- 8 in 10 brokers are already using AI on a daily basis
- Almost half (49.5%) of brokers see the potential benefits AI has, but are also aware of the challenges it poses
- However, brokers still understand the need for human oversight of AI-generated results, in order to provide a good outcome for customers
Artificial intelligence (AI) is playing an increasingly significant role in shaping how brokers in the UK insurance sector are approaching their work, according to research* revealed today by RSA Insurance. The latest Broker Pulse, conducted among 200 brokers drawn from across the industry, sheds light on the current state of AI adoption and perceptions of its potential impact on the sector. The findings show that, while brokers have an overwhelmingly positive outlook on AI, they remain cautious of its challenges and the impacts on customers.
According to the research, 70% of brokers hold a positive attitude towards AI. Nearly half of those surveyed (49.5%) recognise AI’s immense potential to bring about benefits, while remaining keenly aware of the challenges it poses. This optimism is reflective of the insurance industry's readiness to embrace technological advancements, as it becomes one of the foremost adopters of AI and leads the way for other sectors.
The Broker Pulse also shows that an impressive 80% are already incorporating AI into their daily workflows. However, the study also reveals that nearly half of these (48%) only use AI occasionally, suggesting that there is still room for further integration and utilisation of this transformative technology, as its benefits are more widely understood and the challenges are addressed.
One striking finding of the survey is that brokers do not see AI as favouring any specific area of their practice. Instead, they believe it could benefit multiple areas of their work. Some of the key capabilities of AI identified by Brokers to expedite their work include:
- AI-powered chat bots for quick customer support and query resolution (48%)
- Automated claims processing to streamline settlements and reduce processing time (46.5%)
- Predictive analytics for accurate risk assessment and underwriting (45%)
- Personalised policy recommendations based on customer data and behaviour (41%)
Despite their enthusiasm for AI, brokers maintain a healthy dose of scepticism when it comes to the application of AI. Their primary concerns revolve around the need for human oversight and ensuring a high level of service for their customers. Key concerns among those surveyed include the need to balance AI automation with maintaining a personalised customer experience (46%) and ensuring that AI algorithms making critical decisions are checked thoroughly by a broker to ensure they’re made in the best interests of the customer (44.5%).
Rob Flynn, SME Director at RSA Insurance commented on the survey, saying:
“AI will undoubtedly have a huge impact on the world and the potential to revolutionise many aspects of our lives. The insurance industry is no exception. Our research shows that brokers are already beginning to usher in a new era of innovation and efficiency. However, the research also reveals a need to strike the right balance between automation and the human touch.
“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 maximise the benefits of this technology and understand any challenges or hurdles that could arise.”
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Enquiries:
Oliver Hibberd
Oliver.hibberd@uk.rsagroup.com
Notes to editors
About the research
*The research was conducted by Censuswide among 200 UK brokers on behalf of RSA Insurance Group on 21 August 2023.
About RSA Insurance
RSA Insurance is a multinational insurance group. We are one of the world’s oldest general insurers, providing peace of mind to individuals and protecting small businesses and large organisations from uncertainty. We use our capabilities to anticipate and improve outcomes for customers via our direct channel, our broker relationships or partner organisations. We have established businesses in the UK, Ireland continental Europe and in the Middle East.
In 2021, the former RSA Group Plc came under new ownership and is now a wholly-owned subsidiary of Intact Financial Corporation.