
AI is best opportunity to improve underwriting performance
Artificial intelligence presents the biggest opportunity for re/insurers to improve their underwiring performance and profitability in 2025, according to almost 60% of respondents to a recent survey.
A total of 57.9% of Bermuda re/insurance professionals said they thought the technology presented the best opportunity to improve underwriting in the industry.
However, fewer than half of the respondents said their companies were using AI in their underwriting now.
A total of 44.1% said their companies were using AI, while 35.3% said they were not and 20.6% did not know.
More than three in four respondents said they had an understanding of the regulatory landscape around AI and that was required to implement it, with 15% saying the have a complete understanding while 62.5% said they somewhat understood it.
Ten percent said they did not understand AI while 12.5% were struggling to understand it.
81% said ranked process automation as the best use of AI within underwriting, while insights and analytics was the second most popular use. Data enrichment and risk assessment were in a tie as the third best use while submissions and applying AI to underwriting were at the bottom of the list.
Respondents said data concerns were the biggest barrier to implementing AI in underwriting while regulatory and legal concerns were second. Ethics concerns was third while augmenting AI and human touch were fourth.
The cost of implementation ranked fifth, while buy-in from the workforce and buy-in from senior management were sixth and seventh.
The survey said that cyber re/insurance had the most to gain from leveraging AI while commercial property was second. Other segments were ranked as follows: healthcare; property; motor; liability; construction; cargo; corporate property; and marine.
Forty-one per cent of respondents said they expected AI to be part of their working lives within 12 months while a further 38% expected it to happen within one to three years. A further 10.5% expected to have AI in their working lives between three and five years and 10% expected it would take more than five years. No one thought they would never work with AI.
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