Conversations about automation in underwriting often carry an unspoken fear: Will machines replace human advisors altogether?
Many agents and agency leaders haven't ruled out the possibility. In a 2024 study, 25% of agents said they believe AI is more of a threat than an opportunity. Roughly the same share of agents (26%) took the opposite view, seeing AI as more of an opportunity than a threat. The remaining 49% were undecided.
The fact that many agents remain wary of AI suggests they aren't giving themselves enough credit as professionals. Human advisors bring context, empathy and judgment to the table — qualities that no algorithm can replicate.
That's why the real promise of AI lies in optimization. By taking manual quoting and underwriting tasks off your plate, it frees you to deliver a level of service that's faster, more personalized and more human.
AI has the potential to fundamentally reshape how you work and improve the services you offer — ultimately positioning your business to be a more valuable partner for clients.
Agents' value is shifting, not shrinking
There's no doubt in my mind that AI is an opportunity for insurance agents to reclaim time lost to paperwork and refocus on the strategic aspects of their roles.
A recent survey from NEXT Insurance, where I lead product innovation, highlights a critical gap human advisors can fill. Among insured small business owners, 87% say they are not completely prepared to navigate business risks, such as employee illnesses or injuries, professional mistakes and cyberattacks.
Small businesses typically lack in-house risk managers or legal teams, which means they rely on their agent to understand the nuances of their operations and advocate for their protection. During stressful moments, owners count on their agents to provide empathic, strategic support.
AI can't replace these relationships grounded in human connection. But it can help you find more time to cultivate them in two important ways:
- Streamlining purchasing, servicing and claims processes. AI tools can reduce the time and effort required to quote, bind, issue Certificates of Insurance and manage claims. These efficiencies stem from AI's ability to automate underwriting by ingesting and analyzing a range of data signals — including claims histories, business classification data and risk indicators — to develop a clearer picture of each client's risk profile and coverage needs. These tools can also help answer complicated coverage and claim questions and even take action on your behalf.
- Surfacing strategic client insights. In addition to streamlining your workflows, AI tools can draw your attention to emerging patterns and risk factors across your client portfolio. For example, an algorithm might flag underinsured exposures or cross-sell opportunities you might otherwise miss. This helps you prioritize accounts that warrant a closer look and take proactive steps to deepen relationships and improve retention.
Embracing AI technology early will position your agency for long-term growth and relevance. Reinforcement, not replacement, is the name of the game.
Prepare now for the AI revolution
In the coming months and years, underwriting will become dramatically more efficient, leading to increased speed, ease and affordability. It's time to ask yourself if you're prepared to ride the wave of change.
AI is powering a strategic shift in the insurance sector as much as it is a technological one. As AI takes over time-consuming operational tasks, you have an opportunity to redefine your role while elevating the level of client service you provide. The following focus areas can help you stay ahead.
- Build fluency in AI-powered workflows. Being an early adopter of AI solutions is a competitive advantage. As carriers and platforms integrate AI capabilities into their digital tools, partner with them to test drive new features and offer feedback. This will give you an early window into how AI-driven automation can complement your expertise and augment your work, especially on complex accounts like multi-location retail or rapidly scaling startups.
- Stay alert for bias. AI can make underwriting decisions more transparent and auditable, but only if the tools are monitored responsibly. As an agent, you play a key role in supporting fairness and accountability. By asking carrier partners how their models are developed, tested and refined over time, you'll be better equipped to interpret decisions, explain them to clients and flag edge cases where human context still matters. These conversations create opportunities to collaborate with carriers on more accurate, inclusive underwriting to ensure clients get the coverage they need.
- Plan for the future. The insurance industry's AI transformation is still in its early stages, but the efficiency gains are already clear. As routine tasks become more automated, now is the time to think practically about what's next for your agency or career. With AI as a force multiplier, what new ambitions can you achieve?
AI can help you reach new markets and offer new services. For example, you could offer proactive risk guidance or tailored coverage options without adding to your workload or sacrificing your ability to provide personalized service to clients. As AI becomes more embedded in your daily operations, consider how the technology can support your long-term goals for your business.
Using cutting-edge technology to deliver human-centered service
Across industries, AI is reshaping how we work in unprecedented ways, akin to the disruption brought by the Industrial Revolution. A transformation of this scale can be overwhelming, but it also opens the door to new opportunities.
In the insurance sector, it's time to rethink how we show up for our clients and how technology can support that shift. With the right tools, you can help insureds gain better protection with greater speed, accuracy and affordability than ever before.
By making AI your partner, you can be a better partner to your customers. In the end, that's what it's all about.
Effi Fuks-Leichtag is Chief Product Officer at ERGO NEXT Insurance. Opinions expressed here are the author's own.
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