Transforming Insurance: AI and Generative AI in Actuarial Practice

The insurance industry is undergoing a transformative shift with the integration of Artificial Intelligence (AI) technologies across the entire value chain. AI is nowadays crucial for the strategic direction of insurance companies, aiming to sustainably increase corporate value. However, AI implementation and governance pose new challenges.  This talk will explore the practical considerations and applications of AI in the insurance sector, illustrating how these technologies are revolutionizing traditional processes and enhancing operational efficiency. It will discuss the opportunities and risks of AI in the insurance sector and best practices for implementation, with an emphasis on the importance of robust governance and strategic planning. Additionally, the important role of actuaries in driving AI transformation will be highlighted.  A special focus is given to Generative AI (GenAI), which offers significant potential alongside unique challenges, supported by a concrete use case that demonstrates its practical applications: By leveraging advanced GenAI techniques such as Retrieval-Augmented Generation (RAG) and Structured Outputs, various document types can be processed and systematically compared on specific criteria. Although the demonstration focuses on comparing key aspects of annual reports of insurance companies, this approach is equally applicable to the structured comparison of tariffs or sustainability reports, among others.  The presentation concludes with an overview of additional applications and provides an outlook on future developments, such as Multi-Agent Systems.