It has published two reports in a bid to provide underwriters with guidance on best practice

Automation has already gained significant traction in the insurance industry, with the technology being adopted by claims handlers, HR systems and in basic administrative tasks.

It can speed up the processing of a claim to streamlining HR systems making it easier for employees to log things on the move and therefore potentially bolstering staff retention in the long run by increasing ease of accessibility. The same benefit of doing away with manual processes can be seen in claims.

Various firms, including AXA, have deployed robots to complete repetitive admin work, easing the strain on staff and allowing them to turn their attention to other tasks.

Nonetheless, these new technologies come with a certain level of risk. Lloyd’s published two reports yesterday in collaboration with the University of Surrey. The aim was to provide underwriters with guidance on best practice as well as insights into the short, medium and longer-term potential of AI and robotics.


The first report “Taking Control: Artificial Intelligence and Insurance” analyses the associated risks of AI implementation and the potential it has to help insurers improve operations.

It highlighted that as AI becomes more complex, cyber breaches are likely to have a greater impact. On top of this ambiguity and legal uncertainty is raising questions as to who is liable in the event of a claim.

And it identified four risk areas for AI:

1. Trust

2. Ethics

3. Security

4. Safety


AI also presents a whole host of new business opportunities for insurers, for example any firm offering algorithm-based systems to companies might want to insure against the risk of data being lost, leaked or stolen.

Off the back of this, new firms are emerging to side-step, filter out and certify legitimate information. This presents insurers with another business opportunity, according to Lloyd’s.


The second report “Taking Control: Robots and Risk” investigates the risks of collaborative robots or ’cobots’ on the economy and risks for the insurance sector.

But this could change the landscape considerably in many parts of the economy such as manufacturing, agriculture, healthcare and retail, especially as increasingly sophisticated robots take over certain jobs.

For example, factories using cobots could get hit by cyber-attacks causing business interruption and potential leaks of intellectual property.

However, data from cobots could provide a greater understanding of risk to insurers while also improving models for pricing. The report also found that the adoption of cobots could be speeded up by insurance as it could help tackle health and safety concerns.

Trevor Maynard, head of innovation at Lloyd’s, explained: “Our world is becoming increasingly automated. Insurers have an opportunity to play a role in shaping the development of the AI and robotics and will no doubt be instrumental in providing solutions to some of the most complex risks associated with these technologies.

“Some of these risks have been well documented, however for insurers to respond appropriately, it is important that the benefits and opportunities of AI and robotics are properly understood.” 


Attila Emecz, director of research strategy at University of Surrey said: “Over the last few years there has been a revolution in the development of AI and robotics yet we are only just beginning to tap into the vast potential of such technologies.

“We have been delighted at the University of Surrey to be able to work with Lloyd’s and the University of Exeter in producing the reports. We are confident that these reports will help the insurance sector in developing new business models and ways of working that will deliver significant social and economic benefit to society.”

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