Brokers and Underwriters Confront the AI Shift
Smart Tech Gains Ground, But Human Judgement Remains Critical in Underwriting
Artificial intelligence is changing how insurance underwriting operates, but the industry is not rushing headlong into AI-driven processes. UK insurers are increasingly integrating AI tools—from algorithmic smart-follow MGAs to advanced actuarial modelling—to streamline operations. Still, many underwriters and brokers remain cautious, concerned that efficiency improvements may come at the cost of human expertise and roles.
Digital Tools, Cautious Hands
Aviva recently began a six-month pilot with insurtech partner hyperexponential (hx) to test an AI-powered “Actuarial Agent” in its Global, Corporate & Specialty (GCS) division. The goal is to improve pricing accuracy and reduce workflow friction. Karen Dayal, Aviva’s chief underwriting officer for commercial lines, emphasizes the tool’s role to “augment the expertise of our underwriters and brokers” rather than replace it.
Using hx’s Renew platform, Aviva has developed 20 pricing models in just nine months, cutting development time from over an hour to under 10 minutes. Yet, industry sentiment reflects unease: nearly 70% of underwriters and 67% of actuaries believe AI could displace their roles within five years. Additionally, 80% of actuaries feel they lack the technical skills needed to confidently work alongside these tools.
MGA Innovation Meets London Tradition
New ventures are betting on AI’s potential to improve underwriting processes within the London Market. Augmented UW Ltd, a newly launched managing general agent, is focusing on AI-powered underwriting for the smart-follow segment. Founded by Daniel Prince, former CEO of Rethink Underwriting, the MGA aims to streamline follow-capacity placement through algorithmic models.
Partnering with Artificial Labs for digital infrastructure, Augmented expects to place its first risks later this year. Daniel Prince points out that “The London Market is not broken. It needs a steady hand to implement new technologies, such as AI, to enhance the way insurance operates.” The Lloyd’s Market Association has identified data-driven decision-making and enhanced underwriting as priorities extending to 2030, areas where Augmented aims to contribute.
Not All Brokers Are On Board
Despite increased investment in AI, many brokers remain skeptical about its role in providing client advice. Emma Banks, External Communications Director for Gallagher, states, “We use AI for admin tasks but not for providing our clients with advice, which our brokers do, and we have no plans to change that.”
Some brokers are open to hybrid systems that support—but do not replace—their judgement. However, trust remains a significant barrier. Concerns about AI model “hallucinations” and misinterpretation continue to weigh heavily on frontline professionals. Acknowledging these risks, some insurers are preparing protective measures. For example, Chaucer partnered with Armilla AI to develop an insurance product covering AI model failures, including drift and inaccuracies.
Human Expertise Remains the Anchor
AI adoption in insurance is poised to grow but will proceed with caution. Carriers are building internal AI capabilities, MGAs are experimenting with new models, and underwriters are adapting to assistive tools. Ultimately, trust remains the industry’s most valuable asset—something no algorithm can replace.
For insurance professionals looking to enhance their AI skills and stay relevant in this shifting landscape, exploring focused AI training can be a practical step. Platforms like Complete AI Training offer courses tailored to various insurance roles, helping teams confidently integrate AI into their workflows.
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