Lloyd’s is embracing AI, says LMA
AI is rapidly reshaping the Lloyd's market, but technology alone will not determine who succeeds.
“We are seeing AI change across the market”
According to Joe Brace, operations director at the Lloyd’s Market Association (LMA), insurers are increasingly using AI across a wide range of functions, from submission intake and triage through to compliance checks and second-line oversight.
“We are seeing AI change across the market from ingestion and triage to compliance and second-line checks,” Brace told AIRMIC Today.
The goal is not simply to automate existing processes. Instead, insurers are looking to make better use of structured data and analytics to improve decision-making and efficiency across the insurance value chain.
“The aim is to utilise more structured data and analytics. AI is enhancing processes end to end,” he said.
Yet Brace cautions against viewing AI as a silver bullet. While enthusiasm around the technology continues to grow, he believes the foundations of successful transformation remain largely unchanged.
“The basics of change management, clean data and collaboration are still at the heart of the change,” he said.
Those foundations may become even more important as insurers seek to deploy AI at scale. Alongside the opportunities, Brace points to a number of challenges the market is still working through.
“Alongside the opportunity, there are real considerations – particularly around governance, transparency and ensuring transparency,” he said.
The discussion around AI also sits within a broader push towards digitisation across the Lloyd’s market. Brace believes significant progress has already been made, particularly around data standards, digital placement and automation. These developments, he argues, are creating the foundations upon which AI can deliver meaningful value.
“Lloyd’s as a market has made strong advances on data standards, placement and automation, which are critical foundations for AI and wider digitisation,” he said.
“There’s clear momentum behind initiatives like the core data record (CDR) and smarter, more automated workflows,” Brace added.
However, digitisation at Lloyd’s presents challenges that differ from those many other industries face. The market’s unique structure means progress depends on a large number of participants moving forward together.
“Lloyd’s is a highly interconnected market, so digitisation requires co-ordination across many stakeholders,” Brace said.
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