This report assumes that expense reductions and improved underwriting results are still critical factors in Life and Annuity. Based on that:

• Future underwriting results will improve with the increased use of artificial intelligence (AI) and access to more data.
• The use of improved technologies can be a major differentiator in profitability.
• Based on an eventual level playing field in underwriting, what should insurers do now?

The report identifies four areas in which expenses may be reduced:

1. Underwriting and underwriting portfolio management
2. Policyholder service
3. Internal operations staff
4. Information technology (IT)

The report concludes that:

• A transition to more variable costs will require organizational agility.
• In the transition, maintaining existing areas of competence will be straightforward, while maintaining competitive edges built over years may be more of a challenge.
• Reducing staff may be simple, but maintaining long-standing relationships could be difficult.