Can Generative AI Teach the Next Generation of Underwriters?

As the role of underwriters evolves with digital acceleration, industry experts are exploring how generative AI (gen AI) can aid in training and retaining the next generation of underwriting talent. According to CapGemini’s 2024 World Property and Casualty Insurance Report, 45% of commercial and personal underwriters struggle to meet expectations due to manual processes and time-consuming tasks. With the industry facing a looming talent crisis, innovative solutions are needed.

During Send’s webinar, "Finding, and keeping, the best underwriting talent," on May 10, 2024, panelists shared best practices for recruiting, training, and retaining underwriters. Key strategies included fostering a diverse and inclusive workforce, offering improved employee benefits, and utilizing advanced technologies like gen AI for enhanced productivity and efficiency.

Caroline Bedford, CEO of EDII, emphasized the rapid evolution of underwriter skills in tandem with digital advancements. She noted the importance of future-focused companies that leverage the latest technology to attract top talent. CapGemini research indicates that underwriters spend a significant portion of their time on administrative tasks, which can be mitigated by automated, data-driven decision-making, leading to improved speed, cost reduction, and better target achievement.

Generative AI is also seen as a powerful tool for onboarding and training new underwriters, enhancing data fluency and literacy. AI-driven models can democratize knowledge, making it accessible to new hires while supporting experienced underwriters in adapting to new insurance models.

Georgi Munger of Allianz highlighted the challenges of training new underwriters in a remote work environment, stressing the need for in-person mentorship. AI can bridge some of these gaps by providing foundational knowledge and supporting continuous learning.

As insurance companies increasingly invest in gen AI, predictive analytics, and machine learning, the industry’s approach to underwriting is set to transform. This shift is essential to addressing the talent crisis and ensuring the continued development of skilled underwriters.