NIBA / Special Feature
While many of us are using Artificial Intelligence (AI) in our everyday lives, the technology still presents as a great unknown for businesses to navigate. Globally, regulations are being built in an attempt to keep pace, however concerns about implementation, integrity and the potential for misuse abound. Indeed, it’s a key focus for the Australian Prudential Regulation Authority (APRA), who recently raised concerns about the threat posed by companies and their customers using AI platforms – citing the fact that multiple companies are relying on the same service providers as a major risk. For brokers, this creates a quandary: AI is a valuable tool to create business efficiencies, and the reality is that businesses are increasingly needing to use AI to remain competitive. In fact, in our recent research – Ready or Reacting – technology and automation was viewed by 83% of brokers as having a significant impact on the profession over the next 10 years.
The adoption of AI across Australia is moving at pace, says Dr Michael Neary, Managing Director, ANZ Insurance Software, Claims Management and BPS, at DXC Technology. “Australia is often viewed as a country you can learn from, because of its size and the nature of the market, our research shows that 50% of Australian consumers are comfortable with AI monitoring their interactions, and a focus now has to be on those ethical issues – where is my data, how’s my data being dealt with, how is that decision being reached, he says. “In fact, Australia ranks as one the highest placed nations in terms of responsible AI.” And those questions are key – after all, you can’t risk the long term viability and reputation of the business for short term gains, and there’s a risk too that brokers become over-reliant on AI to the detriment of the overall value proposition.
So, how can brokers implement AI into their business while ensuring it’s being used ethically and responsibly, without risking the long-term or diluting the true value? Mark Weaver, International Technology Leader at CFC, says, “Brokers should always start with the use case – what problem is the business solving for their clients. Then assess how AI supports it, where it could fail, how errors might scale, and what controls exist to catch and contain them.” Starting off from that point is critically important, because DXC’s research has shown that if your business has a data breach, chances are you will lose your customers. “This relates to AI but in reality it’s the whole area of data privacy, but the research has shown us that 85% of consumers would switch providers in the event of a data breach.
46 / INSURANCE ADVISER OCTOBER 2025
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