Actuarial Roots: The Birth of Data Science

The evolution of insurance modeling has been significantly driven by actuarial modeling, which dates back to the 15th century in Scotland, where it began as a method to predict life expectancy for clergy to support their widows. This foundational work laid the groundwork for data science, enabling the prediction and management of risks in insurance. Over time, this modeling expanded to cover various domains, including maritime risks, exemplified by the establishment of Lloyd’s of London to insure expeditions. Additionally, the strategic geographical position of Bermuda became a vital hub for risk diversification during European colonization in the Americas.