Generative AI, Cloud, SaaS, and modernization are all hot topics. However, what does it all mean for insurance professionals? How can we leverage these technologies to meet customers' evolving expectations? What is the impact of the lightning-fast advances in Generative AI on the industry's workforce?
These questions were addressed by Jamie McDonnell, Jason Chambers, and Sarah Hillier during a recent panel at the Insurtech Insights 2025 conference in London. Chambers, Director of Digital Innovation at Aviva, has transitioned from technical underwriting to leading innovation, focusing on reducing friction and enhancing customer satisfaction through data and technology. Hillier, Chief Architect at Travelers Europe, provided insights from the business side, drawing from her diverse background, including consultancy and leading transformation projects across various industries. The panel was moderated by McDonnell, London Market Lead at Guidewire.
The Role of SaaS as a Catalyst for Insurance Modernization
While cloud technology is well understood, SaaS is becoming more prevalent in core capabilities, and the panelists addressed the challenges and opportunities presented by SaaS models. Hillier advised insurance professionals to collaborate closely with technology support functions and focus on business requirements. She emphasized the importance of modern architecture principles and the value of data in driving business benefits. Chambers highlighted the need to solve real customer problems and focus on dismantling the complexity inherent to every insurance transaction with frictionless experiences and integrated, consistent services, which would help bridge the protection gap.
Hillier highlighted that SaaS provides scale, and frees teams from managing infrastructure and upgrades, allowing more time for the kind of innovation that can maximize business benefits. In terms of costs, SaaS brings flexibility by shifting from Capital Expenditure to Operating Expenditure, allowing for more agile budgeting and resource allocation. McDonnell stressed the importance of the relationship between insurers and SaaS vendors to maximize innovation. To that end, it’s essential to select providers that are customer-focused, committed to R&D, and compliant with regulations like GDPR and DORA.
How Will AI Impact Insurance Workforce Dynamics?
The panelists tackled the implications of Generative AI in the daily lives of insurance workers. Hillier highlighted AI’s potential to simplify the underwriting process and provide underwriters with quick and easy access to customer information, and she stressed the importance of ensuring that the tools implemented are user-friendly for insurance workers.
Recognizing the stringent regulatory pressures that shape the insurance industry, the panelists acknowledged the importance of ensuring that there is always a human in the loop to oversee and monitor AI-driven decision-making processes. Human oversight remains essential to maintain ethical standards, ensure compliance with regulations, and address any potential biases or errors that may arise from automated systems.
The panelists also emphasized the need for insurance workers to upskill and adapt to new technologies. They agreed that the insurance industry needs to be less insular and embrace talent from other sectors to drive innovation, and advised insurance professionals to invest time on mastering AI to stay relevant. “The only thing that's going to be constant over the next few years is change,” said Hillier. “Becoming proficient in AI, almost prompt engineers, would benefit all insurance workers”.
Mitigating The Complexities of Blueprint Two
As the panel delved into the challenges and opportunities surrounding Blueprint Two, McDonnell acknowledged the delays and the high degree of complexity involved in the initiative. These delays have likely hindered innovation within the London Market, as participants face uncertainty and contend with outdated technologies.
However, Blueprint Two holds the promise of ultimately propelling insurance innovation to new heights. Insurers with a vision for modernization and a willingness to invest in cutting-edge technology will be able to do so and ultimately best positioned to capitalise on these advancements.
Strategic Insights for Insurtech Startups
Hillier and Chambers offered valuable advice for insurtech startups looking to engage with insurers. Chambers stressed the importance of understanding the wider trends that are shaping the entire insurance process, as well as focusing on specific customer problems rather than just technology. Customers want consistent, digitalised experiences, and any application of technology that reduces friction and complexity is likely to be a success. On the other hand, Hillier highlighted the need for startups to gain a deep understanding of the internal processes of large insurers, and be able to articulate well how their solutions generate a return on investment and improve customer experience.
In face of accelerating technological advancements, Chambers emphasized the necessity of elevating the industry’s agility standards in response. "Historically, we have tended to focus on upgrades and on pressuring incumbent vendors based on decisions made years ago”, he said. “However, the pace of technology is moving much faster now and we need to have a new, healthy dissatisfaction with the status quo in order to embrace innovation and move this industry far quicker than we are at the moment”.