Lloyd's, in collaboration with the University of Surrey, has published two reports that explore how artificial intelligence is affecting the insurance industry.

“Taking control: Artificial intelligence and insurance” analyses the associated risks of AI implementation as well as the potential for AI to help insurers improve their operations and develop new products. The report identifies four risks areas for AI: trust and transparency, ethics, security, and safety. It highlights that as artificial intelligence systems become more complex, cyber breaches are likely to have an even greater impact. The report also explores new business opportunities for insurers from developing new products for companies using the AI to applying the technology to improve insurance processes and deliver better value.

Building on this, “Taking control: Robots and risk” investigates the impact of “collaborative robots” (or cobots) on the economy, and the subsequent risks implications for the insurance industry. This report explores the potential of robotics to significantly change the risk landscape in many parts of the economy, including manufacturing, agriculture, healthcare, and retail. It also explores the opportunity for insurers to collaborate with clients as data from cobots will provide a much greater understanding of risk and offer opportunities for improved risks and pricing models.