AI helping underwriters spend more time in-person with brokers

Underwriters have more time to carry out face-to-face interactions with brokers and clients due to artificial intelligence (AI) automating repetitive tasks, according to Markel International’s Dan Martin.

Martin, who is the managing director of distribution strategy and business development at the insurer, told Insurance Times that AI was helping firms ”gain a competitive edge by removing admin from the underwriter”, with industry relationships benefiting as a result.

When looking at AI, large language models such as ChatGPT have been piquing the interest of many market participants.

ChatGPT, which is also a form of generative AI (GAI), is capable of generating media like text and images and has already been used to try and enhance underwriting efficiency.

For example, in May 2023, insurtech Artificial Labs said it had been experimenting with ChatGPT as part of a pilot to assist underwriters.

And in March of that same year, insurer Zurich said it was feeding claims data into a chatbot to identify specific causes of loss in order to improve underwriting.

Martin said: “Tools such as chatbots allow underwriters to spend more time on strategic discussions and collaborative solution-finding with brokers.” 

Carys Lawton-Bryce, chief operating officer at Markel International, echoed Martin’s comments, adding that GAI “can streamline the qualification and validation of data” and allow underwriters to concentrate on higher-value activities. 

Not a job replacement

This came despite Hyperexponential’s State of pricing 2024: Mind the gap report, published in September 2024, revealing that almost three quarters (69%) of underwriters were concerned that they would be replaced with AI in the next five years.

The report also highlighted that 80% of actuaries and 74% of underwriters were worried about not having the right technology skills for the future.

However, Lawton-Bryce noted that “GAI’s role is to enhance, not replace, vital human connections”.

Panellists at the MoneyNext 2024 conference in June 2024 also noted this, with Becky Brown, chief operating officer at Aviva Global Specialty and Corporate (GSC), saying that “GAI is a colleague, not a replacement”.

She explained: “It is about sweating our assets – how can GAI get them to underwrite better and faster to meet the customer needs that we are trying to solve. And how do we reimagine the work in order to be doing that?”

Farzaneh Taheritabar, project manager at Generali, added: “AI doesn’t replace jobs, [it replaces] tasks. Underwriters who adopt AI are poised to replace those who don’t.

”Therefore, the focus of the debate on whether AI will replace underwriters should shift toward adapting with AI, instead of fearing job displacement.”