Underwriting has seen many waves of change – the AI boom being the latest. History highlights one truth: Underwriters themselves always remain a vital part of the insurance equation.
The first time underwriters gathered in a coffee shop to discuss their developing profession, there were no laptops, no Excel spreadsheets, no free wi-fi.
While the technology has changed dramatically from those 17th-century gatherings in Lloyd’s Coffee House in central London, fundamental principles of the profession remain the same. Underwriting has always required qualified professionals to use judgement, take responsibility for difficult-to-determine risks, and adapt to change.
Every shift has been accompanied by both the fear of the unknown and the urgency of opportunity. It is no different with today’s technology-driven revolution.
Underwriting once relied entirely on manual work, paper files, and personal judgment. Each decision carried weight, shaped by experience and deep knowledge. When technology emerged in the 1980s and automation followed in the 1990s, many feared it would replace human insight.
But change brought opportunity.
In recent decades, technology has empowered rather than replaced underwriters. Today, digital tools handle routine tasks, freeing professionals to focus on complex cases. Access to medical data and electronic records enable faster and more accurate risk assessment.
Underwriters have evolved into strategic thinkers, designing solutions, guiding decisions, and adding more value than ever before.
In technology, inflection points refer to periods of change. Today, the emergence of artificial intelligence (AI), machine learning (ML), and automation constitute another inflection point in the industry. Predictive models that identify anomalies, automated engines that evaluate simple risks in mere seconds, and the availability of global databases have radically transformed the landscape.
As is tradition, this inflection point brings familiar questions: Will machines replace underwriters, and will skills acquired over years suddenly become obsolete?
History provides the answer.
With the passing of each technological wave, fear for the future crashes over our industry. Yet in hindsight, the role of people has increased – not decreased – with each successive wave. This new digital era will see technology become an even more powerful and valuable partner, handling routine data checks and pattern recognition, while freeing underwriters to focus on higher-order thinking, client context, and strategic decision-making. Underwriters will still interpret the ambiguity, engage with the client, and balance the risk with commercial viability.
History shows that change does not mean underwriters need to unlearn what they have learned, but rather that they need to prepare themselves for this change. It calls them to embrace new learnings, continually improve themselves, and understand the value of AI in their everyday tasks.
The opportunities ahead are extraordinary. The shift to more complex decision-making will enable new areas of expertise to emerge, such as management of genetic underwriting risks, pandemic underwriting, and cyber-related health exposures, all of which will require underwriters to think more strategically – and to increase their AI knowledge. AI upskilling will be crucial to growth.
Automation will enhance collaboration, bring greater speed and precision to client service delivery, and create numerous opportunities for personal growth, leadership development, and innovative projects.
In fact, it is already happening.
If the past is any guide, today’s anxieties will become tomorrow’s strengths. Quills gave way to typewriters, which gave way to computers, which gave way to algorithms. Each time, underwriters have adapted, and each time, they have emerged more essential to the insurance process. The future will be no different.
As professionals committed to their craft, underwriters’ role is not to resist change, but to shape it – combining technological fluency with human insight, to use AI as an ally rather than an adversary, and to lead their profession into its next chapter.
The history of underwriting is a story of resilience. Today, underwriters have the privilege of writing the next chapter. The future belongs not to those who fear change but to those who embrace it with courage, curiosity, and conviction.
Contact RGA today to learn how we can help your business implement technology to improve operational efficiency and profit potential.
