Introducing the 2025 Federato State of Underwriting Report

The 2025 report data reveals a sobering picture: underwriting inefficiency is widespread, and the gap between strategic intent and operational execution is only growing. The findings show that missed opportunities, fragmented systems, and technology hesitation are undermining portfolio performance.

Here are 5 key themes that emerged:

1. Wasted effort and misaligned submissions are draining productivity

According to the survey, underwriters spend 26% of their time on deals that never bind, and 1 in 4 submissions fall outside portfolio appetite, with only 37% of bound business falling in high-appetite segments. Teams are spending as much time on poor-fit risks as they are on the right ones, and in many cases, binding those low-alignment deals.

This inefficiency extends turnaround times, lowers win rates, and distracts from high-value opportunities. As submission volumes rise and market complexity increases, legacy triage methods are proving insufficient. Underwriting teams are left to navigate unclear priorities, often without the data to triage out low-risk business early in the process.

2. Limited portfolio visibility is a strategic blind spot

Many underwriters lack visibility into their organization’s portfolio appetites and performance metrics. 73% of underwriters say they struggle with portfolio visibility, and more than 56% still rely on static guidelines, such as PDFs, spreadsheets, and manually updated documents, which are difficult to maintain and apply consistently.

Many teams don’t receive regular updates on portfolio status or strategy shifts. As a result, effort is often spent on risks that no longer align with business goals. It’s no surprise that 70% of respondents identified ineffective prioritization tools as a core barrier to performance. 

3. Fragmented tech stacks slow down underwriters

Underwriters report using 6 or more systems each day, with some managing as many as 10. This level of fragmentation introduces friction at every stage of the underwriting process. Tasks like triage, pricing, quoting, and documentation take longer when teams are forced to switch between tools just to complete routine work.

This environment also increases the risk of manual errors, rekeying, and breakdowns in communication, especially when systems aren’t integrated or aligned. Instead of focusing on risk evaluation and decision-making, underwriters waste time tracking down data and duplicating work.

Many of these systems were layered in over time to solve specific problems, but without a broader strategy to support usability or efficiency. As a result, teams are slowed down by outdated workflows that don’t reflect the speed or complexity of today’s market.

It’s no surprise that 55% of respondents said the biggest missed opportunity is failing to adopt modern technology.

4. AI adoption remains slow, but the value is clear

50% of insurers believe AI can improve submission prioritization, yet only 35% are using it at the intake stage today. This early-stage gap has real consequences. Without AI to assess appetite, winnability, or expected value, underwriters are left to rely on static rules or gut instinct, slowing decisions and misallocating effort.

Among organizations that have implemented AI, 62% say it's already exceeding expectations. These teams report improved efficiency, stronger underwriting performance, and faster identification of high-value opportunities.

The widening adoption gap highlights more than a difference in tools. It reflects how quickly insurers are adapting to the demands of modern underwriting. Carriers that move first are gaining operational speed and portfolio clarity. Organizations that delay will likely see inefficiencies compound over time.

Although many recognize the value of AI, relatively few are applying it in workflows that are measurable, intuitive, and aligned with underwriters' day-to-day decisions. Closing that gap is critical for turning potential into performance.

5. Reinsurance costs are rising, and inefficiency makes it worse

100% of insurers surveyed cite rising reinsurance costs as a challenge, and 84% of underwriters say it's a very significant concern. As carriers face pressure to maintain margins and retain capacity, inefficiencies in underwriting are making that job harder.

When underwriters spend time on misaligned or unwinnable risks, the resulting portfolios are more volatile. Reinsurers expect carriers to show discipline, clarity, and responsiveness in how they manage their books. If insurers can’t produce evidence that they’re performing to expectations, it becomes more difficult to secure favorable terms.

Organizations with higher levels of underwriting waste report more friction in reinsurance negotiations. Risk signals are missed or surfaced too late. Appetite guidelines may be applied inconsistently. These disconnects erode trust and can lead to tighter capacity, higher rates, or tougher terms.

Inefficiency isn’t just an operational liability. It affects pricing power, strategic flexibility, and long-term competitiveness. Stronger portfolio alignment and faster visibility into performance trends are becoming essential, not just for growth but for capital resilience.

Closing the gap between strategy and execution

Underwriting inefficiencies are more than operational noise; they are strategic liabilities. Without tools to filter, prioritize, and monitor, teams leave profitable growth on the table.

Insurers that modernize their underwriting approach and invest in real-time visibility, smarter data, and aligned decision-making will be well-positioned to compete and grow, even in challenging markets.

Download the full report to explore the data, see how your organization compares, and learn what steps leading insurers are transforming underwriting operations through RiskOps.