During the launch of Swiss Re’s latest sigma report on the first day of RVS 2025 Monte Carlo, Jérôme Haegeli, Group Chief Economist & Head Swiss Re Institute, emphasised that the value of underwriting is increasing, with the role of an underwriter evolving dramatically, powered by Artificial Intelligence (AI).
“The value of underwriting will increase, not only because the markets become more competitive and there’s more supply for the same risks, but also because this interconnectedness and this complexity of risk is increasing, which illustrates the complication that we will see coming towards us,” he said.
Haegeli noted that the job of underwriting is evolving, and that AI will have a significant impact in improving efficiency.
“AI will help us understand risks better, price risks better and more accurately, build portfolios that are diversified, and manage the psychology of risk much better.”
Although AI brings a vast amount of opportunities, Haegeli warned that it also brings huge challenges, not just within the re/insurance industry, but for society at large.
Gianfranco Lot, Chief Underwriting Officer P&C Reinsurance at Swiss Re, also spoke on this topic of AI enhancing and changing the role of an underwriter.
He said, “Data, data interpretation, pattern recognition has always been part of the underwriting job.
“But today, because of all the governance topics that we have, the role of an underwriter has changed quite dramatically… and we believe that AI can play a significant role in making those interfaces much more efficient, which doesn’t mean that the decision ultimately and interpretation of the risk results with an algorithm, rather the underwriter is supported by AI.”
Lot explained that AI already helps to summarise lengthy tasks such as annual reports, as opposed to reading through 60 pages, ultimately increasing efficiency.
He continued, “But also, there are areas where they just augment data, and the augmentation of data and interpretation of that data helps support the underwriters in making decisions.”
Lot also acknowledged that there are risks that come with this, noting, “it’s more the systemic risk nature of applying AI to the underwriting process, but it’s important to never take the underwriter out of the decision making. There’s always an underwriter in the loop.”
About the Author
