Strong underwriting: what it means for insurers and advisors

Underwriting has always been complex, but the nature of that complexity continues to evolve.

“Today, we’re evaluating more dynamic health profiles, increasingly complex financial situations, and a growing volume of data — particularly as structured sources like electronic health records become more widely used,” said Susan Ghalili, senior vice president and chief underwriter at Pacific Life.

In fact, a recent survey by Pacific Life found that 52% of executives expect electronic health records to have the greatest impact on underwriting in the next few years. At the same time, 57% of respondents pointed to younger customers’ expectations for faster, digital-first experiences as a major force shaping the industry.

That combination — more data and higher expectations — adds new layers to an already complex discipline.

“The key is being able to organize and interpret all of that information to make the best possible decision for each individual case. That is where strong underwriting expertise remains essential,” Ghalili added.

The AI role in strong underwriting

Pacific Life’s survey found that nearly half of underwriting organizations are already incorporating AI into their workflows, primarily to improve efficiency and speed up decision-making.

“While AI is accelerating the process, it’s not necessarily redefining the profession,” Ghalili explained. “Its greatest value is in handling manual tasks like document review and data gathering, which allows underwriters to focus on critical thinking and more complex decision-making.”

Strong underwriting expertise is what ensures that information is interpreted correctly and applied in context. As technology advances, human judgment becomes even more important.

Decades ago, a condition like HIV would have often been considered uninsurable. Advances in treatment and outcomes have fundamentally changed how that risk is understood, and underwriting has had to evolve alongside it. This is just one example of one of the most important traits in underwriting: adaptability.

The nature of risk is constantly changing — whether it’s medical advancements, more complex customer profiles, or the growing volume of data available. Underwriters need to be able to take new information, reassess it in context, and apply it appropriately to each case.

That adaptability also extends to pricing, where protocols need to evolve alongside the risk itself to ensure we’re pricing accurately and fairly based on today’s realities, not yesterday’s assumptions.

The advisor’s role in underwriting complexity

The primary goal is to balance adaptability with pricing discipline. As underwriting evolves, flexibility becomes increasingly important. However, given that underwriting decisions are long-term commitments, discipline remains critical.

The role of the underwriter is to incorporate new insights and capabilities without losing consistency in how risk is evaluated. Good underwriting requires a clear understanding of risk profile, consistency in evidence-based decision-making, and alignment across multiple interconnected disciplines.

It’s up to the advisor to look for carriers with deep underwriting expertise, a clear and consistent philosophy, and a willingness to engage in dialogue.

Communicating with clients is another piece of the puzzle. They should also help clients understand what underwriting actually does. After all, it’s not just a step in the process — it’s the discipline that ensures risk is evaluated appropriately.

“Underwriting shouldn’t feel like a black box,” Ghalili said. “Where possible, there should be transparency in how decisions are made and the ability to apply critical thinking and sound judgment, beyond what the data alone can show.”

Ultimately, strong underwriting is about more than just individual decisions. It’s about bringing the right product to the consumer while also putting the right risk on the books so the company can deliver on its promises for decades to come.

© Entire contents copyright 2026 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

The post Strong underwriting: what it means for insurers and advisors appeared first on Insurance News | InsuranceNewsNet.