CROs and actuaries: the transformative impact of AI and ML

Developed in collaboration with Barnett Waddingham, the Lloyd’s Market Association (LMA) present insights from their recent survey of chief actuaries and chief risk officers across the market, highlighting their views on the transformative impact of Artificial Intelligence (AI) and Machine Learning (ML).

Who was surveyed?

We collated insights from 30 participants, collectively representing around 55% of the market’s stamp capacity. Six in-depth interviews were conducted to provide deeper perspectives.

What’s inside? 

The report offers practical insights for actuaries and risk professionals seeking to harness AI and ML to improve decision-making, streamline operations, and uncover new risk management opportunities.

Building on LMA's earlier discussion paper released early last year, Artificial Intelligence and the Lloyd’s Actuary: A Snapshot of Opportunity and Risk, it highlights the market’s gradual but steady adoption of these technologies, as several organisations make meaningful strides to integrate these into their operations. While automation is the biggest advantage for now, the real long-term value comes from competitive differentiation.

Despite growing positivity and increased usage, we found challenges around regulation, data quality and governance are still prevalent amongst this audience. We hope that this survey will spur discussions that will lead us towards defining what market practice looks like for implementing AI and ML in actuarial and risk work within general insurance.

"The transformative potential of AI and ML continues to capture the imagination of the Lloyd’s market. There is a growing sense of optimism, with organisations taking meaningful steps to integrate AI and ML into their operations. As we embrace these technologies, it's clear that their successful adoption will depend on striking a balance between innovation and risk management. I would like to extend my gratitude to Barnett Waddingham for their invaluable support and expertise in delivering this study. Their collaboration has been instrumental in ensuring that this piece of work provides actionable insights for the market."