The British Insurance Brokers’ Association (BIBA) has released a new guide aimed at supporting brokers in understanding the potential role of artificial intelligence (AI) in their operations.
Developed with input from market participants and with support from insurer Markel, the guide outlines where AI is being used, associated regulatory and compliance considerations and offers insights from firms that have already adopted the technology.
The publication comes as AI adoption in the UK insurance sector continues to increase. A 2024 report from the Bank of England found that 95% of insurers are using AI in some capacity, with an additional 10% planning to adopt it within three years.
Meanwhile, separate industry research has indicated that 83% of insurers have implemented AI tools to support claims processes, although broader deployment remains limited.
“AI, and its adoption, is moving fast,” said BIBA CEO Graeme Trudgill (pictured above). “In a world where technology can be transformative, we wanted to help members grasp the opportunities and the risks it presents. Certainly, the AI genie is out of the bottle, so our aim is to help brokers navigate the new era of AI safely and within regulatory requirements.”
Jo Sykes, of Markel, added that the guidance is intended to support brokers as they assess how AI may be integrated into their operations: “With practical insights and expert advice throughout, the guide will help BIBA members take advantage of AI technology effectively and ethically.”
While the guide encourages brokers to explore the potential benefits of AI, it also noted that the technology is not a universal solution. The guide highlighted the importance of ongoing oversight, regulatory compliance and human judgment, particularly in areas involving customer outcomes.
The guide is available exclusively to BIBA members through the association’s website, BIBA said.
