**London**: A Lloyd’s Market Association survey of 81 firms reveals 40% have integrated AI, mainly for data extraction and submission preparation, yet many face data quality, integration, and financial challenges. Use of agentic AI in underwriting remains limited as the market cautiously explores technology adoption.
A recent survey conducted by the Lloyd’s Market Association (LMA) has unveiled the current landscape of artificial intelligence (AI) adoption within the London specialty insurance market, highlighting both active usage and persistent challenges. The survey, encompassing 81 firms—including 45 Lloyd’s managing agents—reveals that 40% of London market firms are either actively using AI tools in certain areas or have broadly integrated these technologies into their workflows.
The LMA hosted a seminar focusing on AI utilisation in this sector, where the survey results were discussed in detail. Among the key findings, 14% of respondents have implemented or experimented with agentic or generative AI in underwriting processes. Nevertheless, a substantial 65% have yet to apply these advanced AI technologies to underwriting or claims, and 12% indicated that they have no intention of doing so.
At present, AI engagement is largely in the early adoption phase, with 47% of firms experimenting with AI tools without widespread deployment. The survey identified data extraction from unstructured documents as the leading use case, leveraged by nearly 74% of respondents for underwriting and claims processes. Additionally, over half (54%) use AI to prepare submissions, while around one-third see potential applications in claims triage, automation of straightforward tasks, and management of policy reviews or endorsements. Fraud detection remains a less prominent focus, with only 14% recognising it as a primary use case for AI-driven digital workforces.
Despite the growing exploration of AI, several significant barriers hinder its broader adoption. Issues related to data quality and availability were reported by 49% of respondents, while 46% confessed to difficulties integrating AI solutions with existing IT systems. Financial concerns, particularly regarding costs and uncertainty about return on investment, affected 48% of those surveyed.
Rob Myers, Consultant at the LMA, emphasised the importance of moving forward with AI developments, stating, “We are hosting our AI event today to inform our members and the wider market on the opportunity in front of them and to facilitate the market stepping forward and building out its AI expertise and capabilities. 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. 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.”
These findings reflect the evolving role of AI in the London specialty insurance market, indicating a sector cautiously exploring transformative technologies while navigating practical and financial challenges inherent to such innovations.
Source: Noah Wire Services
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