Insurance pricing:
discrimination Causality and fairness

By Mathias Lindholm, Ronald Richman, Andreas Tsanakas and Mario Wüthrich 

MATHIAS LINDHOLM		RONALD RICHMAN		ANDREAS TSANAKAS		MARIO WÜTHRICH

 

Over the last decade there has been a surge in applying machine learning techniques in non-life insurance pricing. This is mainly due to cheaper data collection and storage, combined with new analysis methods for unstructured data and increased computational power. In parallel there have been rising concerns about data privacy and hidden implications of using ‘black-box’ price computations.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

ChatGPT and the philosophers

By Joel Walmsley

		JOEL WALMSLEY is a Philosopher at University College Cork, in Ireland.

Artificial Intelligence (AI) is rapidly  becoming an integral part of many industries, and the field of actuarial science is no exception.
One of the most exciting developments in AI is the advent of language models, such as Open AI’s ChatGPT. These models have the ability to understand and respond to natural language inputs, making them ideal for use in a variety of applications, including chatbots, virtual assistants, and language translation. In addition to its potential use in the field of actuarial science, ChatGPT is also being used in education to help students improve their language skills and writing abilities.
… Or so the enthusiasts say. The doomsayers, by contrast, are sceptical.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

AAE PRIORITIES IN 2023 A STEP ON OUR WAY

By Lutz Wilhelmy

		LUTZ WILHELMY is Chairperson of the Actuarial Association of Europe.

In this article, I would like to highlight the goals of the AAE that the board has agreed on for 2023.
Moreover, I would like to contextualize our longer-term challenges.

Read the full article here.

 

Disclaimer:

This article was published in The European Actuary No. 33 – March 2023

ARTIFICIAL INTELLIGENCE THE ACT AND THE IMPACT

JONAS OFFTERMATT  Germany				MICHAEL ZIMMER Germany

 

As data and AI become more widespread, the issue of ethical AI is also becoming increasingly important. What is ethically justifiable in AI-based or AI-supported decisions and what constitutes discrimination or a risk for society? The European Union provides an initial foundation to answer these questions with the Artificial Intelligence Act.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

Actuarial jobs outlook

Zuzana Weber Slovakia		Jozef Hancar Slovakia		Rafael Moreno Ruiz Spain

Giampaolo Crenca Italy		Martin Oymanns Germany		Henning Wergen Germany

 

The field of actuarial practice has widened over recent years; actuaries are now found working not only in traditional areas but also in wider fields such as banking, data science and sustainability. This change can of course also be seen in the prospects that young career starters face on completion of their studies.

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

How the EU AI Act will concretely impact your companies and how to get ready ….

By Sophie Le Goff, Pauline Baron and Rachel Jaoui

SOPHIE LE GOFF is Partner Insurance & Compliance at SIA Partners		PAULINE BARON is Senior Consultant Insurance at SIA Partners		RACHEL JAOUI is Consultant FSI at SIA Partners

 

After some years of seeming AI ‘prosperity’, the accumulation of scandals has shed light on the limitations to AI and have caught the eye of several regulators worldwide (UK, China, USA,…). Among them: the European Union, which is on its way to vote on the AI Act this year, with possible enforcement by 2025 or 2026 and notably high fines for non-compliance.
If this initiative by the EU Commission looks praiseworthy at first sight, digging into the details reveals several challenges and ambiguities which need to be clarified to assess the impact the text will have on companies, the main one being the distinction between what is considered a provider or a user. Notwithstanding, the major impacts on companies can already be assessed. What are they and how to cope with them?

 

Read the full article here.

 

Disclaimer:

This article represents the opinion of the authors, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

Leadership (and influencing) with the brain in mind

By Lori Shook

		LORI SHOOK is a London based coach, trainer, speaker and author. Her company, shooksvensen, supports organisations to become great places to work.

 

Leading people can seem like a mystery. Why do they behave the way they do? At times motivated, inspired and engaged and other times surprisingly disruptive, resistant, irrational or irritable. Why can’t they (or rather, we) be more consistent and predictable?

 

Read the full article here.

 

Disclaimer:

This article represents the opinion of the author, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

Man and machine: a bright future for insurance?

Interview by Jennifer Baker

		MATEUSZ MAJ, the CEO of Vivadrive, has been an entrepreneur since 2012, co-founding technology startups and mentoring at the University of Warsaw Incubator. He is also a data analyst with seven years of experience as a ‘quant’ in the financial industry.

 

Artificial intelligence has long held the promise of making our work lives easier. Now that promise is becoming a reality, thanks in part to new insurtech products, like those developed by Mateusz Maj.

 

Read the full article here.

A video of this interview is now available on actuview:

• Public (short) version (access to all)
• Full version (for actuview user)

 

Disclaimer:

This article represents the opinion of the interviewee, and not necessarily the opinion of the AAE.

This article was published in The European Actuary No. 33 – March 2023

AAE submitted a response to EIOPA’s Discussion paper on prudential treatment of sustainability risks.

AAE’s submission can be found here.

Submit the abstract for your presentation at the European Actuarial Day (EAD) on 27 June 2023 now!

The AAE invites all actuaries and experts on the continent as well as actuarial students to discuss the current professional challenges and opportunities arising from new fields of professional activity as well as from traditional work areas. The event’s program will put a special focus on the environment actuaries work and operate in and the fast development of this environment in the recent past and expectations for the future.

 

Main topics:

• Emerging Risks: Identification, Taxonomy and Mitigation
• The Role of Actuaries in Accounting
• Wider Use of and Enhancing the Actuarial Skills
• Back to the Roots: New Approaches in Traditional Fields
• Professional Actuarial Behaviour

 

The EAD 2023 Program Committee welcomes abstracts, especially on the above-mentioned topics until 15 March 2023.
Click here for further information 

 

Registration is open. Attendance is free of charge.

LINK TO REGISTRATION

 

All relevant information can be found on www.ead2023.org.

 

The event is hosted by AAE and organized by the European Actuarial Academy.