Will AI replace commercial underwriters?

Why AI struggles to replace this job

• AI lacks the context to evaluate unique business models that have no historical precedent.
• Negotiating complex policy terms with brokers requires human persuasion and flexibility.
• Assessing the qualitative reputation or 'character' of a business owner is difficult for algorithms.
• AI struggle with emerging risks like new cyber threats where data is sparse and evolving.

Tasks AI could automate

• Calculating risk scores based on historical claims data and financial statements.
• Flagging applications that fall outside of standard risk appetite parameters.
• Verifying business information against public records and credit databases.
• Generating standardized policy documents once risk is approved.

The 10-year outlook

Employment may decline as automation handles standard commercial lines, pushing human talent into complex specialty insurance. Wages will likely stagnate for generalists but rise for those specializing in emerging risk categories.

Common questions