Underwriters say tech will transform work, but fear displacement

Senior underwriters are convinced emerging technology innovations will substantially transform their business in the coming years, but at the same time express significant concern and anxiety about how the changes will personally affect them.

That’s just some of the findings in a “Big Underwriting Survey” or more than 300 senior underwriters by Send, a rapidly growing InsurTech software company based in London and the U.S.

About 82% of respondents said they were concerned that technology will negatively impact the scope of their role. At the same time, more than two-thirds said they were unable to obtain all the data and information they need to make risk decisions, quickly and efficiently. Moreover, 72% said that artificial intelligence will reduce the number of underwriters in the insurance industry in the next 12 months.

Underwriters: many tasks repetitive

While fears about technology exist widely, the underwriters also confessed that they spend a huge amount of time on manual and repetitive tasks that could more efficiently be done by machines.

“This level of apprehension indicates a significant shift in sentiment within the underwriting community, reflecting a fear of the transformative effects of AI on their profession,” said Adam Cherubini, the chief revenue officer at Send. “We’ve never felt that the human underwriter will go away. We built technology to enable and enhance the experienced underwriter to help remove repetitive tasks and provide data-driven visibility into the risks they write.”

Indeed, a large percentage of respondents said they don’t have enough time to build quality relationships with top broker contacts, implying that computerized tasks would free them up to better pursue person-to-person communications and sorting through submissions.

Broker relationships hard to build

“Currently, the challenge faced by underwriters in building meaningful relationships with brokers is rooted in the overwhelming volume of submissions they handle, and the time investment required to respond to the risks they want to write,” Cherubini said. “Many underwriters find themselves grappling with the sheer volume of submissions, making it difficult to allocate time for relationship-building activities.”

Nearly  two-thirds,  64%, uniformly said their company lacked the tools and data needed to write better risks and more than half said they expected their company’s overall technology budget to only grow slightly in the next 12 months. Advanced predictive analytics and Ai and Machine Learning topped the list of technologies anticipated to be the most transformative in underwriting in the next two years.

Cherubini agreed that the survey showed a fear of technology while conceding a very real need for it.

“This paradox may stem from a fear of job displacement or a lack of understanding of how technology can enhance, rather than replace, human roles,” he said. “It underscores the urgency for effective communication and education within the industry to demystify the role of AI. Our goal is to make the underwriter's day more efficient, and frankly enjoyable, by removing mundane tasks and data entry so they can get back to doing things they love. By automating routine activities through AI, underwriters can redirect their efforts towards higher-level decision-making, building relationships with key brokers and strategic tasks that were traditionally challenging to accomplish at scale. This not only enhances efficiency but also contributes to the overall job satisfaction of underwriting teams.”

A question that asked what they loved most about underwriting produces a plethora of varying responses.

• “The opportunity to know about almost every industry in the world, different cultures, languages, and, most importantly, that we also underwrite people.”
• “There are a lot of different ways you can underwrite one account and there is no single correct answer. It allows you to think outside the box and get creative with your approach. It’s also both a technical and social field.”
• “The ability to truly understand  a market or company, assess the risks, and ultimately find a way to provide insurance to de-risk their operations and allowing them to continue doing their business.”
• “We put communities and companies back on their feet after a major event.”

Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected].

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Doug Bailey is a journalist and freelance writer who lives outside of Boston. He can be reached at [email protected].