Automated underwriting putting insurance jobs under threat

With insurers increasingly looking towards the integration of data and technology into their processes, one expert has warned of the cost of automated underwriting on young talent.

With insurers increasingly looking towards the integration of data and technology into their processes, one expert has warned of the cost of automated underwriting on young talent.

Darren O'Connell, executive general manager at Suncorp Commercial Insurance, said insurance technology is putting a number of traditional entry level roles under threat.

Automated underwriting putting insurance jobs under threat

Previously, these roles would see industry recruits trained in the art of risk assessment and pricing across basic home, motor and small business policies.

There is now a need to manage the growing skills gap while embracing and committing to the possibilities of insurance technology, O'Connell argues in a new research paper.

“Whilst data and automation are great resources for the industry and underwriting companies to use, one unintended consequence has been that lower levels of underwriting roles now are no longer required,” he said.

“This threatens to develop into a serious skills gap as the older generation of underwriters transition into retirement. The next generation will be entrusted with their business's risk appetite without having the same depth of experiences as their predecessors.”

Reinsurers like Swiss Re have recently boosted their use of cognitive technology via a new partnership with IBM’s Watson AI system to provide more accurate risk analysis of the reinsurer’s wealth of data.