ABI and Insurtech UK agree MoU to ‘connect the dots’ between ‘best of technology’

Trade associations the ABI and Insurtech UK have teamed up to agree a Memorandum of Understanding (MoU), to ensure the UK insurance sector spearheads “technology and innovation”.

The MoU, which was signed on 10 July 2024, cemented the trade bodies’ commitment to sharing relevant information and views on the use of technology in the sector – for example, around artificial intelligence, data ethics, operational resilience and open finance – as well as confirmed its intentions around industry-wide collaboration.

The MoU will additionally see the organisations liaise on joint event opportunities.

Hannah Gurga, director general of the ABI, said: “Innovation and harnessing the best of technology is crucial to maintaining our sector’s competitive edge.

“This MoU will bolster our working partnership with Insurtech UK so that we can continue to drive growth in the UK insurance industry to the benefit of our members and their customers.”

Leveraging resources

The ABI represents around 300 insurer members, while Insurtech UK represents more than 100 insurtechs.

Melissa Collett, chief executive of Insurtech UK, added: “We are delighted to have signed this MoU with the ABI, continuing our ongoing working relationship together.

“Technology is clearly at the heart of all insurtech startups. Equally, the desire for greater innovation and collaboration between insurtechs and insurers is a core focus for Insurtech UK, which will help drive up the consumer experience and choice available in the market.

“We look forward to working closely with ABI to leverage our collective resources, to create opportunities for our members and to help deliver innovation to our ecosystems.”

‘Connect the dots’

Industry reaction to the associations’ MoU is positive.

For example, Ralph Tucker, industry development lead for insurance technology at NTT Data UK and Ireland, noted that the MoU “will foster collaboration, mitigate the fragmented approach to innovation, allow insurtechs to scale more efficiently and integrate seamlessly with established insurers”.

He continued: “For the UK to be a leader in insurtech, it needs to connect the dots between innovation and deployment. This partnership is crucial for overcoming barriers in data accessibility and interoperability, which often hinder the development of sophisticated AI-driven solutions.

“By aligning with the ABI, insurtechs can better navigate the complex regulatory landscape, ensuring their innovations meet industry standards and gain quicker approval.

“This is particularly significant for startups aiming to bring disruptive technologies to market without getting bogged down by compliance issues.

“By promoting transparent and fair AI practices, insurtechs can build stronger relationships with customers, ensuring their solutions are not only innovative but also trustworthy.”

Sarvesh Ramachandran, UK country manager at Lemonade, added: “There’s still much to do to accelerate the growth of an innovative insurance sector and the cooperation between the ABI and Insurtech UK is a key part of this.”