Is the London Market’s Technology Keeping Pace with its AI Ambitions?
The London Market is investing in AI, but new research from Federato suggests the technology underpinning many organisations could be limiting how quickly those ambitions translate into commercial results.
The London Insurance Market’s Execution Gap: AI Ambition and Core Technology draws on responses from 245 professionals across Lloyd’s managing agents, company market insurers, MGAs, reinsurers and brokers.
One of the most striking findings is the relationship between operational speed and competitiveness. 89% of respondents said their organisation had lost business to competitors because of operational speed in the previous 12 months, while 42% said changes to underwriting strategy can take weeks or longer to reach day-to-day decision-making.
One of the most striking findings is the relationship between operational speed and competitiveness. 89% of respondents said their organisation had lost business to competitors because of operational speed in the previous 12 months, while 42% said changes to underwriting strategy can take weeks or longer to reach day-to-day decision-making.
AI adoption is already well underway, with 58% of respondents saying their organisation uses AI in production. However, 76% expect their core systems will require significant integration, modernisation or transformation to support future AI and underwriting requirements. Only 24% believe incremental upgrades to their existing core technology will be enough.
The research also highlights the complexity of transforming technology in the London Market. Subscription and multi-party underwriting was cited as a barrier by 43% of respondents, while 42% pointed to multiple systems operating across the policy lifecycle.
For London Market organisations looking to scale AI, the findings raise a broader question: is adopting new technology enough, or does meaningful transformation require modernising the core systems and processes beneath it?
