Figure 4. Of These Challenges, Where Would You Like Leadership To Focus?
Addressing the Core Issue: Resources vs. Savvy Given these insights, the question arises: Is the chal - lenge truly a lack of underwriting resources or rather a gap in technologically savvy underwriters? The data suggests a nuanced perspective: • Technological Competence : There is a clear demand for underwriters who possess not only traditional underwriting expertise but also pro- ficiency in advanced technologies. The survey’s findings indicate a need for a new breed of under - writer—one equipped with the skills to navigate and harness the capabilities of modern tools. • Training and Development : To bridge this gap effectively, industry stakeholders must prioritize robust training and development programs. These initiatives should encompass both foun- dational underwriting principles and specialized training in emerging technologies like automated underwriting tools and algorithms. • Cultural Shift : Instituting a cultural shift toward embracing innovation and continuous learning is essential. Leaders within the underwriting sector must foster an environment where experimenta- tion and adaptation are encouraged, facilitating the growth of technologically adept professionals. Leaders – Listen Up! If we consider underwriting resources, training, cul - ture and work/life balance go hand in hand, we have better insights into what our industry is facing when it looks in the mirror. We need to focus on provid - ing a balanced environment that creates curiosity and the breathing room to develop. When looking at the free-form text responses, it confirms most of these reiterate the theme of being understaffed and overworked. One of the survey respondents stated a challenge that will likely resonate with many reading this article: “ One person cannot effectively manage, provide leadership, do production work, projects and be expected to handle all audit functions for
a mid-size team.” Let’s read that quote again, and maybe a third time, if you know this exists in your organization. Underwriters are naturally curious; most of us came into the profession because it was fascinatingly dif- ferent and required extensive education and growth into the sphere of risk assessment. It was (nerd alert) exciting! The new AI and streamlined platforms should only fuel curiosity at the core of an underwrit- ing role. If underwriters are reporting training, sup - port and work/life balance are some of their biggest concerns, is it capability or capacity? New technology ranked highest among priorities for improvement from underwriters, suggesting a keen awareness of the potential benefits of technology, alongside an acknowledgment of current deficiencies. A Self-Audit: Current State of Underwriting Knowl - edge We asked about areas of strength and where one could improve. When ranking strength in knowledge, taking the lead is technical medical knowledge at nearly 50%, with financial underwriting at 31% (to be expected, medical and our most common non-medical focus). Fewer than 1 in 20 feel they have a deep knowledge of models/automation or tech software, and fewer than 1 in 10 feel they have a strong grasp of product development/design. The survey shows us 45% feel they have minimal knowledge in product development. Many assessed minimal understanding of algorithms and automated rules at 36%. When considering the role of the survey taker, we found what most production underwriters want to learn more about is forensic underwriting, predictive modeling and reinsurance treaties. Look - ing at the non-production underwriting roles, the highest number of respondents wanted to learn more about reinsurance treaties.
ON THE RISK vol.40 n.3 (2024)
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