Strategic Focus on AI and Technology Investments in Underwriting
AXIS is in the 'fifth inning' of AI adoption, with ongoing investments across the organization.
The company is leveraging AI to enhance underwriting efficiency, automate processes, and improve risk selection.
Progress includes AI-powered services in North American underwriting, automated clearance capabilities, and third-party data integration.
Management emphasizes that their AI strategy is rightsized and aimed at sustained profitable growth, with tangible improvements in quote, bind, and turnaround times.
Impact of Lower Interest Rates on Business Strategy
Management discussed how a lower interest rate environment affects premium calculations, with premiums likely decreasing as rates fall.
Despite lower premiums, a lower interest rate could lead to increased market issuance as issuers take advantage of cheap borrowing costs.
The secondary market is expected to remain resilient, with spreads potentially widening, which could offset some of the impact of lower interest rates on premium income.
Dafinchi