The National Insurance Commission NAICOM says there are currently two preferred fonts to write in elaborate terms the profound service actuaries provide to the insurance industry. These two are expressed first in lingering inadequate qualified actuaries and followed by second, the spread of Generative Artificial Intelligence AI, leaving no space for any human activity to hide.
The position of NAICOM was made on Wednesday, June 26, 2024 at the 2024 Nigerian Actuarial Society NAS with a striking theme that has become the revolving discussion in nations security strategy, corporations focus and all strands of human endeavour; “Actuaries and AI: Strengths, Opportunities, Weaknesses, and Threats” . The Commissioner for Insurance Olusegun Ayo Omosehin, adds to the global expression on AI as it relates to actuaries. “is timely and crucial, as it perfectly captures an exciting yet critical conversation.”
In Nigeria Omosehin said AI involvement in the way actuaries dispense their services is walking briskly along traditional challenge of the Society in Nigeria, that of inadequate qualified actuaries; and, both are needed to be integrated into the solution platform and still keep actuaries relevant without being pushed off or loose significantly their relevance to AI. Clear on the dominance of AI daily in lives and businesses, he weighs in and hold the view that actuaries can run with AI, take all notes as AI navigates the cause of all human endeavours and be well positioned to avoid its weaknesses.
He said the Commission is seriously concerned about the current inadequate professionally qualified actuaries in the Nigerian insurance industry and is committed to supporting all initiatives and developments that are likely to facilitate actuarial capacity development in Nigerian and enable the Nigerian insurance industry to access qualified actuaries.
Careful not to sound AI avoidance the CFI keynote address tells the story of AI in Nigeria financial sector today underlined by accommodation tone, “the world is experiencing a significant transformation, driven by technological advancements and data revolution. The financial sector, in particular, is at the point of a significant shift, with artificial intelligence (AI) poised to revolutionise the way we conduct business. As the Nigerian insurance industry continues to evolve, the intersection of actuarial science and AI presents a unique opportunity to further utilise the power of technology to shape the future of insurance in Nigeria.”
He goes further “Today, actuaries play a critical role in risk assessment, pricing, and financial stability using advanced techniques such as data science and predictive analytics to analyse complex data and make informed decisions. The profession has become increasingly important in a data-driven world, with actuaries in high demand across various economic sections.”
He minded the attendees that the Federal Government is set to position Nigeria as the AI hub for AI solutions in Africa “This is to be achieved through the development and implementation of a National Artificial Intelligence Strategy aimed at accelerating AI adoption in Nigeria. It is thus important that the insurance industry and, by extension, actuaries are at the forefront of its adoption. In conformity with the above, the Commission is committed to the Federal Government strategy. We will ensure that our sectoral regulatory policies are consistent with the outlined goals of the Federal Government while enhancing the stability of the Nigerian Insurance Industry.”
To this extent, he outlined that “our mutual collaboration will seek to consider …robust regulations to ensure the ethical use of AI in insurance, focusing on data privacy, fairness, and transparency.” Besides, he said the Commission would foster partnership between actuaries and AI developers where actuaries bring domain expertise, while AI developers provide the technical know-how. This would therefore create solutions that are both effective and ethically sound.
Added to this he said the actuarial profession needs to embrace continuous learning to stay relevant in the AI age. Therefore, equipping actuaries with skills in data science, machine learning, and AI will be essential.
The images in the featured picture are identified. 2024 Nigerians Actuarial Society Annual Conference held in Lagos on Wednesday 26 June, 2024. From Left: Miller Kingsley President NAS; Yeside Kazeem Immediate Past President NAS, Dr. Usman Jankara Jimada Deputy Commissioner NAICOM, Kartina Tahir Thomson President-Elect Institute and Faculty of Actuaries, David Cummings President Elect Casualty Actuarial Society and John W. Robinson President Elect Society of Actuaries.
