The implementation of the Consumer Duty regulation by the Financial Conduct Authority (FCA) in 2023 means insurance firms now need to monitor and improve customer outcomes actively, rather than simply ensuring compliance with processes. While this means a much more strategic and customer-centric approach is emerging in insurance companies, it may be some time before this effort filters into noticeable change from the customer perspective. In fact, only two insurance firms made the top 100 of our UK index this year. Additional hurdles for the sector to overcome include rising premiums and delivering genuine, seamless omnichannel experiences. In many cases, AI has been engaged to support these needs, but overall, AI in insurance is still in a phase of refinement and expansion.

"The insurance sector continues to embed further customer-centricity influenced by the Consumer Duty and as such we have seen some stronger performances from many firms in this year's wave. However, it is those who continue to invest in technology at the heart of their customer experience who have seen the strongest CEE results, and AI presents opportunity to drive more distinction and a lower cost to serve."

John Middlemiss, Partner
Customer Strategy, Financial Services