Underwriting: A Changing Profession

Tracing its roots back to a 17^th Century London coffee shop, Underwriting as we know it today is one of the UK’s most traditional corporate professions, forming part of an Insurance market which is the largest in Europe. But much like the industry as a whole, the role of an Underwriter has begun to evolve radically in recent years.

Research published by EY, McKinsey and Deloitte over the last decade has identified a major shift in the responsibilities and skills of the modern day Underwriter, with the role now requiring two main skills: relationship building and the ability to leverage technology. This suggestion has been corroborated by discussions at recent events such as the 2024 Dive in Festival, which took place in September, and CII’s Shaping the Future of Insurance conference in October, both of which add-victor were able to attend.

In this article, we delve into what might have caused this seismic shift, and what it means for employers looking to develop the next generation of Underwriters.

How Technology is Redefining Underwriting: The Importance of Adaptability

As far back as 2015, EY reported that major developments in technology had replaced some of the historic responsibilities of the Underwriter. Although numerical skills remain a key part of the role, advancements in data analytics and artificial intelligence mean that a successful Underwriter must now be able to maximise their understanding and use of this technology when it comes to assessing risk. Furthermore, these widespread technological improvements mean that the more ‘human’ aspects of the role – the ability to build strong relationships with existing and prospective clients – have become even more important for Underwriters when it comes to differentiating themselves from their competition. Excitingly, EY concluded that this would also lead to Underwriting re-establishing itself as a key breeding ground for future business leaders. 

Four years later, McKinsey published similar conclusions, confirming that with an aging workforce, talent is one of the key pillars of the transformation of Underwriting: “Insurance executives often cite human capital—not financial capital or any other asset—as their scarcest resource…talent acquisition, development, and retention top the list of priorities”. In their recent Global Insurance Outlook, Deloitte highlighted the need for a young, adaptable workforce, noting that for the 21^st Century Underwriter, “the only constant is change”. Picking out the ability to maximise technology whilst maintaining the trust of clients, the various publications have suggested several more pertinent job titles for the modern day ‘Underwriter’, such as Portfolio Optimizer, Deal-Maker, Data Pioneer or Decision Scientist.

Underwriters as Future Business Leaders: Why Soft Skills Matter

So, what does all this mean for employers wanting to stay ahead of the competition and bring through the next generation of Underwriters? Deloitte sum it up in their 2025 outlook: “Beyond technical skills, insurers will likely also need to hire for uniquely human capabilities such as imagination, curiosity, empathy, and analytical thinking to differentiate themselves”. They note that “many insurers are already undergoing long-term organizational structural changes…such as shifting to skills-based frameworks”.

With the dramatic developments in risk analysis led by the use of data and artificial intelligence, more so than ever Underwriting is very much a people game. In the realm of Early Careers, employers should seek out adaptable skills in order to build a resilient workforce for the future. While technological advancements are reshaping the profession, efforts to improve diversity and representation, as highlighted by inspiring women leading the charge in the industry, are equally vital for shaping the future of underwriting.

The transformation of underwriting reflects the wider evolution of the insurance industry, where the integration of technology, data-driven personalisation, and emerging trends like AI are redefining traditional roles and reshaping the future of risk management.

Milo Hodgkiss

Sources:

• The future of insurance underwriting | Deloitte Insights
• The future of underwriting in commercial P&C insurance | McKinsey
• Insurer of the future (deloitte.com)
• 2025 Global Insurance Outlook | Deloitte Insights
• Insurance Technology and Improving Underwriting | Deloitte US
• Data and analytics key to future of insurance underwriting | McKinsey