Small commercial underwriting is evolving faster than ever, and the brokers and MGAs who thrive are those who harness AI, data, and partnerships to make smarter, faster decisions. At a recent panel discussion, Sandeep Haridas, EVP and Insurance Business Head at IntellectAI, joined Hanh Lam of Simply Business, Jascha Prosiegel of MunichRe Specialty, and Clive Thompson of Guy Carpenter Insurtech Center of Excellence to explore how technology is reshaping the space.
Small commercial insurance may seem straightforward, but it’s deceptively complex. Every month, roughly 400,000 new ventures launch across the U.S., each with unique risks and coverage needs.
“Finding the right coverage for small business owners—those with zero to five employees—is a recurring, urgent need,” said Hanh Lam.
As digital marketplaces become the primary way these clients interact with insurers, the underwriting process must evolve to meet the speed and precision required.
To tackle this, Simply Business partnered with IntellectAI to develop a portfolio underwriting system that merges years of human expertise with external data.
Lam explained, “AI helps us segment risk, know when to say yes or no, and frees our underwriters to focus on more complex cases.”
Haridas added, “In small commercial, it’s AI in the loop, human in the loop. AI does the heavy lifting, but humans make the critical decisions.”
Technology is also opening new avenues for capital. Clive Thompson emphasised that digital experiences allow MGAs and carriers to access risk capital that was previously out of reach. “This space offers diversification and exposure to large, low-volatility portfolios. It’s a win-win: reinsurers gain new opportunities, and MGAs can underwrite faster and smarter,” he noted.
Yet the rapid adoption of technology comes with challenges. Rate adequacy is a top concern for Lam. “The trends keep evolving, and as an MGA, I need to keep the book healthy and profitable.”
Prosiegel highlighted the risks of edge cases and misrepresentation in automated processes, while Thompson stressed the importance of maintaining balance: “We’re innovating fast, but we need to ensure customer experiences remain strong and coverage stays adequate.”
Panelists offered practical advice for MGAs and brokers navigating this changing landscape. Thompson urged companies to focus on their niche and core strengths, bringing in partners to fill gaps.
Haridas emphasised the enduring value of relationships: “Technology will change, but relationships never go out of fashion. Find partners who will walk the journey with you.” Prosiegel encouraged decisive action: “Now is the time to implement change. Don’t sit on the sidelines waiting for someone else to solve your growth challenges.”
The key takeaway: success in small commercial underwriting isn’t about replacing humans with AI—it’s about pairing technology with expertise and leveraging strategic partnerships. Those who strike this balance will define the next era of the industry.
Watch the full panel discussion here.
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