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 new Consumer Duty regulation has encouraged good outcomes for customers, yet it could take time before changes are noticed. Meanwhile, AI is becoming firmly embedded, particularly in back-end operations to support claims decision making.
This year marks the 15th anniversary of our Customer Experience Excellence (CEE) research in the UK. Building on last year's study, “Say hello to your new AI colleague”, this report examines the transformative role of digital and AI technologies in reshaping customer experience. Explore how these technologies can be designed to connect emotionally with customers, build trust, and create a new era of cost-effective, AI-enabled CX.
