038: AI and Automation for MGAs: Why Oversight and Integration Matter with Charlie Blackburn of Azur Technology

So just a couple more points on AI.

So one, again, we plan one, it's a fantastic enabler, number one, which I think you've articulated very well.

Two, always going to be complementary to sort of human interaction, you know, or do you see a reduction, a general reduction in sort of FTE in the market?

that's a very valid concern.

You can see that.

And there's data which causes some concerns, you know, whether the graduate numbers are tied to, no one really knows at this point.

However, I would say if I'm a young person joining an MGA, you know, with a good brain and a good education and I have access to incredible knowledge, I would be super excited.

Look at the growth figures and you know these numbers better than me, whether it's the US market, UK market, MGAs are growing faster than the underlying market, twice the rate I believe.

That says if you're a young person in an MGA, it's a pretty exciting place to

be.

No, I don't disagree.

So, final on AI and then we'll move on.

The regulatory environment, okay.

And there's a lot of conversation around where the FCA is around AI.

You know, we're aware as an association, we obviously have a great relationship.

They've got a couple of projects sort of around about AI and obviously with the customer outcome firmly as the objective on that bit.

Do you have any concerns around that oversight? Do you think the AI industry itself is running too hot for the regulator to catch up? I'd be really interested in your own assessment of where that oversight and governance is currently.

Yeah, there's two questions in there.

One I'm a bit more familiar with than the other one.

But our clients obviously ask us and require of us to demonstrate how they're going to satisfy their capacity providers in terms of oversight, governance, you know, whether that's controls or AI.

So we would expect that.

What we're seeing, and I think some of your own research and some of the podcasts you've done show the quality of underwriting is going up, which is to be expected.

Now, if you've got to provide data, prove its accuracy, move towards real time, because that really shows controls, we would say that isn't something to be concerned about.

Yes, we are moving into a new technology era for MJs and we can talk a little bit about that if you want.

But we would say if you're doing real time data to your carrier, you've probably got a lot of automation in there.