Hiscox launches Google Cloud-backed GenAI underwriting model

Global specialist insurer Hiscox has gone live with its Google Cloud-backed generative artificial intelligence (AI) underwriting model for sabotage and terrorism insurance quotes.

Considered the London insurance market’s first underwriting model of its kind, the model was developed as a proof of concept in December 2023 in collaboration with Google Cloud.

It was designed to provide insurance quotes faster and more efficiently than before. It will enable Hiscox’s sabotage and terrorism line of business to significantly reduce the time taken from the submission of a risk through to the quote stage.

By combining Hiscox AI Laboratories (Hailo) with Google Cloud’s generative AI, Hiscox now has the ability to remove manual elements of the underwriting process.

Through this model, “risks that are in scope are assessed using Google Cloud’s Gemini large language model, and the process generates an email for the broker with pricing and other data already completed, ready for underwriter review,” Hiscox explains.

As a result, brokers are provided with an insurance quote in a matter of minutes.

Kate Markham, Hiscox London Market CEO, commented: “We were really excited by the potential shown by the proof of concept, so to see it now making a tangible impact on our business – starting with sabotage and terrorism – is fantastic. The efficiency delivered is testament to the outstanding collaboration between Hiscox and Google Cloud.

“It proves that by bringing teams together and harnessing technology, we can deliver tangible benefits for customers, while freeing up our underwriters from manual tasks and allowing them to focus on more complex risks where human expertise is critical.”

Graham Drury, Head of Financial Services Industry UK, Google Cloud, said: “Through this collaboration we have proven the power of generative AI in transforming complex insurance underwriting processes.

“We continue to work closely with Hiscox to evolve and refine the augmented underwriting model for lead submissions as we look to deliver this same value across other lines of insurance.”

The new underwriting model is now available to all brokers, however the first risk was written with insurance broker WTW.

Jo Holliday, Global Head of Crisis Management, at WTW, stated: “WTW has long recognised the enhanced use of digitisation as critical to the future of the insurance market. By harnessing AI to help streamline processes and deliver much quicker turnaround times from risk submission to quote, we are taking a step forward in the evolution of the digital marketplace, which is great news for our clients.”

Hiscox, alongside Google Cloud, will continue to explore additional capabilities for the model, the insurer concluded, as well as potential applications in other lines of business.

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