Nearly four-fifths (78%) of London market brokers say how insurers use new digital technologies to improve efficiency plays a very important role in the way they place risk, according to research from Guidewire.
Guidewire’s research is based on a survey of more than 250 insurance brokers who work primarily with London market insurers.
Guidewire said brokers are increasingly focusing on efficiency and favoring technology-advanced insurers amid soft markets. This is more pronounced among senior broker and director-level respondents.
Reliance on outdated technology is seen as the biggest obstacle to modernizing the London market, according to 24% of respondents.
The report also found that 78% of respondents are continuing to implement their technology strategies regardless of Blueprint Two timelines. Among those moving forward independently, 31% expressed concerns about insurers’ ability to consolidate due to legacy core limitations.
The most important AI use cases considered by brokers are automated submission receipt and data extraction (42%), followed by enhanced risk management (38%).
More than half of brokers (51%) say a shift toward algorithmic or fully digital underwriting is occurring, while nearly half (48%) view positively the ability of “intelligent follower syndicates” to accelerate placements, highlighting the growing role of automation in underwriting workflows.
Jamie McDonnell, London Marketing Director, Guidewire Said: “Loyalty among London market brokers is no longer solely based on history or relationships. In a weak market where competition for business is increasing, modernization is more important than ever. This survey shows that an overwhelming majority of brokers favor technologically advanced insurers. This reflects the need for a stable, long-lasting core operating platform, which These platforms can drive the London market’s promise to clients globally – platforms that evolve as insurers compete, enabling seamless integration and providing underwriters with the ability to leverage emerging tools in the environment they need to better deliver consistently and compete dynamically.”