A recent survey by the Lloyd’s Market Association (LMA) found that 40% of London market firms are actively using AI tools in some areas or have even widely integrated them into their workflows; however, AI adoption still faces significant barriers.

The LMA recently hosted a seminar on the use of AI within the London specialty market, referencing its survey completed by 81 firms, including 45 Lloyd’s managing agents.

The survey revealed that 14% of respondents have deployed or experimented with agentic or generative AI in underwriting processes. However, 65% have not yet applied these technologies to underwriting or claims, and 12% said they have no plans to do so.

For most respondents, AI usage remains in the early adopter stage, with 47% experimenting with tools but not yet achieving wide adoption.

Currently, the primary use case for a digital workforce in underwriting and/or claims processes is data extraction from unstructured documents—used by nearly three-quarters (74%) of respondents.

More than half (54%) use AI for submission preparation, while one-third see potential in claims triage, automation of simple tasks, and policy review or endorsement management. Only 14% identified fraud detection as a primary use case for a digital workforce.

However, various barriers continue to hinder the adoption of AI within underwriting and claims operations. Data quality and availability issues were cited by 49% of respondents, while 46% pointed to integration challenges with existing systems. Cost and uncertainty around return on investment were also concerns for 48%.

Rob Myers, Consultant at the LMA, commented, “We are hosting our AI event today to inform our members and the wider market on the opportunity in front of them and to facilitate the market stepping forward and building out its AI expertise and capabilities. Although it is encouraging to see that one-third of companies are already deploying agentic AI or generative AI, it is surprising to note that half of survey respondents have not yet tested its capabilities. We have a chance to consider how the complexities of the London specialty market can be a magnet, rather than a barrier, for deployment of ‘intelligence as a service’ that agentic AI solutions offer. AI has, as our survey highlights, a significant use case within data extraction, submission preparation and claims triage – all of these are significant time requirements for insurers and brokers today.”

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