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Leaders of property/casualty insurance companies writing commercial insurance are expecting the world of property/casualty underwriting to look radically different by the year 2032—with artificial intelligence tools and automation driving the change.

Executive Summary

Radical changes are on the 10-year horizon for commercial lines underwriters, with roles, responsibilities, processes and resources all primed to look different in 2032, thanks to the introduction of automation to ease workloads and artificial intelligence tools to help their decision-making. Carriers are recognizing that change management activities, as well as programs to upskill workforces, are part of the road map that will move them from incremental changes—think core systems upgrades—to transformational shakeups that embrace AI.

Some underwriting transformation initiatives already are underway at individual underwriting organizations even though frontline underwriters surveyed last year across the property/casualty industry weren’t necessarily feeling the impact of carrier investments in AI tools to help them make decisions and automation aimed at making their jobs easier.

A 2022 survey of P/C insurance industry executives for carriers in the middle-market and large commercial segment conducted by Strategy Meets Action reveals that 94 percent “expect big change” to occur in underwriting—encompassing underwriters’ roles, responsibilities, processes and resources—within 10 years. More than three-quarters (78 percent) say that new data sources and AI are the driving forces.

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