Artificial intelligence (AI) is shaping up to become a transformative tool in the UK insurance sector, new research has shown, with brokers increasingly adopting the technology into their workflow.
Findings from a recent study by RSA Insurance indicated a positive outlook toward AI among brokers, with 70% of those surveyed expressing a favorable attitude regarding its use.
Nearly half (49.5%) of the 200 brokers included in the study also acknowledged the potential benefits of AI, even as they remained cautious about the challenges it presents.
80% said they already use AI in their day-to-day operations. However, 48% of this group said they only utilize it occasionally.
In terms of utilizing AI, brokers said they don’t perceive the technology as favoring any specific aspect of their practice and instead believe that it can enhance multiple areas of their work.
Key AI capabilities highlighted in RSA’s Broker Pulse survey include AI-powered chatbots for prompt customer support and query resolution (48%), automated claims processing to streamline settlements and reduce processing time (46.5%), predictive analytics for precise risk assessment and underwriting (45%), and personalized policy recommendations based on customer data and behavior (41%).
Despite this enthusiasm, brokers have maintained a healthy dose of skepticism when it comes to its application, according to the survey.
The main concerns raised by those surveyed were the need to balance AI automation with maintaining a personalized customer experience (46%) and ensuring that AI algorithms making critical decisions are thoroughly checked by a broker to guarantee they are made in the best interests of the customer (44.5%)
Rob Flynn, SME director at RSA Insurance, commented on the survey’s findings and acknowledged AI’s potential to revolutionize the insurance industry while emphasizing the balanced approach favored by brokers.
“Our industry needs to come together – brokers, insurers, clients, and other key stakeholders – to consider a collaborative approach when implementing AI solutions to ensure we maximize the benefits of this technology and understand any challenges or hurdles that could arise,” he said.