Evolution of Artificial Intelligence in Asia Pacific Insurance Markets
Background and Purpose
The Society of Actuaries (SOA) desires to develop additional research work that serves the interest of the actuarial profession, public and the stakeholders on current and emerging actuarial topics in Asia Pacific markets. The SOA is issuing this Research Call for Proposals to encourage new research on how the use of artificial intelligence (AI) is evolving across the variety of insurance industry applications in Asia Pacific markets, and its impact on risks and opportunities within the actuarial profession. Focus would be on noting trends in AI usage across Asia Pacific insurance company operations, such as rating, customer engagement and retention, reserving and claim adjudication, as well as identifying where the local market opportunities can be enhanced by actuaries or have risk or opportunity of transforming historical actuarial roles in companies. Various Asia Pacific markets allow use of AI in rating and reserving in different ways or have transitioned at faster or slower paces than other markets. Use and adoption of AI techniques also varies by insurance lines of business across Asia Pacific markets. It can be helpful to provide an overview to the actuarial community of the considerations for further awareness in developing and using AI techniques.
Research Objective
To broaden and expand the knowledge in Asia Pacific market topics, the SOA is seeking researchers to submit proposals.
Increasingly, companies are using AI to perform data-driven tasks, including underwriting, loss estimation and which transform the way the actuarial profession is evolving in local Asia Pacific markets. This research will investigate current uses of AI across insurance lines of business and markets, how the future development of AI impacts the traditional tasks performed by actuaries, the upcoming trends of AI developments, the future roles of actuaries, and how actuaries together with AI can evolve and drive the evolution of the insurance industry. Differences across individual markets will also be reported on to identify what stages of evolution are occurring and how local market regulatory supervisors are considering the use of AI within insurance companies. A report will summarize the findings to be digested and used by the Asia Pacific actuarial profession.
Key considerations in the proposal review process by the SOA are the demonstration that the expected work will not be duplicative of existing material, will represent a significant expansion in the current knowledge on the topic, and will be of considerably strong impact and benefit to the SOA and its members and stakeholders. The resulting research report, tools, models and its findings are expected to be part of future professional development events put on by the SOA in China.
Given the desire to advance knowledge on current subjects and provide timely results, preference will be given to projects that can be completed for publishing and used for continuing education in under 6 – 9 months.
The SOA also encourages partnerships between academia and industry where the resulting work can be of mutual interest and enhance the breadth of the research work.
Proposal
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- To facilitate the evaluation of proposals, the following information should be submitted:
- Resumes of the researcher(s) indicating how their background, education and experience bear on their qualifications to undertake the research. If more than one researcher is involved, a single individual should be designated as the lead researcher and primary contact. The person submitting the proposal must be authorized to speak on behalf of all the researchers as well as for the firm or institution on whose behalf the proposal is submitted.
- An outline of the approach to be used (e.g. literature search, model, etc.), emphasizing issues that require special consideration. Details should be given regarding the techniques to be used, collateral material to be consulted, and possible limitations of the analysis.
- A description of the expected deliverables and any supporting data, tools or other resources.
- Cost estimates for the research, including computer time, salaries, report preparation, material costs, etc. Such estimates can be in the form of hourly rates, but in such cases, time estimates should also be included. Any guarantees as to total cost should be given and will be considered in the evaluation of the proposal. While cost will be a factor in the evaluation of the proposal, it will not necessarily be the decisive factor.
- A schedule for completion of the research, identifying key dates or time frames for research completion and report submissions. The SOA is interested in completing this project in a timely manner. Suggestions in the proposal for ensuring timely delivery, such as fee adjustments, are encouraged.
- Other related factors that give evidence of a proposer's capabilities to perform in a superior fashion should be detailed.
Selection Process
The SOA will appoint a Project Oversight Group (POG) to oversee the project. The SOA is responsible for recommending the proposal to be funded. Input from other knowledgeable individuals also may be sought, but the SOA will make the final recommendation, subject to SOA leadership approval. The SOA will provide staff actuarial support and assist in project management.
Questions
Any questions regarding this RFP should be directed to Dale Hall, SOA Managing Director of Research Phone: +1 847-273-8835; email: dhall@soa.org.
Notification Of Intent To Submit Proposal
If you intend to submit a proposal, please e-mail written notification by August 6, 2021 to Erika Schulty at eschulty@soa.org
Submission of Proposal
Please e-mail a copy of the proposal to Erika Schulty at eschulty@soa.org
Proposals must be received no later than August 20, 2021. It is anticipated that all proposers will be informed of the status of their proposal by the early September 2021.
Note: Proposals are considered confidential and proprietary.
Conditions
The selection of a proposal is conditioned upon and not considered final until a Letter of Agreement is executed by both the Society of Actuaries and the researcher.
The SOA reserves the right to not award a contract for this research. Reasons for not awarding a contract could include, but are not limited to, a lack of acceptable proposals or a finding that insufficient funds are available. The SOA also reserves the right to redirect the project as is deemed advisable.
The SOA plans to hold the copyright to the research and to publish the results with appropriate credit given to the researcher(s).
The SOA may choose to seek public exposure or media attention for the research. By submitting a proposal, you agree to cooperate with the SOA in publicizing or promoting the research and responding to media requests.
The SOA may also choose to market and promote the research to members, candidates and other interested parties. You agree to perform promotional communication requested by the SOA, which may include, but is not limited to, leading a webcast on the research, presenting the research at an SOA meeting, and/or writing an article on