69% of underwriters and 67% of actuaries are concerned about being replaced by artificial intelligence (AI) in the next five years, according to research from hyperexponential, the pricing platform for global re/insurers.
A recent study by the firm has revealed mass concern among insurance professionals around AI technology.
Moreover, research has also showcased a major mismatch between the widespread buzz and investment in AI technology, and the pressing gaps in technical skills, talent and infrastructure within the insurance industry.
In their State of Pricing 2024 report, hyperexponential found that 91% of insurance organisations are already investing in AI technology, or plan to do so within the next five years. But, there is a growing concern looming behind the scenes about the technology and the readiness for the change it will bring to industry roles.
Overall, a staggering 80% of actuaries and 74% of underwriters are worried about not having the right tech skills for the future because of the widespread adoption of AI.
While 69% of underwriters and 67% of actuaries are concerned about being replaced completely by AI in the next five years.
These figures clearly underline the pressing need to alleviate fears around AI, while upskilling and educating key talent about the benefits that the technology can bring to the quality of their work life, hyperexponential noted.
It’s important to note that more than two thirds of actuaries (68%) and eight in ten (79%) underwriters are concerned about burnout happening in the next five years.
However, if successfully harnessed, AI could help to free up underwriters and actuaries from having to complete mundane, time-intensive manual tasks and facilitate professional learning that focuses on skills of the future, especially pertinent given the fact that 80% of actuaries are worried about learning how to code in multiple languages, with 48% foreseeing it as an urgent requirement within the next two years.
As well as this, 81% of underwriters are said to be worried about the shift from risk underwriting to portfolio underwriting, with 49% believing it will be an urgent issue within the next year.
Amrit Santhirasenan, CEO and Co-founder, hyperexponential, commented: “We believe unreservedly in the power of technology and the positive change it can bring to the pricing ecosystem and insurance sector. However, as an industry, it’s clear we need to be intentional about using AI to bring tangible, long-lasting solutions to the market, as well as laying the groundwork by upskilling our workforce.”
Adding: “Far from being replaced, actuaries and underwriters can add significantly more value by embracing and leveraging AI, allowing them to analyse complex data, communicate more effectively and build new tools that would have been impossible five years ago.
“While AI is not a panacea for all the challenges the sector faces, it has the capacity to create a more productive and meaningful working life for insurance professionals. This will be vital to making the sector a more appealing prospect for potential new entrants and attracting a new, diverse generation of technically minded underwriters and actuaries.”
