The London and International Insurance Brokers’ Association believes that trust, personal relationships and human judgement will remain core elements of the London market’s ability to trade successfully despite the transformational impact of AI and data availability on risk assessment and placement.

LIIBA published its views in a report entitled, The Trust Imperative: How digital trading can revolutionise client outcomes but why humans must stay in control. It accepts that AI will be central to driving future placement and claims processes, but questions whether firms will empower AI to make independent decisions that might impact a firm’s reputation and client relationships.

It also suggested that AI will change the role of a broker in the London market and details how the increasing ability to deliver real-time risk analysis may move the market from annual renewal cycles towards more continual risk management engagements.

Christopher Croft, chief executive of LIIBA, said: “Digital trading is talked about constantly, but too often the debate starts with the technology rather than with the people who actually trade. We wanted to turn that around and ask brokers, including those who will be trading in this market for decades to come, what a genuinely digital future should look like.

“What came through particularly strongly is that technology cannot be considered separately from trust. Reputation and relationships have underpinned this market for centuries and our research suggests they will remain fundamental to the way business is done, irrespective of how sophisticated the technology becomes.

He added: “The question for the digital trader should not be what they can do for technology, but what technology can do for them. If we get that relationship right, we have an opportunity to combine the qualities that have made London successful, expertise, relationships, judgement and innovation with technology capable of providing information at a speed and scale we have never previously had.”