Life insurance underwriting is undergoing a significant transformation, driven by the integration of artificial intelligence (AI). This shift, now accelerating rapidly, promises to streamline processes and improve the customer experience.
The latest episode of the DigIn podcast features Brett Laker, Head of North America for Underwrite Me. The podcast explores the rapid advancements changing multiple aspects of the insurance industry.
Laker discussed several trends he sees shaping 2025, focusing on AI’s impact. He highlights how AI empowers underwriters with data, leading to faster decision-making. “At the end of the day, the purpose of it is to improve the buying experience so that it’s done in a way that’s more transparent and understandable,” Laker explains. This means what used to take days or even weeks to gather information to issue new policies, is being shortened to mere minutes.
Laker identified key areas where AI will have the greatest impact, including underwriting, claims processing, and product development, including mortality assumptions. This increased efficiency will lead to a better customer experience.
However, Laker also cautioned about potential challenges. He notes a sense of urgency among companies to adopt AI to avoid falling behind competitors. He said “So there’s this fear of being left behind by peers and competitors, particularly if you’re looking at the C-suite and they’re getting recommendations from the subject matter experts, that can be really great because it can foster a faster adoption of new innovations. However, it can also be a problem because if you cut corners on assessing the impacts and the implications, then you might trip up over yourself,”
Laker also addresses the opportunities and potential pitfalls of AI in underwriting. He discusses the potential for AI to revolutionize claims, underwriting and product development. He also discussed the benefits of bringing younger talent into the industry.
