Navigating competing priorities on how open we want actuarial systems while managing how closed we need them to be
The debate over whether closed or open code systems has been going on in the insurance industry for years. Departments tend to focus on their business requirements, and subsequently choose the system that best meets their needs. Typical divisions exist between pricing groups, that desire to customize on the fly, and valuation and projection groups that want to maintain locked down, controlled environments for financial reporting.
As the difference between open and closed actuarial modeling systems continue to blur, it is helpful to take a few minutes to read this paper and understand the universe of systems.