Concerns about AI in insurance replacing underwriters and actuaries are steadily declining, according to new industry research, even as collaboration challenges and skills gaps persist. A 2025 survey shows that most professionals now view artificial intelligence as a tool reshaping their roles rather than eliminating them.
The findings come from a newly released report by hyperexponential, based on a September survey of 350 commercial and specialty insurance underwriters and actuaries in the United States and the United Kingdom. The study indicates a sharp drop in fears of job displacement compared with similar research conducted a year earlier.
While anxiety over obsolescence has faded, the report highlights ongoing friction between underwriting and actuarial teams, along with mounting pressure to develop new technical skills needed to work effectively alongside AI-driven systems.
Fear of AI Replacement Continues to Decline
Just over half of respondents said they are not worried at all about being replaced by AI or had not considered the possibility. Among actuaries, 51 percent expressed no concern, while 52 percent of underwriters shared the same view.
The shift is more striking when compared with 2024 data. Less than half of actuaries and underwriters now fear being replaced by AI, down sharply from roughly three-quarters of each group a year earlier. According to hyperexponential, the change reflects a growing understanding of how AI is augmenting professional judgment rather than replacing it.
The report frames this trend as a move toward pragmatism, with insurance professionals becoming more comfortable integrating emerging technology into their workflows.
Collaboration Improves but Remains Uneven
Beyond fears of obsolescence, the report examines how effectively actuaries and underwriters work together. While collaboration has long been cited as a goal within insurers, the survey suggests mixed progress.
Underwriters ranked pricing actuaries as their second-most effective collaborators, a significant improvement from the previous year, when actuaries were ranked last. However, the reverse perspective remains less favorable. Only 9 percent of actuaries rated collaboration with underwriters as very effective.
On average, underwriters scored collaboration with actuaries at 3.5 out of 5, while actuaries gave underwriters a lower score of 3.1. Actuaries rated collaboration with operations, legal, and finance teams more highly than with underwriting.
Survey responses also highlighted mutual frustrations. More than a third of actuaries cited lack of underwriter or business buy-in as a barrier to deploying pricing models. Meanwhile, nearly half of underwriters said outdated or inaccurate pricing models hinder optimal underwriting decisions.
Technology Investment Accelerates Across Insurers
Investment in technology continues to accelerate, with pricing and underwriting systems topping insurers’ priority lists. According to the survey, all actuaries and nearly all underwriters said their organizations are investing or plan to invest in pricing, rating, or underwriting technology within the next five years.
Data and analytics investments ranked even higher, with most respondents reporting ongoing or planned spending in this area. Although AI adoption remains uneven, momentum is building. About two-thirds said AI investments are underway or planned within the next year, and nearly nine in ten expect AI investment within five years.
Despite heavy spending, satisfaction with existing tools remains low. Almost all respondents said their organizations struggle to get technology to work as intended, ranging from needing minor improvements to requiring complete overhauls. The report suggests this reflects rising expectations rather than declining technology quality.
Excel Dependence and Process Inefficiencies Persist
The report points to continued reliance on spreadsheets as a major constraint. Most actuaries still depend on Excel for pricing work, with many citing weak version control as a top barrier. Time spent on data cleansing and manual rekeying remains a significant drain on productivity for both actuaries and underwriters.
Underwriters reported spending substantial time on low-value administrative work, while actuaries flagged siloed data and lack of real-time portfolio visibility as persistent issues. The report concludes that traditional tools are increasingly misaligned with modern pricing demands.
Skills Gap Replaces Job Loss Anxiety
While fear of replacement has subsided, concern about future readiness has intensified. Both actuaries and underwriters ranked lack of future-ready skills among their top worries. Many said they need stronger data analysis, reporting, and coding skills to keep pace with transformation.
Burnout also emerged as a growing concern, driven by hours spent on manual tasks. Respondents said faster, more accurate pricing models could significantly improve job satisfaction and effectiveness.
Separate research from Accenture echoes these findings. Accenture’s latest underwriting survey shows professionals spending more than a third of their time on non-core tasks, though modest improvements have been recorded in recent years. Like hyperexponential’s respondents, most underwriters surveyed by Accenture do not fear obsolescence but anticipate widespread upskilling as AI becomes integral to their roles.
The Future of AI in Insurance Roles
Taken together, the surveys suggest that AI in insurance is reshaping workflows rather than eliminating professions. The primary challenge ahead lies in improving collaboration between technical and commercial teams while equipping professionals with the skills needed to extract value from advanced tools.
As insurers continue investing in automation and analytics, the success of AI adoption may depend less on technology itself and more on how well organizations align people, processes, and expertise.
