Hiscox to use AI for underwriting in London market first

Hiscox has teamed up with Google Cloud to create an artificial intelligence (AI) model for the London market that can automate the core underwriting process for specialist risks.

A statement released yesterday (12 December 2023) claimed the new model would be the first of its kind and could reduce the time for lead open-market quotes from three days to three minutes.

To do this, it will leverage both Google Cloud’s BigQuery and Vertex AI platform – as well as Hiscox’s digital technologies - to extract key data and insights from email submissions.

Kate Markham, chief executive of London market at Hiscox, said the model was still being developed and was “looking forward” to progressing the project further next year.

“We are delighted to be working with Google Cloud to explore the applications of AI technology to augment our underwriting teams’ knowledge and expertise,” she said.

“This early stage work suggests that there are areas of the business where automation can support better, faster results for our brokers and clients and we look forward to developing the programme further.”

Insight

Hiscox has already conducted a trial with the model by using it to help automate underwriting within its sabotage and terrorism line of business.

While Markham noted that human insight is and “will always be a crucial part” of the specialist underwriting process, she felt that such expertise being paired with AI technology will allow the insurer to ”serve customers even more effectively and efficiently”.

”AI technology, deployed in the right way, has the potential to remove manual tasks from our specialist underwriters, freeing them up to focus on more complex risks where human expertise and analysis are a must,” she said.

Sandeep Kottekudiyil, client director at Google Cloud, added: “Our work with Hiscox demonstrates the value that AI can bring to the underwriting process.

”We look forward to our ongoing collaboration with Hiscox to transform the insurance industry through the responsible use of AI.”