Artificial Intelligence may represent a major leap forward for the insurance industry, but it is very unlikely to replace actuaries, according to Mr Olusegun Omosehin, head of the National Insurance Commission (NAICOM). He added that NAICOM supports the federal government's goal of making Nigeria the AI hub for Africa.
He made these comments in a keynote speech read out on his behalf at the 2024 Nigerian Actuarial Society (NAS) Annual Industry Conference on 26 June, which had the theme “Actuaries and AI: Strengths, Opportunities, Weaknesses, and Threats”.
Mr Omosehin said, “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.”
National strategy
He pointed out that the federal government plans to position Nigeria as the hub for AI solutions in Africa. He said, “It is thus important that the insurance industry and, by extension, actuaries are at the forefront of its adoption.”
He said that NAICOM is committed to the federal government’s strategy, adding, “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.”
Commenting on perceptions that disruptive technologies like AI will replace jobs and make a lot of skills obsolete, Mr Omosehin said, “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 added that as AI evolves, actuaries have to also continuously evolve and develop skill sets that utilise AI and other machine learning tools or risk being left behind.
Collaboration
Calling for collaborative efforts to be strengthened to ensure responsible AI adoption, Mr Omosehin said that aspects to consider are:
-
Regulation and Governance: Where the industry would need robust regulations to ensure the ethical use of AI in insurance, focusing on data privacy, fairness, and transparency.
-
Collaboration: Fostering 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.
-
Upskilling and Reskilling: 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.