Driven by advancements in technology and opportunities inherent to the hard market, carriers are increasingly investing in tools and data to support underwriting decisions. Digital business models are not new in insurance, but in the complex and specialty space, new digital and data-driven propositions represent a step change. In response, the CUO Committee created a dedicated enhanced underwriting working group, which incited discussion and led to the publication of the LMA’s market-leading report, The Growth of Enhanced Underwriting in the Lloyd’s Market.

A shift in broker remuneration practices led the committee to initiate discussions on the need for clear best practices for underwriters. These discussions culminated in an Old Library event, which tackled the critical questions regarding the remuneration of insurance intermediaries. It also highlighted the legal considerations for underwriters who are presented with an arrangement such as subscription market brokerage. The committee is continuing to monitor this evolving issue.

In 2024, supported by the CUO Committee, the LMA produced the first iteration of a project on artificial intelligence (AI), consisting of a list of 40 loss scenarios across all major product lines. The project analysed the potential exposure of each scenario based on the use of various LMA model cyber clauses. The CUO Committee has since continued its work into AI, exploring the implications arising from potentially insured losses caused by AI systems and analysing each loss scenario in more detail.