AI’s Role in Solving the Underwriting Talent Shortage

The insurance industry faces a looming talent gap, particularly in underwriting, as a significant portion of the workforce is set to retire without sufficient new talent joining the ranks. The challenge is how to maintain operational efficiency, profitability, and reduce premium leakage in a shrinking pool of experienced underwriters. Traditional automation strategies streamline processes but can introduce risks without the human expertise necessary for complex underwriting decisions.

This is where AI and generative AI (GenAI) come in. AI tools can assist underwriters by analyzing, summarizing, and flagging key details in applications, enabling faster and more informed decision-making. While rules-based automation alone has its limitations, GenAI augments the process by identifying potential risks that inexperienced underwriters might overlook, helping to reduce fraud and premium leakage. In the face of a talent gap, AI can help ensure the continued success of insurers by enabling underwriters to write better policies and improve profitability.