Will AI replace underwriting managers?
AI is extremely efficient at assessing standard risks, putting this role under pressure. Managers will only be needed for high-complexity exceptions, policy setting, and managing the AI systems themselves.
Why AI struggles to replace this job
- Extremely rare or 'black swan' risks lack the historical data AI needs to make accurate predictions.
- Setting broad risk appetite requires human judgment about macroeconomic trends and corporate strategy.
- Investigating potential fraud often requires human intuition and investigative interviewing.
- Managers must handle internal company politics and agent relationships that software cannot manage.
Tasks AI could automate
- Scoring standard applications based on credit and loss history.
- Checking applications against regulatory watchlists and internal blacklists.
- Distributing workloads among junior staff or digital queues.
- Pricing premiums for common insurance products based on actuarial tables.
The 10-year outlook
The total number of underwriting jobs will likely decline as automation handles volume. Survivors will move into high-level risk management and algorithmic oversight, requiring a more technical skill set.
Common questions
Will AI replace underwriting managers?
AI is extremely efficient at assessing standard risks, putting this role under pressure. Managers will only be needed for high-complexity exceptions, policy setting, and managing the AI systems themselves.
What is the AI replacement risk for underwriting managers?
Underwriting Manager scores 60/100 — Parts of this job will change — adaptation matters. Roughly 80% of the tasks in this role could be automated with current and near-future AI.
How much do underwriting managers earn?
The US median salary for a underwriting manager is about $135,000 per year, with projected employment growth of -2% over the next decade (stable).