FRC research on the use of artificial intelligence (AI) and machine learning (ML) in actuarial modelling in the UK

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Published: 3 January 2023

The objective of this research is to learn more about the role of AI/ML in UK actuarial modelling practices across pensions, life insurance, general insurance, and wider fields (e.g., banking and investment). This will improve our understanding of new risks that AI/ML might bring to the quality of actuarial work.

The research is being carried out by the Government Actuary’s Department (GAD) on behalf of the FRC. It will address the following four areas of enquiry:
  1. Areas of use: Which actuarial departments are involved in using AI and ML techniques in their work?
  2. Approach: What approach(es) and technique(s) are used? How are they selected?
  3. Governance: What is the governance process around the use of AI and ML techniques as compared to the governance process around the more traditional techniques?
  4. Output: How do the areas of use, approach and governance of AI and ML impact on:
a. the way outputs are used internally by a company, and

      b. uncertainty around the actuarial modelling results using AI/ML, as compared to uncertainty around results from the more traditional approaches?

Companies and individuals are invited to take part in a survey, interview, or both. All information, views and opinions shared by companies or individuals whether in survey responses or in interviews, will be fully anonymised by GAD in all reporting of the research findings.

The survey is now available for you to complete, and will take approximately 20 minutes; interviews will be carried out during February to May 2023.

Queries can be directed to the GAD team at: [email protected]