’Actuaries and underwriters can add significantly more value by embracing and leveraging AI,’ says chief executive and co-founder
Almost three quarters (69%) of underwriters are concerned that they will be replaced by artificial intelligence (AI) in the next five years, according to Hyperexponential.
The insurtech’s second annual State of Pricing 2024: Mind the gap report also revealed that 67% of actuaries had the same concern.
According to the report, these figures come as a result of a ”prevailing anxiety about the technology and the readiness for the change” AI can bring.
For example, 80% of actuaries and 74% of underwriters are worried about not having the right technology skills for the future.
Amrit Santhirasenan, chief executive and co-founder at Hyperexponential, said: “We believe unreservedly in the power of technology and the positive change it can bring to the pricing ecosystem and insurance sector.
”However, as an industry, it’s clear we need to be intentional about using AI to bring tangible, long lasting solutions to the market, as well as laying the groundwork by upskilling our workforce.”
‘Pressing need’
A total of 250 underwriters and 100 pricing actuaries in specialty and commercial insurance across the UK and US were surveyed online between June and July 2024.
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Hyperexponential said the report ”underlines the pressing need to alleviate fears around AI, while upskilling and educating key talent about the benefits that AI could bring to the quality of their work life”.
For example, the firm felt that AI could help to free up time for underwriters, with 86% spending more than two hours per day doing manual data entry.
Santhirasenan said: “Far from being replaced, actuaries and underwriters can add significantly more value by embracing and leveraging AI, allowing them to analyse complex data, communicate more effectively and build new tools that would have been impossible five years ago.
“While AI is not a panacea for all the challenges the sector faces, it has the capacity to create a more productive and meaningful working life for insurance professionals.
“This will be vital to making the sector a more appealing prospect for potential new entrants and attracting a new, diverse generation of technically minded underwriters and actuaries.”
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