By Tricia Matson
It’s very exciting to be writing my first President’s Message. I am grateful to anyone who is taking the time to read this. Since this issue of Contingencies is focused on artificial intelligence (AI) and data—key areas of focus for the Academy—as well as the value the Academy provides to members, the public, and profession, I decided to bring these topics together in my inaugural message.
I asked myself four questions related to the Academy and the value it provides to both the public and the profession. After answering these questions, I then asked Copilot to answer them. I have to say I was pretty impressed with the answers!
Why is it important for an actuary to hold the MAAA designation?
Me: The American Academy of Actuaries is the U.S. actuarial organization focused on the U.S. actuarial profession and serving the public. Being a member tells others that you are a qualified actuarial professional—committed to the Code of Professional Conduct, U.S. Qualification Standards, and actuarial standards of practice (ASOPs)—and able to provide them with sound actuarial advice. In addition, members gain access to awesome membership benefits such as cost-effective education, free publications, and the opportunity to grow as an actuarial professional through a wide range of volunteer opportunities.
Copilot: Membership in the American Academy of Actuaries is essential for actuaries practicing in the U.S. because it provides professional credibility through the MAAA designation, which is often required to sign actuarial opinions. It ensures adherence to rigorous standards of professionalism, ethics, and continuing education, and enables actuaries to contribute to public policy through expert analysis. The Academy also offers valuable networking and volunteer opportunities, reinforcing the profession’s integrity and its role in serving the public interest.
What are some of the key current issues that the Academy is focused on?
Me: In the past year, the Academy has issued more than 300 publications on a range of critical issues, including retirement security (Social Security, pension plan funding levels and lifetime income options; and Medicare reform); availability and affordability of insurance (drivers of health insurance premium increases and access to homeowners and flood insurance); insurance company solvency (risk-based capital and appropriate use of reinsurance); and consumer protection (such as use of AI and algorithmic models and consideration of unintended bias). In addition to these ongoing public policy issues, we are also continuing to promote sound professionalism standards and education for our members, and considering reputational risks to our profession in light of the current environment.
Copilot: The American Academy of Actuaries is currently focused on several key issues that impact both the profession and the public. These include the ethical and professional use of AI in actuarial work, assessing and managing climate-related financial risks, and addressing cybersecurity threats through improved risk modeling. The Academy also continues to analyze health care trends, particularly those affecting Affordable Care Act premiums, and engages with regulators on insurance market dynamics and consumer protection. Through these efforts, the Academy supports sound public policy and promotes high standards of actuarial practice.
How does the Academy execute on its mission to serve the U.S. public?
Me: I would point to two key areas that directly support serving the U.S. public. One relates to our public policy activities. As noted in the prior question, we are experts on insurance programs that protect the public, and we actively provide input to policymakers on those issues. Our input is independent and unbiased, and supports the development of sound policies and regulations so that insurance programs, both public and private, continue to serve the U.S. public well. The second area is education. We have tools available to anyone interested in understanding how to maintain financial security. For example, our Longevity Illustrator can assist retirees in understanding how much they may need to save to maintain income over their lifetime, as well as the relative certainty of that income covering them for their remaining life.
Copilot: The American Academy of Actuaries serves the U.S. public by providing nonpartisan, expert actuarial analysis to inform public policy decisions on issues like health care, retirement security, and climate risk. It upholds high professional standards through its code of conduct, qualification requirements, and actuarial standards of practice, ensuring actuaries deliver ethical and competent work. The Academy also educates stakeholders through publications and events, and supports sound decision-making by clarifying complex financial and risk-related topics—all while maintaining a focus on integrity, transparency, and public interest.
Do ASOPs adequately cover standards related to the use of AI?
Me: Current ASOPs cover the use of AI in the following ways: ASOP No. 23, Data Quality, describes what an actuary should do, consider, and disclose when using data in actuarial analysis. This would apply to the use of AI for actuarial analysis. ASOP No. 56, Modeling, describes what an actuary should do, consider, and disclose when developing, using, or reviewing models, including AI models. There are also specific ASOPs that cover certain specific uses of AI such as ASOP No. 12, Risk Classification and ASOP No. 38, Catastrophe Modeling. Finally, ASOP 41, Actuarial Communications requires that an actuary provide sufficient information in their actuarial report.
Copilot: While there is no dedicated ASOP specifically for AI, existing ASOPs—such as those on data quality, modeling, and actuarial communications—do provide guidance that applies to the use of AI in actuarial work. These standards help actuaries ensure transparency, validate AI-generated results, and maintain professional integrity. Additionally, the American Academy of Actuaries has published a professionalism discussion paper on generative AI, offering practical considerations for ethical and responsible use. The Actuarial Standards Board is also actively monitoring developments in AI to ensure standards evolve alongside technological advancements.
Taken together, my reflections and the AI-generated answers all underscore the vital role of the Academy: guiding the profession, upholding high standards, and serving the public. Whether through our human judgment or through tools like AI, the value of the Academy in shaping, supporting, and advancing the actuarial profession remains clear. If you want to let me know what you think about my answers compared to AI’s, feel free to shoot me an email at president@actuary.org.
Tricia Matson is president of the Academy