The financial sector, is at the point of a significant shift, with artificial intelligence (AI) poised to revolutionize the way business is conducted.
This was contained in a speech presented on behalf of the Commissioner for Insurance, Mr. Olusegun Omosehin by the Deputy Commissioner for Insurance Usman Jankara, at the 2024 Nigerian Actuarial Society (NAS) Annual Industry Conference in Abuja.
He says as the Nigerian insurance industry continues to evolve, the intersection of actuarial science and AI presents a unique opportunity to further utilize the power of technology to shape the future of insurance in Nigeria.
“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.”
The CFI noted that one of the things older actuaries talk about is the time before spreadsheets existed, when calculations were done by hand, saying the advent of spreadsheets did not eliminate actuaries but rather 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.”
“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. 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 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.”
He said though there were perceptions that disruptive technologies like AI will replace every job and make a lot of skills obsolete, noting that there may be credence to the sentiment if historical patterns are to be observed.
According to him, technological advances have always changed the landscape regarding jobs and relevant skill-sets.
“Like other technological disruptors, AI has the potential to transform insurance industry and by extension the actuarial profession.”
“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. This is why I am inclined to believe that this is one of the reasons we are having this conference.
In the changing landscape, using AI for vast data analysis will be common place. This will enable actuaries delve deeper into large data; uncovering insights, and developing more accurate risk pricing models and innovative insurance products for the Nigerian populace.”
” AI would readily be instrumental in the emerging Insurtech landscape and financial inclusion by enabling the development of microinsurance solutions that cater to the underserved population, Insurtech AI underwriting, etc. Accordingly, as an insurance industry regulator, we believe that this is the time to strengthen our collaborative efforts to ensure responsible AI adoption in order to maximize the strength and opportunities of Actuaries and AI.”
He enjoined delegates to be expectant and open to ingenuities that will be offered by the presenters in the course of the conference and harness the true potential of AI in the Nigerian insurance industry. .
Omosehin believes the convergence of actuarial science and artificial intelligence holds immense potential for transforming the insurance industry.