NAICOM Chief Executive Tasks NAS To Adopt AI For Sustainable, Inclusive Insurance Sector

By LOVETH AZODO, Lagos

The Commissioner for Insurance/Chief Executive Officer of National Insurance Commission (NAICOM), Olusegun Ayo Omosehin, has tasked members of the Nigerian Actuarial Society on the need to develop skill sets that utilizes Artificial Intelligence (AI) and other machine learning tools to ensure sustainable and inclusive insurance ecosystem or risk being left out.

Omosehin made the call at the 2024 Nigerian Actuarial Society (NAS) Annual Industry Conference, themed “Actuaries and AI: Strengths, Opportunities, Weaknesses, and Threats” held Thursday, July 24, 2024 in Lagos.

Speaking on the theme of the conference, he stated that the theme is timely and crucial, as it perfectly captures an exciting yet critical conversation needed for today’s insurance sector. 

According to him, Like other technological disruptors, AI has the potential to transform the insurance industry and by extension the actuarial profession. He called on the Nigerian Actuarial Society (NAS) to play a vital role in equipping its members with access to the necessary skills to navigate the world of AI. 

He said “In the changing landscape, using AI for vast data analysis will be common place.  This will enable actuaries delve deeper into large data; uncovering insights, and developing more accurate risk pricing models and innovative insurance products for the Nigerian populace.”

On the importance of actuaries to the economic sector, he stated that the profession has become increasingly important in a data-driven world, with actuaries in high demand across various economic sectors.

However, he explained that one of the things that some older actuaries talk about is the time before spreadsheets existed, when calculations were done by hand. According to him, “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.”

On the need to collaborate with NAS, he stated that the commission will need robust regulations to ensure the ethical use of AI in insurance, focusing on data privacy, fairness, and transparency.

“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.”

“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,” he said.