“Many of the major questions about our future are now global”

Mr Happacher, you recently spoke to students and academics at two renowned universities in China. What impressed you most?

Despite all their differences, China and Germany face remarkably similar challenges. Both societies are ageing, people are living longer, and birth rates are declining at the same time. That isprecisely why the discussions at SWUFE in Chengdu and Tsinghua University in Beijing were so engaging. I was particularly impressed by the level of interest the students showed in the long-term implications of these developments. Their questions ranged from retirement provision and health care systems to the impact of artificial intelligence on the world of work. It confirmed one thing: many of the major questions about our future are now global.

You are about to become President of the International Actuarial Association. What exactly does an actuary do, and why is this profession important for society?

Actuaries deal professionally with uncertainty. They analyse risks, develop models and help businesses and policymakers better understand long-term trends and developments. This includes areas such as pension systems, healthcare costs, natural catastrophes and the financial security of individuals and companies.

In a world shaped by demographic change, climate risks and technological transformation, this work is becoming increasingly important. Insurance provides people with security. To ensure that these promises can still be honoured in 20, 30 or even 40 years’ time, robust analysis and responsible decision-making are essential. Actuaries make a crucial contribution in this respect.

A key topic of your lecture was population ageing. Why is this so relevant for insurers and their customers?

People are gaining something extremely valuable: more years of life. At the same time, this creates new challenges. As more people draw pensions, require medical treatment or depend on long-term care, these services must continue to be delivered and financed.

Insurers can help develop sustainable long-term solutions. This requires a deep understanding of life expectancy, economic dynamics and customer needs. In my lecture, I highlighted that both Germany and China are facing similar questions: how can we create sustainable systems for retirement provision and financial security? The insurance industry can make an important contribution by making long-term risks manageable and by offering tailored retirement and protection solutions.

In Beijing, you spoke about artificial intelligence. Will AI replace the work of actuaries and insurers?

No, but it will fundamentally transform it. Artificial intelligence can analyse vast amounts of data, identify patterns and perform many tasks far more quickly than has previously been possible. This creates significant opportunities, for example in risk assessment, product development and customer service.

At the same time, people remain indispensable. Ultimately, decisions must be taken responsibly. Someone has to assess whether assumptions are reasonable, whether results make sense and what consequences particular decisions may have for customers and society. That is why, in my lecture, I argued that judgement, responsibility and ethical conduct will become even more important in an AI-driven world.

What does your international engagement mean for ERGO?

Insurance is a global business today. Issues such as ageing populations, health, digitalisation and artificial intelligence affect markets around the world. Exchange with universities, regulatory authorities, researchers and fellow professionals helps us identify emerging developments at an early stage and learn from one another.

For ERGO, this is a significant advantage. Our experts bring international experience into their day-to-day work and combine academic insights with practical solutions for customers. Invitations from two of China’s most prestigious universities demonstrate that ERGO’s actuarial expertise is recognised and valued internationally. At the same time, they illustrate how, as a company, we actively contribute to shaping solutions for global challenges.