‍

‍

What was your first reaction when you heard Akur8 was interested in acquiring Arius?

‍

KEN 

To be honest, my initial reaction was one of surprise. Milliman was a good, steady, home for us - one of those rare places where people still spend their entire careers at the same company.  This entire discussion seemed to come out of the blue. 

But after we had some time to reflect on the news and let it sink in, it became exciting for two main reasons. First, Charles and I had both, at one point, been part of very entrepreneurial environments before joining and starting this team.  While that was a long time ago for both of us, we still have very fond memories of the upbeat, fast-paced atmosphere that comes from working alongside entrepreneurial software people. I think it's fair to say we had drifted away from that mindset a bit while at an actuarial firm. So the opportunity to work again with energetic, driven teams - both in development and sales -  was a tantalizing proposition. 

Second, because Akur8 came directly to us unsolicited, it was, I suppose, a bit flattering. It felt like a genuine compliment to have our team recognized by others who are clearly leaders in the industry.

‍

CHARLES 

At this stage of my career, I wasn’t actively seeking significant changes. We had built a stable, profitable, and smoothly running business – a foundation I was proud of. So, the idea of integrating into a new organization, especially one based in a completely different country, wasn’t something I initially embraced with enthusiasm.

However, as conversations with the Akur8 leadership team progressed, my perspective shifted dramatically. Their vision, passion, and genuine interest – not just in acquiring us, but in investing in our future to amplify our growth  – were truly inspiring. It became clear that this wasn’t just a transaction – it was an opportunity to take what we had built and elevate it to the next level. That energy, that potential for acceleration, is what fuels my drive and keeps me energized, both in the early hours of the morning and late into the night.

‍

What new possibilities or innovations do you hope to explore as part of the Akur8 team, and how do you think this will accelerate Arius’s growth?

‍

KEN  

Three areas come to mind.

First off, while machine learning isn’t poised to replace human expertise in this area anytime soon, it has significant potential to efficiently handle much of the routine work. Akur8’s pioneering expertise in machine learning gives us a unique opportunity to automate and enhance these tasks, which could revolutionize how actuarial work gets done.

Second, Akur8 brings a rare combination of deep statistical knowledge and product design expertise. Their ability to make complex statistical tools approachable, without oversimplifying, is impressive. This partnership allows us to create solutions that empower actuaries with new capabilities in a user-friendly way, which could be a real game-changer.

Third, most of our competitors focus on smaller, siloed solutions. Partnering with Akur8 enables us to deliver comprehensive solutions that address large-scale challenges faced by top-tier insurers. This also paves the way for  more complex and rewarding projects, spanning from data analysis to sales, while positioning us to tackle the industry’s most significant issues.

‍

CHARLES 

Even before the acquisition was complete, the Akur8 team demonstrated their commitment to helping us achieve our ambitious vision. Together, we’ve significantly expanded our design, development, and engineering resources, enabling us to focus on advancing the next generation of reserving tools.

Beyond that, we’re exploring exciting opportunities to integrate cutting-edge, machine learning techniques and establish deeper synergies with Akur8’s Pricing solution. These innovations will not only enhance the capabilities of our tools but also unlock new possibilities for our clients. This collaboration has already energized our teams and set the stage for accelerated growth and groundbreaking advancements in the insurance space.

‍

What makes the Arius solution unique?

‍

KEN 

Arius, and especially Arius Enterprise, were designed to solve our clients’ actuarial and actuarially-related business problems. While other tools may offer small, specialized calculations that we may or may not replicate, our focus is on providing a more comprehensive solution to the chief actuary’s and CFO’s larger challenges—systemic issues, process inefficiencies, and complex data management problems. Unlike others who concentrate primarily on the geeky, technical nuances of the business, we prioritize solving the broader business problems that drive meaningful impact. 

CHARLES 

What truly sets Arius apart is the team behind it. Our core team has been working together for many years, building on the success of earlier versions and drawing from decades of institutional knowledge. Just as importantly, we’ve prioritized listening to our clients’ invaluable feedback, which has shaped and refined our solutions over time.

Another key factor is our commitment to leveraging state-of-the-art technology. This dedication continues with the architecture and implementation of our NextGen solution, which represents a significant step forward in innovation. We’re incredibly excited about what we’re building for the next generation of software and are committed to involving our clients early in the process to gather their insights and ensure it meets their evolving needs.

‍

Finally, what message would you like to share with both Arius and Akur8 clients as we move forward together on this journey?

‍

KEN

Individually, we are among the best in the industry at delivering insightful, reliable solutions to our clients and addressing the challenges that impact their businesses and lives. We excel at providing exceptional support and a superior user experience for our clients’ users - and we are only going to get better at all of that.  Together, we will deliver a more complete, end-to-end actuarial solution that combines cutting-edge software with unmatched expertise.  

This growing organization exists solely to help our clients excel as actuaries, focus their time on what adds the most value to their organizations, and thrive in both their lives and businesses.

‍

CHARLES

We are embarking on an exciting journey, with ambitious plans for the future of reserving. Our focus is on building the next generation of reserving tools, designed with a strong foundation for innovation and seamless user experience. As always, we’re committed to ensuring an easy migration process, enabling users to transition smoothly to the new platform and quickly get back to doing what they do best.

The partnership with Akur8 has unlocked opportunities we could only have dreamed of before. With significantly expanded resources, diverse skillsets, and a global perspective, we’re accelerating our development and enhancing our capabilities like never before. We’re also exploring how to integrate machine learning into reserving — a game-changer that Akur8 has already made central to pricing.

As we move forward, our commitment remains unchanged: delivering the high-quality software solutions and exceptional service our customers have come to rely on. Together with Akur8, we’re building a future where innovation and customer-centricity drive everything we do. We're excited for what's ahead and grateful to be on this journey.

‍

‍

Ken Scalf is Head of Operations for Akur8’s P&C insurance loss analysis solutions, including the Arius® actuarial systems, the leading systems of their type for actuarial, risk management, and insurance finance professionals, with installations at over 400 locations throughout the world. He held similar leadership positions at Milliman, IBM, and PwC, where his teams developed numerous successful commercial actuarial and statistical solutions. A graduate of Wake Forest University, he began his career at EY specializing in the insurance industry.

‍

Charles R. Hoffman is a software engineering leader with over 35 years of experience in developing innovative solutions for the insurance and finance sectors. He is  Head of Software Development - Reserving at Akur8, following the acquisition of Arius Software, which he co-founded. Throughout his career, Charles has played a pivotal role in advancing actuarial analysis through cutting-edge technology, helping insurers streamline complex reserving processes.

‍

‍