tesla and SpaceX, value the work of actuaries. Closer to home, I know of an actuary who created a new application for actuarial science in pet insurance. She was one of the first actuaries to develop a risk-based pricing model for cats and dogs.

Actuaries today are involved in risk management related to a whole host of industries: start-ups, investments, banking, operations, research, and mergers and acquisitions. Many progress up the ranks to hold management positions like CEO, CFO, and COO. It’s incredibility exciting to see these non-traditional opportunities open up. They seem practically limitless.

• Navigating the Future with AI and Tech: In an era dominated by AI and technological innovation, what strategies should actuaries adopt to stay relevant and mitigate the fear of job displacement by AI? With the rapid advancements in AI and tech, what guidance do you have for actuaries to adapt and thrive in this evolving landscape?

The actuarial profession is changing fast, but I have to say, so is every other profession. Change is happening at a dizzying pace everywhere. We’re not alone.

My advice is to stay ahead of the curve. Diversify your skillset, keep learning, and keep evolving. Make a point to regularly move out of your comfort zone to acquire new knowledge and fresh skills made possible by the steady stream of tech innovation. Professional development and career-long learning will help us stay relevant and is more important than ever.

I don’t think AI is going to displace us. Rather, it is a new and powerful tool to leverage throughout our work, strengthen our skills, and improve accuracy. In my view, human judgement and acumen can’t be replaced.

• Skills for Aspiring Actuaries: What skills, beyond the traditional actuarial skill set, were most useful in your career? What skills would you suggest actuaries building today?

Building effective leadership skills has been a priority for me. It takes time. I began building them early on in my career because I sought out volunteer leadership roles where what I learned could be applied in my consulting work. While all of us are asked to serve as team members at various times, we are often asked to move into leadership positions as we progress – if we are ready and have acquired the right skills.

Leadership requires attributes such as being a good listener, having an open mind, welcoming input from others, and encouraging different points of view. In addition, making an effort to continually improve our public speaking, writing, and interpersonal communication skills are all part of that. And it includes motivating and influencing others with kindness, understanding, and professionalism.

• Future of the Profession: Where do you see the actuarial profession heading in the next 10 years, especially with advancements in technology and data analytics?

I am extremely optimistic about the future. Our profession as a whole is doing a lot of things right. We are working to attract more young people and expanding internationally. More business and government enterprises are recognizing and acknowledging the value we provide and inviting us into their decision-making process. Our influence and reach are growing. Few things excite me more than to learn of a C-Suite executive who, confronted with a thorny problem, says, “We need to get an actuary in the room!”

• Learning from Mistakes: Can you share a mistake or a learning experience from your career that others could benefit from?

There have been many mistakes that have pushed me to adjust my thinking and adopt a growth attitude. Thankfully, I’ve learned a lot from my mistakes, which I think is part and parcel of every actuary’s career path.

I think one that may apply to many of us, especially those new to the profession, is to think that we are the smartest people in the room. That is a dangerous assumption! It is the kind of approach that blocks us from serious consideration of new ideas and potential solutions, which may have never occurred to us before. Learning to maintain an open mind is crucial; I never assume I have all the answers and knowledge.

• Impact of Social Media: How has being active on social media platforms like LinkedIn influenced your professional life as an actuary?

LinkedIn has allowed me to share what I’ve learned and interact with actuaries across the globe. That’s pretty incredible when you think about it. I benefit from seeing the information posted by my colleagues here in the U.S. as well as those who live overseas. Just in the last year I’ve seen LinkedIn posts – and become acquainted with --actuarial organizations in Malaysia, the Middle East, the Caribbean, and Hong Kong, to name just a few. This connectivity with a global community is priceless.

• Content Creation Process: Could you walk us through your content creation process? How do you generate ideas and ensure they resonate with your audience?

Because I am fully immersed in my profession, I read lots of material published by professional actuarial societies and organizations. You could say I keep my “finger on the pulse” of what’s happening. My volunteer work with the Society of Actuaries (SOA) and the American Academy of Actuaries (AAA) goes a long way to keeping me up-to-date on current topics and trends. Throughout the day as I peruse all this material, I flag potential content then save it in an “Ideas Folder” for possible future use as material to use in a post, to include in a written article, or to use in a speech or presentation.

• Favorite Media Recommendations: Could you share your favorite media sources, such as podcasts, newsletters, or social media pages that you find valuable and would recommend to our audience?

As a health actuary, my go-to sources for industry news are Health Affairs, a leading peer-reviewed journal of health policy thought and research, and publications produced by the Kaiser Family Foundation. In terms of general-interest news media, there are several that regularly track health legislation and regulation: Axios, Politico, Bloomberg News, and the Wall Street Journal are among them.

In broader terms, everything from the SOA and AAA are incredibly valuable. The SOA regularly publishes important, newsworthy research, so I watch that space closely. Its podcasts (Shameless plug – I co-host the Health Section podcasts) and newsletters cover the whole gamut of actuarial topics, including technology, leadership, InsurTech, social insurance and reinsurance. The AAA publishes public policy Issue Briefs and professionalism materials that I find especially useful as well. The work of those two professional actuarial societies alone provides me a treasure trove of useful information.

• Parting Wisdom for Readers: As a final thought, what lasting piece of advice would you like to leave with our readers?

Stay curious, be open to new ideas, and don't fear change. The most successful individuals are those who adapt, learn, and grow throughout their lives. Remember that every challenge is an opportunity to learn something new, and every failure a chance to grow stronger.