Omosehin Advocates for AI Adoption by Actuaries in Insurance Industry

At the 2024 Nigerian Actuarial Society's Annual Industry Conference held in Lagos, the Commissioner for Insurance, Mr. Olusegun Ayo Omosehin, delivered a keynote address emphasizing the critical role of actuaries in the evolving landscape of the Nigerian insurance industry. The theme of this year's conference, "Actuaries and AI: Strengths, Opportunities, Weaknesses, and Threats," highlighted the timely and crucial conversation about the integration of artificial intelligence (AI) into actuarial science.

Mr. Omosehin urged members of the Nigerian Actuarial Society (NAS) to collaborate, innovate, and lead the industry by developing skill sets that leverage AI and other machine learning tools. He stressed that failing to adapt to these technological advancements could result in being left behind. His address underscored the significant transformation driven by technological advancements and the data revolution, particularly within the financial sector.

He noted that the financial sector is undergoing a significant shift, with AI poised to revolutionize business operations. As the Nigerian insurance industry continues to evolve, the intersection of actuarial science and AI presents a unique opportunity to harness the power of technology. This, he explained, could shape the future of insurance in Nigeria, offering enhanced capabilities in risk assessment, pricing, and financial stability.

Actuaries play a critical role in the industry by using advanced techniques such as data science and predictive analytics to analyze complex data and make informed decisions. Mr. Omosehin highlighted that the actuarial profession has become increasingly important in a data-driven world, with actuaries being in high demand across various economic sectors. He reflected on the history of the profession, recalling how older actuaries used to perform calculations by hand before the advent of spreadsheets. The introduction of spreadsheets did not eliminate the need for actuaries but instead allowed them to expand their scope of work and explore new aspects of their profession.

Recognizing the advancements and the potential of AI, the Federal Government of Nigeria plans to position the country as the AI hub for AI solutions in Africa. This strategic move aims to capitalize on the growing importance of AI and ensure that Nigeria remains at the forefront of technological innovation in the insurance industry and beyond.

In his address, Mr. Omosehin emphasized that the actuarial profession must continuously evolve to keep pace with technological advancements. He encouraged actuaries to embrace AI and machine learning tools to enhance their analytical capabilities and provide more accurate and efficient solutions for the industry. By doing so, actuaries can lead the way in transforming the insurance sector, ensuring its relevance and competitiveness in a rapidly changing world.

The conference provided a platform for actuaries to discuss the strengths, opportunities, weaknesses, and threats associated with AI integration. It offered insights into how AI can enhance the accuracy and efficiency of actuarial work while also presenting challenges that need to be addressed. These discussions are crucial for the continuous development of the actuarial profession and the overall growth of the insurance industry in Nigeria.

Mr. Omosehin's address highlighted the importance of innovation and collaboration within the actuarial community. He called on actuaries to work together, share knowledge, and develop new skills that leverage AI and machine learning. By fostering a culture of innovation, actuaries can drive the industry forward and contribute to the broader goal of positioning Nigeria as a leader in AI solutions in Africa.

In conclusion, the 2024 Nigerian Actuarial Society's Annual Industry Conference underscored the critical role of actuaries in the evolving insurance landscape. The integration of AI and other technological advancements presents both opportunities and challenges for the profession. By embracing these changes and continuously evolving, actuaries can lead the way in shaping the future of the Nigerian insurance industry, ensuring its relevance and competitiveness in a data-driven world. The Federal Government's commitment to positioning Nigeria as an AI hub further emphasizes the strategic importance of AI in driving innovation and growth across various sectors.