’Many of today’s underwriters are disillusioned with time-consuming manual tasks,’ says vice president

The majority of underwriters are worried about insurers’ ability to deliver next-generation underwriting, new research from Hyperexponential has revealed.

Published yesterday (7 November 2023), the pricing decision intelligence firm’s figures showed that 79% of underwriters were concerned that processes would not improve in the near future, while 59% felt that previous pricing platform investments had not delivered improvements.

This was despite 59% of respondents needing more data in the pricing process and a further 55% wanting improved access to real-time portfolio insights. 

”Instead of automated processes, accurate pricing and proactive portfolio management, many of today’s underwriters are disillusioned with time-consuming manual tasks, inadequate pricing processes and inconsistent data insights,” Tom Chamberlain, vice president of customer and consulting at Hyperexponential, said.

Underwriting 3.0

The research saw Coleman Parkes survey 245 underwriters working in specialty and commercial insurance across the UK and US on behalf of Hyperexponential.

Hyperexponential said the figures showed that firms were struggling to integrate systems and data to unlock the insights and automation possible in the age of Underwriting 3.0.

Enabled by generative artificial intelligence (AI) and large language models, it is designed to provide more accuracy and freedom through streamlined workflows and data-driven profitability.

However, Hyperexponential said today’s underwriters ”are still stuck with  time-consuming manual tasks and limited access to the data and insights they need to make the best risk decisions”.

”To transition to Underwriting 3.0, specialty and commercial insurers need to harness decision intelligence solutions to produce better insights and better outcomes,” Chamberlain said.

And Jamie Wilson, head of pricing and innovation at Hyperexponential, added: “Without having to lift a finger, underwriters can now bring their instincts and expertise to bear on the enhanced risk information and decide whether to quote or decline the risk.

“If the decision is to quote, all it takes is a click and the submission is priced. The appetite for Underwriting 3.0 is there. It’s up to insurers to make it a reality.”