Agentic AI for Commercial Insurance Underwriting with Adversarial Self-Critique

TL;DR

This paper introduces an agentic AI system with adversarial self-critique for commercial insurance underwriting, enhancing safety, accuracy, and human oversight in high-stakes, regulated environments.

Contribution

It presents a novel adversarial self-critique mechanism within a human-in-the-loop AI system, addressing safety and reliability gaps in regulated underwriting workflows.

Findings

Reduces AI hallucination rates from 11.3% to 3.8%.

Increases decision accuracy from 92% to 96%.

Enforces strict human authority over decisions.

Abstract

Commercial insurance underwriting is a labor-intensive process that requires manual review of extensive documentation to assess risk and determine policy pricing. While AI offers substantial efficiency improvements, existing solutions lack comprehensive reasoning capabilities and internal mechanisms to ensure reliability within regulated, high-stakes environments. Full automation remains impractical and inadvisable in scenarios where human judgment and accountability are critical. This study presents a decision-negative, human-in-the-loop agentic system that incorporates an adversarial self-critique mechanism as a bounded safety architecture for regulated underwriting workflows. Within this system, a critic agent challenges the primary agent's conclusions prior to submitting recommendations to human reviewers. This internal system of checks and balances addresses a critical gap in AI safety for regulated workflows. Additionally, the research develops a formal taxonomy of failure modes to characterize potential errors by decision-negative agents. This taxonomy provides a structured framework for risk identification and risk management in high-stakes applications. Experimental evaluation using 500 expert-validated underwriting cases demonstrates that the adversarial critique mechanism reduces AI hallucination rates from 11.3% to 3.8% and increases decision accuracy from 92% to 96%. At the same time, the framework enforces strict human authority over all binding decisions by design. These findings indicate that adversarial self-critique supports safer AI deployment in regulated domains and offers a model for responsible integration where human oversight is indispensable.