Introduction
The insurance market is under growing pressure to do more with less. Whether it’s providing better service, improving loss ratios, or reducing operational costs, the market is looking specifically to Enhanced Underwriting to help solve some of these challenges.
Enhanced Underwriting as a way to streamline underwriting and improve decision-making is gaining momentum which requires the various market participants to define their strategies for combining data, technology and smarter processes. But this form of underwriting isn’t about replacing human judgement with machines. It’s about scaling underwriting intelligence to handle more risks, more efficiently, by putting structure and data first.
This topic formed the overarching theme of InsTech’s April 2025 event, hosted in partnership with Artificial Labs, InsurX and Verisk Specialty Business Solutions. The discussions were guided by the findings of a report written by Oxbow Partners and the Lloyd’s Market Association: The Growth of Enhanced Underwriting in the Lloyd’s Market: The New Normal?
Elizabeth Wooliston from the Lloyd’s Market Association summarised: “There was a lot of noise, but also a strong demand from our underwriting committees, from Lloyd’s, from the CEO group for common language, clearer definitions and a practical understanding of where this [Enhanced Underwriting] is all heading.”
The four models of Enhanced Underwriting
Enhanced underwriting is not a singular concept. It is a broad term defining a more consistent process of underwriting that relies on structured data, automation and better integration between parties.
The LMA and Oxbow report identified four models for Enhanced Underwriting:
- Human-led but tech-enabled approach
- Algorithmic systems with minimal human input
- Digitally controlled broker facilities
- Portfolio solutions driven by third-party data
Each model is a route to building a more scalable, data-smart market.
Data-first underwriting is no longer optional
One of the clearest messages was the urgent need to move away from documents and towards structured data. According to Anthony Siggers, Digital Leader at Marsh Specialty UK, “We are the only industry on the planet where we’ve got twice as bad as we were 20 years ago, despite billions spent on technology.” He highlighted that Lloyd’s administrative costs have risen from 6% to 12.7% over the last two decades, despite repeated efforts at digitisation.
There was strong consensus that the inefficiencies caused by document-based trading must be addressed. Structured data underpins automation, reduces duplication and opens the door to digital follow markets, straight-through processing and smarter triage.
Simon Squires of AXA XL added, “You can’t do things like digital follow unless you’ve got structured data. It’s just a crazy proposition to take bits of paper and try to reconvert them.”
For underwriters to act on risk in near real time, and for brokers to unlock new forms of capital, market participants need common data standards and systems that can talk to each other. That’s where platforms like Whitespace and Verisk’s automation tools are beginning to close the gap enabling ingestion of digital contracts, application of rules engines and streamlined decision-making at scale.
Watch the live panels from the event here
Technology is only half the answer
As Will Roscoe from Beazley put it, “Don’t lose sight of the fact this is still underwriting. Data and tech enhance it, but you still need to make a profit.”
While the tools and platforms are more sophisticated than ever, speakers stressed that successful implementation depends on people, processes and governance. Hayley Spink, COO at Chaucer Group, noted that what makes the difference is not a new tool, but how well it’s adopted: “Let’s not over-promise. Make sure you’re giving people what they want and need, not just a fancy new tool.”
The speakers also noted that collaboration is essential. Enhanced Underwriting cannot be achieved by insurers working in isolation. Success depends on brokers, vendors and underwriters aligning their goals and agreeing on shared standards.
As emphasised by Gilbert Harrap of InsurX: “It’s not about building everything yourself. The key is partnering around strengths. Brokers should focus on clients. Carriers should focus on portfolios. Tech firms should focus on making the connections work.”
High-volume and homogeneous risks are the starting point
Several organisations are already demonstrating what’s possible. For example, Jonathan Spry from Envelop Risk explained how AI-powered models give them a competitive edge in cyber: “We’re dealing with adaptive threats, where yesterday’s data isn’t enough. AI allows us to stay forward-looking. Every dollar we’ve underwritten has been touched by machine learning.”
At the same time, other firms have focused on commoditised classes with high-volume intake, such as deductible buy-downs in US property. “Knowing the risk and distribution channels inside out gave us the edge,” said Tom Squires of AEGIS London. “Digitising what we already understood supercharged growth.”
To round off these perspectives, Marek Shafer, Managing Director at Vave, offered an insight that Enhanced Underwriting works best when the insured interest is homogeneous but the risk profile is complex. “That gives you the ability to outperform the market by technique,” he said. “But you also need volume, because if you’re automating something that would normally take five minutes, and now it takes two seconds, the value only shows at scale.”
The ecosystem is maturing
The event emphasised how much progress has been made across the market. Artificial Labs Chief Growth Officer, Ed Howkins described this shift in dynamic: “For the first time in anyone’s working memory, all market participants are pushing toward the same goal: more efficient, more effective deployment of capital. And nobody really loses.”
Brokers like Aon and Marsh are digitising workflows and investing in scalable digital propositions. Insurers are building internal data strategies, upgrading cloud infrastructure and deploying tools that support smarter underwriting decisions. The last puzzle piece, technology vendors such as Artificial Labs, InsurX and Verisk, are enabling carriers and brokers to work together more efficiently by integrating trading platforms, improving data exchange and supporting algorithmic trading.
What’s next
There was broad agreement that Enhanced Underwriting is no longer just an aspiration – it’s happening now. What matters most is execution: getting the basics right, building strong partnerships and investing in the data and processes that make automation sustainable.
The next 12 months will be a litmus test. Will more firms adopt digital-first underwriting strategies? Will structured data become the default, not the exception? Will the market finally throw off the shackles of legacy technology and culture to enable new models of collaboration?
As more firms prove the business case, the expectation is that Enhanced Underwriting will move from early adopters to the mainstream. Those that succeed will be the ones who take a practical, joined-up approach and put data at the heart of everything they do.
Watch the live panels from the event here
