Artificial Intelligence (AI) and modern technology are reshaping the role of actuaries in the insurance industry; however, there remains a dearth of qualified experts in the Arab world, said speakers at the fourth edition of the International Arab Actuaries Conference in Dubai.
Actuaries have long formed the backbone of the insurance industry, relying on mathematics and statistics to assess risks, determine insurance premiums, and ensure financial sustainability; however, the emergence of Artificial Intelligence (AI) has transformed this approach, said Secretary General of the Emirates Insurance Federation (EIF) Fareed Lutfi as he opened the three-day Conference on 4 February. “Today, actuaries can harness AI and data science to analyse vast volumes of information in less time, uncover hidden patterns, and enhance predictive accuracy to an unprecedented level.”
He noted that insurance companies leveraging AI-driven analytics have reduced by 50% their claims processing times and by 30% their fraud detection costs (according to analyses by international institutions), highlighting that this transformation makes insurance more efficient.
Mr Lutfi emphasised that these advances in the use of AI are expanding the role of the actuary, creating greater opportunities to drive innovation within the InsurTech ecosystem as strategic decision-makers. He added that the technological developments and challenges witnessed globally in the FinTech sector now require actuaries to continuously enhance their skills in AI, data science, and automation to remain competitive.
Moving to bridge the gap in the GCC
Mr Lutfi pointed out that the GCC insurance sector faces a severe shortage of qualified actuarial professionals, which constitutes a major obstacle to accurate risk assessment and product pricing. He explained that this shortage is due to the difficulty of professional examinations, the lengthy qualification period—which can take between seven and 10 years—and the growing global and regional demand for the profession. “This has prompted regulatory authorities in GCC countries to launch initiatives to train nationals and to impose a minimum number of certified actuaries for each insurance company,” he said.
UAE
As for the UAE insurance sector, Mr Lutfi said that it has likewise faced—and continues to face—a shortage of Emirati and Arab actuaries alike, and therefore relies heavily on foreign expertise. At the same time, he highlighted active efforts by the relevant authorities in the country to launch initiatives aimed at qualifying Emirati nationals, most notably the “Actuary initiative”, which was introduced to enhance localisation in the financial and insurance sectors and to train Emirati citizens to work as actuaries.
“Previously, a memorandum of understanding was also signed between the Ministry of Presidential Affairs and the Emirates Institute of Finance to provide 100 annual scholarships in actuarial science. Several Emirati nationals have been selected to benefit from these scholarships to continue their studies in the United States and Australia.”
He also referred to other initiatives being implemented in collaboration with several national and international universities, including the Higher Colleges of Technology, Zayed University, and the American University in Dubai, to launch a specialised bachelor’s degree programme in actuarial science, supported by insurance companies.
The Conference was jointly organised by the EIF, the General Arab Insurance Federation (GAIF), and Minamoney, under the theme “The World Through Actuarial Eyes”. The event brought together actuarial experts, alongside leaders from the insurance, banking, investment, pensions, healthcare, financial regulatory sectors, as well as government officials.