Hiscox, a global specialist insurer known for its tailored insurance solutions, has announced the launch of the London insurance market’s first lead underwriting model enhanced by generative AI.
This innovation is part of the company’s ongoing efforts to improve efficiency in providing sabotage and terrorism insurance quotes to customers.
The development of this new underwriting model is in response to the need for faster and more efficient processing of insurance quotes.
By integrating advanced AI technologies, Hiscox aims to reduce the time taken from the submission of a risk to the delivery of a quote, thereby enhancing customer satisfaction and operational efficiency.
Hiscox, which has a strong reputation in the insurance industry for its expertise in underwriting and risk management, collaborated with Google Cloud to create this innovative solution.
The company’s AI division, Hiscox AI Laboratories (Hailo), played a crucial role in the development process, working alongside Google Cloud to bring this concept to life.
The new AI-powered underwriting model leverages Google Cloud’s Gemini large language model to streamline the underwriting process.
By removing manual elements, the system can automatically assess risks that fall within its scope and generate an email for brokers with the necessary pricing and data.
This email is then ready for underwriter review, enabling Hiscox to provide insurance quotes in a matter of minutes, a significant improvement from traditional methods.
Currently, the new model is available to all brokers, with the first risk written in collaboration with insurance broker WTW.
Hiscox and Google Cloud are also exploring additional capabilities and potential applications for this technology in other lines of business, which could further enhance the company’s service offerings in the future.
Commenting on this industry milestone, Hiscox London Market CEO Kate Markham said, “We were really excited by the potential shown by the proof of concept, so to see it now making a tangible impact on our business – starting with sabotage and terrorism – is fantastic. The efficiency delivered is testament to the outstanding collaboration between Hiscox and Google Cloud. It proves that by bringing teams together and harnessing technology, we can deliver tangible benefits for customers, while freeing up our underwriters from manual tasks and allowing them to focus on more complex risks where human expertise is critical.”
Graham Drury, Head of Financial Services Industry UK, Google Cloud, said, “Through this collaboration we have proven the power of generative AI in transforming complex insurance underwriting processes. We continue to work closely with Hiscox to evolve and refine the augmented underwriting model for lead submissions as we look to deliver this same value across other lines of insurance.”
Jo Holliday, Global Head of Crisis Management, at WTW, said, “WTW has long recognised the enhanced use of digitisation as critical to the future of the insurance market. By harnessing AI to help streamline processes and deliver much quicker turnaround times from risk submission to quote, we are taking a step forward in the evolution of the digital marketplace, which is great news for our clients.”
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