Artificial intelligence adoption is accelerating across life insurance underwriting, but concerns over workforce shortages and skills gaps are emerging as a parallel challenge, according to Pacific Life’s 2026 Underwriting Outlook Survey.
The survey, based on responses from more than 100 underwriting and insurance executives, found that nearly half are already incorporating AI into their operations. Around 20% said AI is fully integrated into day-to-day workflows, while a further 24% reported using it regularly as a decision-support tool. However, adoption remains uneven, with 38% indicating their organizations are still in the pilot stage of implementation.
Executives identified operational efficiency and improved data utilization as the primary benefits of AI. About 40% said AI helps accelerate underwriting decisions, while 35% pointed to better use of medical and third-party data. Only a small proportion - less than 6% - identified improved risk selection as the main advantage, suggesting AI is currently being used to enhance processes rather than fundamentally alter underwriting outcomes.
At the same time, the industry is facing mounting workforce challenges. Around 70% of respondents expressed concern about the long-term availability of underwriting talent. Key factors cited include an aging workforce and loss of institutional knowledge (38%), the need to balance automation with human expertise (20%), and difficulties attracting younger professionals to the field (18%).
The survey also highlighted the growing importance of structured health data in shaping underwriting practices. More than half of respondents (52%) said electronic health records (EHRs) are expected to have the greatest impact on underwriting over the next three to five years, significantly ahead of prescription and claims data (21%) and wearable health technology (16%).
Changing customer expectations are also influencing the direction of the industry. A majority of respondents (57%) said younger consumers’ demand for faster, digital-first experiences will be a key driver of transformation over the next decade.
The findings suggest that underwriting is evolving through a combination of technological adoption and workforce pressures, with insurers seeking to balance innovation with the need to maintain human expertise in risk assessment.
