Our actuarial team had an enriching experience at OLA Avanza, a vital conference focused on diversity, equity, inclusion, and innovation within the actuarial profession. We attended thought-provoking sessions that provided valuable perspectives on industry challenges and opportunities, connected with professionals committed to positive change, and gained deeper insights into emerging trends shaping our field’s future.
Keep reading for some highlights from the conference sessions.
Keynote Address: AI and Bias in Property & Casualty Pricing
The opening keynote delivered a compelling examination of potential bias in property and casualty pricing, building on an initiative launched in 2020-2021 following increased awareness around racial bias in pricing practices. The presentation highlighted groundbreaking research published in the CAS research paper series on race and insurance pricing.
A particularly striking insight was how bias can infiltrate multiple stages of the pricing process. For example, in fraud modeling, claims examiners bring valuable expertise but may also inadvertently introduce personal biases that become embedded in claims models. Similarly, traditional risk factors like home ownership may not accurately reflect actual risk due to systemic barriers that create different ownership rates among demographic groups.
The keynote also showcased innovative solutions, such as telematics applications that utilize usage-based data rather than potentially sensitive demographic information. This approach demonstrates how the industry can evolve toward more equitable pricing while maintaining actuarial soundness. The session emphasized that addressing bias requires continuous vigilance across all phases of the actuarial process, from data collection to model implementation.
Aging and Retirement Challenges in the LGBTQ+ Community
One of the most eye-opening sessions focused on the unique financial and social challenges faced by LGBTQ+ individuals approaching and navigating retirement. The statistics presented were particularly sobering: while 44% of the general population lives paycheck to paycheck, LGBTQ+ individuals face additional systemic barriers that compound these challenges.
The session revealed that 20-40% of unhoused youth identify as LGBTQ+, creating early disadvantages that persist throughout their careers. Less than half of LGBTQ+ individuals have access to savings accounts, and legal complexities around same-sex marriage continue to create estate and inheritance complications. Perhaps most concerning, LGBTQ+ individuals are 40% more likely than their straight counterparts to feel financially insecure about retirement.
Healthcare and social support present additional challenges. LGBTQ+ populations are 2.5 times more likely to experience mental health difficulties, with 14% having to educate their healthcare providers about appropriate care. Looking toward the future, 78% of LGBTQ+ adults express concern about lack of social support, as LGBTQ+ elders are twice as likely to live alone and half as likely to have children for support.
Innovation in AI Applications: LLMs in Actuarial Work
The session on Large Language Models revealed widespread adoption among actuarial professionals, with most attendees using these tools for both work and personal applications. The discussion emphasized that while ChatGPT achieved record-breaking adoption within two months of launch, actuaries must remember their professional responsibilities.
A key insight was treating LLMs “like an intern”—powerful tools that require specific guidelines and oversight to interpret tasks correctly. Actuaries remain responsible for ensuring all LLM output adheres to Actuarial Standards of Practice (ASOPs), with ASOP 56 applying when LLMs perform actuarial services.
The regulatory landscape remains complex, with no comprehensive federal AI laws yet in place, though over 30 states have passed AI-related legislation. An important consideration discussed was “AI sycophancy”—the tendency for model performance to be biased by the correctness of human input, potentially limiting output quality when users lack domain expertise.
Professional Development and Career Growth Insights
The Joint Committee on Inclusion, Equity, and Diversity (JCIED) session addressed current industry challenges, including a looming “retirement cliff” with 50% of the current insurance workforce aged 55+ expected to retire by the early 2030s.
Several profound insights emerged from the career development discussions. One particularly resonant quote was: “Anyone who doesn’t make mistakes at work isn’t working… not all moves will be up, some will be sideways and that’s how you learn new things and skills. The day you stop learning is the day you should probably retire.”
The session also highlighted an important distinction between mentorship (guiding) and sponsorship (lifting up), emphasizing the need to train professionals to use their power and influence to elevate others. A thought-provoking question emerged: “Are we evaluating their ability to do the job, or evaluating the opportunities they’ve had?”
Looking Forward
OLA Avanza reinforced our commitment to advancing both technical excellence and social responsibility within the actuarial profession. The conference demonstrated that addressing systemic challenges while embracing technological innovation isn’t just possible—it’s essential for our industry’s future.
If you have questions about any of these topics or want to discuss how these insights might apply to your organization, don’t hesitate to contact our team.