Reflections on deep learning and the actuarial profession(al)
28 Pages Posted: 17 Jan 2024
Date Written: January 10, 2024
Abstract
We discuss some of the professional consequences of rapid advances in deep learning techniques applied to actuarial science. Since actuarial work is highly regulated by standards and professional guidance, we survey relevant aspects of the guidance in the United Kingdom and South Africa, that apply to actuarial deep learning models. A selective survey of recent advances in methodology is then performed, showing how these advances can be used to ensure compliance with guidance on issues such as model understandability, avoidance of bias and discrimination and variability of predictions. We also discuss the current treatment of machine and deep learning in the actuarial education syllabus and make suggestions for a new subject covering these topics in more detail. Finally, we discuss the evolving role of the actuary and briefly consider consequences of large language models on actuarial work.
JEL Classification: Deep learning, actuarial profession, professional guidance, actuarial models
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