Artificial intelligence is increasingly handling the simplest life insurance applications in Canada – but it isn’t replacing human underwriters. Instead, AI is taking on routine tasks, allowing underwriters to focus on more complex, judgment-heavy cases. Across the industry, carriers are redesigning digital applications so that straightforward, low-risk applicants can receive near-instant decisions, while files with complex medical or financial details are routed to experienced professionals.
Karen Cutler (pictured), chief underwriter at Manulife Canada, said the company has been using AI in underwriting since 2018, initially through its AIDA engine, which evolved into MAUDE (Manulife Automated Underwriting Decision Engine) in early 2023 and has since been enhanced alongside Manulife’s digital application. By redesigning digital applications to collect structured information up front, MAUDE can automatically approve certain low-risk cases in minutes. “We improved our application process to make it ask more reflexive, drill-down questions,” she said. “As a result, the system ends up having more information to make decisions in a matter of minutes, rather than having a human involved.”
But the technology has clear boundaries. MAUDE does not handle complex medical histories, intricate financial profiles, or cases outside standard parameters. “The system is not authorized to issue rated offers or declines,” Cutler explained. “When an application is not clearly standard, it is escalated to a person.” That approach allows underwriters to concentrate on files that demand nuanced judgment, while automating repetitive work.
Cutler emphasized that human underwriters value these complex cases. Handling straightforward applications may provide a mental break, but “our underwriters love the complexity of the different files they see,” she said. “While having the easy pile can be a bit of a brain break, they really enjoy digging in and finding solutions for customers who don’t fit neatly into that bucket.”
The operational logic aligns with broader industry trends. Insurers face increasing pressure to deliver faster digital approvals while managing staffing constraints and growing medical complexity. Customers expect near-instant decisions online, mirroring other digital services. At the same time, regulators and industry groups are closely watching fairness, transparency, and potential algorithmic bias.
Cutler said Manulife conducts ongoing audits and monitoring to ensure the AI performs as expected. “We consistently monitor the output,” she said. “We audit the model, in addition to reviewing for bias and other errors, and we continually assess the AI’s decisions against what we would expect from our human underwriters.”
She also highlighted the cross-functional nature of implementing AI in underwriting. “This is not a purely AI initiative,” Cutler said. “It’s a full business review when we implement these types of programs.” Underwriters, actuaries, IT, risk management, and advanced analytics teams work together to ensure the technology supports operational goals and regulatory compliance, rather than just accelerating approvals.
While AI tackles routine approvals, human expertise remains essential – a point echoed in previous Insurance Business reporting. Early-career underwriters must now combine traditional technical mastery with adaptability and curiosity to thrive in today’s insurance environment. Caroline Bedford, CEO of UK innovation firm EDII, previously spoke at an online panel saying that collaboration and digital comfort are critical skills for modern underwriters. “Questioning is no longer a nuisance; it is a professional expectation,” she said, noting that the most successful underwriters embrace experimentation with technology while maintaining judgment.
Marie Biggas, CUO at SCOR Specialty, added that adaptability is what separates high performers. “Underwriters have to hold onto the best of traditional experience while being willing to continuously challenge how they look at risks, portfolios and their own biases,” she said. “Anyone who insists that what made them successful in the past is all they need for the future is going to struggle.”
The Canadian context, heavily brokered and facing emerging risks, reinforces these lessons. Jonathan Weekes, president of BOXX Insurance Canada, previously told Insurance Business that AI becomes a professional risk when it substitutes for judgment. Brokers may use tools to summarize data or surface considerations, but letting AI make recommendations without human review introduces compounded errors. “AI should accelerate thinking,” Weekes said. “It shouldn’t outsource accountability of thought.”
Similarly, front-line service experts emphasize that human interaction remains crucial even when automation is integrated. Cassie Gilroy, senior manager at Mitch Insurance Brokers, noted that overreliance on technology can create new risks, especially when AI outputs are taken at face value. “Insurance is a very intricate product,” she said. “There’s so much that goes into what might be on a policy or how it might affect an individual’s situation.”
Cutler’s approach at Manulife reflects these industry lessons. By keeping AI limited to routine cases, her team ensures that human judgment drives complex underwriting, while operational efficiency improves for standard applications. The AI system frees underwriters from grunt work but does not replace their expertise – a balance that insurance leaders across Canada are increasingly embracing.
Looking ahead, Cutler said the tools will continue to evolve, but oversight and human judgment will remain central. “These tools are going to consistently be developed and grow in order for us to be able to meet our customers’ needs,” she said. “By doing this investment, we have created a space for people who want to buy our products and get a quick decision, while ensuring that human judgment remains central for complex cases.”
