A new survey of senior underwriting leaders in the London company market has identified profitability pressures, talent shortages and the challenge of integrating new technologies as the most significant issues facing underwriters in 2026.
The findings were gathered by the International Underwriting Association (IUA) and reviewed during the first meeting of its newly established Chief Underwriting Officers Council on Dec. 10. The survey provides a detailed snapshot of the operational and strategic pressures shaping the underwriting environment as firms look toward 2025.
Key challenges among underwriters
In the survey, underwriters ranked current market conditions and profitability as their top challenge.
While rating momentum has held in some classes, respondents signalled concern about margin compression, higher reinsurance costs and the continued impact of inflation on loss trends. These pressures are prompting firms to reassess appetite, refine pricing models and tighten underwriting discipline.
The second major concern was the struggle to attract and retain underwriting talent. Respondents highlighted an increasingly competitive labour market, a shortage of specialist skills, and the need to upskill existing teams as the risk landscape becomes more complex.
This aligns with trends across the UK insurance sector, where demographic pressures and competition from other financial services fields are heightening recruitment challenges.
The third key issue was the integration of new technologies into underwriting processes.
Many firms continue to invest in automation, AI-driven analytics and improved data quality, but underwriters cited ongoing challenges in embedding these tools effectively, managing legacy systems and adapting workflows. Despite this, technology featured prominently among the survey’s opportunities for the next five years.
Respondents were also asked to assess the most pressing emerging risks. Geopolitical instability was ranked the highest threat, reflecting heightened global tensions and their impact on supply chains, pricing volatility and exposure accumulation.
This was followed by social inflation and rising natural catastrophe losses, two trends that continue to reshape claims patterns and capital allocation strategies.
Data-focused opportunities
Looking further ahead, underwriters pointed to several areas of potential opportunity. These included the ability to leverage artificial intelligence and enhanced data capabilities, the chance to help clients strengthen resilience and sustainability planning, and scope to reduce the insurance protection gap through more innovative coverage solutions.
The survey findings will help guide the agenda of the new Chief Underwriting Officers Council, established by the IUA to ensure that its work aligns with the priorities of underwriting leaders. The council includes representation from the IUA Board and will meet twice a year, with continued engagement between formal sessions.
By anchoring its new governance structure in the survey’s results, the IUA aims to support underwriters as they navigate profitability pressures, workforce challenges and a fast-changing risk environment.
