I’m thrilled to sit down with Simon Glairy, a leading expert in insurance and Insurtech, whose deep knowledge of risk management and AI-driven risk assessment has made him a trusted voice in the industry. Today, we’ll explore the transformative potential of artificial intelligence in the UK insurance market, focusing on how it’s reshaping broker-client dynamics, the growing digital expectations of small and medium-sized enterprises (SMEs), and the risks for brokers who fail to adapt to this rapidly evolving landscape.
How do you think insurance brokers are perceiving the potential impact of AI on their business over the next few years?
I believe many brokers are still in the early stages of understanding AI’s potential to transform their industry. While there’s some awareness, the urgency hasn’t fully sunk in for most. The numbers speak for themselves—only 5.2% of brokers see AI as their biggest threat, according to recent surveys. This suggests a gap in recognizing how AI could redefine client expectations and competitive dynamics, especially as technology continues to advance at a breakneck pace.
What do you think explains the low percentage of brokers who view AI as a major threat compared to other challenges like competition from peers or direct insurers?
It’s likely a matter of familiarity. Brokers are used to tangible threats like losing clients to other brokers or direct insurers—those are challenges they’ve faced for decades. AI, on the other hand, feels abstract or futuristic to many. It’s not yet a daily reality for most of them, so it’s easier to prioritize more immediate concerns. But this underestimation could be a costly oversight as AI’s influence grows.
How comfortable are SMEs with using AI to evaluate their insurance needs, and what’s driving this trend?
SMEs are surprisingly open to AI, with many expressing comfort in having it assess their needs and suggest coverage options. This comes from a broader shift toward digital tools that offer speed and personalization. SMEs, especially younger or tech-savvy ones, are used to seamless experiences in other areas of their business, like e-commerce or finance. They’re starting to expect the same efficiency in insurance, which is pushing their interest in AI-driven solutions.
How does the growing interest of SMEs in digital tools compare to the current mindset of brokers?
There’s a significant disconnect. While SMEs are eager for tech-driven solutions, brokers are lagging behind. Only 5.9% of brokers are currently using AI tools for policy recommendations, and a staggering 78.6% have no plans to adopt them. This gap between client expectations and broker readiness could create real friction, especially as SMEs start looking for providers who can meet their digital demands.
What do you think is holding brokers back from adopting AI tools at a faster rate?
Several factors are at play. First, there’s the cost—implementing AI isn’t cheap, and many brokers, especially smaller ones, might not have the budget for it. Second, there’s a knowledge gap. Understanding how to integrate AI into existing workflows requires expertise that many firms lack. Finally, there’s a cultural resistance—some brokers may feel that personal relationships and human judgment can’t be replaced by technology, even if clients are pushing for it.
Looking back at past disruptions like direct insurers in the 1990s and online comparison sites in the 2000s, how does AI’s potential impact compare?
AI has the potential to be even more disruptive than those earlier shifts. Direct insurers and comparison sites changed how insurance was distributed, but AI goes deeper—it can fundamentally alter how risks are assessed, policies are tailored, and decisions are made. Unlike past changes, AI’s impact could be accelerated by today’s digital landscape, where both clients and competitors are more tech-ready than ever before.
What are the risks for brokers who don’t adapt to AI in the next few years?
The risks are substantial. Within just three to five years, we could see insurers or tech-savvy intermediaries who embrace AI start capturing significant market share from traditional brokers. Those who don’t adapt might face shrinking margins, losing clients to more responsive providers, and ultimately, a decline in relevance. If trends hold, some brokers could find themselves sidelined within a decade.
What is your forecast for the role of AI in the insurance industry over the next decade?
I see AI becoming a cornerstone of the insurance industry within the next ten years. It will likely redefine everything from underwriting to customer service, making processes faster, more accurate, and more personalized. For brokers, the choice will be clear—either integrate AI to enhance their value proposition or risk being outpaced by competitors who do. The timeline for this shift is shorter than many expect, and the stakes couldn’t be higher.
