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Ai Master Class 2 Compressed

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24 views23 pages

Ai Master Class 2 Compressed

Uploaded by

shaenza402
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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13th to 15th Nov || Mombasa, Kenya

Masterclass in AI & Machine


Learning
Introduction to AI and Machine
Learning for Actuaries
• Setting the Stage for AI-Driven Transformation in
Actuarial Science

• Ayisi Makatiani, Shikoli Makatiani, Founders CVPAI


• Lucy Nondi, Actuary Jubilee Health Insurance
• Sharon Nderi, Product Specialist, CVPAI
Session Objectives

o Build a foundational understanding of AI


and Machine Learning.

o Explore the potential benefits of AI


specifically for actuarial work.

o Set the stage for Session 2, where we’ll see


practical applications with Sera.
Audience Poll: How
Familiar Are You with AI
in Actuarial Work?"

Options:
1 – Not familiar at all
2 – Somewhat aware but no direct
experience
3 – Familiar, with some
understanding of applications
4 – Very familiar, having used AI
tools or studied AI applications
5 – Expert level, actively using AI or
developing AI solutions
Understanding AI and
Machine Learning

o Artificial Intelligence (AI): Simulation of


human intelligence by machines.
o Machine Learning (ML): AI subset focused
on data-driven learning without explicit
programming.
o Relevance to Actuarial Work: Capable of
enhancing data analysis, predictive
modeling, and risk assessment.
Why AI Matters for Actuaries

Efficiency Gains: Automate repetitive tasks and streamline


workflows.

Improved Accuracy: Reduce human errors in data processing


and calculations.

Data-Driven Insights: Support complex decision-making with


predictive analytics.
Automation: Handle routine,
repetitive tasks like data entry,
AI in Actuarial extraction, and report generation.
Workflows: Augmentation: Enhance actuaries'
Automation decision-making with data analysis
and and predictive modeling support.
Augmentation Outcome: Free up time for strategic
tasks, enabling actuaries to focus on
insights and high-impact analysis.
Key AI Capabilities
for Actuarial Work
Data Extraction & Processing: Quickly
organize and structure unstructured data from
various sources.

Predictive Analytics: Forecast trends, claims


frequencies, and risk factors.

Natural Language Processing (NLP): Interpret


and analyze textual data, supporting document
analysis and customer interactions.
Real-World Applications of AI in
Insurance

o Claims Automation: Process claims faster with


AI-driven validation and fraud detection.
o Customer Service: Use AI chatbots and virtual
assistants to provide real-time responses.
o Risk Assessment: Analyze historical data to
categorize risk profiles accurately.
Case Study: State Farm Insurance: Industry Leader
and Innovator
Company Background:
• Largest P&C Insurer in the U.S.
• Market Share:
• Auto Insurance: 9% of U.S. market (KES4T)
• Home Insurance: 16% of U.S. market (KES3T)
• Product Range: Auto, Home, Life, Health, and
Banking Services

Industry Leadership:
• Innovation-Driven: Known for prioritizing
customer-centric technology.
• Benchmark for Digital Transformation: Leading
in revenue, customer satisfaction, and digital
adoption.
AI-Powered Data
Processing at State Farm
Insurance

Before: State Farm faced lengthy data


processing times, with high manual
entry and error rates.
After with AI: Implemented AI-driven
data extraction tools to automate
entry, reduce errors, and speed up
processing.
State Farm’s AI-Driven
Risk Assessment

Challenge: Manual risk categorization was


time-intensive and sometimes
inconsistent.
AI Solution: AI models provided real-time
risk categorization, helping State Farm
identify high-risk profiles faster and with
greater precision.
Predictive Modeling
and Future Claims
Management

Objective: Use AI for predictive insights on


claims frequency and trends.
Outcome: AI-enabled forecasting helped
State Farm anticipate claim spikes, leading
to proactive risk management strategies.
On-Demand Reporting
at State Farm

Challenge: Time lag in report generation


impacted decision speed.
AI Solution: Instant data retrieval and
customized reporting enabled by AI for
real-time insights.
Results of AI
Integration at State
Farm

Outcome Metrics: 40% reduction in data


processing time, enhanced risk assessment
precision, and faster reporting times. 30%
reduction call wait times. Via AI Chatbots.
ROI: Significant operational savings,
improved accuracy, and strengthened
customer satisfaction.
Key Benefits of AI for
Actuarial Workflows

o Time Savings: Reduce manual data handling


and repetitive tasks.
o Increased Accuracy: Minimize human
errors, especially in data processing.
o Scalability: Handle larger data volumes with
consistent results.
o Enhanced Insights: Use predictive analytics
for proactive decision-making.
Reflection: Where
Could AI Add Value
in Your Work?

• Options:
o Claims processing
o Risk assessment
o Data analysis
o Customer
engagement
Essential Skills for Actuaries in the Age of AI

Data Literacy Understanding and interpreting data is crucial for leveraging AI tools effectively.

Analytical Critical thinking skills help actuaries evaluate AI-generated insights and make
Thinking informed decisions.

Cross-
Working effectively with data scientists and technology teams ensures that AI
Functional solutions are tailored to actuarial needs.
Collaboration

Adaptability
and Embracing new technologies and methodologies is essential as the field
Continuous evolves with AI advancements.
Learning
Invest in Training and Skill Development
Invest in • Provide resources to build data literacy and analytical skills within the team.

Getting Your Encourage


Encourage Cross-Functional Collaboration
• Foster partnerships between actuarial, data science, and IT teams to align

Team AI-
on AI goals.

Ready Start Small with Pilot Projects


Start • Begin with manageable AI projects, such as automating data entry or initial
claims assessments.

Build a Culture of Continuous Improvement


Build • Promote an adaptable mindset, where the team regularly assesses and
optimizes AI tools and processes.
Introducing Sera
– The Actuarial AI
Assistant
o Role: Designed to enhance
actuarial tasks like data
processing, risk assessment, and
reporting.

o Capabilities: Supports actuaries


by automating repetitive tasks,
providing real-time data insights,
and facilitating decision-making.

o Goal: Free up time for actuaries


to focus on complex analyses and
strategic tasks.
Key Features of Sera for
Actuarial Efficiency

o Data Extraction and Organization:


Automated handling of unstructured
data.
o Predictive Analytics: Real-time
forecasting and trend analysis.
o Customizable Reporting: Generate
tailored reports quickly based on
specific queries.
Closing Thoughts
and Next Steps
o Recap: Review key takeaways
on AI’s role in actuarial
workflows.
o Looking Forward: Discuss the
roadmap for AI adoption in
actuarial practices.
o Next Session: Transition to
Session 2 for a live demo of
Sera.
Q &A

Contact Information:

o Email: [email protected]

o Phone: +254 722 510 245

o LinkedIn: Ayisi Makatiani

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