Majority of UK Insurance Executives Embrace AI and Machine Learning
The UK insurance sector is witnessing a robust surge in the adoption of artificial intelligence (AI) and machine learning, with over half of its executives investing in these technologies. This trend, outpacing the pace of the US market, underscores the growing significance of AI in the industry.
Technology solutions provider FIS unveiled these insights, revealing that approximately 63% of insurance executives in the UK are allocating resources to AI and machine learning, in contrast to 50% in the US. In tandem with this trend, the UK financial services landscape is also witnessing a heightened focus on the integration of AI to enhance account opening efficiency and speed, as an impressive 75% of executives are directing their innovation efforts toward this area.
Himal Makwana, the Head of Platforms, Strategy, Operations, and Venture at FIS, commented on this development by highlighting the efforts of businesses to establish trust among both existing and potential clients amidst concerns about economic conditions such as inflation and interest rate fluctuations.
FIS collected this data through a comprehensive survey conducted in May 2023, involving 4,000 consumers and 800 financial service firm executives from both the US and UK. The findings also shed light on UK insurers' distinctive approach to enhancing customer experience compared to their US counterparts. For instance, a noteworthy 81% of UK insurance company executives expressed their commitment to providing competitive interest rates and fees to customers, in contrast to just 29% in the US. Similarly, 69% of UK insurers are investing in incentives for prospective customers, a figure that stands at 42% for US insurers.
The observed disparity between the two countries could be attributed to economic headwinds that have had a more pronounced impact on the US. For instance, 91% of US financial services firms noted that high interest rates have hindered their capacity to innovate and invest, while this figure stands at 78% for their UK counterparts. Makwana pointed out that UK financial services executives have exhibited a greater resilience in the face of negative market conditions, potentially due to the agility and adaptability of the UK financial services sector and ongoing governmental efforts to stabilise prevailing conditions.