Vijay Mahendraker, SVP, Insurance Solutions (UK & Europe) at ValueMomentum

So the key challenges that I see in the UK market today is of course with the maturity in AI technologies and the power that this provides to insurers to create value for end customers and businesses is how do you really go about changing your overall operating model in an AI world.

The second key challenge that they have is transforming their operating model in an AI world in a very responsible way. That’s very important given that we live in a regulated industry. Any actions are directly impacting the customers as well as the stakeholders. So it’s extremely important but at the same time challenging to implement these kind of initiatives in responsible ways.

There is significant gap in underinsurance which provides a lot of opportunity for insurers to drive growth. To capture that growth, the key investments that I am seeing our insurers are making is one is of course investing in building an AI fabric to start moving from applying AI not just as a productivity tool but as a key operating model — to transform underwriting, transform claims, to become proactive claims, to transform distribution, to become closer to risk.

The second key investment of course is increasing the maturity of data and the quality and the trust of data that is required to then convert it into actionable intelligence — converting the data in a very contextual way and making it available at the moment of truth so that it helps the underwriters, the claims handlers to take the right decisions in the interest of the customer and the business.

And the third of course is building the right guardrails to ensure that we do it in a very responsible way. So these are the three key areas that I see significant investments that our insurers are making.