LSE-listed insurance company Hiscox has developed an AI model, in partnership with Google, reported the Financial Times.
The AI tool is said to be capable of automating core underwriting tasks for specialist risk scenarios.
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As part of a trial, Hiscox automated the underwriting of a policy against property sabotage and terrorism, for which it would be serving as the lead underwriter.
According to Hiscox, using AI would shorten the time it takes to generate a quote from days to a few minutes.
Hiscox London market division CEO Kate Markham said: “It will allow the underwriters also to do more from a sales perspective, to travel more.”
Responding to the potential impact on underwriter jobs, Markham said the business was “still hiring and planning to grow”.
Hiscox plans to implement the AI model in the second half of 2024, she said.
“The big question for us is: do we go [with] one line of business or do we try and drop this capability across multiple lines of business – which I think is our preference,” Markham added.
The platform extracts data from email submissions provided by insurance brokers and automates the entire process, from analysis to quote.
It leverages a combination of Hiscox’s digital technology and Google’s generative AI capabilities.
The broker’s draft contract, along with any other text and information, is ingested by the AI. Hiscox has its system to decide whether or not the risk is within its appetite.
Finally, the AI tool creates a summary of what Hiscox has agreed to insure in a reply email, which is reviewed by a human underwriter before being sent to the broker.
“We do not want to remove the human in the chain at the moment,” said Markham.
She added: “We want to keep the underwriter so they can confirm that the models are behaving.”
Last week, Allianz UK said it has developed an AI tool to combat insurance fraud.
