# AI for insurance brokers: what UK brokers can automate in 2026

URL: https://yarigai.ai/guides/ai-for-insurance-brokers
Author: Deniz Sancar, founder of Yarigai (https://denizsancar.com)
Publisher: Yarigai, a done-for-you AI agency in London, UK (https://yarigai.ai)
Published: 7 November 2026. Updated: 7 November 2026.

## Short answer
A UK insurance broker can automate seven workflows first in 2026: renewal chasing, quote request intake, document collection, client email drafts, policy wording comparison, claims first notification and Consumer Duty records. A broker checks every comparison and gives every piece of advice. The FCA says it does not plan "to introduce extra regulations for AI", and in October 2026 it said firms using AI "remain responsible for consumer outcomes". In a 2024 Bank of England and FCA survey, 95% of responding insurance firms used AI.

## At a glance
| Workflow | What it does | Tools it connects | What stays human |
|---|---|---|---|
| Renewal chasing | Sends renewal invitations and reminders, chases changes in the client's risk before the renewal date | Acturis, Open GI or SSP, email, SMS | The price, the recommendation, the ENBP check on home and motor |
| Quote request intake | Reads new enquiries, fills the fact-find, lists missing details and asks for them | Website forms, email, broker system | Market choice, demands and needs, advice |
| Document collection | Requests and chases proposal forms, claims histories, surveys and ID, then files them | Email, client portal, document store | Checking the documents, any fraud or sanctions concern |
| Client email drafts | Drafts replies to mid-term adjustments, certificate requests and cover questions | Outlook or Gmail, broker system | Sending anything that describes cover |
| Policy wording comparison | Compares two wordings clause by clause and lists each difference with its clause number | Insurer PDFs, document store | Reading every flagged clause before advising |
| Claims first notification | Takes the first report by web form, email or phone, collects facts and photos, passes it to the insurer | Phone line, web form, insurer portals and APIs | Claims advice, any view on cover, vulnerable customers |
| Consumer Duty records | Logs each AI draft, who approved it and what was sent | Broker system, CRM | Fair value assessments and board sign-off |

The "what stays human" column follows the FCA's October 2026 AI good practice findings and its rules on demands and needs (sources 2 and 6).

## Renewal chasing and quote requests
Renewals and quote requests are the best first builds, because most of the work is collecting the same facts, and the broker system already holds the client record.

### Renewals
A renewal build starts at a window the brokerage sets, for example 60 days before renewal. It sends the client a summary of what is on cover, asks what has changed, and chases until the answers arrive. It then drafts the renewal invitation for the account handler, who checks the terms and the price before anything goes out.

The price stays outside the AI. Since 1 January 2022, the FCA's pricing rules for home and motor insurance say a renewal price should be no greater than the equivalent new business price (ENBP) for a new customer. The insurer's rating and the broker system produce that figure. An AI that writes renewal emails must copy the price from the system, never calculate or round it.

### Quote requests
A quote intake build reads each new enquiry, fills the brokerage's fact-find, asks the client for anything missing, such as turnover or claims history, and opens a draft record in the broker system. The account handler chooses the markets and specifies the client's demands and needs.

### Worked example for renewals
These figures are assumptions, so swap in your own.

1. Assume a brokerage renews 6,000 policies a year and staff spend 15 minutes on each one chasing changes and drafting the invitation.
2. That is 6,000 × 15 = 90,000 minutes, or 1,500 hours a year.
3. Assume the AI drafts and chases halve that time, saving 750 hours.
4. At an assumed staff cost of £20 an hour, 750 hours is £15,000 a year.
5. Model usage at an assumed 5,000 input and 1,000 output tokens per renewal on Claude Sonnet 5.5 ($2 and $10 per million tokens) is about $0.02 a renewal, or $120 for 6,000.

## Document collection and client emails
Document chasing and routine client emails take hours of account handler time and suit a draft-then-approve pattern.

### Document collection
The build requests each document the risk needs, such as a signed proposal form or a claims history, and chases the client until each one arrives. It checks that each file is the right document for the right client and period, then files it to the client record. A person reviews anything unusual, and any fraud or sanctions concern goes straight to compliance.

### Client email drafts
Mid-term adjustments, certificate requests and "am I covered" questions arrive every day. The build drafts a reply from the policy schedule and the client record, and the account handler approves it with one click. A reply that describes what the policy covers always needs a person, because a wrong answer about cover can leave a client uninsured.

## Policy wording comparison with a person checking
AI can compare two policy wordings faster than a person can, but the broker still reads every difference before advising. The FCA's rules on demands and needs (ICOBS 5.2) say that any policy a broker proposes must be consistent with the customer's insurance demands and needs. An AI comparison is an input to that judgement, not the judgement.

A comparison build takes the expiring wording and the proposed one, lines up each section and lists every difference in cover, exclusions, conditions, limits and excesses, with clause numbers in both documents. It marks clauses it could not match. The broker opens each flagged clause in the original PDF before writing the recommendation.

Model usage is small. Two wordings of about 30,000 tokens each (an assumption) cost about $0.12 to read on Claude Sonnet 5.5 at $2 per million input tokens, and a 3,000-token comparison costs $0.03 at $10 per million output tokens. One comparison costs about $0.15. The [custom LLM vs RAG guide](/guides/custom-llm-vs-rag) explains how a tool searches a brokerage's own documents.

## Claims first notification and broker software
First notification of loss is a fact-gathering job, so AI can take it at any hour and leave every claims decision to people.

The build takes the first report by web form, email or phone. It asks what happened, when and where, collects photos, checks the policy number and passes the notification to the insurer by portal, email or API. It then tells the client what happens next. Anything about whether the claim is covered, and any sign that the client is in vulnerable circumstances, goes to a person.

### Which broker systems an AI build works with
- **Acturis.** Insurance Age reported on 13 December 2024 that Aviva had become the first insurer to build a claims API for Acturis. It sends claim records and updates from Aviva's claims system into the broker's Acturis system, which "should minimise the need for brokers to manually key in claims data".
- **Open GI.** Insurance Age reported on 30 September 2024 that Open GI had struck a deal with OpenDialog so its brokers can build generative AI chatbots through Open GI's policy administration platforms.
- **SSP.** Confirm API access with SSP before a build is scoped. Where no open API exists, a build can start from the broker system's email notifications and exports.

## What the FCA says about AI and the Consumer Duty
The FCA has written no AI-specific rules for brokers, but it holds firms responsible for every outcome an AI tool touches. Four FCA documents set out the position, alongside the pricing rules above.

- **AI and the FCA, our approach** (first published 8 September 2025, updated 2 October 2026). "We do not plan to introduce extra regulations for AI. Instead, we'll rely on existing frameworks, which mitigate many of the risks associated with AI." It says the Senior Managers and Certification Regime emphasises accountability for senior managers and is relevant to the safe use of AI.
- **AI in financial services, good practice and areas for improvement** (19 October 2026). "Where firms are deploying AI-supported tools, they remain responsible for consumer outcomes." It warns that "Effective oversight is not simply about reviewing AI outputs" and that "Human review may mask weaknesses in the model". It says "Firms can outsource AI services, but remain responsible for them", and calls for auditable records of AI interactions, decisions and rationale.
- **The Mills Review** (6 July 2026). It found the existing framework, including the Consumer Duty, "remains sound". It also said "it will not be enough to say that a person remains 'in the loop'". Firms need to be clear what the person is expected to do, what information they receive and when they can intervene. Firms responding to its engagement paper expected "significant effects on intermediary markets, with disruption to brokers."
- **The Consumer Duty** (PS22/9). Its four outcomes cover products and services, price and value, consumer understanding and consumer support. It applied from 31 July 2023 to products open to sale or renewal, and from 31 July 2024 to closed products.

### What this means for a broker's AI build
- Log every draft, the model version, who approved it and what was sent, so a complaint can be investigated.
- Give the approver the source documents next to the AI's draft, so the check is real.
- Keep a person on every recommendation, every statement about cover and every claims decision.
- Test client emails with different customer groups, including customers in vulnerable circumstances.

### Data protection
Claims files often hold health and injury details, which UK GDPR treats as special category data. The ICO's "Guidance on AI and data protection" covers data protection impact assessments, lawfulness and transparency, and the ICO says it is under review after the Data (Use and Access) Act. Client data should only go to AI providers on paid tiers whose terms keep it out of model training.

## What AI costs an insurance broker
A single automation, such as renewal chasing, costs from £1,500 to build on one London agency's 2026 price list, and an invoice extraction workflow from £4,500, plus monthly fees. The table uses Softomate's list, updated 1 October 2026.

| Build | Setup from | Monthly from |
|---|---|---|
| Simple automation, for example renewal reminders | £1,500 | £99 |
| Invoice extraction and workflow, the closest listed item to document collection | £4,500 | £299 |
| Quotation automation (first phase) | £5,000 | £399 |
| Knowledge assistant over the brokerage's documents | £6,000 | £399 |
| Controlled AI agent | £6,500 | £399 |

These are one agency's "from" prices before VAT, with platforms and usage billed on top. No independent survey of UK AI build prices exists. Model usage is the smallest line. At about $0.15 a wording comparison on Claude Sonnet 5.5, 200 comparisons a month cost about $30.

The guides to [AI agent costs](/guides/ai-agent-cost) and [AI chatbot costs in the UK](/guides/ai-chatbot-cost-uk) compare more price lists and running costs.

## How Yarigai builds this for insurance brokers
Yarigai is a done-for-you AI agency in London. It builds AI agents, document reading and filing, inbox triage, support agents that answer from a client's own documents and internal tools that replace spreadsheets. For a brokerage, it builds them inside the firm's own email, document store and broker system. The brokerage owns the code, the data and the accounts from day one.

A project starts with a free 30-minute scope call on Google Meet, and the brokerage keeps the notes whether it hires Yarigai or not. A blueprint of about a week, credited to the build, sets out a written plan, a clickable prototype, the monthly running cost, a fixed price and the payback maths. The build takes 2 to 6 weeks in the firm's accounts with a demo of working software every week. A single workflow, such as renewal chasing, can go live in about two weeks.

A person approves anything that sends money, emails a customer or deletes data. AI and hosting bills are paid by the brokerage at cost, and the monthly running cost is on the quote. Yarigai's [guarantee](/guarantee) is one sentence: "If the build isn't profitable for you, we won't build it."

Yarigai has no published insurance broker case study. Its [document and operations work](/services/ai-operations) is described on the services pages, and the software it built and runs is listed on the [about page](/about).

## Common questions
### Does the FCA allow insurance brokers to use AI?
Yes. The FCA says it does not plan to introduce extra regulations for AI and relies on existing frameworks such as the Consumer Duty and the Senior Managers and Certification Regime. Its October 2026 good practice findings say firms using AI tools remain responsible for consumer outcomes.

### Can AI compare insurance policy wordings?
Yes, as a first pass. A build can list every difference in cover, exclusions, limits and excesses with clause numbers, for about $0.15 a comparison on Claude Sonnet 5.5. The broker reads each flagged clause, because ICOBS 5.2 requires any proposed policy to be consistent with the customer's demands and needs.

### Can AI handle first notification of loss?
It can take the first report, collect facts and photos, check the policy number and pass the notification to the insurer. Decisions on cover and anything involving a customer in vulnerable circumstances stay with people.

### Does AI work with Acturis, Open GI and SSP?
Acturis already takes API feeds from insurers, such as Aviva's claims API, and Open GI offers generative AI chatbots through its policy administration platforms. For SSP, confirm API access with the vendor. Where no open API exists, a build can start from the broker system's email notifications.

### How does the Consumer Duty affect AI in a brokerage?
An AI that drafts client emails touches the Duty's consumer understanding outcome, so log each draft, the approver and what was sent. The FCA's Mills Review says naming a person "in the loop" is not enough unless their role and powers are clear.

### How much does AI cost for a small insurance broker?
On one London agency's October 2026 list, a single automation costs from £1,500 plus £99 a month, and an invoice extraction workflow from £4,500 plus £299 a month. Model usage is small, at about $0.02 per renewal draft on Claude Sonnet 5.5.

## Sources
1. [AI and the FCA: our approach](https://www.fca.org.uk/firms/innovation/ai-approach), Financial Conduct Authority, first published 8 September 2025, updated 2 October 2026.
2. [AI in financial services: good practice and areas for improvement](https://www.fca.org.uk/publications/good-poor-practice/ai-financial-services), Financial Conduct Authority, published 19 October 2026.
3. [The Mills Review: AI and the future of retail financial services](https://www.fca.org.uk/publication/corporate/the-mills-review.pdf), Financial Conduct Authority, published 6 July 2026.
4. [PS22/9: A new Consumer Duty](https://www.fca.org.uk/publications/policy-statements/ps22-9-new-consumer-duty), Financial Conduct Authority, published 27 July 2022, updated 3 December 2025.
5. [PS21/5: General insurance pricing practices market study, feedback to CP20/19 and final rules](https://www.fca.org.uk/publication/policy/ps21-5.pdf), Financial Conduct Authority, published May 2021.
6. [ICOBS 5.2 Demands and needs](https://handbook.fca.org.uk/handbook/ICOBS/5/2.html), FCA Handbook, checked 7 November 2026.
7. [Artificial intelligence in UK financial services 2024](https://www.bankofengland.co.uk/report/2024/artificial-intelligence-in-uk-financial-services-2024), Bank of England and Financial Conduct Authority, published 21 November 2024.
8. [Aviva claims Acturis API first with broker roll out planned for Q1 2025](https://www.insuranceage.co.uk/insurer/7955860/aviva-claims-acturis-api-first-with-broker-roll-out-planned-for-q1-2025), Insurance Age, published 13 December 2024.
9. [Open GI strikes deal to provide brokers with gen AI chatbots](https://insuranceage.co.uk/technology/7955494/open-gi-strikes-deal-to-provide-brokers-with-gen-ai-chatbots), Insurance Age, published 30 September 2024.
10. [Guidance on AI and data protection](https://ico.org.uk/for-organisations/uk-gdpr-guidance-and-resources/artificial-intelligence/guidance-on-ai-and-data-protection/), Information Commissioner's Office, last updated 15 March 2023, checked 7 November 2026.
11. [AI Automation Pricing for UK Businesses: What Every Service Costs and What ROI to Expect in 2026](https://www.softomatesolutions.com/blog/ai-automation-pricing-uk-businesses-2026/), Softomate, updated 1 October 2026.
12. [Claude pricing](https://claude.com/pricing), Anthropic, checked 7 November 2026.