Briefing: Insurers facing another fight to be heard as UK government launches AI campaign

By Jon Guy

The UK has designs to become an artificial intelligence (AI) powerhouse, with the government this month (January 2025) urging businesses and the public sector to grasp the opportunities that this technology can deliver.

From schools to hospitals, prime minister Sir Keir Starmer is adamant that now is the time for AI to drive the country’s future – hence, on 13 January 2025, the government published its AI Opportunities Action Plan, which was compiled by Matt Clifford following Labour coming into office in July 2024.

This plan is based around three main pillars – laying the foundations for the UK to fully utilise AI, embracing AI in all its guises and building AI talent and capability in the UK.

In line with the publication of the action plan this month, Starmer said: “Artificial intelligence is the defining opportunity of our generation – there is barely an aspect of our society that will remain untouched by this force of change.

“It is our responsibility to make sure that Britain maintains its position as a world leader in AI, even as the competition increases.

“Some countries are going to make AI breakthroughs and export them to the world. Other countries will be left to buy those breakthroughs by importing them. This action plan sets out how Britain will be the former – a plan to make our country an AI superpower.”

Balancing risk and opportunity

Timing is everything.

Starmer’s comments and the publicity around the government’s AI plan came on the same day as the Lloyd’s Market Association launched its report on the issues around cyber accumulation and some of the more unusual risks that are now coming to light.

Andrew Rose, chief security officer at cyber security firm SoSafe, said that while the push to use AI had to be welcomed by the UK, this step also comes with growing concerns around the risks increased adoption poses.

“While we are excited about the UK government’s focus on unlocking the power of AI, we must not forget the increased threat this technology has created,” he explained.

“AI is being deployed by criminals to create sophisticated phishing and social engineering attacks, widening the attack surface. In fact, 79% of cyber professionals identify AI as a significant concern.”

Rose added that it was critical that any public-private partnerships to boost AI rollout must be supplemented with the appropriate security measures.

Political crossroads

Following last July’s general election, the insurance sector will have hoped that the installation of a new government would mean new opportunities for the industry’s voice to resonate in the corridors of Whitehall.

However, in the first six months of the new Labour administration, the government has said it wants to see motor insurance premiums fall, as well as announced a plan for 1.5 million new homes to be built – many of which will be sited on flood plains at a time when extreme weather events and flooding are only increasing.

Now the government is driving the implementation of AI across more parts of the business community at a time when insurers are already concerned at the potential downsides such technology may pose to clients.

On 15 January 2025, brokers were in Westminster to attend the launch of broking trade body Biba’s annual manifesto. But will any attempts by the industry to highlight their concerns over yet another government initiative be likely to fall on deaf ears?