Co-authored by Mark Pring

As part of our new series on artificial intelligence, our video explores AI's impact on the UK insurance market, starting with an overview of the technologies involved, from narrow AI systems like facial recognition to more advanced, general-purpose AI and agentic AI systems that could one day operate independently like human employees.

In the UK insurance market, AI is already revolutionizing processes like underwriting and claims processing. AI models, powered by vast data streams, are automating underwriting, reducing processing times, and enhancing accuracy. For claims, AI-driven tools like drones are improving data capture and speeding up claims handling, particularly after events like natural disasters.

Policyholders must be proactive in ensuring that AI-driven insurance products are tailored to their specific needs. As AI technology advances, it’s crucial to reassess existing policies for coverage of AI-related risks, especially given the emergence of exclusions related to so-called "silent cyber" exposures. Clear communication with brokers about AI usage and potential risks is essential.

As AI continues to transform the insurance landscape, it's vital to scrutinize policy wordings and collaborate with brokers and underwriters. You can watch the video in its entirety at Reed Smith.