GAIF35 Highlights Underwriting & Claims Amid Growing Complex Risks
With emerging risks rapidly becoming core challenges, insurers are pivoting toward AI governance, augmented underwriting strategies, and parametric tools.
Mr Tonat (middle) and Mr Abi Rached with Ms Dima Shatarah, Partner, Risk Consulting Leader, ETG, during the GAIF35 session on underwriting the complexities of emerging risks.
Photo: Osama Noor, MEIR
Session: The complexities of emerging risks: modelling and underwriting approaches
Emerging risks stand out as an extremely important topic today, with AI being an example. It is important to explore how insurers are adopting AI from a risk perspective, according to Mr Belhassen Tonat, Chief Underwriting Officer, Riyadh Re.
He added, “We need, as an industry, to recognise AI as a new risk and how it is being deployed in insurance operations.”
Moving past the debate: From “denial” to augmented underwriting
He said that, for years, the insurance sector has wrestled with a looming, existential question: Will artificial intelligence replace the traditional underwriter?
The insurance industry needs to move past this debate. Instead of denial, the focus must shift entirely toward adaptation. Rather than relying on simple, conventional underwriting systems, modern insurers are championing an “augmented underwriting” strategy. This is so that insurers can benefit from the advantages that AI offers while sustaining their fundamental role as underwriters. This approach will expand their horizons and add value to the company in terms of raising the quality of risks written—hence contributing to favourable outcomes and profitability.
Also speaking at the session, Mr Elie Abi Rached, CEO of Global Operations, Chedid Re, said, “Emerging risks are moving quickly to become core risks, with the insurance industry in a race to cope with learning about them.”
He added that technology, such as AI, is an integral resource in helping the industry to understand emerging risks and to find the best means to underwrite them.
Although headway is seen in adopting AI in underwriting, most AI developments focus at present on optimising automation and operating processes. This approach has improved data analytics. However, it will take time for the industry in the region to reach full AI adaptation.
“In summary, AI is being adopted by the insurance industry. In this, what is most important is to identify the methods of adoption and put in place proper governance for AI deployment,” Mr Abi Rached said.
Session: Parametric insurance in addressing catastrophic risk challenges
The insurance industry should start thinking out of the box to speed up the claims settlement process and improve efficiency, said Ms Christina Chalita, SVP, NASCO. She added that parametric solutions represent a reliable avenue in moving in that direction.
Mr Andre Eisele, Chief Business Officer of Trigger Parametric (Switzerland), said that the disaster protection gap is expanding—growing by up to 7% in 2025 globally. In the face of this, insurers find it challenging to plug the gap despite concerted efforts made over the years. He noted that 92% of Nat CAT losses are uninsured.
Mr Eisele also said that parametric solutions can help bridging the gap and support traditional (re)insurance capacity, adding that they are to be viewed as a supplementary tool rather than competition.
Ms Chalita and Mr Eisele on the dais during the GAIF35 session on parametric insurance.