The video from Syed Raza demonstrates how actuaries can use LLMs to support strategic decision-making. This example shows the use in evaluating whether to purchase longevity reinsurance or retain the risk in-house. Syed introduces a scenario where an actuary uses ChatGPT to list key decision factors like capital impact, risk appetite, regulatory considerations, and operational readiness. ChatGPT then generates a structured comparison table based on detailed inputs, offering a side-by-side analysis of financial and risk trade-offs. The script emphasizes ChatGPT's value in uncovering nuanced risks for both options—such as reinsurer default or assumption errors—and underscores that the tool enhances, but doesn’t replace, human judgment. The conclusion stresses the importance of verifying inputs and using AI as a decision-support aid to ensure thorough, balanced, and efficient actuarial analysis.
Contributors: Syed Raza, FSA, MAAA; Tom Callahan, FSA, MAAA; Jon Forster, ASA, MAAA.