The potential of artificial intelligence (AI) technology has expanded into various fields, including actuarial calculations. While expert actuarial services are essential for helping professionals and companies, AI technology can support and even enhance the quality of these services.
Benefits of Using AI in Actuarial Calculations
AI can have a significant impact on various elements of actuarial tasks. Various predictions regarding AI’s role in actuarial work demonstrate its growing potential in professional fields.
Some examples of potential uses of AI in actuarial calculations include:
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Shortening the Data Analysis Process
Actuarial work involves a great deal of data analysis to deliver the most accurate results for different clients. With AI, actuaries can shorten the data analysis process and focus on other more specialized tasks that require extra attention.
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Analyzing Various Actuarial Assumptions
Actuarial calculations involve analyzing various assumptions that affect the final value. These include interest rates, salaries, annuities, and pension benefits. AI can help analyze these factors more quickly and accurately, making it ideal for managing actuarial calculations for multiple clients at once.
Supporting Factors for Responsible AI Utilization
While offering many benefits, AI also brings risks such as bias and errors, especially if the system is not well-managed. Clients may also have concerns about critical factors like transparency and security.
Regarding the application of AI technology in fintech, the Indonesian Financial Services Authority (OJK) has collaborated with the Indonesian Joint Funding Fintech Association, Indonesian Fintech Association, Indonesian Crowdfunding Association, and Indonesian Sharia Fintech Association. This collaboration involves the implementation of conduct guidelines and ethical codes for the use of AI in Indonesia’s fintech sector.
Within these guidelines and codes, OJK has outlined several principles that all financial institutions must follow when applying AI, such as:
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AI Must Provide Benefits
The application of AI must add value for both businesses and clients or consumers. Its ultimate goal is to help clients solve problems and make the best decisions, enhance financial inclusion, and support sustainable economic processes.
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AI Must Be Fair and Accountable
The application of AI in various fields, including actuarial calculations, must be based on a comprehensive risk management framework. Providers must ensure that the use of AI does not harm or violate privacy and ethics. The technology must also undergo a series of tests before being deployed.
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AI Must Be Safe and Transparent
AI technology used must have robust security systems that protect all parties and be regularly evaluated. Providers using AI must also be transparent with clients/vendors regarding the risks and benefits of the system used.
How to Access AI Technology for Accurate Actuarial Calculations
If you are a business seeking accurate actuarial calculation services, you can use consulting services that utilize AI technology. One example is Arya Bagiastra Actuarial Consulting.
This consulting service uses AI-based technology, such as a calculator that can compute various aspects, including pension benefits for employees. With this technology, each calculation can be done quickly without compromising accuracy, allowing you to obtain the best calculation results to make crucial financial decisions.
AI technology has now become an integral part of modern and future actuarial calculations. Utilize actuarial services with this technology to get the best calculation results.
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