Its State of Pricing 2024 report found that 91% of insurance companies are already investing in AI technology, or plan to in the next five years. However, behind the scenes there is a prevailing anxiety
about the technology and the readiness for the change it will bring to industry roles:
• 80% of actuaries and 74% of underwriters are worried about not having the right tech skills for the future
• 69% of underwriters and 67% of actuaries are concerned about being replaced by AI in the next five years
This underlines the pressing need to alleviate fears around AI, while upskilling and educating key talent about the benefits that AI could bring to the quality of their work life. It’s notable that more than two thirds of actuaries (68%) and eight in ten (79%) underwriters are worried about burnout in the next five years. In fact, AI, if successfully harnessed, could free up underwriters and actuaries from mundane, time-intensive manual tasks and facilitate professional learning that focuses on skills of the future, especially pertinent given:
• 80% of actuaries are worried about learning how to code in multiple languages, with 48% foreseeing it as an urgent requirement within the next two years
• 81% of underwriters are worried about the shift from risk underwriting to portfolio underwriting, with nearly half (49%) believing it will be an urgent issue within a year
Amrit Santhirasenan, CEO and Co-founder, hyperexponential, commented: “We believe unreservedly in the power of technology and the positive change it can bring to the pricing ecosystem and insurance sector. However, as an industry, it’s clear we need to be intentional about using AI to bring tangible, long-lasting solutions to the market, as well as laying the groundwork by upskilling our workforce.
“Far from being replaced, actuaries and underwriters can add significantly more value by embracing and leveraging AI, allowing them to analyse complex data, communicate more effectively and build new tools that would have been impossible five years ago.
“While AI is not a panacea for all the challenges the sector faces, it has the capacity to create a more productive and meaningful working life for insurance professionals. This will be vital to making the sector a more appealing prospect for potential new entrants and attracting a new, diverse generation of technically minded underwriters and actuaries.”
A full copy of hyperexponential’s State of Pricing 2024 report is available here.
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