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Aipedia: Actuaries
UK actuaries can use AI and machine learning in their work, provided they meet TAS 100 and the Actuaries' Code, supported by FRC and IFoA guidance on models and data science. Actuarial advice drives pricing, reserves, capital and pension funding, so AI errors can be large and slow to surface.
Part of: AI in Actuaries
In short
AI is already used in actuarial practice: FRC research in 2023 found general insurance pricing the heaviest user, and uses extend to reserving, capital, pensions, experience analysis, coding and report drafting. There is no AI-specific rulebook. TAS 100 applies to AI and machine learning models, and the Actuaries' Code applies to all work. The FRC's 2024 Models guidance and the IFoA's data science and AI guide are persuasive but not mandatory. The main risks are models that cannot be explained, biased outputs, drift, unverified vendor tools, generated code and data breaches. Actuarial PI usually responds to AI-related negligence claims subject to the policy terms, but wordings and disclosure matter.
Research for the FRC by the Government Actuary's Department, published on 28 October 2023 and based on 37 interviews and more than 100 survey responses, found that many actuaries planned to increase their use of AI and machine learning, especially large language models, and that general insurance pricing was the heaviest current user (FRC research on AI in actuarial work). The Lloyd's Market Association's 2025 discussion paper lists uses in pricing, reserving, capital, coding and report generation.
In practice, actuaries may use machine learning to build pricing and demand models, to analyse claims and lapse experience, to model mortality and longevity, to approximate heavy capital calculations and to cleanse pension scheme data. Generative AI tools may be used to write and convert code, summarise documents and draft reports. Much of this work happens in mixed teams of actuaries and data scientists, often using vendor platforms and open-source libraries.
The FRC sets the Technical Actuarial Standards and oversees the IFoA, which sets the Actuaries' Code and the Actuarial Profession Standards. The key documents for AI are:
Work-specific standards such as TAS 200, TAS 300, APS P1, APS L1, APS G1 and APS X3 continue to apply to AI-assisted work in their areas. For detail, see FRC and IFoA AI guidance explained and actuaries and PI: IFoA requirements.
Pension member and policyholder data is personal data, and health data used in mortality, underwriting or claims models is special category data. From 5 February 2026, UK GDPR Articles 22A to 22D, inserted by section 80 of the Data (Use and Access) Act 2025, set safeguards for solely automated decisions with significant effects, which matters where actuarial models drive automated pricing, underwriting or benefit decisions. The IFoA guide stresses consent for the purpose data is used and caution about entering data into third-party generative AI tools.
No verified IFoA disciplinary determination, FRC Actuarial Scheme case or court ruling involving an actuary's use of AI has been found, and the FRC's Actuarial Monitoring Programme has not published AI-specific findings. That may change as AI use grows.
We have not found an IFoA rule requiring members to hold PI insurance. APS X5, "Compensation for Professional Shortcomings", may be relevant, so check its current text. Where an actuarial firm is FCA-authorised, the FCA's PI rules for its permission type apply. No regulator or IFoA statement on AI and PI has been found.
Many actuarial PI policies may not mention AI, in which case an AI-assisted error is usually treated like any other model error, subject to the policy terms. Points to watch are AI-specific clauses or exclusions, whether new AI-heavy services have been declared, how aggregation applies when one model or routine affects many clients, and continuity of cover for long-tail work such as reserving and pensions. See PI insurance for actuaries, PI for actuaries in 2026 and does PI cover AI mistakes.
Apex arranges PI for actuaries and actuarial consultancies. A broker can review your cover, how your policy treats AI-assisted work and how your AI governance is presented to insurers at renewal.
Yes. No standard prohibits it. TAS 100 applies to AI and machine learning models, and the Actuaries' Code applies to all work. The FRC Models guidance and the IFoA data science and AI guide explain how to meet those standards, although they are not mandatory.
There is no AI-specific mandatory standard. The FRC's Technical Actuarial Guidance: Models (October 2024) supports TAS 100 Principle 5 and covers AI and machine learning. The IFoA's guide on data science and AI (V2.1, July 2025) is non-mandatory guidance.
We have not found an IFoA rule requiring members to hold PI insurance, though APS X5 on compensation for professional shortcomings should be checked. FCA-authorised actuarial firms must meet the FCA's PI rules for their permission type, and clients may require cover by contract.
Usually, if the claim arises from your declared professional services and no exclusion applies. Many policies may not mention AI, in which case the error is usually treated like any other model error, subject to the policy terms. Check for AI-specific wording and disclose significant changes in your work.
Tell us about your firm and the work you do. A broker will review how your current PI treats AI-assisted work, or arrange new cover. No fee for a quote. Or call 0117 325 0027.
Start a PI quote Request a callbackApex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales, company number 07014570. This page is general information about how AI is used in the profession and how insurance may respond. It is not legal, regulatory or insurance advice on your circumstances, and it does not guarantee that cover will be available or on what terms.
