By Tony Obiechina, Abuja
The Commissioner for Insurance and Chief Executive of National insurance Commission (NAICOM), Mr Olusegun Omosehin has said that the convergence of actuarial science and artificial intelligence (AI) holds immense potential for transforming the Insurance industry.
According to him, by embracing the strengths and opportunities of AI while addressing its weaknesses and threats, “we can navigate this new landscape with confidence and foresight”.
Speaking at the 2024 Nigerian Actuarial Society (NAS) Annual Industry Conference in Lagos, the NAICOM boss call for collaboration among the
stakeholders to lead the way in shaping the future of the Nigerian insurance industry in order to facilitate the enthronement of a more sustainable and inclusive insurance ecosystem that benefits all stakeholders.
The Commissioner was represented by his Deputy, Dr Usman Jankara Jimada at conference this year’s Annual Industry Conference, themed “Actuaries and AI: Strengths, Opportunities, Weaknesses, and Threats”.
His words: “As we gather here today, 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 revolutionize 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 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.
“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”.
Omosehin said is was 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 said it was in recognition of these developments that the Federal Government plans to position Nigeria as the AI hub for AI solutions in Africa, pointing out that this will be achieved through the development and implementation of a National Artificial Intelligence Strategy aimed at accelerating AI adoption in Nigeria. He therefore enjoined the insurance industry and, by extension, actuaries to be at the forefront of its adoption.
“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. Even though, there are perceptions that disruptive technologies like AI will 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 added.
