Hiscox Launches Market-First Gen AI Underwriting Model
Hiscox, a leading global specialist insurer, has officially launched the London insurance market's first lead underwriting model enhanced by generative AI. This model is set to improve the efficiency of sabotage and terrorism insurance quotes.
The new AI-powered model will initially target the renewal of existing sabotage and terrorism risks in the US and Canada, with the exclusion of metro areas such as New York and Chicago.
Originally developed as a proof of concept in December 2023 in collaboration with Google Cloud, the AI-enhanced underwriting model marks a significant advancement for Hiscox’s sabotage and terrorism insurance line. By leveraging the power of generative AI, Hiscox can drastically reduce the time taken from risk submission to the quote stage.
Hiscox Enhances Underwriting with AI
In 2021, Hiscox London Market introduced Hiscox AI Laboratories (Hailo), its first proprietary AI tool. Building on this foundation, Hiscox has now combined Hailo with Google Cloud's generative AI, removing many of the manual elements from the underwriting process.
The new system assesses risks within scope using Google Cloud’s Gemini large language model. It automates much of the process by generating an email to the broker, complete with pricing and other relevant data, ready for underwriter review. This innovation allows Hiscox to deliver an insurance quote to brokers in just minutes, greatly reducing turnaround time.
While the new underwriting model is available to all brokers, the first policy under this system was issued through insurance broker WTW. Hiscox and Google Cloud intend to further explore and develop additional features, with the potential to extend these AI capabilities to other lines of business in the future.
Kate Markham, Hiscox London Market CEO, says: “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, says: “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, says: “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.”
Google Cloud's notable InsurTech Partnerships
Google Cloud has been forging impactful partnerships with insurtech companies to drive innovation in the insurance industry through the use of advanced technologies, particularly generative AI. These collaborations have transformed how insurers assess risk, manage data, and streamline workflows.
One notable partnership is with Cytora, a UK-based insurtech that leverages Google Cloud's Vertex AI to enhance underwriting processes. Cytora uses generative AI to digitise and automate the evaluation of commercial risks. This partnership allows Cytora to process vast amounts of unstructured data from various sources, making it easier for underwriters to make informed decisions quickly. The AI models employed help transform complex data into decision-ready formats, significantly improving efficiency and accuracy in risk assessment. Cytora's platform also addresses the challenges of data security and model transparency, which are critical in gaining trust and compliance within the insurance industry.
Another significant collaboration is with Admiral, a major UK insurer, which has partnered with Google Cloud to enhance its digital capabilities. By migrating to Google Cloud, Admiral aims to accelerate its digital transformation, enabling more agile operations and better customer experiences. This partnership focuses on leveraging Google Cloud's infrastructure to improve the scalability and reliability of Admiral's services, positioning the company to better meet the demands of modern insurance consumers.
Igloo, an insurtech company in Southeast Asia, also uses Google Cloud's technologies to scale its operations across the region. Igloo's platform, powered by Google Cloud, facilitates the delivery of digital insurance products, making it easier to manage policies and claims. The partnership enables Igloo to leverage cloud computing to support its rapid growth and innovation in the highly competitive insurtech market.
Lastly, Lemonade, a US-based insurtech, has integrated Google Cloud's AI and machine learning tools to automate and optimise its claims process. This integration allows Lemonade to deliver quick and efficient service to its customers, reducing the time taken to process claims while maintaining accuracy and customer satisfaction.
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