New report reveals where insurance companies stand in the ecosystem
A new report from the global financial services technology provider FIS has revealed how UK financial service firms are faring in comparison to their US counterparts when it comes to innovation, utilising generative AI and investing in customer service.
The study of 800 UK and US financial services firms’ executives highlighted that 58% of UK financial services company executives are increasing investment in generative AI, compared to 45% of US executives. Meanwhile, 63% of insurance executives are investing in AI and machine learning compared to 50% of US insurance executives.
FIS’ report also revealed that UK insurers are investing more than their US peers when it comes to bettering customer experience. Key highlights from the research showed that:
• 81% of UK insurance company executives say they are investing to ensure customers have access to competitive interest rates and fees, compared to 29% in the US
• 69% of those surveyed in the UK are also investing in delivering incentives for prospective customers, compared to 42% in the US
The study also found that UK-based financial services executives are investing in AI at a faster pace than those in the US, with the marked exception of UK banks which it said are at risk of falling behind.
Commenting on the research Himal Makwana, head of platforms, strategy, operations & venture at FIS said: “Across all negative market conditions respondents were presented with, UK financial services executives said they were less severely impacted than their counterparts in the US.
“This could be in part because the UK financial services sector is nimbler and more resilient to shocks, particularly given the current government’s efforts to stabilize conditions.”
He added that with consumers voicing their concern over the state of the economy, particularly around inflation and interest rates, firms are exploring how they can build trust with existing and potential new clients.
He added: “Many of the executives we surveyed plan to do so with future-looking technology, such as embeddable financial services using APIs, blockchain and generative AI, to deliver advanced customer experiences.”
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