Artificial intelligence is rapidly reshaping insurance operations, but the growing use of AI may make skilled insurance professionals more important rather than less relevant, according to Adam Harper of the Chartered Insurance Institute (CII). The competitive advantage for insurers, he argues, will increasingly depend on combining technology with professional judgement, ethics and customer trust.
For much of the past decade, the insurance industry’s talent debate has centred on attracting new people into the profession. Insurers have focused on improving awareness of insurance careers and competing with other sectors for graduates and apprentices. With AI, automation and advanced analytics now becoming more deeply embedded in insurance operations, attention is increasingly shifting towards another challenge: transforming and upskilling the existing workforce.
Insurance Skills Are Changing
According to Harper, the insurance professional of the future will require a combination of technological capability, critical thinking, ethical decision-making and strong customer understanding. Technology can enhance productivity and provide professionals with better information, but these human capabilities remain critical to how insurance decisions are ultimately made and communicated.
This is particularly significant in an industry where decisions frequently involve uncertainty, interpretation and competing interests. As AI systems become more sophisticated, professionals will increasingly need to assess their outputs, recognise limitations and apply judgement rather than simply accept automated recommendations.
The implication is that AI literacy will become an increasingly important professional competency. Insurance employees will need to understand not only how AI tools can improve their work but also when human intervention, challenge and escalation are necessary.
AI Creates a Workforce Transformation Challenge
The issue therefore extends beyond recruiting technology specialists. Existing insurance professionals across underwriting, claims, broking, customer service and management will need opportunities to develop the skills required to work effectively alongside AI-powered systems.
The wider UK financial services sector has already recognised the scale of this transition through the recently launched Financial Services Skills Compact, developed through collaboration between government and industry. Founding signatories, including insurance organisations, have committed to improving employee capabilities in AI and other skills considered important to the future competitiveness of financial services.
The initiative also seeks to strengthen talent pipelines and expand structured entry routes for new entrants. Separately, the Financial Services Skills Commission is conducting workshops and roundtables as part of research commissioned by HM Treasury examining AI, disruptive technologies and the workforce capabilities financial services could require over the next 10 years.
Professional Judgement Remains Critical
One of the most important implications of greater AI adoption is the continuing need for professional accountability.
AI may be capable of analysing large quantities of information, identifying patterns and automating routine processes, but insurance frequently requires decisions involving context, fairness, customer circumstances and ethical considerations. These areas cannot be reduced entirely to technological capability.
The challenge for insurers will therefore be to determine which activities can appropriately be automated and which require meaningful professional oversight.
Rather than viewing AI solely as a substitute for employees, insurers can use it to remove repetitive administrative work and allow professionals to concentrate on higher-value activities requiring analysis, communication and judgement.
Trust Becomes More Valuable in an AI-Driven Industry
Insurance ultimately depends heavily on trust. Customers need confidence that underwriting, claims and other decisions affecting them are not only technically efficient but also fair and appropriately governed.
Harper’s central argument is that the more technology becomes embedded in insurance, the greater the importance of professionals capable of combining technical knowledge, ethical standards and human judgement.
The future insurance workforce may therefore look different, but professional expertise is unlikely to disappear. Instead, AI is likely to alter what expertise means. Routine technical work may increasingly be automated, while judgement, interpretation, ethical decision-making and customer relationships assume greater importance.
For insurers, the strategic workforce question is consequently not simply how many jobs AI may automate, but how effectively organisations can equip their people to operate in an increasingly AI-enabled profession.
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