Published on December 14, 2023, 9:25 am
The London Market insurance industry is making strides in embracing artificial intelligence (AI) technology to enhance its operations. Hiscox, a leading insurance firm, has become the first company in the market to develop an AI-enhanced lead underwriting model, significantly improving efficiency and speed. By leveraging Google Cloud’s generative AI technology and their own platform called Hiscox AI Laboratories (Hailo), Hiscox can now automate the lead underwriting process from submission to quote.
With the integration of Google Cloud’s BigQuery and Vertex AI platform, Hiscox is able to extract crucial data and insights from email submissions. This advancement enables their underwriting teams to generate a quote in just three minutes, compared to the previous timeframe of up to three days using manual processes. The CEO of Hiscox London Market, Kate Markham, expressed her excitement about the possibilities of generative AI in streamlining processes for the insurance giant.
The success of this project gives credence to the idea that automation can support faster and more efficient results for brokers and clients alike. Markham added that working with Google Cloud offers opportunities for further development in augmenting underwriting teams’ knowledge and expertise through AI technology.
The trial phase focused on Hiscox’s Sabotage and Terrorism division due to its heavy reliance on manual data extraction and analysis. The introduction of generative AI tools aims to reduce pressure on staff while maintaining human involvement in critical decision-making. According to Markham, combining human insight with cutting-edge AI technology enhances customer service effectiveness across various lines of business.
This move towards adopting generative AI is not exclusive to Hiscox; other insurers are also exploring its applications. Allianz recently announced plans to implement generative AI-enabled business software as part of their efforts to streamline efficiency within their organization.
Furthermore, McKinsey research predicts that implementing AI technologies could potentially add $1.1 trillion in annual revenue for the insurance sector, with a significant portion coming from pricing, underwriting, promotion technology upgrades, and AI-powered customer service.
The insurance industry is gradually recognizing the transformative potential of generative AI. Its integration can revolutionize processes by automating mundane tasks, allowing human underwriters to focus on more complex risks that require human expertise and analysis. By deploying AI technology effectively, insurers can optimize productivity, improve risk assessment practices, and offer personalized services to customers.
As the adoption of generative AI continues to grow within the insurance industry, it is clear that organizations are taking steps towards a digital future. Through collaboration with technology partners like Google Cloud, companies such as Hiscox are positioned to lead the way in leveraging AI to enhance efficiency and provide better service for their clients.