One thing is certain, AI is not just a technical investment, it’s a strategic business priority for insurers. It demands leadership, cultural alignment, and organisational agility – areas where the US seems to be leading the way right now
LONDON: New research from leading Insurtech provider, hyperexponential (hx), reveals that while insurers are energised by the potential of artificial intelligence (AI), stark differences are emerging between UK and US markets, with US insurers pulling ahead in confidence, investment, and strategy execution.
The study, which surveyed 350 underwriting, actuarial, and IT professionals working in Specialty and Commercial insurance across the UK and US, shows AI is viewed as a major enabler for the insurance sector:
In the US, 39% of actuaries believe AI will unlock the ability to write currently uninsurable risks, and 58% of underwriters expect it will lead to better underwriting judgments.
Similarly, in the UK, 40% of underwriters share this optimism, believing AI will enhance underwriting judgments.
While optimism runs high, confidence levels vary sharply between geographies. Only 17% of UK pricing actuaries and underwriters express high confidence in their organisation’s ability to implement AI successfully, falling to just 10% among UK IT and digital transformation specialists.
In stark contrast, US respondents reported far greater belief in their capabilities: 60% of US underwriters and 52% of IT specialists declaring they were highly confident in their firm’s AI implementation.
Clear strategies accelerate progress
Unsurprisingly, this regional divergence is also present when it comes to strategic planning. Nearly half (47%) of US respondents say their organisation has a well-defined, widely communicated roadmap for AI adoption, with underwriters (58%) and IT specialists (56%) feeling particularly well-aligned. In comparison, just 16% of UK organisations are at the same level of readiness, with 17% admitting they have not even started defining their AI strategy.
Worryingly, nearly one-third of UK underwriters believe their organisation is significantly underinvesting in AI – a view shared by just 4% of their US counterparts.
A divided workforce outlook
One-third (34%) of UK actuaries foresee reductions in actuarial and underwriting workforces as AI adoption increases. Meanwhile, only 9% of US actuaries share the same expectation, suggesting a more optimistic view of AI as a tool for augmentation rather than replacement.
US and UK IT teams: A growing gap in AI optimism
Sentiment within IT and digital transformation teams further highlights the growing transatlantic gap. While 85% of US IT specialists report positive feelings towards AI’s role in insurance, this falls to just 43% in the UK, where scepticism remains pronounced.
Commenting on the survey findings, Amrit Santhirasenan, CEO of hyperexponential, said, “AI is no longer a fringe experiment – it’s rapidly becoming a core consideration for how specialty and commercial insurers make decisions, build advantage, and serve evolving customer needs.”
While it’s encouraging to see universal recognition of AI’s transformative potential, the divergence between the US and UK in confidence, planning, investment and implementation around AI, demonstrates that there is no universally agreed playbook for AI roll-out, said Santhirasenan.
“We must resist the urge to over-engineer solutions and instead focus on tightly scoped slices of end-to-end value, designed for iteration and learning with flexibility built in from the outset.”
One thing is certain, AI is not just a technical investment, it’s a strategic business priority for insurers. It demands leadership, cultural alignment, and organisational agility – areas where the US seems to be leading the way right now.
However, the specialty and commercial markets are well-versed in adapting to a rapidly evolving risk landscape, and we have every reason to believe that insurers, regardless of geography, can harness the same resilience and innovation to unlock the full potential of AI.