Actuaries Institute urges ethical AI use, stresses role in financial fairness

Actuaries Institute President David Whittle also identified the home insurance market as an area of concern.

Actuaries Institute believes actuaries play a crucial role in guiding the ethical use of AI and automation in the financial services industry. 

In his Presidential speech, David Whittle, 2024 Actuaries Institute President, emphasises the need for actuaries to act as independent arbiters, ensuring fairness and equal treatment in areas like insurance and investment. 

The challenges posed by climate change, intergenerational equity, and evolving technology require a comprehensive and thoughtful approach. 

Actuaries play a crucial role in analysing scientific implications, devising insurance solutions, and formulating compensation packages to manage risks effectively. 

Home insurance affordability and sustainability demand urgent action, and actuaries must lead in developing risk management solutions that are affordable, effective, and sustainable in the long run.

Addressing climate change consequences and ensuring intergenerational equity requires evidence-based thinking across various domains. 

ALSO READ: Actuaries Institute urges overhauling Australia's retirement system

Actuaries, with their rigorous training, data skills, and independence, are well-positioned to drive long-term thinking for maximum human and economic benefit. 

Technology, including big data, AI, machine learning, and quantum computing, presents both opportunities and challenges. Actuaries have been at the forefront of leveraging technology, acknowledging its potential to revolutionise economies, government, and commerce.

The rise of AI and associated technologies introduces profound changes in lives and cultures. Actuaries can navigate these changes by embracing technology to enhance their roles and provide valuable insights to clients and communities. 

The profession's commitment to equal treatment and the 'fair go' principle aligns with the need to extend its role in the era of automation.