SMAR Daily Industry News

Argo’s David Corry on Casualty Market Trends and AI

The casualty insurance market is currently experiencing a complex environment defined by competing forces, including new capital influxes, social inflation, and the integration of artificial intelligence. According to David Corry, the industry is seeing a mixed message, with certain segments remaining highly competitive while others continue to see positive rate growth. Corry notes that for Argo, rate increases are still being achieved in specific areas, particularly within excess casualty and products with automobile exposure.

A significant trend in the market is the arrival of new capital, which Corry views as a positive development driven by the industry's profitability. However, he warns that this influx has created an oversupply of capacity in certain sectors. He emphasizes that casualty insurance is a long-tail business where results may not be fully understood for five to 10 years. Consequently, new market entrants who lack historical data may face significant challenges if they fail to price their products adequately to cover long-term risks.

Artificial intelligence is playing a dual role in the current landscape. Internally, Argo is utilizing AI and software to improve operational efficiency across underwriting, claims, accounting, and finance. For underwriters, this means gathering and processing information more rapidly to facilitate decision-making. In claims, AI is being used to triage and address claimant needs more quickly. Conversely, Corry points out that the plaintiff bar is also leveraging AI to profile carriers, jurisdictions, and individual adjusters, which contributes to the broader trend of rising claim costs alongside general medical inflation.

To address the structural challenge of replacing experienced underwriters, Argo is focusing on talent development. The company runs the 'Ascend with Argo' program, which connects broker partners with young professionals, providing them access to leadership and education on the carrier side of the business. Additionally, the company has implemented a trainee program, bringing university graduates into the firm to be trained as underwriters, while also actively recruiting mid-career professionals across various insurance operations.

For industry stakeholders, these developments suggest that maintaining discipline in pricing and operational efficiency is critical as the market navigates the dual pressures of social inflation and technological disruption. Watching how carriers balance the integration of AI with the need for deep, long-term institutional knowledge will be key to long-term stability.

Why it matters

Understanding how established carriers like Argo are balancing new capital, AI-driven claims profiling, and talent succession is essential for brokers and underwriters navigating long-term casualty risk.

FAQ

How is the plaintiff bar using artificial intelligence?
According to David Corry, the plaintiff bar uses AI to gather data and build profiles on insurance carriers, specific jurisdictions, and the tendencies of individual adjusters.

What is Argo's approach to talent development?
Argo supports young professionals through its 'Ascend with Argo' program, which assists broker partners, and by hiring university graduates as underwriter trainees who are then trained for promotion.

Why does David Corry express concern about new capital in the casualty market?
He notes that while new capital is positive, it has led to an oversupply in certain areas. He warns that new entrants without historical data may struggle to price products adequately for the long-tail nature of the business.

Source: Insurance Business America. See the original source for full details.