’It is vitally important that regulatory agencies work together,’ says chief executive 

Insurtech UK has welcomed the government’s new advisory service as it will provide insurtechs with ”more tailored support”.

The new pilot scheme, which was announced last month (19 September 2023) is set to launch next year and will see a number of regulators develop a multi-agency advice service providing tailored support to businesses.

In turn, this will help them meet requirements across various sectors while innovating, including through innovative technologies such as artificial intelligence (AI).

“We welcome the pilot scheme so that insurtechs can receive more tailored support for a speedier journey to unlock the growth potential of our sector,” Melissa Collett, Insurtech UK chief executive, told Insurance Times.

’Keep pace’

This came after Tim Hood, vice president of EMEA and APAC at Hyland, told Insurance Times that the insurance industry had been “more willing to embrace” ChatGPT and AI compared to other sectors.

And earlier this year (15 August 2023), technology solutions provider FIS said that more than half of UK insurance executives were now investing in AI and machine learning.

According to figures published by the firm, some 63% of insurance executives are investing in AI and machine learning compared to 50% of those in the US.

The government hopes that through its new service, businesses will be able to take their new innovations to market responsibly and more quickly, which will it feels will in turn help grow the UK’s economy.

The scheme will also be backed by over £2m in UK government funding.

Technology secretary Michelle Donelan said: “Digital technology and AI are rapidly evolving, and regulation must keep pace – but we don’t want it to be at the expense of stifling the launch of new innovations that can improve our everyday lives.

“While safety is at the heart of our approach to regulation here in the UK, this new service will help businesses navigate the process of making sure they are compliant - supporting safe and responsible innovation.

“We are a nation that backs businesses both big and small, and we want to make sure that as they can quickly get to grips with rules and regulations around emerging technology.”

Collett added: “It is vitally important that regulatory agencies work together to ensure that insurtech businesses working with AI are not unduly delayed or face unnecessary barriers with bringing their responsible innovation to the market.”