{"id":7052801,"date":"2026-08-31T15:16:25","date_gmt":"2026-08-31T15:16:25","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/insurance\/ai-underwriting-beyond-the-hype-insurance-blog\/"},"modified":"2026-08-31T15:16:25","modified_gmt":"2026-08-31T15:16:25","slug":"ai-underwriting-beyond-the-hype-insurance-blog","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7052801","title":{"rendered":"AI Underwriting: Beyond the hype | Insurance Blog"},"content":{"rendered":"


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We have<\/span> periodically conducted surveys o<\/span>n<\/span> underwriting<\/span> <\/span>for<\/span> <\/span>more than 15 years <\/span>to understand the state of the function and how technology is<\/span>\u2014<\/span>or <\/span>isn\u2019t<\/span>\u2014<\/span>helping it to evolve. In our most recent <\/span>report<\/span><\/span> <\/span><\/span>Underwriting rewritten<\/span><\/span><\/span><\/a>, we asked <\/span>what percentage of time underwriters are spending on non-core tasks. <\/span><\/span>This time<\/span>, <\/span>we saw some incremental improvement<\/span> year<\/span>\u2013<\/span>over<\/span>\u2013<\/span>year<\/span> <\/span>compared <\/span>to our <\/span>2021 survey <\/span>but still more <\/span>than<\/span> a third <\/span>of <\/span>an underwriter\u2019s<\/span> time is spend on <\/span>non-core <\/span>activities such as data collection or administrative activities. <\/span><\/span>\u00a0<\/span><\/p>\n

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But more than that, our 2024 survey overall expresses the hope for the future that new automation and AI technologies could help change the role of underwriting and truly reduce the time spent on non-core tasks.<\/span> \u00a0<\/span><\/p>\n

I\u2019ve been around long enough to remember other waves of new ideas and technologies such as knowledge management, the internet of things, and analytics. And while each has found a place within the overall insurance business and technology ecosystem, one could argue that none truly changed the underwriting function entirely.\u00a0 But in all the time that we have done our industry surveys over my 30-year career, I personally have never seen numbers like this:<\/span>\u00a0<\/span><\/p>\n

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Embracing automation and AI<\/span><\/b>\u00a0<\/span><\/p>\n

According to the data above, the percentage of time underwriters spend on non-core tasks is set to decrease much more than just incrementally with AI and automation going forward. \u00a0Across Life, Group, Personal, and Commercial Insurance, insurance executives are convinced that AI and automation tools will change underwriting significantly and will change it relatively quickly.<\/span>\u00a0<\/span><\/p>\n

Over the last 3 years carriers have been experimenting with these technologies\u2014doing e.g., pilots in data collection, data synthesis, and advice for underwriting.\u00a0 And while not all of these pilots might have been successful, the overall conclusion seems to be now that this time there is a justification for optimism in tackling the non-core share of actuarial tasks. In fact, if you aren\u2019t pursuing some sort of AI Underwriting driven strategy already, then you are probably already behind according to our survey.<\/span>\u00a0<\/span><\/p>\n

Here are some key data points from our recent Underwriting Executive Survey:\u00a0<\/strong><\/p>\n