"Digital underwriting is a powerful tool, but it’s just that, a tool. Its value lies in how it’s applied."
The continuing evolution of digital underwriting has been key to reshaping our industry. It has brought speed and innovation to the forefront of our thinking and helped us to deliver better experiences for both advisers and their customers.
While digitisation lends itself to speeding up processes and managing straightforward cases, the heart of good underwriting lies in something technology alone can’t replicate: the ability to make nuanced, human decisions.
“For the industry to progress, innovation must work hand in hand with human expertise. But how do we strike this balance?”
Digital underwriting has allowed advisers greater flexibility and has provided faster outcomes for customers, especially those with straightforward medical histories. But despite these benefits, it’s not always a perfect system. Digital platforms often work best when cases fit neatly into predefined criteria. The moment greater complexity is introduced, whether it’s a medical history that doesn’t fit the usual criteria or a unique set of circumstances, limitations begin to appear. That’s where human expertise becomes indispensable.
At The Exeter, we’ve taken a combined approach that ensures we balance the benefits of technology whilst ensuring that our underwriters remain accessible to advisers, keeping them integral to the process. While digital systems handle the routine, the real value lies in knowing when to lean on the human touch. It’s this combination that ensures fair outcomes for customers who might otherwise be overlooked.
“We can’t talk about digital underwriting without mentioning Artificial Intelligence (AI).”
The impact of AI on our sector and processes has been building for years and may fully take off in 2025. From scanning and condensing medical records to identifying trends in disclosures, AI and machine learning models offer a speed and precision that was unthinkable a decade ago. These advancements are beneficial for navigating datasets and ensuring underwriters spend their time where it matters most – on the more complex cases that need careful thought and consideration.
However, just as with other methods of digitising the underwriting process, there are limits to what AI and statistical modelling can achieve. Models often rely on rigid rules, and while these can streamline processes, they risk grouping people in ways that oversimplify their individual needs. This approach can lead to blanket exclusions or missed opportunities to provide cover to those who genuinely need it.
To counter this and to strike the correct balance between the digital and human in underwriting, it’s important that we maintain the close relationships that exist between advisers and providers in the market.
“Historically our industry has been deemed ‘slow’ to embrace technological enhancements, but with a greater focus being given to the overall experience that we provide our customers.”
As technology develops, and data becomes more readily available, there will be opportunities to consider how we can further enhance the underwriting journey. However, careful consideration will be needed when adopting any new technology to ensure it helps insurers accurately assess risk, meets customer expectations, respects their privacy, and delivers meaningful value rather than adding layers of complexity to existing processes.
“Too frequently, has our industry, sought to identify those potential customers who we want to exclude rather than those we want to embrace.”
Any technological advancement has the potential to supercharge the process of digitising underwriting but should be considered in consultation with medical professionals, advisers and policyholders to make sure that we maintain the right balance between human and digital.
Looking ahead, digital underwriting will continue to evolve, but the industry faces a choice. Some will pursue a fully automated model, where technology takes the lead. Others will embrace a hybrid approach, blending technological efficiency with a human touch.
One of the key opportunities for the industry lies in refining how technology supports human expertise. It’s not just about what technology can do, but how it’s implemented to genuinely enhance decision-making.
“Digital underwriting is a powerful tool, but it’s just that, a tool. Its value lies in how it’s applied.”
For example, tools that improve clarity in medical data or flag unusual trends are valuable, but only if they work alongside an underwriter’s judgement. The future isn’t about replacing humans with machines, it’s about finding smarter ways for them to work together.
