Transforming Underwriting: The Future of AI and Automation in Insurance
An exclusive Reuters Events report featuring commentaries from senior executives at Legal & General, Principal Financial, Vantage Risk and Plymouth Rock
Underwriting is in a race to achieve operational efficiency, streamline processes, and adapt to the evolving demands of the market and customers. However, this pursuit is often hindered by persistent data struggles that underwriters have faced for years. So, how can insurers gain a competitive edge and excel in this challenging landscape? The answer lies in leveraging generative AI (GenAI) capabilities for advanced data analytics and identifying the right segments for automation to enhance efficiencies.
Reuters Events cut through the noise by surveying 100s of insurance professionals to understand how these strategies are being implemented and provide insights on how you can find your edge in underwriting.
Here's what we found.
Check out some of the key findings from this year’s report:
- GenAI Gains Traction: 42% of underwriting teams plan to invest in GenAI over the next three years, reflecting a significant shift towards leveraging this technology for operational efficiencies
- Data Quality Remains a Barrier: 72% of respondents from underwriting teams identify data quality as the foremost challenge to achieving accelerated underwriting, highlighting the critical need for robust data governance strategies
- Investment Focus is Shifting: Underwriting teams are transitioning investments from traditional data analytics and automation technologies to GenAI, with only 27% planning further investments in these legacy technologies over the next three years
Check out a snippet of the report below…
Our research indicates a distinct preference for two core technologies over the previous 12 months: data analytics and automation. These have been invested in by a significant majority of our underwriting cohort, cited by 85% and 84% of underwriters as technologies their organization is either currently using or has invested in over the past 12 months. By means of comparison, 77% of our entire insurance industry sample said their organization has invested in automation technologies.
This speaks to the importance placed on these two specific technologies for the underwriting function. Data is the cornerstone of any successful operation, while by automating more menial tasks, underwriting teams can be freed up to address higher impact issues for the business and realize greater operational efficiencies. These should be strategic imperatives for insurance organizations globally, with technology investments such as these considered critical.
I hope you enjoy the insights!
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