Embrace the evolution from datasets to insights (and Gen AI)
February 6, 2025
In October we published our annual Lloyd’s and London Market CEO Agenda for 2025 – “Leading through uncertainty”. We look at the current market conditions and set out six transformation topics that we believe CEOs should address in 2025:
4. Embrace the evolution from datasets to insights (and Gen AI)
Whilst it is easy to note that the insurance industry lags some other industries on its use of data and analytics, it is worth reminding ourselves where we have come from. An Oxbow Partners Data & Analytics benchmarking study for the London Market in 2017 indicated limited Board and executive team interest and engagement on data. In 2020, a rerun of the study demonstrated positive momentum among leaders and in 2024 we can say that data is universally seen as a critical and differentiating asset.
We observe a significant acceleration in data and analytics activity in the market.
The hot topic in 2024 is clearly Gen AI. We see 2025 as the tipping point where London Market carriers will identify and start acting on use cases that can drive value at scale. We expect these to include opportunities such as automated submission ingestion, data analysis and risk information summarisation.
Some carriers have already begun to experiment with Gen AI, for example Beazley, Hiscox and Markel. Many of the leaders are partnering with third parties such as Cytora, an underwriting platform, or Google Cloud.
Whilst the rate of adoption of Gen AI remains uncertain, we have a high level of conviction that Gen AI will fundamentally change the industry in the long run. This view aligns with a recent Oxbow Partners market survey which found that over 85% of respondents believe Gen AI will be “highly transformational” in the long-term. However, only 5% believed Gen AI will be transformational in the short-term.
Imperatives for 2025
Exploiting data is an ongoing challenge for carriers, but one where efforts need to be redoubled in 2025.
Next year we expect the average London Market carrier to pivot from focusing mainly on building data foundations to extracting insight. Leaders need to avoid change fatigue.
Additionally, CEOs must get on the front foot in Gen AI adoption: define a clear strategy and set a Gen AI ambition, actively consider a Gen AI angle in other initiatives (especially in any transformation effort) and establish an operating model for Gen AI testing and implementation.
