NAICOM banks on actuarial science, artificial intelligence for insurance transformation

Mariam Abeeb

The National Insurance Commission (NAICOM) has said actuarial science and Artificial Intelligence (AI) hold immense potentials for transforming the insurance industry.
The Commissioner for Insurance/Chief Executive National Insurance Commission (NAICOM) Olusegun Omosehin, said this at the 2024 Nigerian Actuarial Society (NAS) Annual Industry Conference in Lagos, stating that the themed “Actuaries and AI: Strengths, Opportunities, Weaknesses, and Threats” was timely and crucial, as it perfectly captures an exciting yet critical conversation needed today.
The Commissioner who was represented by the Deputy Commissioner Technical
Dr. Usman Jankara, noted that the world is experiencing a significant transformation, driven by technological advancements and data revolution, hence, the financial sector, in particular, is at the point of a significant shift, with artificial intelligence poised to revolutionised the way we conduct business.
He submitted that 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.
“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.
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 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,” he posited.

He stated that though, there are perceptions that disruptive technologies like AI would replace every job and make a lot of skills obsolete. There may be credence to this sentiment, if like actuaries, we are to observe historical patterns.

However, technological advances have always changed the landscape regarding jobs and relevant skill-sets. Like other technological disruptors, AI has the potential to transform the insurance industry and by extension the actuarial profession, he asserted.

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, adding that The Nigerian Actuarial Society 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”, he posited.