Lagos Nigeria, June 27, 2024 – Goldwyns Actuary LLP, a joint venture of Goldwyns Chartered Accountants and SL FINANCIAL, who is an actuarial consulting and advisory firm based in Miami, Florida. We offer actuarial consulting and advisory services for businesses and governments in both traditional (re)insurance and alternative risk financing industries.

The briefing considers the usefulness of Artificial intelligence (AI) as a tool for providing actuarial services particularly in the Nigerian business landscape, both for practitioners and consumers of actuarial services and products. The integration of AI into actuarial science is revolutionizing the field, offering Nigerian actuaries new tools to enhance their work. This convergence presents both challenges and opportunities that could redefine the profession.

Transforming Data Analysis and Predictive Modelling

AI’s ability to analyse vast datasets quickly and accurately is transforming data analysis and predictive modelling. For instance, in health insurance pricing, AI can use real-time data from wearable devices to adjust premiums based on an individual’s current health status. This dynamic approach ensures that premiums are more accurately aligned with the actual risk profile of the insured. Similarly, AI can predict future weather patterns using satellite imagery and climate models, improving climate risk assessments. This allows actuaries to better understand and mitigate the risks associated with climate change, leading to more robust and reliable insurance products.

Automating Routine Tasks

Automation of routine tasks is another significant benefit of AI. AI-powered chatbots can handle customer service inquiries, providing instant responses and freeing up actuaries for more complex tasks. This not only improves efficiency but also enhances customer satisfaction by providing quick and accurate responses to their queries. Compliance monitoring is also enhanced, with AI systems continuously checking for regulatory adherence and flagging potential issues in real-time. This ensures that companies remain compliant with ever-changing regulations, reducing the risk of costly penalties and improving overall governance.

Enhancing Decision-Making

Improved decision-making is perhaps the most impactful change introduced by AI. AI can optimize investment portfolio management by analysing market trends and economic indicators in real-time, leading to better returns. This allows actuaries to make more informed investment decisions, maximizing returns while minimizing risks. Additionally, AI can create personalized insurance products by analysing individual customer data, tailoring policies to specific needs and preferences. This level of personalization not only meets the unique needs of customers but also enhances their overall experience, leading to higher customer retention and satisfaction.

Improving Catastrophe Modelling in Nigeria

AI can significantly enhance catastrophe modelling. By leveraging machine learning algorithms and real-time data from sources such as satellite imagery and weather forecasts, AI can provide more accurate predictions of natural disasters like floods and storms. This improved modelling helps insurers better assess risks and set premiums accordingly, ensuring that they are adequately prepared for potential losses. Additionally, AI can aid in disaster response planning by identifying the most vulnerable areas and populations, enabling more effective and timely interventions.

Embracing the Future

These advancements illustrate how AI is making actuarial processes more efficient, accurate, and innovative. Nigerian actuaries who embrace AI technologies will be well-positioned to lead the industry into a new era of excellence. By leveraging AI, they can enhance their analytical capabilities, improve efficiency, and offer more innovative solutions to clients. This will not only elevate the profession but also contribute to the broader financial stability and growth of Nigeria.

In conclusion, the integration of AI into actuarial science is not just a trend but a transformative force. Nigerian actuaries who adapt to this change will be well-positioned to lead the industry into a new era of innovation and excellence.

How Goldwyns Actuary LLP Can Contribute

At Goldwyns Actuary LLP, we embrace AI as a powerful tool to enhance our actuarial services. Our team possesses the expertise to:

• Develop and validate robust AI models tailored to specific actuarial challenges.
• Interpret and explain AI outputs to ensure transparency and client understanding.
• Upskill our actuaries in AI and data science to bridge the skill gap.
• Adhere to the highest ethical standards in all AI-related projects.

We believe that the future of actuarial science lies in a collaborative approach where human expertise blends seamlessly with the power of AI. At Goldwyns Actuary LLP, we are committed to leading the way in this exciting new era.

For any question or media inquiry, please visit our website at www.goldwynsactuary.com or contact our team at asime@goldwynsactuary.com

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Achille Sime

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asime@goldwynsactuary.com