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Stephanos Hadjistyllis, FIA CERA, is a Senior Actuary and Project Manager for the AAE |
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Artificial Intelligence is no longer just a buzzword; it is reshaping the way we work, make decisions, and regulate risk. For European actuaries, the question is no longer whether AI matters to our profession, but how we engage with it meaningfully and responsibly.
The EU’s new AI Act, the first comprehensive regulation of artificial intelligence globally, marks an important development. It introduces a risk-based framework aimed at protecting fundamental rights while supporting innovation. For those working in insurance, pensions and related fields, the Act presents both challenges and opportunities.
Actuarial models used in life and health insurance pricing are already identified as “high-risk” systems under the Act. This implies that actuaries may soon be expected to ensure not only statistical soundness but also compliance with requirements concerning transparency, documentation and fairness. Importantly, actuaries already work within a robust professional framework that includes long-standing standards and codes of conduct addressing these very issues. Nevertheless, regulatory expectations are evolving. Where does a generalised linear model end and an AI system begin? When does good modelling practice become a formal compliance obligation?
There are also broader questions to consider. What does responsible AI look like in a world increasingly driven by data? How can actuarial judgement contribute not only to the output of AI systems, but to their governance? And as general-purpose tools such as large language models become part of our working environment, are we prepared to understand and manage the implications of their use?
As a profession built on rigour, objectivity and trust, actuaries are well placed to help bridge the technical and ethical dimensions of AI. But that will require us to stay informed, engaged and proactive.
The AI Act is not the end of the conversation. It is the beginning of one. Actuaries should be part of it.
13 May 2025
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