AI Critical in transforming Actuarial profession, insurance industry- NAICOM
The National Insurance Commission(NAICOM) has said that Artificial Intelligence(AI) has the potential in transforming the Actuarial Profession and the insurance industry.
The Commissioner for Insurance, CFI, Mr Olusegun Omosehin, stated this at this year’s Annual Industry Conference, with the theme: “Actuaries and AI: Strengths, opportunities, Weaknesses, and Threats”
He said the discussion was timely and crucial while urging them to take advantage of the situation for maximum benefits in the industry.
The Commission who was represented by
Dr. Usman Jankara Jimada, Deputy Commissioner NAICOM, said: “Today, actuaries play a critical role in risk assessment, pricing, and financial stability using advanced techniques such as data science and predictive analytics to analyze 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 sectors.
“One of the things that some older actuaries talk about is the time before spreadsheets existed, when calculations were done by hand. The advent of spreadsheets did not eliminate actuaries; rather, it allowed them to do more and explore new aspects of their work. AI may represent another major leap forward, but it is very unlikely to replace actuaries.
“It is therefore exciting to witness conversations around AI especially since the release of Chat-GPT in 2022 which was followed by other AI Chatbots and other technologies to integrate these advancements to improve operational efficiency.
He noted that it is in recognition of these developments that the Federal Government of Nigeria plans to position Nigeria as the AI hub for AI solutions in Africa.
According to him, this will 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.
He said the pace at which AI is evolving means that actuaries have to also continuously evolve and develop skill sets that utilize AI and other machine learning tools or risk being left behind. The Nigerian Actuarial Society (NAS) has a vital role to play in equipping its members with access to the necessary skills to navigate the world of AI.
He added that 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
