Biba 2025: Mitigating dynamic risk with AI and data the future of insurance

The use of artificial intelligence (AI) and data has the potential to redefine how the insurance industry handles dynamic risk.

That was according to Chris Croft, chief executive at the London and International Insurance Brokers Association (LIIBA), who spoke exclusively to Insurance Times at the 2025 Biba Conference.

Croft explained that the “big challenge” over the next 10 years is the impact that data and AI, combined, will have on insurance as a product.

”We have a world at the moment where not that many clients have a steady risk profile across the year, but we sell them annual insurance products,” he added.

“Whereas you have a lot of clients who have really concentrated risk challenges [in periods of the year].”

Concentrated risk

These concentrated risks include, for example, serious weather events interrupting the seasonal harvesting of grapes for major European wine houses, or properties in Florida having greater risk around hurricane season in the second half of the year.

For these customers, Croft suggested it would make more sense to trade around weather derivatives rather than it would to buy a huge, yearly insurance programme.

Croft continued: “AI and data combined bring the possibility of designing products that reflect that [concentrated risk].

“Rather than doing a model of the property risk in Florida once a year – because that’s very clunky – you could be doing it every hour, and then find financial instruments that allow you to mitigate that much more dynamic risk.”

Croft also explained that “brokers are very well placed to be at the forefront” of industry changes because they have most of the data. 

“There’s a huge opportunity to almost redefine what insurance is and brokers will lead that,” he added.