More than a third of underwriters’ time is still spent on non-core tasks, such as data collection and administrative work, according to our latest Underwriting Rewritten survey. Even though there have been some progress since 2021, underwriters are still struggling.
However, the numbers this year are different. AI and automation are set to revolutionize the underwriting industry, unlike the buzzwords of knowledge management/IoT or early predictive analytics. The optimism that our 2024 survey has generated is a departure from the industry’s long-standing perspective.
Why This Time Feels Different.
Executives are betting big on AI, instead of just experimenting with it, across various industries such as Life, Group, Personal, and Commercial Insurance. Trials have been carried out in real-time synthesis, decision-support, and data ingestion. Although some were not successful, the lessons learned have honed their skills. The general consensus is that AI is poised to reduce the number of non-core tasks and elevate the role of the underwriter.
Consider these survey highlights:
According to 81% of underwriting leaders, AI and generative AI are expected by the industry to create new roles.
65% of the workforce expects to require significant upskilling to adapt.
A further 42% believe that they will tap into outside talent pools to fully embrace AI..
From being hesitant, the urgency has increased.'”. If you haven’t explored AI-based underwriting strategies, you may be a few months behind in terms of progress.
Empowering the AI-Enhanced Underwriter.
The falsehood should be dispelled: AI is not here to eliminate underwriters.. They are here to change how they work.”. AI can take on the tedious work and enhance human decision-making by utilizing advanced data analytics and automation.
Suppose that artificial intelligence can process signals with brokers, interpret requests from clients, direct them to the appropriate solution, or resolve shared problems without human intervention. Think of self-service underwriting requests that are processed by pattern recognition, or orchestration engines that combine multiple automations into streamlined, end-to-end workflows.
This isn’t about trying to scare people. It’s about granting underwritership the opportunity to prioritize intricate risk assessments, strategic portfolio decisions, and complex cases that necessitate human judgment.
Next: The Roadmap for Carriers. A.
Insurers who are prepared to embrace this change should consider three key points: 1.
Build an AI-Led Strategy.
Start with a digital-first foundation. The development of autonomous, agent-like AI systems allows underwriters to assign tasks to digital collaborators, resulting in increased productivity while maintaining control.
Reimagine Talent and Skills.
To integrate with AI, it is not just a passing-through process; it requires redesigning workflows and training teams, and developing specialized skills. The underwriters of the future will not only evaluate risk but also collaborate with intelligent machines.
Foster a Culture of Experimentation.
Only those willing to explore, test and iterate from the bottom up will succeed. Allow underwriters to test AI in real-world workflows, while maintaining guardrails for responsible decision-making.'”.
An Imaginary World of Human + Machine Deconstruction.
There is no indication of the underwriting role remaining unchanged.’ The current state of AI is transforming the way underwriters spend their days, insurers handle risk, and customers interact with the process, as it moves from hype to practical use.
This is not a hint of change, but rather an indication of it. The profession of underwriting can be redefined and faster-thinking by underwriters who embrace this shift early on, as demonstrated by history.
