Life insurers accelerate AI adoption while confronting talent shortage
Nearly half of life insurance underwriting executives are now using artificial intelligence in their operations, according to Pacific Life's 2026 Underwriting Outlook Survey. The findings reveal a widening gap: while AI adoption spreads, 70% of respondents worry about the long-term availability of underwriting staff.
The survey included responses from more than 100 underwriting and insurance executives. About 20% said AI is fully integrated into day-to-day workflows, while another 24% use it regularly as a decision-support tool. The remaining 38% are still in pilot stages.
Where insurers see AI's value
Executives cite operational efficiency and better data use as the primary benefits. Around 40% said AI accelerates underwriting decisions, and 35% pointed to improved use of medical and third-party data.
The focus on speed and data, rather than risk selection, suggests insurers are using AI to refine existing processes. Less than 6% identified improved risk selection as the main advantage.
The workforce problem
Talent concerns center on three issues. An aging workforce and loss of institutional knowledge tops the list at 38% of responses. Balancing automation with human expertise accounts for 20%, while attracting younger professionals to underwriting represents 18%.
These pressures are shaping how insurers approach automation. Many see AI as a tool to support underwriters rather than replace them.
Structured data takes priority
Electronic health records will have the greatest impact on underwriting over the next three to five years, according to 52% of respondents. Prescription and claims data ranked second at 21%, followed by wearable health technology at 16%.
This focus on AI Data Analysis reflects a broader shift toward data-driven underwriting decisions.
Customer expectations drive change
Younger consumers demand faster, digital-first experiences. A majority of respondents-57%-said this expectation will be a key driver of industry transformation over the next decade.
The pressure to modernize customer interactions is accelerating investment in both technology and process redesign across the sector.
For insurance professionals navigating these changes, understanding AI for Insurance applications in underwriting has become essential to staying current in the field.
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