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Traditionally, underwriters relied heavily on time-consuming paper-based manual processes, expertise and in-person meetings to underwrite risk, but technology such as Generative Artificial Intelligence (AI) has moved the dial towards a more data-driven approach. 

Our Co-Founder and Managing Director Ben Laidlaw and Dale Willetts, Head of Specialty discussed what the underwriter of tomorrow might look like against the evolving backdrop of Artificial Intelligence (AI) and technological advancements in a fireside chat at ITC Europe in Amsterdam on 21 May 2025. Here are our key takeaways: 

Underwriting with AI

When it comes to AI adoption in underwriting, there are three potential routes to its utilisation. 

Ben explained: “The first one is AI pricing models – a well-established entity, for example, when you start to create more underwriting profit, the same level of information that benefits capital providers, capacity and your clients. Secondly, AI for operational efficiency through workflow management or otherwise is going to be beneficial for cost base and capital return. The final one is service levels for example, as soon as you are giving underwriters the information they require to make quick and snappy decisions, they can service their clients better.”

Dale added: “We are at that pivotal moment now where we can start looking at AI and how that helps our decision-making, now that we have enough quality data at our disposal.”

Likewise, the underwriting process is constantly evolving. Ben pointed out that pre-AI it was insurtechs that sought to sell their platforms to MGAs to address pricing, for example . 

But do MGAs want to be buying these technologies from insurtechs, especially when technology is so expensive?

Ben said: “Where I think the underwriter of the future is going to shift, is that insurtechs who moved from a model of selling technology to actually becoming MGAs themselves, start to receive compensation through the commission structure. What would be really interesting is when entities start with an AI platform as their core product and develop an insurance entity on the back of that. I believe this is the direction the industry will be making  over the coming decade, as we graduate towards the low headcount approach and underwriting with AI, rather than the identified solution.”

However, Dale noted that this may differ for commercial lines. 

“It very much depends on the segment of insurance – commercial lines insurance is harder to place with more complex risk, so you still need underwriters and their experience, but there is a low-hanging fruit, which they could handle more efficiently. We are not out here just employing underwriters and assistants. There’s a real fusion of skillsets moving forward. We look to employ quantitative engineers, who are data operations people. Bottom down, that has driven a diverse business and created a culture, which has been pleasing to see. Hopefully, that will continue as we get scale,” Dale added. 

Evolution of the underwriter 

But what will the underwriter of tomorrow actually look like?

The pair believe that the underwriter of the future will be a blend of traditional and quantitative skills supported by technology.

Dale said: “Today, the underwriter is multi-faceted; actuaries didn’t exist many years ago. So they have to wear an actuary hat, as well as an underwriting distribution and a compliance hat – it has evolved immensely.  In the past, getting data has been a box-ticking exercise.”

At Carbon Underwriting in terms of onboarding underwriting talent in the business, both experience and a strong knowledge base are key. 

Ben said: “This is an absolute core part of the process and the art of underwriting, however, there is quite a significant generational talent gap that exists in the marketplace. With generative AI – and the rate of change on the technological side – what we can do is bring on board some new talent to sit alongside the underwriters who have a completely different skillset compared to the traditional skillset of London-based underwriters.”

Luckily Carbon is well-placed for the ever-evolving sector as it has a team of quantitative analysts and engineers – a skillset that the firm believes does not sit currently in the market. 

Ben continued: “They have got a very interesting approach to underwriting – they are data scientists. They work with the underwriters and our technology platform, Graphene, to provide insights to the underwriters in a way, which allows them to make quick, fair decisions, which would benefit their clients and customers.”

And good quality data is at the heart of that. 

Ben said: “When you look at the delegated underwriting space as a whole, there are huge problems with data provision, transfer and sharing, as well as the ability to provide key metrics, which allow them to drive changes in corrective action in their portfolio, that’s something we try to champion. The London market and insurance industry is shifting – Lloyd’s is looking to grow and significant portions that traded to delegated business, I do believe a big part of that growth in the coming years will be through facilitated arrangements.”

Therefore, there is great value that comes with having good data. 

Ben also mentioned the significance of the consortium model in the London Market: “The underwriter’s role is shifting, where previously they worked for one entity or an individual – the boss or the active underwriter. Now, underwriters are dealing with sophisticated customers, clients and ecosystems, as well as reinsurers, consortium and follow-only markets. 

“Because there is better positioning of data and trending or structured information about portfolio profitability, there’s a greater pull factor from these third parties to be able to have greater insight and risk information into what’s going on in portfolios.”

Overall, the MGA market has evolved dramatically. 

Dale concluded: “Getting everybody aligned in the value chain, that’s one of the battles, but we do what we can to support them. It’s all about data quality and the appreciation of it.”

We would like to give a huge thanks to the organisers of ITC Europe for such an informative and engaging event!

GET IN TOUCH: If you’re interested in finding out more about Carbon, or would like a demo of our data platform Graphene, please reach out at info@carbonuw.com