The impact of technological advances in underwriting

Unleashing the power of data

At MX Commercial, we pride ourselves on being a data-driven Managing General Agent (MGA). The incorporation of data-driven insights into our underwriting processes is a continuous and evolving journey. We leverage data to identify profitable trades and sectors, ensuring a granular understanding of the market. However, our use of data and technology extends beyond mere profitability considerations.

Lead Liability Underwriter, Russell Brown, recently gave us some insights into the role of data analysis and technology and how it goes beyond underwriting profitability. It encompasses risk selection, efficiency improvement and overall enhancement of services. Over the past five to 10 years, we have seamlessly integrated various embedded data sources into our systems, including sanctions checking, credit searches, flood mapping and Google Earth.

Embracing technological evolution

MX Commercial acknowledges the evolving nature of the underwriting landscape. As technology progresses, we remain at the forefront of innovation, continually evolving our systems and processes. We've witnessed a shift in underwriting efficiency, where automation and data analytics have liberated our team from mundane tasks, allowing us to focus on what truly matters – providing our brokers and clients with top-tier insurance solutions.

The past decade witnessed the integration of embedded data sources, and looking forward, there is likely to be a significant focus on Artificial Intelligence (AI) in the future.

Russell believes that “AI will play a crucial role in crunching numbers swiftly and identifying areas for underwriting business”. However, in the short term, “AI will not replace the personal touch and human relationship-building skills that underwriters bring to the table”.

A human approach in a tech-driven world

MX Commercial takes pride in celebrating the underwriting skill within its teams. While many underwriters are adopting automated approaches with minimal interaction, we stay true to the belief that the personal, human approach is irreplaceable. In an industry where automation is gaining ground, our teams differentiate themselves by fostering interaction between underwriters and brokers. 

“Good to speak to underwriters rather than computers.” 
– Broker Survey respondent

Our commitment to the human touch is validated by feedback from our broker survey last year. Many of our brokers expressed a clear preference for our human approach and the option to speak to an actual underwriter. Technology, as advanced as it may be, can only go so far in assisting brokers with challenging risks. Sometimes, a conversation is necessary to think outside the box and produce bespoke solutions.

Looking ahead: the uncertain future of AI in underwriting

“It's challenging to predict what will happen in the next 50 or 100 years, and at the pace at which technology is advancing, any statement may be proven wrong in the long term!”.
-    Russell Brown, Lead Liability Underwriter, MX Commercial

At MX Commercial, we acknowledge the uncertainty that lies ahead, especially regarding the future role of AI in underwriting. In the immediate future, our primary emphasis is on showcasing the distinctive skills of our human underwriters. We aim to utilise our time in the office to engage in collaborative idea-sharing, drawing on our collective experiences. This proactive approach allows us to harness our unique strengths before AI potentially assumes a more prominent role in the underwriting process. While we recognise the evolving landscape, we remain committed to preserving the invaluable aspects of human interaction and expertise during this transitional phase.

However, MX Commercial also navigates the future with confidence, standing firm in our ability to seamlessly blend technology and the human touch in the world of underwriting. With a robust foundation in data-driven practices, a commitment to innovation, and a genuine appreciation for the human element, MX Commercial remains poised for continued success in the ever-changing landscape of insurance underwriting.

Find out more

Learn more about why you should choose MX Commercial here. Alternatively, contact a member of the MX Commercial team.