• SECTOR INSIGHT FOR GENERAL INSURANCE, FINANCIAL SERVICES AND LEGAL

  • WHAT DOES AI MEAN FOR THE INSURANCE, FINANCIAL SERVICES AND LEGAL PROFESSIONS?

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    KEY SECTOR INSIGHTS

    71%

    of Insurance businesses have seen is an increase in revenue streams.

    Productivity

    Majority of Financial Services businesses ranked an increase in productivity as their most notable benefit.

    Innovation

    Legal businesses have said the deployment of AI has led to a substantial increase in innovation. 

    Budget

    Businesses from all sectors say they have a budget set aside for AI over the next 12 months (Insurance – 95%, Financial Services – 93%, Legal 77%).

    70%

    of Financials Services businesses believe AI will lead to lots of new employment opportunities compared to 29% of insurance businesses.

    98%

    of Legal clients think AI will severely affect their industry over the next three years, compared to 27% of insurance clients who think the same.

    56%

    of Insurance businesses said AI has improved product / service delivery.

    40%

    of Financial Services businesses said AI has led to improved customer satisfaction.  

    52%

    of professionals in the Insurance sector said they've experienced changes in their role as a result of AI.

    76%

    of professionls in the Financial Services sector said they have received a salary increase as a result of AI changes in their role, compared to 68% of Legal professionals and 30% of Insurance professionals.  

  • "The talent pools for this will be those who have committed time to learn and evolve their skillsets and expertise, particularly in the tech specialism. They will have competitive advantage as professionals who can trade their skills into the insurance market as it learns about the opportunities AI will create for their business, colleagues and clients.”

     

    Paul Davey, Director, General Insurance

  • THE IMPACT AND OPPORTUNITY FOR THE INSURANCE PROFESSION

     

    88% of insurance businesses surveyed said they have adopted AI in across their organisation, with 70% of professionals stating that they have experienced changes in their job as a result of it. Further research shows that insurance businesses are currently deploying AI and Machine Learning for a range of tasks, including;

  • CLAIMS PROCESSING

    Claims processing where AI tools are able to automate repetitive tasks, such as data entry and document processing.

    RISK ASSESMENT

    Risk assessment and underwriting with the use of AI algorithms to analyse large amounts of data, historical claims and credit scores.

    PERSONALISATION

    Personalised products and pricing where again data analysis tools are being used to assess customer behaviour, risk and market comparisons.

  • Our data shows that personalised marketing is a clear benefit for insurance companies with 67% saying they’ve seen an improvement in this due to the introduction of AI.

     

    One client commented, “[We’re using] Artificial intelligence technology…to analyse and predict the risks and needs of customers, so as to provide customers with personalised insurance plans.”

     

    AI will continue to open up new avenues for the insurance profession. However, businesses will need to be mindful of data security and privacy concerns to ensure customer data is handled securely and algorithms are transparent and unbiased.

  • "Candidates with AI or machine learning experience are certainly in-demand across the Financial Services market. If you can bridge the gap between AI expertise, operational efficiencies and cost saving, than you’re even more desirable.”

     

    Jack Johnson, Business Director, Financial Services

  • THE IMPACT AND OPPORTUNITY FOR FINANCIAL SERVICES

    68% of Financial Services businesses said they believe AI will affect their industry severely over the next three years, with 75% saying they are currently using it in their organisation. Although 40% say they have made staff cuts as a result of AI, 47% say new roles have been created.

     

  • Businesses told us they’re currently using AI to:  

    IMPROVE SERVICE

    Improve customer service with 24/7 chatbots who can quickly satisfy customer queries with real-time solutions and support.

    ENHANCE OPERATIONS

    Enhance credit decisions with a more accurate data analysis of potential borrowers. Further research also shows that digital banks are using AI algorithms to obtain and assess a range of customer data sources to evaluate loan eligibility in more detail.

    MITIGATE FRAUD

    Mitigate financial fraud, especially with regards to online purchasing and loan applications. Fraud detection tools use AI to analyse a customer’s behaviour and buying habits, triggering a security mechanism when it identifies unusual activity on an account.  

  • A survey respondent confirms this in our survey, stating

    “[Our business is using AI for] fraud detection. We have implemented machine learning algorithms to detect fraudulent transactions and anomalies in customer accounts.” 

     

    The top two benefits businesses in the Financial Services profession highlight are an increase in productivity (28%) and a better understanding of customers (26%).

  • “It’s a strong differentiator and advantage for any Legal professional to have AI knowledge and experience, especially since most lawyers and solicitors do not typically have training in data science and technology. However, machine learning will continue to influence and affect ways of working across the profession, so it’s incredibly important that employers invest time and money into applicable training to support people with any knowledge gaps. Looking ahead, legal professionals who are able to integrate emerging technologies into their daily processes will be highly sought after."

     

    Emma Delli-Bovi, Business Director, Legal

  • THE IMPACT AND OPPORTUNITY FOR THE LEGAL PROFESSION

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    INCREASE IN PRODUCTIVITY

    There’s considerable research which emphasises the benefits of AI for the Legal profession from using AI powered tools to conduct legal research and analysis, to using software to review contracts, identify risks and extract critical information. These immediate advantages are hugely improving efficiency and freeing up legal advisers to focus on more complex, strategic tasks, and importantly client consultation.

     

    A respondent from the legal profession stated they’re using AI to, “provide a better service with intelligent consultation and monitoring, as well as automating processes (Data entry, document processing and production line operation)”.

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    INNOVATION

    One of the top benefits listed by clients and professional in the sector was an increase in innovation.

     

    The potential for the legal profession is huge with some tech companies even trialling a robot lawyer. This is true of company, ‘DoNotPay’, an online legal service who is set to make history with the world’s first robot lawyer. The company is currently trialling the app in replace of a barrister, which has been programmed to listen to courtroom commentary and provide the defendant with advice on what to say.

     

    However, there will, as there are for many other sectors, continue to be data security and ethical implications, where law firms will need to implement data protection measures to safeguard client confidentiality and ensure bias is avoided.

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