Additionally, underwriters must adapt to technological advancements like AI and large language models by enhancing their data literacy and communication skills. Training is crucial to help underwriters understand and effectively use model outputs. Soft skills, such as negotiation and emotional intelligence, are increasingly important as AI impacts traditional actuarial roles. The industry must focus on transferring knowledge from experienced to junior employees to maintain a skilled workforce capable of navigating these changes.
Key takeaways:
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- The insurance industry is facing significant challenges in recruitment and retention due to a high turnover rate and the impending retirement of experienced underwriters, often referred to as the "silver tsunami."
- There is a need for the insurance industry to improve its image and value proposition to attract younger workers, who prioritize company purpose, workplace flexibility, and social issues.
- Underwriters need to develop skills in data literacy, effective communication, and adaptability to work with AI and large language models, as these technologies become more prevalent in the industry.
- Soft skills, such as negotiation and emotional intelligence, are increasingly important for underwriters to differentiate themselves from actuaries and AI technologies.