It is estimated that 35% of current marine underwriters in the market are set to retire in the next five years. As the industry grapples with a shortage of experienced personnel will the ability to accurately evaluate risk and build a robust portfolio of business become increasingly difficult or can technology offer an alternative? 

With expertise primarily concentrated in an aging demographic, the industry faces the daunting task of transferring critical knowledge to the ‘next generation’. The result? A negative outlook for many businesses, hindered by the reliance on a diminishing pool of experienced underwriters. Further exacerbating this challenge are the specific hurdles faced by marine insurance companies in attracting new people to the market and retaining underwriters with specialised knowledge. The industry's traditional image, coupled with its resistance to technological advancement, presents a formidable barrier to younger talent.  

Looking ahead five years, the prognosis for the underwriting skills gap may appear to be concerning but there are reasons to be optimistic - technology is and will continue to offer a lifeline. By harnessing the power of AI, to capture and systematise experience, and automation to reduce administration, our senior colleagues can begin to invest time in transferring their immense skills and experience to others in their teams and bridge the skills gap. A recent study by the Boston Consulting Group entitled ‘The Underwriter of the Future’ found that the implementation of automation and AI in the underwriting process provides the opportunity to free up 36% of an underwriter's working day for other activities.  

While some may fear that the adoption of AI will result in job losses, the reality is quite the opposite. AI will serve to assist the underwriter and allow them to focus on delivering value-adding activities to their business. This will ultimately ensure leaders and stakeholders can guarantee the resilience and sustainability of their operations in years to come.