Balancing AI and human expertise in underwriting – Westfield’s Evans

Graham Evans on Market Challenges and Opportunities, Head of International Insurance at 177-year-old Westfield Specialty Insurance.

Artificial intelligence is becoming a key part of insurance operations, but for Graham Evans, Executive Vice President and Head of International Insurance at Westfield Specialty Insurance, technology is best used to support human decision-making, not replace it.

Speaking on the latest episode of the Voice of Insurance podcast, Evans shared his perspective on AI’s role in underwriting, the importance of operational efficiency, and the challenges and opportunities in today’s market.

AI as enabler, not replacement

While some insurers are exploring AI-driven underwriting, Evans is clear that Westfield sees technology as a tool to enhance efficiency rather than replace human expertise.

“Our view is we like the idea of creating operational efficiency through the use of AI. We don’t like the idea of underwriting with AI,” he said.

Instead of automating risk selection, the company focuses on using AI to streamline processes.

“If it’s contract certainty, if it’s triage of submissions, if it’s the interplay between pricing and underwriting, if it’s machine learning in reserving—those things are really interesting because we can create a better outcome and a more efficient outcome by using technology.”

The use of AI, he emphasised, should be about eliminating tedious tasks, not taking the human out of underwriting.

“Everything that I’ve done here in the last two years has been focused on really bringing people together, making sure we have the right talent in the right place, creating an environment where people are happy in their work. Having that relationship with a computer might not be quite so endearing.”

Westfield’s approach stands in contrast to larger corporations that have automated customer interactions to the detriment of service, he suggested.

“I have this theory that the larger you become, you talk about how important the customer is, but you don’t mean it. If I try to interact with my bank or my favourite airline, via a bot, it’s a deeply unsatisfactory experience every single time.”

His stance is clear: “Claims and underwriting in particular, where the most interaction takes place with third parties and brokers, should remain a human experience.”

Navigating market cycles

Beyond AI, Evans addressed the broader market dynamics shaping the insurance landscape. Despite ongoing rate increases, he acknowledges a shift.

“We’ve seen year-on-year rate increases for a number of years, but we’re probably moving through the peak right now. Early stages of 2025 look a little bit more competitive than 2024.”

However, he sees this as a moment of balance. “Opportunity and risk are pretty well matched currently, which means it’s a market we’re willing to grow in.”

Natural catastrophes, such as the recent California wildfires, also pose significant challenges.

“I think wildfires are likely to cause more concern for insurers and reinsurers than wind events. Every cat event is a learning experience—they expose poor underwriting or poor risk management.”

He pointed to past events, such as Hurricane Sandy, where unexpected claims surfaced due to inadequate risk assessments.

“Every time a major event happens, it uncovers something new—whether it’s an art dealer storing works in a basement that floods or a high-net-worth client underestimating their exposure.”

In the face of these challenges, Evans believes patience is a key advantage for Westfield, an insurance company with a 177-year-old heritage.

“One of the things that appealed to me about Westfield was the concept of stewardship,” he said. “The company sees itself as stewards of the business for the next generation. We’re not looking at five-year plans to sell off a business; we’re thinking about the long term.”

This mindset allows the company to take a cautious, strategic approach to growth. “Even in a relatively high point in the market, we don’t need to force growth,” he said.

Growing in directors’ and officers’ liability (D&O) doesn’t appeal to him at present, he underlined.

“It’s a tough place to be at the moment,” he said. “It’s a profitable market, but it’s a tough trading environment, and to force growth in that area right now is not a wise thing to do.”

For Evans, a combination of human expertise, technological support, and disciplined underwriting is what will define successful underwriting.

“Competition is good for us because it ensures that we think very clearly about the risks we take and that we present a proposition that is meaningful, not lazy,” he added.