Nearly four in five (78%) London Market brokers say that how insurers harness new digital technology to enhance efficiency plays a highly significant role in where they place risk, according to research from Guidewire.
Guidewire’s research is based on a survey of more than 250 insurance brokers who primarily work with London Market insurers.
In a softening market, Guidewire suggests brokers are becoming increasingly focused on efficiency and are favouring technologically advanced insurers. This is even more pronounced among senior brokers and director-level respondents.
Reliance on outdated technology was ranked as the single biggest impediment to modernisation in the London Market, cited by 24% of respondents.
The report also found that 78% of respondents are proceeding with their own technology strategies regardless of the Blueprint Two timeline. Of those moving ahead independently, 31% expressed concern about insurers’ ability to integrate due to legacy core constraints.
The top AI use case identified by brokers was automating submission intake and data extraction (42%), followed by enhancing exposure management (38%).
Just over half of brokers (51%) say the shift toward algorithmic or fully digital underwriting is happening now, while nearly half (48%) view ‘smart follow syndicates’ positively for their ability to speed up placement, highlighting the growing role of automation in underwriting workflows.
Jamie McDonnell, London Market Director, Guidewire, said, “London Market broker loyalty is no longer anchored in history or relationships alone. In a softening market, where competition for business intensifies, modernisation is more critical than ever. This survey shows a clear majority of brokers favour technologically forward insurers. This reflects the need for stable, durable core operating platforms that can power the commitments the London Market makes to customers around the world. Insurers that invest in resilient foundations – platforms that evolve with the pace of competition, enable seamless integration, and provide underwriters with the ability to leverage emerging tools, in the context they require – are better positioned to deliver consistently and compete dynamically.”
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