Structured underwriting data – a departure from the norm where underwriting evidence, impairments and the rationale for certain decisions are typically locked within legacy systems in unstructured formats – is a new possibility being unlocked by artificial intelligence (AI) developments.

A new whitepaper from the Reinsurance Group of America (RGA) says given the thousands of available data points today, the possibilities are “truly endless.” 

The whitepaper, An Actuary’s Perspective: Unlocking the power of structured underwriting data says advanced digital tools with AI built in are providing actuaries with the data they need to create more precise risk assessment models. “AI, at the heart of new digital tools, allows actuaries to extract structured data,” they write. “This technology sits best alongside the expertise of insurance professionals who have years of experience in the industry.” 

Advanced digital tools 

The paper goes on to say that a general disconnect exists and persists between underwriting and actuarial systems. Where data may exist, they say only limited amounts of it are passed through for use by actuarial models. “Advanced digital tools strengthened by AI are changing the situation.” 

They say for the first time in history insurers possess the data and capabilities to link longitudinal data – vital signs and lab results – to variables in administration systems and experience studies. “This capability allows the exploration of a wide variety of scenarios,” they add. “Machine-readable knowledge will transform underwriting processes.”