Information Matrix

Stephen recently questioned whether the hype around AI models for Life Insurance might be a case of The Emperor's New Clothes. In this blog we discuss an important point of difference: whereas in the fable, a youth reveals the expensive "invisible" new clothes have no substance at all, in our scenario, we find precisely the opposite. AI models utilising machine learning are, far from being see-through, simply not transparent enough.

There is emerging hype about the application of artificial intelligence (AI) to mortality analysis, specifically the use of machine learning via neural networks. In this blog I provide a counter-example that illustrates why the human element is an absolutely indispensable part of actuarial work, and why I think it always will be.