Since joining Alta Signa’s Financial Lines team in Barcelona in December 2024, Junior Underwriter Fernando Vilá has quickly become involved in the underwriting of Directors’ and Officers’ (D&O) and professional lines risks across Spain and Portugal. Working closely with brokers and clients, Fernando combines technical financial analysis with a strong focus on relationship building, process improvement and automation initiatives.
Soft market conditions, increasing Artificial Intelligence (AI) adoption and growing management liability exposures are reshaping financial lines underwriting across Southern Europe.
Having completed a specialised management programme at ESADE Business School, and working previously in the renewable energy sector, Fernando brings a fresh perspective to the evolving financial lines market - particularly at a time when businesses are navigating increasing regulatory scrutiny, economic uncertainty and emerging management liability exposures.
In this spotlight interview, Fernando shares his thoughts on working as a Junior Underwriter, the current underwriting landscape, the challenges facing clients in Southern Europe, and what he enjoys most about working in Financial Lines underwriting in Spain and Portugal.
What are the key trends currently shaping the D&O and financial lines market in Spain and Portugal?
The D&O and Financial Lines market in Spain and Portugal is at an interesting turning point, having been shaped by several converging trends.
The first trend is the soft market. After several years of hardening market conditions, pricing has stabilised and competition has returned, particularly in D&O, creating more choice for brokers and clients. This makes the discipline of underwriting more important than ever and every risk needs to be assessed on its own merits.
Secondly, the return of competition is forcing underwriters to differentiate on expertise rather than price alone. In Financial Lines, sustainable underwriting depends on understanding whether an organisation's governance, financial resilience and management decisions justify the premium, not simply matching the lowest quote and aiming for a market share independent of the individual risk level.
There is also a natural temptation for price to become the primary differentiator. However, sustainable underwriting cannot be driven by price alone. For underwriters, the challenge is finding the right balance between remaining competitive and maintaining technical discipline. That means assessing each risk on its own merits and recognising that a renewal should never be treated as a routine exercise. Changes in a company's financial resilience, strategic direction or external environment can significantly alter its exposure from one year to the next.
At the same time, external risks continue to reshape the market. Geopolitical uncertainty, economic volatility and an evolving regulatory landscape are all influencing the way organisations manage risk.
Artificial Intelligence (AI) is another interesting trend. While AI has enormous potential to improve efficiency and support underwriting decisions, it also introduces new governance, compliance and liability considerations. The challenge for insurers is to embrace these technologies while ensuring appropriate oversight and maintaining the human judgement that remains central to effective underwriting.
I believe that success in today's Financial Lines market will come from combining technical expertise with commercial judgement.
The most resilient portfolios won't necessarily be built by offering the lowest premium, but by understanding risk more deeply and pricing it with confidence.
How important is financial analysis in assessing corporate risks today, particularly in a more uncertain economic environment?
Enormously important. Understanding a company's financial position, debt structure and ability to generate cash is fundamental to assessing corporate risk and pricing it appropriately.
Financial analysis has always been a core part of underwriting, but today's environment has made it even more critical. Rising financing costs, geopolitical uncertainty and slower economic growth mean that two businesses with similar revenues can present very different risk profiles.
The better you understand a business, the better you can underwrite it. Coming from a technical background has helped me look beyond headline figures to understand what is really driving a company's performance and exposure.
Ultimately, underwriting isn't just about assessing where a business is today - it's about understanding how well it is positioned to withstand future challenges. In an uncertain economic environment, resilience has become just as important as historical performance, enabling underwriters to make more informed decisions, price risk appropriately and build sustainable portfolios over the long-term.
You’re also involved in process improvement and automation initiatives at Alta Signa - how do you see technology changing underwriting over the next few years?
AI saves time. I use it to be more efficient on administrative tasks such as research, tracking industry news, document management. I've actually built a personal AI-powered website that aggregates news and trends from the financial lines market, covering D&O, PI and cyber, so I can stay on top of things without spending hours on it.
I think that's exactly where the future lies: freeing up time from the mechanical work to focus on what genuinely requires judgement - assessing management quality, interpreting complex risk signals, building relationships.
I believe that AI will become an invaluable assistant rather than a replacement for underwriters. It can automate research, monitor news, summarise submissions and identify emerging issues far faster than any individual.
But assessing management quality, understanding nuance within financial statements and making balanced underwriting decisions still needs human judgement. The competitive advantage won't come from using AI, it will come from knowing where human expertise adds the greatest value.
What have you enjoyed most about working in financial lines underwriting since joining Alta Signa?
Junior Underwriters are the backbone of the underwriting process. My role involves helping businesses protect themselves against financial and legal risks including evaluating companies, analysing data and collaborating with brokers to design tailored insurance products.
One of the things I enjoy most is the combination of technical analysis and relationship building.
Every risk is different, and no two days are the same. I have the autonomy to manage my portfolio while learning from experienced colleagues across the business.
It's an environment where you're constantly developing your underwriting judgement, which is one of the most rewarding aspects of the role.
What motivates me most is that I'm still just at the beginning of the learning curve as a Junior Underwriter, and there's still a long way to go.
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Thank you, Fernando, for taking the time to speak with us. Your insights offer a fascinating glimpse into the value of a junior underwriter and how AI is supporting and reshaping underwriting in a soft market, while reinforcing the value of the human in the loop.