Issue #37 | 1 March 2024

Stay in the know on the stories shaping the future of insurance, with the weekly lowdown brought to you by Genasys.

This week in The Lowdown: the ABI launches a new guide to help insurance firms use artificial intelligence responsibly; the ABI has also introduced a comprehensive roadmap consisting of 10 actionable steps to alleviate insurance costs for all drivers; Azets Barometer January 2024 survey reveals a concerning ‘blind spot’ in the cyber security readiness of UK businesses; and persistent focus on the financial services and healthcare sectors for data breaches, with potential shift within the technology sector.

ABI launches guide for responsible AI usage in insurance industry?

The Association of British Insurers (ABI) has released a pioneering guide aimed at promoting responsible innovation in artificial intelligence (AI) within the insurance and long-term savings sector.

Developed collaboratively by the ABI’s AI Working Group, the guide offers practical insights and best practices to assist firms in aligning their AI strategies with the UK government’s five principles of AI regulation: accountability, transparency, fairness, safety, contestability and redress. Emphasising consumer interests, the guide addresses key considerations such as governance, inclusivity, regulatory compliance and maintaining control over AI systems.

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Insurers unveil measures to address rising motor insurance costs

The Association of British Insurers (ABI) has announced a series of initiatives aimed at tackling the escalating costs of motor insurance, which saw premiums rise by 25% in 2023.

Working closely with its Consumer Advisory Group, the ABI plans to conduct research into social policies targeting low-income households to manage insurance expenses. Additionally, the ABI has introduced a comprehensive roadmap consisting of 10 actionable steps to alleviate insurance costs for all drivers. These steps include initiatives such as enhancing transparency in vehicle insurance costs, implementing graduate drivers licensing and advocating for safety-focused vehicle technology.

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Cyber security blind spot threatens UK businesses

The Azets Barometer January 2024 survey reveals a concerning ‘blind spot’ in the cyber security readiness of UK businesses, The CFO reports. Despite a rising global cyber threat landscape, only one in five businesses reported experiencing a cyber security incident in the past year, suggesting a potential lack of awareness or underestimation of cyber risks.

Larger companies, particularly upper medium-sized businesses, showed a higher rate of not reporting any incidents, potentially indicating a false sense of security or underreporting due to substantial investments in preventative measures. Paul Kelly, UK Head of Cyber Services at Azets, highlights the discrepancy between reported incident rates and the estimated frequency of cyber-attacks, emphasising the need for businesses to invest in cyber security education and technical expertise to mitigate potential financial and reputations damages.

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Cyber breaches concentrated in financial services and healthcare sectors

Despite a persistent focus on the financial services and healthcare sectors, a report recently released by Kroll suggests a potential shift in hacker tactics, particularly within the technology sector.

Financial and healthcare breaches still dominate, comprising 47% of all breaches in the past year, with financial breaches surging to 27% from 19% the previous year, while healthcare breaches slightly decreased to 20%, Consultancy.uk reports. The technology sector saw a notable 40% increase in breaches, suggesting evolving tactics for the year ahead.

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