At the Rendezvous de Septembre in Monte Carlo, Tanguy Touffut, CEO of Descartes Group, shared his perspective on how underwriting and insurance are evolving. While the traditional role of brokers is unlikely to change, advances in technology—particularly artificial intelligence—are reshaping underwriting, product design, and risk management.
For the full conversation, you can watch the interview here: A.M. Best TV – Monte Carlo Interview.
Here are the key insights from his perspective on how underwriting and insurance are evolving.
Why AI Is Transforming Insurance Underwriting
For centuries, insurance and reinsurance have been bought in much the same way, with brokers at the centre and underwriters relying on historical data to price risk. That model will endure, but the tools and products supporting it are entering a period of disruption, driven by artificial intelligence (AI) and new data sources.
AI is set to modernize underwriting by:
- Unlocking unstructured data: Satellite imagery, IoT sensors, and climate datasets can now be processed at scale.
- Accelerating decision-making: Algorithms extract patterns, simulate scenarios, and provide rapid feedback.
- Enabling new product designs: Clients increasingly demand speed, transparency, and fairness—expectations that AI can help fulfil.
Beyond One-Size-Fits-All Underwriting
Traditional methods are constrained by history. When risks are shifting—whether from climate change or cyber threats—past data is no longer sufficient.
AI makes it possible to:
- Customize coverage using real-time data feeds.
- Model low-frequency, high-severity events with greater accuracy.
- Price emerging perils where historical precedent is lacking.
This marks a move from static risk portfolios toward dynamic, adaptive underwriting.
Looking Ahead
The next decade will see underwriting evolve in several directions:
- AI-powered solutions combining parametric triggers, real-time data, and automated claims validation.
- Products designed around speed and transparency.
- New collaboration models where insurers, reinsurers, and brokers operate within ecosystems rather than bilateral deals.
What will not change is client demand for better protection, faster responses, and fairer pricing. The future of underwriting will blend tradition with disruption—keeping brokers and trust at the centre, while embracing the power of technology.
