The National Insurance Commission (NAICOM) has expressed concern over the inadequate actuarial science professionals in the insurance industry.
Mr Segun Omosehin, the Commissioner for Insurance and chief executive officer at the Commission made the observation known at the just concluded annual conference of the Nigerian Actuarial Society held in Lagos recently.
This year’s Annual Industry Conference was themed “Actuaries and AI: Strengths, Opportunities, Weaknesses, and Threats”
The CFI who described the theme of this year’s conference as being timely noted that the world is experiencing a significant transformation, driven by technological advancements and data revolution and that the financial sector, in particular, is at the point of a significant shift, with artificial intelligence (AI) poised to revolutionise the way we conduct business.
He pointed out 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.
While actuaries play a critical role in risk assessment, pricing, and financial stability using advanced techniques such as data science and predictive analytics to analyse complex data and make informed decisions today, Omosehin continued that 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.” Omosehin enthused.
Acknowledging the AI progression in business and governance, the NAICOM boss said: “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.”
He stressed the importance that the insurance industry and, by extension, actuaries are at the forefront of its adoption. He asserted that in conformity with the above, his Commission is committed to the Federal Government strategy while ensuring that the sectoral regulatory policies are consistent with the outlined goals of the Federal Government enhancing the stability of the Nigerian Insurance Industry.
The CFI noted that 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 while 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.
“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,”
