Hiscox Limited (GB:HSX), in partnership with Alphabet’s (NASDAQ:GOOGL) Google, has developed an artificial intelligence (AI) model to automate its underwriting process for specialist risks. This development is the first of its type for London’s insurance market. As reported by the Financial Times, the company announced the first trial of its AI model as a lead underwriter in a property sabotage and terrorism policy.
Hiscox provides specialty insurance and reinsurance services, specializing in a wide range of risks. The company has a presence across 14 countries worldwide.
Leveraging AI
The new AI platform perfectly combines Google’s AI expertise and Hiscox’s digital technologies. This innovative system is expected to streamline and automate the entire underwriting process, from receiving email submissions to generating a quote. The AI tool will also compose an email at the end summarizing the coverage terms.
Hiscox is not considering completely removing the underwriter’s role at this moment. The company’s underwriter will review the summary before sending a response. The company is set to implement this tool next year and expects it to significantly reduce the time and employee hours involved in drafting a quote.
In November, Hiscox released its Q3 trading update. It reported a 6.8% constant currency growth in its insurance contract written premiums compared to Q3 2022. Hiscox Europe remains the fastest-growing business within the retail segment, achieving a growth rate of 11.1%.
The company will publish its fourth-quarter results on February 26, 2024.
Is Hiscox a Good Buy?
Year-to-date, Hiscox stock has been trading down by 2.28%.
According to TipRanks analyst consensus, HSX stock has received a Moderate Buy rating based on two Buy and four Hold recommendations. The Hiscox share price target is 1,290.25p, which is 23.4% above the current trading levels.
