The insurance sector, historically characterized by its complexity and data-intensiveness, is undergoing a significant transformation propelled by technological advancements. At the forefront of this evolution is artificial intelligence (AI), which is fundamentally altering traditional underwriting processes. A prime example of this shift is QBE, an international insurer that has leveraged AI to enhance underwriting efficiency. This article delves into QBE’s AI initiatives, their impact on underwriting, and the broader implications for the insurance industry.
QBE initiated its AI journey in December 2023 with the launch of its first Generative Artificial Intelligence (Gen AI) solution, the Cyber Underwriting AI Assistant, aimed at supporting underwriters in North America. The primary function of this AI solution was to expedite the review of broker submissions, a task that traditionally demanded considerable time and effort. The results were impressive, with the AI assistant reducing the time required to review submissions by 65%, thereby significantly boosting productivity. Matt Mansour, QBE’s Group Executive of Technology & Operations, highlighted the importance of this development, noting that it allowed underwriters to focus on more submissions, improve risk selection, and seize growth opportunities.
Encouraged by the success in North America, QBE quickly scaled this Gen AI solution to its European operations in April. The European deployment targeted key brokers and aimed to streamline the initial review of submissions, ensuring completeness, appetite alignment, and risk control effectiveness. This expansion underscored QBE’s commitment to achieving global scalability in its AI initiatives. The momentum continued with the launch of a similar Gen AI solution for Workers’ Compensation underwriters in Hong Kong and Singapore in June, showcasing QBE’s ability to leverage AI across diverse markets and business segments. Each deployment was executed with a deliberate and strategic approach to ensure alignment with QBE’s priorities and deliver tangible benefits.
A critical aspect of QBE’s AI initiatives is the recognition of the human element in the successful implementation of AI technology. As Matt Mansour emphasized, the value of AI is unlocked through the collaboration between AI systems and human expertise. This acknowledgment underscores the importance of human judgment in enhancing the effectiveness of AI tools. Moreover, QBE is committed to the responsible use of AI, carefully evaluating whether its Gen AI solutions benefit customers and partners while mitigating the risk of unfair bias. This ethical approach ensures that AI deployment aligns with societal values and promotes fairness, maintaining trust and transparency in QBE’s operations.
The integration of Gen AI into underwriting processes has the potential to revolutionize the insurance industry. By enabling underwriters to process large volumes of submissions more efficiently, AI technology enhances risk assessment and decision-making capabilities. This leads to improved risk selection, reduced processing times, and increased growth opportunities for insurers. QBE’s experience with the Cyber Underwriting AI Assistant exemplifies these benefits. The AI solution’s ability to swiftly analyze extensive submissions and facilitate quicker decision-making has significantly streamlined the underwriting process. Consequently, underwriters can focus on more complex risks and develop tailored coverage solutions, driving better outcomes for clients and the company.
Looking to the future, QBE’s ambitions for Gen AI extend to its Australia Pacific business, where AI will support underwriting activities for new submissions and drive greater efficiencies. The company’s global focus on building AI solutions that simplify business processes and enhance customer experiences underscores its commitment to continuous improvement. The broader implications of QBE’s AI initiatives extend beyond the company itself. The successful integration of AI into underwriting processes sets a precedent for the entire insurance industry. As more insurers adopt AI technology, the industry as a whole stands to benefit from increased efficiency, improved risk assessment, and enhanced customer experiences.
In summary, QBE’s expansion of AI to boost underwriting efficiency marks a significant milestone in the evolution of the insurance industry. The company’s strategic deployment of Gen AI solutions across its global operations has delivered tangible benefits, including reduced processing times, improved risk selection, and enhanced productivity. By embracing AI while maintaining a strong human element and ethical considerations, QBE is paving the way for a more efficient and innovative future in insurance. The responsible integration of AI, coupled with human expertise, has the potential to revolutionize underwriting processes, setting a new standard for the insurance sector and driving continuous improvement in customer service and operational efficiency.