The Real AI Challenge for UK Insurers Isn’t What You Think

Artificial intelligence has long been hailed as the silver bullet for insurance: faster claims, sharper underwriting, and slicker customer journeys. But new research from CI&T and Reuters Events suggests that the biggest roadblock isn’t the technology itself—it’s the messy, fragmented data fuelling it.

Nearly three-quarters of underwriters in the UK admit that siloed, unstructured information is the main barrier to unlocking AI’s potential. The algorithms are ready. The industry’s ambition is clear. But without quality data, AI in insurance risks becoming all promise, no payout.

Efficiency First, Personality Later

The research reveals a telling divide in priorities. While personalisation is often touted as the future of customer experience, only 15% of claims leaders see it as the key to satisfaction. Instead, 41% are betting on efficiency, focusing on streamlined processes over bespoke interactions. Another 39% are looking for a blend of digital innovation with the human touch.

The rationale is simple: when claim costs continue to rise, speed and accuracy matter more than curated niceties. Sixty per cent of claims leaders see AI-led efficiency as crucial to absorbing the impact of those rising costs.

Testing the Waters with Generative AI

Generative AI might be the shiny new tool in the box, but UK insurers are approaching it with caution. Most are keeping experiments in the sandbox stage, wary of risks like bias, hallucinations, and data privacy concerns. It’s not hesitation for hesitation’s sake—it’s about ensuring that transformation doesn’t come at the expense of trust.

Proof It Works

For those already investing, the returns are tangible. Mitsui Sumitomo, part of Asia’s largest insurance group, worked with CI&T to overhaul its processes. The result? £800,000 in annual savings and a 54% cut in quotation times. Another insurer in Brazil slashed SME onboarding time by 46% and automated over two million claims, denying 26% of fraud attempts along the way.

The numbers are proof that when insurers get it right, AI isn’t just hype—it’s hard business value.

Data Before the Dazzle

Mike Young, VP of Insurance Industry Growth at CI&T, frames it succinctly: “AI’s success in insurance won’t be determined by how advanced the algorithms are, but by the quality and accessibility of the data that feeds them.”

That message cuts through the noise. Insurers may be seduced by the idea of cutting-edge AI, but it’s the unglamorous task of getting their data house in order that will decide who leads the next era of underwriting.

CI&T’s role in this evolution is not just consultancy—it’s hands-on modernisation. From legacy system overhauls to customer journey redesigns, the company has already helped major insurers turn ambition into measurable results. Central to its approach is CI&T FLOW, an enterprise-grade GenAI platform with governance and privacy safeguards baked in, offering innovation without compromise.

The Bottom Line

The UK insurance industry is standing at a crossroads. The appetite for AI is real, and the technology is within reach. But without solving its data dilemma, the sector risks spinning its wheels. For the insurers that tackle this challenge head-on, the rewards could reshape the market: faster, more accurate decisions, lower costs, and a competitive edge that goes beyond buzzwords.

In the end, the AI revolution in insurance won’t be about who has the flashiest algorithms—it will be about who has the cleanest data.