Automation implies labor-saving steps, which is usually followed by layoffs. So it should come as no surprise that some underwriters don't look kindly on automated-underwriting solutions, since they foster the perception that the underwriter's role is shrinking.
But at least one industry analyst looks at underwriting automation for commercial lines as a way to augment the talents of underwriters and provide them more information to improve the decision process.
“Part of the problem is education,” says Deb Smallwood, founder of research-and-advisory firm Strategy Meets Action (SMA). “We as an industry need to get better access to external data and predictive-analytics tools for commercial lines. The maturity of the data and the analytics are coming along, but they still aren't where Personal Auto is.”
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