Recently, the SOA incorporated additional material related to complex modeling techniques and modeling tools within the exam syllabus. This content could guide actuaries to both roles in traditional and non-traditional careers related to modeling. These modeling techniques can present some challenges, due to being computationally complex and hard to replicate or validate. With great power comes great responsibility. Following ASOP 56 can bring light and balance to modeling, specifically related to communications and disclosures of performing actuarial services centered around complex models involving AI and machine learning.
At the conclusion of the session, you’ll be able to:
· Consider how to apply ASOP 56 across different modeling roles, including model selection, design, modification, and use.
· Document your work to appropriately communicate and disclose your understanding of complex models.
· Learn how to evaluate and mitigate model risk.