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AI transforms underwriting, enabling underwriters to focus on sales, build relationships, and manage books of business, rather than manual data analysis and individual risk assessment.
How loss run underwriting automation works
Varun, the Head of AI at Pibit.ai, sheds light on the influence of AI on underwriting, explaining that this technology "enables underwriters to transition towards more of a sales role." This shift redirects their focus away from manual administrative tasks and towards building relationships and attracting new business. In essence, he envisions future underwriters being more accountable for managing books of business and profitability rather than concentrating on evaluating and pricing individual risks. Varun stated, "Historically, underwriters were required to compile data from various sources and painstakingly analyze it to discern its meaning. AI is set to alleviate much of that burden."
Varun also emphasizes the opportunity for organizations to enhance retention rates by involving underwriters in the AI implementation process. He says, "They are the individuals who will ultimately use this system, so involving them in the decision-making process will garner their support." From a talent perspective, Varun notes that AI and other technologies have the potential to prompt young professionals to reevaluate their perception of the insurance industry. Organizations that embrace these technologies are more likely to pique the interest of potential employees.
