A new paper published by the Canadian Institute of Actuaries (CIA), by two senior members of that profession, discusses current generative artificial intelligence (AI) use cases in the industry, giving actuaries a view of AI work now underway, the possibilities and things to come.
Written by Simon Girard, CIA fellow and partner in the insurance and actuarial advisory services practice of Ernst & Young (EY) and Cem Unlubayrak, senior manager in the actuarial practice at EY Canada, the paper discusses use cases and benefits (the paper does not discuss how companies are working on privacy matters or AI hallucinations), but then calls for the development of actuarial-specific best practices for generative AI usage, calling these “crucial.”
The paper, Revolutionizing Actuarial Work with Generative AI: A Glimpse into the Future, also recommends starting out with low-risk projects in a secure environment, allowing actuaries to experiment with generative AI and evaluate its efficiency when compared to conventional models. To that end, it discusses a wide range of use cases and their benefits, going into more detail with eight examples specific to actuarial work processes.
“As the actuarial profession undergoes digital transformation, generative AI stands out as a key innovation, offering actuaries the chance to significantly improve their analytical skills and efficiency. Actuaries must start by building a strong foundation in generative AI principles,” they write. “Actuaries should not merely be users of generative AI but should play a central role in its implementation. With their deep understanding of data and insurance models, actuaries are uniquely positioned to ensure that generative AI is used effectively and responsibly within the profession.”
