Everest Group: Evolution of Underwriting Using Generative AI
Multiple industry headwinds and unconventional competitors have compelled traditional insurers to enhance their products, processes, and customer experiences. To drive recovery and ensure future growth, insurers are modernizing their IT infrastructures and prioritizing operational efficiencies and data-driven decision-making. However, increased market risks, rising claim costs, disrupted supply chains, and outdated processes are pressuring profit margins, necessitating a shift from insuring loss to ensuring protection.
Generative AI can be valuable for insurers to enhance their RoI from modernization efforts and accelerate business value realization. Underwriting, in particular, presents significant long-term value-creation potential. However, while generative AI can transform several core insurance functions, firms must start with small, incremental steps to demonstrate business value before scaling up. Implementing generative AI with staggered investments can yield near-term efficiency gains, improve underwriting accuracy in the medium term, and transform the underwriting function in the long term.
Scope
- Industry: insurance
- Geography: global
Contents
In this viewpoint, Everest Group:
- Examines the need for underwriting excellence to achieve business resilience
- Identifies challenges and opportunities in the Property and Casualty (P&C) insurance underwriting space
- Assesses data and generative AI’s roles in transforming the underwriting function
- Analyzes generative AI use cases
- Recommends a generative AI adoption roadmap and discuss key considerations along the journey
