AI supplemented underwriters set to replace traditional counterparts

The future will see those underwriters who adopt artificial intelligence (AI) tools replace those who dont, not with AI replacing underwriters alltogether.

That was according to Farjzaneh Traheritabar, project manager at Generali, who spoke during a panel entitled AI and machine learning in underwriting at the MoneyNext 2024 conference last week (20 June 2024).

She explained: “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.”

Becky Brown, chief operating officer at Aviva Global Specialty and Corporate, echoed Traheritabar’s sentiments, noting that non-underwriters often question whether AI will completely replace underwriters in the future.

However, she noted that underwriters see this as an “opportunity” to advance.

“They view it as a chance to refine their craft, work more efficiently and deepen their understanding of risks,” Brown explained.

Risks

Brown also noted the ongoing importance of a “human touch” in the realm of AI and underwriting.

She said: ”In the London market, where complex specialty matters require substantial human judgment, it’s crucial to collaborate closely with architects, engineers, brokersand clients to fully grasp the risks involved.

“While AI enhances our capabilities and accelerates processes, it’s about innovating to achieve better outcomes for our customers and carriers, not just improving the bottom line.

“We haven’t lost our underwriters – instead, this is an opportunity to innovate and achieve better outcomes for our customers and carriers.

“It’s not just about making the bottom line – it’s about reimagining our work and driving positive change.”