‘We have a chance to consider how the complexities of the London specialty market can be a magnet, rather than a barrier, for deployment of intelligence as a service’ says consultant
More than one-third of London market firms are actively using artificial intelligence (AI) – but barriers remain in place for broader adoption across underwriting and claims operations.
That was according to a survey from the the Lloyd’s Market Association (LMA), which said that 40% of firms were actively using AI within their organisations, with 14% experimenting specifically with agentic AI or generative AI in underwriting.
However, 65% of respondents said they had not yet deployed such tools in either underwriting or claims functions, while 12% said they had no plans to use the technology.
Reasons for this include data quality and availability issues (49%), while 48% pointed to cost and an uncertain return on investment.
Integration with legacy systems was also a major concern, highlighted by 46% of those surveyed.
Rob Myers, consultant at the LMA, said: ”Although it is encouraging to see that one-third of companies are already deploying agentic AI or generative AI, it is surprising to note that half of survey respondents have not yet tested its capabilities.
”We have a chance to consider how the complexities of the London specialty market can be a magnet, rather than a barrier, for deployment of intelligence as a service that agentic AI solutions offer.”
CII goal
This comes after the Chartered Insurance Institute (CII) called on the UK government to enforce accountability for AI-driven decision-making in the financial services sector, emphasising that insurance professionals must own the outcomes generated by AI.
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In a submission to the Treasury Select Committee, the professional body argued that British firms must be responsible for the AI algorithms they deploy, even where the decision-making process is not fully explainable.
The CII stressed that accountability around AI usage in financial services should not be optional and must be underpinned by rigorous validation and testing, to identify and mitigate discriminatory outcomes.
The LMA said it will continue to support the market in exploring AI opportunities, focusing on use cases that drive measurable impact while tackling adoption hurdles.
It added: ”AI has, as our survey highlights, a significant use case within data extraction, submission preparation and claims triage – all of these are significant time requirements for insurers and brokers today.”
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