Buy versus build

▤ Summary

If you are in the business of pricing and managing longevity risk, you need software to help you perform your analysis. However, regarding (2) I recently rediscovered one of the seminal texts on software engineering, namely "The Mythical Man-Month" by Frederick P. Brooks. However, there are also indirect costs — you cannot expect professional programmers to craft mortality-analysis software on their own, so you will have to assign at least one actuary at least part of the time to the project. As a counter-example, we know of one insurer that attempted to write its own software for survival models based on our published papers. Before making a decision, I recommend dipping into Frederick Brooks landmark work.

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Longevitas

up to $1M