Hiscox, a prominent UK insurer, has unveiled a groundbreaking collaboration with Google to pioneer the use of artificial intelligence (AI) in the core underwriting process for specialist risks. The strategic partnership aims to streamline and automate the traditionally labor-intensive underwriting procedures, marking a significant technological leap for London's insurance sector. Hiscox's Chief Executive of the London market division, Kate Markham, announced that the AI model, currently in trial stages, demonstrated unprecedented efficiency during the underwriting of a property sabotage and terrorism policy.

The innovative AI tool, set to be implemented by Hiscox in the coming year, is expected to revolutionize the underwriting landscape by reducing quote generation time from days to mere minutes. This transformative technology will not only enhance operational speed but also empower underwriters to focus on more intricate and challenging risks. Markham emphasized the potential for increased sales opportunities and expanded business operations, while assuring that the company remains committed to growth through continued hiring.

Hiscox plans to deploy the AI model in the second half of 2024, with considerations for extending its capabilities across various lines of business. Unlike previous AI applications in the insurance sector, which primarily focused on claims analysis, this joint venture between Hiscox and Google aims to automate the negotiation of specialist commercial insurance contracts, ranging from cybersecurity to environmental risks. The technology, blending Google's generative AI and Hiscox's digital expertise, extracts and processes data from email submissions provided by insurance brokers, offering an end-to-end solution for analysis, quoting, and communication.

Despite the transformative power of AI, Markham emphasized the importance of retaining human oversight in the underwriting process. The AI tool is designed to support and augment human decision-making, rather than replace it entirely. Hiscox and Google's collaboration represents a milestone in the insurance industry's journey towards adopting advanced technologies, aligning with broader trends in AI adoption across various sectors worldwide. The move comes as the European Union recently agreed on landmark legislation, the AI Act, ushering in comprehensive regulations for artificial intelligence, while the UK maintains its stance of leveraging existing regulatory frameworks for oversight in the near term.